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Despair in Once-Proud Argentina
After Economic Collapse, Deep Poverty Makes Dignity a Casualty
http://www.washingtonpost.com/wp-dyn/articles/A47822-2002Aug5.html
By Anthony Faiola
Washington Post Foreign Service
Tuesday, August 6, 2002; Page A01
ROSARIO, Argentina -- Word spread fast through the vast urban slums ringing Rosario. There was food on the freeway -- and it was still alive.
A cattle truck had overturned near this rusting industrial city, spilling 22 head of prime Angus beef across the wind-swept highway. Some were dead. Most were injured. A few were fine.
A mob moved out from Las Flores, a shantytown of trash heaps and metal shacks boiling over with refugees from the financial collapse of what was once Latin America's wealthiest nation. Within minutes, 600 hungry residents arrived on the scene, wielding machetes and carving knives. Suddenly, according to accounts from some of those present on that March day, a cry went up.
"Kill the cows!" someone yelled. "Take what you can!"
Cattle company workers attempting a salvage operation backed off. And the slaughter began. The scent of blood, death and fresh meat filled the highway. Cows bellowed as they were sloppily diced by groups of men, women and children. Fights broke out for pieces of flesh in bloody tugs of war.
"I looked around at people dragging off cow legs, heads and organs, and I couldn't believe my eyes," said Alberto Banrel, 43, who worked on construction jobs until last January, when the bottom fell out of the economy after Argentina suffered the world's largest debt default ever and a massive currency devaluation.
"And yet there I was, with my own bloody knife and piece of meat," Banrel said. "I felt like we had become a pack of wild animals . . . like piranhas on the Discovery Channel. Our situation has turned us into this."
The desolation of that day, neighbor vs. neighbor over hunks of meat, suggested how profoundly the collapse has altered Argentina. Traditionally proud, Argentines have begun to despair. Talk today is of vanished dignity, of a nation diminished in ways not previously imaginable.
Argentines have a legacy of chaos and division. In search of their "workers' paradise," Juan and Eva Peron declared war on the rich. During the "dirty war" of the 1970s, military rulers arrested tens of thousands of people, 15,000 of whom never resurfaced. And when then-President Carlos Menem touted New Capitalism in the 1990s, the rich got richer -- many illegally -- while the poor got poorer.
Yet some things here never really changed. Until last year, Argentines were part of the richest, best-educated and most cultured nation in Latin America. Luciano Pavarotti still performed at the Teatro Colon. Buenos Aires cafe society thrived, with intellectuals debating passages from Jorge Luis Borges over croissants and espresso. The poor here lived with more dignity than their equals anywhere else in the region. Argentina was, as the Argentines liked to say, very civilized.
Not anymore.
Beatriz Orresta, 20, holds her malnourished son, in Rio Chico. She had been feeding her children soup made with the dried bones of a dead cow her husband had found. (Silvina Frydlewsky for The Post)
Argentines have watched, horrified, as the meltdown dissolved more than their pocketbooks. Even the rich have been affected in their own way. The tragedy has struck hardest, however, among the middle class, the urban poor and the dirt farmers. Their parts of this once-proud society appear to have collapsed -- a cave-in so complete as to leave Argentines inhabiting a barely recognizable landscape.
With government statistics showing 11,200 people a day falling into poverty -- earning less than $3 daily -- Buenos Aires, a city once compared to Paris, has become the dominion of scavengers and thieves at night. Newly impoverished homeless people emerge from abandoned buildings and rail cars, rummaging through trash in declining middle- and upper-class neighborhoods. People from the disappearing middle class, such as Vicente Pitasi, 60 and jobless, have turned to pawn shops to sell their wedding rings.
"I have seen a lot happen in Argentina in my day, but I never lost hope until now," Pitasi said. "There is nothing left here, not even our pride."
Wages Fall, Prices Rise
Late last month, on the eve of the 50th anniversary of Eva Peron's death, thieves swiped the head of a new statue of her. Nothing, really, is sacred here anymore. Ads by concerned citizens appear on television, asking Argentines to look inward at a culture of tax evasion, incivility and corruption. But nobody seems to be listening.
Food manufacturers and grocery stores are raising prices even as earning power has taken a historic tumble. A large factor in both the price rises and the slump in real wages is a 70 percent devaluation of the peso over the last six months. But the price of flour has soared 166 percent, canned tomatoes 118 percent -- even though both are local products that have had little real increases in production costs.
Severe hunger and malnutrition have emerged in the rural interior -- something almost never seen in a country famous for great slabs of beef and undulating fields of wheat. In search of someone to blame, Argentines have attacked the homes of local politicians and foreign banks. Many of the banks have installed steel walls and armed guards around branch offices, and replaced glass windows decorated with ads portraying happy clients from another era.
Economists and politicians differ on the causes of the brutal crisis. Some experts blame globalization and faulty policies imposed by the International Monetary Fund. But just as many blame the Argentine government for runaway spending and systematic corruption. The one thing everyone agrees on, however, is that there is no easy fix.
Statistically, it is easy to see why. Before 1999, when this country of 36 million inhabitants slipped into recession, Argentina's per capita income was $8,909 -- double Mexico's and three times that of Poland. Today, per capita income has sunk to $2,500, roughly on a par with Jamaica and Belarus.
The economy is projected to shrink by 15 percent this year, putting the decline at 21 percent since 1999. In the Great Depression years of 1930-33, the Argentine economy shrank by 14 percent.
What had been a snowball of poverty and unemployment has turned into an avalanche since January's default and devaluation. A record number of Argentines, more than half, live below the official poverty line. More than one in five no longer have jobs.
"We've had our highs and lows, but in statistical and human terms, this nation has never faced anything like this," said Artemio Lopez, an economist with Equis Research. "Our economic problems of the past pale to what we're going through now. It's like the nation is dissolving."
The Suffering Middle Class
Every Argentine, no matter the social class, has a crisis story. Amalia Lacroze de Fortabat, 80, one of the country's richest women, was forced to offer up paintings by Gauguin, Degas, Miro and Matisse at a Sotheby's auction in May. For many of Argentina's well-to-do, the sale was the ultimate humbler, a symbol of decline in international stature.
Those suffering most, however, are the ones who had less to begin with.
On the morning of her 59th birthday, Norma Gonzalez woke up in her middle-class Buenos Aires home, kissed her husband on the cheek and caught a bus to the bank. There, before a stunned teller, the portly redhead, known by her family and friends mostly for her fiery temper and homemade meat pies, doused herself with rubbing alcohol, lit a match and set herself ablaze.
That was in April. Today, Rodolfo Gonzalez, 61, her husband, keeps a daily vigil at the burn center where his wife is still receiving skin grafts on the 40 percent of her body that sustained third-degree burns. She had no previous record of mental illness, according to her family and doctors, and has spoken only once about that morning.
"She just looked up at me from her hospital bed and said, 'I felt so helpless, I just couldn't take it anymore,' " Gonzalez said. "I can't understand what she did. It just wasn't Norma. But I suppose I can understand what drove her to it. It's this country. We're all going crazy."
Argentina long had the largest middle class, proportionally, in Latin America, and one of the continent's most equitable distributions of wealth. Much of that changed over the last decade as millions of middle managers, salaried factory workers and state employees lost their jobs during the sell-off of state-run industries and the collapse of local companies flooded by cheap imports.
Initially, Rodolfo Gonzalez was one of the lucky ones. An engineer for the state power company, he survived the early rounds of layoffs in the early 1990s when the company was sold to a Spanish utility giant. His luck changed when the company forced him out in a round of early retirements in 2000.
He was 59 and had worked for the same company for 38 years. Yet he landed a part-time job, and with his severance pay safely in the bank, he and his wife thought they could bridge the gap until Gonzalez became eligible for social security in 2004.
Then came "El Corralito."
Literally translated, that means "the little corral." But there is nothing little about it. On Dec. 1, Domingo Cavallo, then the economy minister, froze bank accounts in an attempt to stem a flood of panicked depositors pulling out cash.
Most banks here are subsidiaries of major U.S. and European financial giants that arrived with promises of providing stability and safety to the local banking system. But many Argentines who did not get their money out in time -- more than 7 million, mostly middle-class depositors, did not -- faced a bitter reality: Their life savings in those institutions, despite names such as Citibank and BankBoston, were practically wiped out.
Virtually all had kept their savings in U.S. dollar-denominated accounts. But when the government devalued the peso, it gave troubled banks the right to convert those dollar deposits into pesos. So the Gonzalez family's $42,000 nest egg, now converted into pesos, is worth less than $11,600.
As the family had trouble covering basic costs, Norma Gonzalez would go to the bank almost every week to argue with tellers and demand to see a manager, who would never appear. As prices rose and the couple could not draw on their savings, their lifestyle suffered. First went shows in the Buenos Aires theater district and dinners on Saturday night with friends. Then, in March, they cut cable TV.
Around the same time, the Gonzalezes' daughter, Paula, 30, lost her convenience store. Separated and with two children, she turned to her parents for support.
The Gonzalezes had been planning for 18 months to take Norma's dream vacation, to Chicago to visit a childhood friend. After the trip was shelved as too expensive, she seemed to break.
"I can't explain it, and maybe I never will be able to," Rodolfo Gonzalez said. He added: "But maybe you can start to figure out why. You have to wonder: Is all this really happening? Are our politicians so corrupt? Are we now really so poor? Have the banks really stolen our money? And the answers are yes, yes, yes and yes."
Scavenging Urban Trash
"There is not enough trash to go around for everyone," said Banrel, one of the participants in the cattle massacre. Rail-thin, he normally passes his days combing the garbage-strewn roads around the Las Flores slums in Rosario, a city of 1.3 million residents 200 miles northwest of Buenos Aires and long known as "the Chicago of Argentina."
If Banrel finds enough discarded plastic bottles and aluminum cans -- about 300 -- he can make about $3 a day. But the pickings are slim because competition is fierce. The misery villages, as shantytowns such as Las Flores are called, are becoming overcrowded with the arrival of people fleeing desperate rural areas where starvation has set in. About 150 new families arrive each month, according to Roman Catholic Church authorities.
With more people in the slums, there are fewer plastic bottles to go around. Banrel said he was getting desperate that day when he joined the mob on the highway.
His family of three -- his wife is pregnant with their second child -- had been surviving on a bowl of watery soup and a piece of bread each day. He earned at least $40 to $60 a week last year working construction. With that gone, and with food getting more expensive, he said, "You can't miss an opportunity, not around here."
"Am I proud of what we did?" he added. "No, of course not. Would I do it again? Yes, of course. You start to live by different rules."
Reality of Rural Hunger
For some rural families, the crisis has gone further. It has generated something rarely seen in Argentina: hunger. In the province of Tucuman, an agricultural zone of 1.3 million people, health workers say cases of malnutrition have risen 20 percent to 30 percent over the previous year.
"I wish they would cry," whispered Beatriz Orresta, 20, looking at her two young sons in a depressed Tucuman sugar cane town in the shadow of the Andes. "I would feel much better if they cried."
Jonatan, 2, resting on the dirt floor behind the family's wooden shack, and Santiago, the 7-month-old she cradled in her arms, lay listlessly.
"They don't act it, but they're hungry. I know they are," she said.
Orresta can tell. Jonatan is lethargic. His lustrous brown hair has turned a sickly carrot color. Clumps of it sometimes fall out at night as Orresta strokes him to sleep. Santiago hardly seems to mind that Orresta, weak and malnourished herself, stopped lactating months ago. The infant, sucking on a bottle of boiled herbal tea, stares blankly with sunken eyes.
Six months ago, the boys were the loudest complainers when their regular meals stopped. Orresta's husband, Hector Ariel, 21, had his $100 monthly salary as a sugar cane cutter slashed almost in half when candy companies and other sugar manufacturers in the rural enclave of Rio Chico, 700 miles northwest of Buenos Aires, were stung by dried-up credit and a massive drop in national consumption.
Ariel now earns just over $1.50 a day, not enough for the family to survive. The peso's plunge has generated inflation of more than 33 percent during the first seven months of the year, more than double the government's projection for the entire year.
Goods not in high demand, such as new clothing, have not gone up significantly in price, but staples that families need for daily subsistence have doubled or tripled. The last time inflation hit Argentina -- in the late 1980s, when it rose to a high of 5,000 percent -- the unemployment rate was half the current 21.5 percent and most salaries were indexed to inflation. Today, there are no such safety nets.
"I could buy rice for 30 cents a kilo last year," Orresta said. "It's more than one peso 50 now."
"At least we will eat tonight, that's the important thing," she said, stirring an improvised soup.
The concoction, water mixed with the dried bones of a long-dead cow her husband found in an abandoned field, had been simmering for two days. The couple had not eaten in that time. It had been 24 hours since the children ate.
Orresta, like most mothers in her village, started trimming costs by returning to cloth diapers for her two young boys when the price of disposable ones doubled with inflation. But then she could no longer afford the soap to wash them, and resorted to reusing the same detergent four or five times. The children began to get leg rashes.
By late January, the family could no longer afford daily meals. A month later, Jonatan's hair began turning reddish and, later, falling out. Although he has just turned 2, Jonatan still cannot walk and has trouble focusing his eyes.
Orresta stopped lactating in April. But the price of powdered milk had almost tripled by then, from three pesos for an 800-gram box to more than eight pesos. At those prices, the family can afford 11 days of milk a month. The rest of the time, Santiago drinks boiled maté, a tea that also serves as an appetite suppressant.
"You know, we're not used to this, not having enough food," said Orresta, with a hint of embarrassment in her voice.
She paused, and began to weep.
"You can't know what it's like to see your children hungry and feel helpless to stop it," she said. "The food is there, in the grocery store, but you just can't afford to buy it anymore. My husband keeps working, but he keeps bringing home less and less. We never had much, but we always had food, no matter how bad things got. But these are not normal times."
© 2002 The Washington Post Company
In "Eat Local" Movement, Cuba is Years Ahead
http://www.planetark.com/enviro-news/item/50928
Date: 17-Dec-08
Country: CUBA
Author: Esteban Israel
Cuba is setting itself up to be an Oasis in the coming storm: they have oil and food...we better invade...
HAVANA - After the collapse of the Soviet Union in 1991, Cuba planted thousands of urban cooperative gardens to offset reduced rations of imported food.
Now, in the wake of three hurricanes that wiped out 30 percent of Cuba's farm crops, the communist country is again turning to its urban gardens to keep its people properly fed.
"Our capacity for response is immediate because this is a cooperative," said Miguel Salcines, walking among rows of lettuce in the garden he heads in the Alamar suburb on the outskirts of Havana.
Salcines says he is hardly sleeping as his 160-member cooperative rushes to plant and harvest a variety of beets that takes just 25 days to grow, among other crops.
As he talks, dirt-stained men and women kneel along the furrows, planting and watering on land next to a complex of Soviet-style buildings. Machete-wielding men chop weeds and clear brush along the periphery of the field.
Around 15 percent of the world's food is grown in urban areas, according to the US Department of Agriculture, a figure experts expect to increase as food prices rise, urban populations grow and environmental concerns mount.
Since they sell directly to their communities, city farms don't depend on transportation and are relatively immune to the volatility of fuel prices, advantages that are only now gaining traction as "eat local" movements in rich countries.
ROOFTOPS AND PARKING LOTS
In Cuba, urban gardens have bloomed in vacant lots, alongside parking lots, in the suburbs and even on city rooftops.
They sprang from a military plan for Cuba to be self-sufficient in case of war. They were broadened to the general public in response to a food crisis that followed the collapse of the Soviet Union, Cuba's biggest benefactor at the time.
They have proven extremely popular, occupying 35,000 hectares (86,000 acres) of land across the Caribbean island. Even before the hurricanes, they produced half of the leaf vegetables eaten in Cuba, which imports about 60 percent of its food.
"I don't say they have the capacity to produce enough food for the whole island, but for social and also agricultural reasons they are the most adequate response to a crisis," said Catherine Murphy, a US sociologist who has studied Cuba's urban gardens.
GREEN PRODUCTIVITY
In Alamar, the members get a salary and share the garden's profits, so the more they grow, the more they earn. They make an average of about 950 pesos, or $42.75, per month, more than double the national average, Salcines said.
The co-op, which began in 1997, now produces more than 240 tons of vegetables annually on its 11 hectares (27 acres) of land, which is about the size of 13 soccer fields.
The gardens sell their produce directly to the community and, out of necessity, grow their crops organically.
"Urban agriculture is going to play a key role in guaranteeing the feeding of the people much more quickly than the traditional farms," said Richard Haep, Cuba coordinator for German aid group Welthungerhilfe, which has supported these kinds of projects since 1994.
When the Soviet Union fell apart, Cuba's supply of oil slowed to a trickle, hurting big state agricultural operations. Chemical fertilizers were replaced with mountains of manure, and beneficial insects were used instead of pesticides.
Unlike in developed countries, where organic products are more expensive, in Cuba they are affordable.
"We have taken organic agriculture to a social level," said Salcines.
Some experts fear that rising international food prices along with the destruction of the hurricanes will return Cuba to the path of agrochemicals. The government is planning to construct a fertilizer plant with its oil-rich ally Venezuela.
But Raul Castro, who replaced ailing brother Fidel Castro as president in February, has also borrowed ideas from the urban gardens as he implements reforms to cut the island's $2.5 billion in annual food imports, much of it from the United States.
Castro has decentralised farm decision-making and raised the prices that the state pays for agricultural products, which has increased milk production, for example, by almost 20 percent.
And, in September, the government began renting out unused state-owned lands to farmers and cooperatives, measures that met with approval of international aid groups.
"Decentralisation and economic incentives. If those elements are expanded to the rest of the agricultural sector, the response will be the same," said Welthungerhilfe's Haep.
(Reporting by Esteban Israel; Editing by Jeff Franks and Eddie Evans)
IMF Chief Warns Of Riots In Response To Economic Crisis
http://www.prisonplanet.com/imf-chief-warns-of-riots-in-response-to-economic-crisis.html
Strauss-Kahn says advanced countries would see violent civil unrest if elite continue to exploit financial chaos for their own ends
Paul Joseph Watson
Prison Planet.com
Wednesday, December 17, 2008
The head of the International Monetary Fund has warned that advanced nations will be hit by violent civil unrest if the elite continue to restructure the economy around their own interests while looting the taxpayer.
During a speech in Madrid, Dominique Strauss-Kahn said that “social unrest may happen in many countries - including advanced economies” if governments failed to adequately respond to the financial crisis.
“He added that violent protests could break out in countries worldwide if the financial system was not restructured to benefit everyone rather than a small elite,” reports the Guardian.
Strauss-Kahn’s comments echo those of others who have cautioned that civil unrest could arise, specifically in the U.S., as a result of the wholesale looting of the taxpayer and the devaluation of the dollar.
Widely respected trends forecaster Gerald Celente recently told Fox News that by 2012 America will become an undeveloped nation, that there will be a revolution marked by food riots, squatter rebellions, tax revolts and job marches, and that holidays will be more about obtaining food, not gifts.
Back in October, Senator Chris Dodd said that revolution would unfold if banks refused to lend money.
“If it turns out that they are hoarding, you’ll have a revolution on your hands. People will be so livid and furious that their tax money is going to line their pockets instead of doing the right thing. There will be hell to pay,” Dodd told the New York Times.
Last month, leading economist Nouriel Roubini said that food riots would be the ultimate consequence of the Federal Reserve and the Treasury’s current policies.
Riots and demonstrations have gripped normally sedate Iceland following a financial catastrophe that has wiped out half of the krona’s value and put one third of the population at risk of losing their homes and life savings.
Expectations of violent civil unrest have not gone unnoticed by the U.S. Army War College’s Strategic Institute, who recently issued a report warning that the United States may experience massive civil unrest in the wake of a series of crises which it terms “strategic shock.”
The consequence? The necessity to use “military force against hostile groups inside the United States,” according to the report.
Tens of thousands of active duty military personnel returning from Afghanistan and Iraq are set to conduct “homeland patrols” inside the U.S. and their duties will include tackling “civil unrest and crowd control,” according to a Northcom announcement earlier this year.
Greece-Style Riots Coming To U.S.
http://www.prisonplanet.com/greece-style-riots-coming-to-us.html
Troops and mercenaries will be used to detain Americans in prison camps, warns deadly accurate trends forecaster
Paul Joseph Watson
Prison Planet.com
Monday, December 15, 2008
Frighteningly accurate trends forecaster Gerald Celente says that America will see riots similar to those currently ongoing in Greece and that the cause will be a hyper-inflationary depression, leading to the inevitable use of troops and mercenaries to deal with the crisis as Americans are incarcerated in internment camps.
As we have highlighted before, Celente’s accuracy is stunning - he predicted the 1987 crash, the sub-prime mortgage crisis and the “panic of 2008,” and is routinely cited even by mainstream news networks as highly credible.
The cause of the riots would be a hyper-inflationary depression, Celente told interviewer Lew Rockwell, causing Americans to revolt in similar circumstances that we have witnessed recently in Iceland and Greece. The trouble would be sparked off by Obama declaring a “bank holiday” whereby people won’t be able to withdraw their money.
“What’s going on in Greece with these riots has nothing to do with a 15-year-old boy being killed, that was only the spark that ignited the pent up, really hatred and disdain, people have for the scandals and corrupt government and the same thing is going on in this country as well,” said Celente.
Celente reiterated his prediction of a revolution and riots in America, and said that the first signs of it could even emerge before the end of the year.
Celente said that the troops now being brought back to America for “domestic security” would be used to suppress the riots.
“There’s talk of opening all these detention centers and hiring the goon squads, the Blackwaters to run them, so these are realities going on as we speak,” said Celente, adding that the Halliburton subsidiary KBR had been awarded a half a billion dollar contract to build “national emergency” internment camps in the name of detaining illegal immigrants but that they would be used to hold rioting Americans.
“We’re really in a period of ‘off with their heads’ and its going to be the people against the politicians,” said Celente.
Celente said that a breakup of the United States was possible and that the secessionist movement was strong.
“The government owns and runs the largest mortgage company, owns the largest insurance company, they’re going to be owning a piece of the oil industry, so it’s a fight against a totalitarian government…so there’s going to be rebellions and things will change for the better if we break up these criminal governments that are in place now,” said Celente.
The forecaster added that the government was killing people for a false reason in Iraq and robbing people blind with the bailouts at home.
Listen to the interview here.
Federal Reserve sets stage for Weimar-style Hyperinflation
http://www.321gold.com/editorials/engdahl/engdahl121508.html
F. William Engdahl
www.engdahl.oilgeopolitics.net/
Dec 15, 2008
The Federal Reserve has bluntly refused a request by a major US financial news service to disclose the recipients of more than $2 trillion of emergency loans from US taxpayers and to reveal the assets the central bank is accepting as collateral. Their lawyers resorted to the bizarre argument that they did so to protect 'trade secrets.' Is the secret that the US financial system is de facto bankrupt? The latest Fed move is further indication of the degree of panic and lack of clear strategy within the highest ranks of the US financial institutions. Unprecedented Federal Reserve expansion of the Monetary Base in recent weeks sets the stage for a future Weimar-style hyperinflation perhaps before 2010.
On November 7 Bloomberg filed suit under the US Freedom of Information Act (FOIA) requesting details about the terms of eleven new Federal Reserve lending programs created during the deepening financial crisis.
The Fed responded on December 8 claiming it's allowed to withhold internal memos as well as information about 'trade secrets' and 'commercial information.' The central bank did confirm that a records search found 231 pages of documents pertaining to the requests.
The Bernanke Fed in recent weeks has stepped in to take a role that was the original purpose of the Treasury's $700 billion Troubled Asset Relief Program (TARP). The difference between a Fed bailout of troubled financial institutions and a Treasury bailout is that central bank loans do not have the oversight safeguards that Congress imposed upon the TARP. Perhaps those are the 'trade secrets the hapless Fed Chairman, Ben Bernanke, is so jealously guarding from the public.
Coming hyperinflation?
The total of such emergency Fed lending exceeded $2 trillion on Nov. 6. It had risen by an astonishing 138 percent, or $1.23 trillion, in the 12 weeks since Sept. 14, when central bank governors relaxed collateral standards to accept securities that weren't rated AAA. They did so knowing that on the following day a dramatic shock to the financial system would occur because they, in concert with the Bush Administration, had decided to let it occur.
On September 15 Bernanke, New York Federal Reserve President, Tim Geithner, the new Obama Treasury Secretary-designate, along with the Bush Administration, agreed to let the fourth largest investment bank, Lehman Brothers, go bankrupt, defaulting on untold billions worth of derivatives and other obligations held by investors around the world. That event, as is now widely accepted, triggered a global systemic financial panic as it was no longer clear to anyone what standards the US Government was using to decide which institutions were 'too big to fail' and which were not. Since then the US Treasury Secretary has reversed his policies on bank bailouts repeatedly leading many to believe Henry Paulson and the Washington Administration along with the Fed have lost control.
In response to the deepening crisis, the Bernanke Fed has decided to expand what is technically called the Monetary Base, defined as total bank reserves plus cash in circulation, the basis for potential further high-powered bank lending into the economy. Since the Lehman Bros. default, this money expansion rose dramatically by end October at a year-year rate of growth of 38%, has been without precedent in the 95 year history of the Federal Reserve since its creation in 1913. The previous high growth rate, according to US Federal Reserve data, was 28% in September 1939, as the US was building up industry for the evolving war in Europe.
By the first week of December, that expansion of the monetary base had jumped to a staggering 76% rate in just 3 months. It has gone from $836 billion in December 2007 when the crisis appeared contained, to $1,479 billion in December 2008, an explosion of 76% year-on-year. Moreover, until September 2008, the month of the Lehman Brothers collapse, the Federal Reserve had held the expansion of the Monetary Base virtually flat. The 76% expansion has almost entirely taken place within the past three months, which implies an annualized expansion rate of more than 300%.
Despite this, banks do not lend further, meaning the US economy is in a depression free-fall of a scale not seen since the 1930's. Banks do not lend in large part because under Basle BIS lending rules, they must set aside 8% of their capital against the value of any new commercial loans. Yet the banks have no idea how much of the mortgage and other troubled securities they own are likely to default in the coming months, forcing them to raise huge new sums of capital to remain solvent. It's far 'safer' as they reason to pass on their toxic waste assets to the Fed in return for earning interest on the acquired Treasury paper they now hold. Bank lending is risky in a depression.
Hence the banks exchange $2 trillion of presumed toxic waste securities consisting of Asset-Backed Securities in sub-prime mortgages, stocks and other high-risk credits in exchange for Federal Reserve cash and US Treasury bonds or other Government securities rated (still) AAA, i.e. risk-free. The result is that the Federal Reserve is holding some $2 trillion in largely junk paper from the financial system. Borrowers include Lehman Brothers, Citigroup and JPMorgan Chase, the US's largest bank by assets. Banks oppose any release of information because that might signal 'weakness' and spur short-selling or a run by depositors.
Making the situation even more drastic is the banking model used first by US banks beginning in the late 1970's for raising deposits, namely the acquiring of 'wholesale deposits' by borrowing from other banks on the overnight interbank market. The collapse in confidence since the Lehman Bros. default is so extreme that no bank anywhere, dares trust any other bank enough to borrow. That leaves only traditional retail deposits from private and corporate savings or checking accounts.
To replace wholesale deposits with retail deposits is a process that in the best of times will take years, not weeks. Understandably, the Federal Reserve does not want to discuss this. That is clearly also behind their blunt refusal to reveal the nature of their $2 trillion assets acquired from member banks and other financial institutions. Simply put, were the Fed to reveal to the public precisely what 'collateral' they held from the banks, the public would know the potential losses that the government may take.
Congress is demanding more transparency from the Federal Reserve and US Treasury on its bailout lending. On December 10 in Congressional hearings by the House Financial Services Committee, Representative David Scott, a Georgia Democrat, said Americans had 'been bamboozled,' slang for defrauded.
Hiccups and Hurricanes
Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would meet congressional demands for transparency in a $700 billion bailout of the banking system. The Freedom of Information Act obliges federal agencies to make government documents available to the press and public.
In early December the Congress oversight agency, GAO, issued its first mandated review of the lending of the US Treasury's $700 billion TARP program (Troubled Asset Relief Program). The review noted that in 30 days since the program began, Henry Paulson's office had handed out $150 billion of taxpayer money to financial institutions with no effective accountability of how the money is being used. It seems Henry Paulson's Treasury has indeed thrown a giant 'tarp' over the entire taxpayer bailout.
Further adding to the troubles in the world's former financial Mecca, the US Congress, acting on largely ideological grounds, shocked the financial system when it refused to give even a meager $14 billion emergency loan to the Big Three automakers - General Motors, Chrysler and Ford.
While it is likely that the Treasury will extend emergency credit to the companies until January 20 or until the newly elected Congress can consider a new plan, the prospect of a chain-reaction bankruptcy collapse of the three giant companies is very near. What is being left out of the debate is that those three companies account for a combined 25% of all US corporate bonds outstanding. They are held by private pension funds, mutual funds, banks and others. If the auto parts suppliers of the Big Three are included, an estimated $1 trillion of corporate bonds are now at risk of chain-reaction default. Such a bankruptcy failure could trigger a financial catastrophe which would make what has happened since Lehman Bros. appear as a mere hiccup in a hurricane.
As well, the Federal Reserve's panic actions since September, by their explosive expansion of the monetary base, has set the stage for a Zimbabwe-style hyperinflation. The new money is not being 'sterilized' by offsetting actions by the Fed, a highly unusual move indicating their desperation. Prior to September the Fed's infusions of money were sterilized, making the potential inflation effect 'neutral.'
Defining a Very Great Depression
That means once banks begin finally to lend again, perhaps in a year or so, that will flood the US economy with liquidity in the midst of a deflationary depression. At that point or perhaps well before, the dollar will collapse as foreign holders of US Treasury bonds and other assets run. That will not be pleasant as the result would be a sharp appreciation in the Euro and a crippling effect on exports in Germany and elsewhere should the nations of the EU and other non-dollar countries such as Russia, OPEC members and, above all, China not have arranged a new zone of stabilization apart from the dollar.
The world faces the greatest financial and economic challenges in history in coming months. The incoming Obama Administration faces a choice of literally nationalizing the credit system to insure a flow of credit to the real economy over the next 5 to 10 years, or face an economic Armageddon that will make the 1930's appear a mild recession by comparison.
Leaving aside what appears to have been blatant political manipulation by the present US Administration of key economic data prior to the November election in a vain attempt to downplay the scale of the economic crisis in progress, the figures are unprecedented. For the week ended December 6 initial jobless claims rose to the highest level since November 1982. More than four million workers remained on unemployment, also the most since 1982 and in November US companies cut jobs at the fastest rate in 34 years. Some 1,900,000 US jobs have vanished so far in 2008.
As a matter of relevance, 1982, for those with long memories, was the depth of what was then called the Volcker Recession. Paul Volcker, a Chase Manhattan appendage of the Rockefeller family, had been brought down from New York to apply his interest rate 'shock therapy' to the US economy in order as he put it, 'to squeeze inflation out of the economy.' He squeezed far more as the economy went into severe recession, and his high interest rate policy detonated what came to be called the Third World Debt Crisis. The same Paul Volcker has just been named by Barack Obama as chairman-designate of the newly formed President's Economic Recovery Advisory Board, hardly grounds for cheer.
The present economic collapse across the United States is driven by the collapse of the $3 trillion market for high-risk sub-prime and Alt-A home mortgages. [This statement is FALSE. Wrong but true.] Fed Chairman Bernanke is on record stating that the worst should be over by end of December. Nothing could be farther from the truth, as he well knows. The same Bernanke stated in October 2005 that there was 'no housing bubble to go bust.' So much for the predictive quality of that Princeton economist. The widely-used S&P Schiller-Case US National Home Price Index showed a 17% year-year drop in the third Quarter, trend rising. By some estimates it will take another five to seven years to see US home prices reach bottom. In 2009 as interest rate resets on some $1 trillion worth of Alt-A US home mortgages begin to kick in, the rate of home abandonments and foreclosures will explode. Little in any of the so-called mortgage amelioration programs offered to date reach the vast majority affected. That process in turn will accelerate as millions of Americans lose their jobs in the coming months.
John Williams of the widely-respected Shadow Government Statistics report, recently published a definition of Depression, a term that was deliberately dropped after World War II from the economic lexicon as an event not repeatable. Since then all downturns have been termed 'recessions.' Williams explained to me that some years ago he went to great lengths interviewing the respective US economic authorities at the Commerce Department's Bureau of Economic Analysis and at the National Bureau of Economic Research (NBER), as well as numerous private sector economists, to come up with a more precise definition of 'recession,' 'depression' and 'great depression.' His is pretty much the only attempt to give a more precise definition to these terms.
What he came up with was first the official NBER definition of recession: Two or more consecutive quarters of contracting real GDP, or measures of payroll employment and industrial production. A depression is a recession in which the peak-to-bottom growth contraction is greater than 10% of the GDP. A Great Depression is one in which the peak-to-bottom contraction, according to Williams, exceeds 25% of GDP
In the period from August 1929 until he left office President Herbert Hoover oversaw a 43-month long contraction of the US economy of 33%. Barack Obama looks set to break that record, to preside over what historians could likely call the Very Great Depression of 2008-2014, unless he finds a new cast of financial advisers before Inauguration Day, January 20. Required are not recycled New York Fed presidents, Paul Volckers or Larry Summers types. Needed is a radically new strategy to put virtually the entire United States economy into some form of an emergency 'Chapter 11' bankruptcy reorganization where banks take write-offs of up to 90% on their toxic assets, that, in order to save the real economy for the American population and the rest of the world. Paper money can be shredded easily. Not human lives. In the process it might be time for Congress to consider retaking the Federal Reserve into the Federal Government as the Constitution originally specified, and make the entire process easier for all. If this sounds extreme, perhaps revisit this article in six months again.
###
15 December, 2008
F. William Engdahl
Junk Silver or Junk Bonds
http://www.silver-investor.com/davidmorgancommentary/articles/12-12-08_ibtimes40_JunkSilverorJunkBonds.html
Junk Silver or Junk Bonds
By David Morgan
December 12, 2008
Junk Silver
“Junk silver” and “junk bags” are terms that refer to $1000 in U.S. coinage—dimes, quarters, or half dollars minted 1964 or earlier; commonly known junk bags consist of 90% silver. Junk bags of silver dollars are sold separately and have always held a higher premium.
We are talking about coins that are only in fair condition and have no collectible value above the bullion value or the “melt value.” The word “junk” refers only to the value of the coins as bullion, and “junk” is not scrap silver.
When these coins were freshly minted they contained 0.7234 troy ounces of silver per dollar of face value. In practice, the recognized weight of fine silver is 0.715 troy ounces per coin, or 715 troy ounces per bag—a bit less than original, due to wear. Thus the market recognized junk bags as containing 715 ounces of silver if smelted to 0.999 purity. Less common as junk silver are Kennedy half dollars from 1965 to 1970, which contained 40% silver.
In days gone by, junk bags of Canadian dimes and quarters were in the marketplace, but in today’s world very few exist. The Canadian coins contained 80% silver (0.600 troy ounces per dollar of face value) until 1966. In 1967, they were minted in both 80% and 50% varieties. In 1968, they either contained 50% silver or none at all ((such as the Cupro-Nickel). Dollars and half dollars were minted in 80% silver until 1967.
Junk silver coins are still considered legal tender and at many times have carried very low premiums. Today, however, the premium on junk bags is about 20% or more. There have been higher premiums near the peak of the silver price in 1980 and also during Y2K, when silver bags were in high demand.
For those beginning to invest in the real silver market, U.S. silver coins are easily recognized. In addition to being easy to describe to someone who has never seen a 90% silver coin in their lifetime, coins provide convenient divisibility. In other words they can be traded in small amounts, while a silver bar of perhaps 100 troy ounces cannot be divided or used for small transactions.
Simply stated, junk silver is popular among survivalists, but today it might be added among financial survivalists! In the event of a currency collapse, it is speculated by many in the precious metals community that silver coins could provide a viable alternative to today’s currency (scrip), commonly perceived to be money.
So, that is a very brief summary of “junk” silver and it must be pointed out that there is no default risk associated with owning silver. The price does vary along with all other assets, so you might risk not being able to trade your silver for the same amount of currency used for the initial purchase.
Junk Bonds
Now let’s look at “junk bonds.” A junk bond is a high yield bond that is rated below investment grade at the time of purchase. Bonds can also become “junk” if the market determines that the issuer’s risk has increased. For a quick example, at one time General Motors bonds carried a very high rating with the risk of default being extremely low, but today does anyone think that GM is capable of paying back the bondholders? These junk bonds are called “Fallen Angels.” Generally, junk bonds have a higher risk of default or other adverse credit events, but typically pay higher yields than better quality bonds.
Risks in all bond investments, including “high” quality bonds
1. Inflation
2. Currency risk
3. Risk of Principal
4. Market Risk
5. Political Risk
6. Default Risk
7. Liquidity Risk
There are other risks but the point is made: bonds of any caliber have risk! In this day and age, nearly everyone is familiar with the fact that certain rating agencies described the risk of certain “assets” to be high grade at near zero risk. Today that is laughable but certainly no joke, as it has basically taken down the global markets to the present level, and the trust (confidence) in the system has been greatly damaged.
These days, we see many fleeing to government bonds, due to the perceived safety. However, it might be interesting to note the words of currency expert, the late Dr. Franz Pick, who said that government bonds are “certificates of guaranteed confiscation.”
We might ask if Franz Pick’s statement is true or false. Perhaps we can approach the question differently since the outstanding public debt is roughly $35,000 for everyone in the U.S. Simply ask yourself if you, your friends, and your neighbors are able to pony up the amount required on a per capita basis. If so, don’t worry be happy! But if roughly $140,000 per household is not in your petty cash drawer (or your neighbor’s) you might start to consider what really deserves to be called junk—bonds or silver.
Jimmy Rogers states, “I'm now selling long-term U.S. government bonds short. That's the last bubble I can find in the U.S. I cannot imagine why anybody would give money to the U.S. government for 30 years for less than a 4% yield. I certainly wouldn't. There are going to be gigantic amounts of bonds coming to the market, and inflation will be coming back.” (Full Article)
As the debt burden continues to increase, more and more people will see the light and realize that it is not the government responsible for paying off the bonds—it’s the people themselves. And where is that “money” coming from?
It is an honor to be,
David Morgan
Founder Silver-Investor.com
Mr. Morgan has followed the silver market daily for more than 30 years. Much of his Web site, www.silver-investor.com, is devoted to education about the precious metals. David Morgan believes NOW is the time for baby boomers who want to retire comfortably and without fear to start investing in precious metals. Now you can discover his Ten Rules of Silver Investing for Baby Boomers, when you sign up for his free newsletter here.
Emergency Storage Food Among Products in Highest Demand
Anxiety and bearish outlooks abound wherever one cares to look today. There’s precious little a concerned citizen can do in reaction to global forces spinning out of control. But we all do what we can. At Safecastle, we’re particularly happy to give our customers this holiday-season opportunity to become better positioned for what looks like rough times ahead.
http://www.prweb.com/releases/2008/12/prweb1714714.htm
At the end of 2008, there are three consumer marketplaces that are experiencing record sales volumes—firearms, precious metals, and emergency storage food. Crisis preparedness is increasingly the theme for those seeking a refuge for their money and comfort from their concerns.
Minneapolis (Vocus/PRWEB ) December 6, 2008 – Gun dealers all over the United States are having a hard time keeping any inventory on hand for anxious customers. Reports are that guns and ammunition are selling at levels up to 50% higher than previous records.
The demand for gold has similarly erupted—Q3 of 2008 showed global sales 45% higher than the quarter before, which itself set the previous high-water mark.
Survival gear and emergency food producers are shipping product as fast as they can get it through their facilities and onto the loading docks. Using packaging technologies that deliver shelf lives measured in years and even decades, producers of storage food are experiencing unprecedented demand today for their products.
Victor Rantala, owner of the crisis preparedness company Safecastle LLC, said: “Our business volume this year will triple over last year, and most of this increased activity has come in the last 3-4 months.
“By far, our best seller right now is Mountain House freeze-dried food. It stores for more than 25 years, it’s easy to prepare, and it tastes great. Outdoorsmen and adventurers consider it a preferred staple. Our customers, those who are looking at a future that looks very uncertain, see it as a way to lock in today’s prices and to ensure a level of peace of mind that is hard to otherwise put a value on.”
In response to the overwhelming demand for storage food and strains on customers’ budgets, Safecastle is offering an end-of-the-year sale on Mountain House freeze dried food in cans—which offer the longest shelf life of any storage food on the market. All Mountain House cans are 25% off list and ship for free to the continental U.S.A. The sale is running at the Safecastle Royal Buyers Club from December 6 to December 19.
Said Rantala, “Anxiety and bearish outlooks abound wherever one cares to look today. There’s precious little a concerned citizen can do in reaction to global forces spinning out of control. But we all do what we can. At Safecastle, we’re particularly happy to give our customers this holiday-season opportunity to become better positioned for what looks like rough times ahead.”
Why We Need Martial Law
http://www.rense.com/general53/ggyr.htm
Criminal Government Is Destroying America - Military
Must Step In To Restore The Constitution
By John Kaminski
skylax@comcast.net
6-16-4
Our government is out of control. The elections are rigged. The Congress is completely bought off. The White House administration is a gang of criminals who are stealing the nation blind. There is no proper accountability from any department of government. And the United States is conducting two major wars, irresponsibly squandering the lives of our young people, for reasons that everyone in the world knows are lies.
Be clear about this: no government official, nor any major media outlet, is objecting to two wars the United States is conducting that everyone knows the reasons for are lies. Tens of thousands of people have been killed for lies, and no one in a position of public responsibility is condemning it.
America has become a nation of monstrously perverted mass murderers. And if you're an American and are not condemning it, then you are complicit in it. You're supporting needless mass murder, you pig!
People are being jailed for no reason, illegally tortured while in custody and deprived of due process. Innocent families around the world are being humiliated and killed for no legitimate reason. Our law enforcement apparatus - corrupt courts and cops - are failing to stop obvious crimes committed by the very rich, and assaulting ordinary citizens trying in a lawful manner to protest these injustices.
I repeat, rich corporations are allowed to commit crimes, and ordinary people are being put in jail for committing no crime.
Legitimate law enforcement in the United States has completely broken down. The biggest criminal in the country right now is John Ashcroft, the top man in America's law enforcement hierarchy, who is guilty of thousands of counts of obstruction of justice by failing to investigate and prosecute a titanic list of crimes committed by those who gave him his job.
The Supreme Court, the highest law panel in the land, assisted in a coup d'etat in 2000 by failing to investigate thousands of people who were illegally prevented from voting that changed the outcome of the election.
The upcoming election promises no relief from the murderous tyranny that now grips Washington. Both candidates are privileged children of the rich who are members of a satanic fraternity at Yale University and won't talk about their perverted rituals. No matter who is elected, America's future is more wars, more deaths, more destruction.
An irrational president and his demonic accomplices keep talking about a new terror attack they are expecting any day. Legitimate researchers have pointed out the worldwide terror threat known as al-Qaeda is actually a deceptive construction of the U.S. CIA and Israel's Mossad.
The terror attacks that threaten us are actually coordinated by Washington and Tel Aviv. There exists legitimate evidence that the bombings in New York, Madrid, Bali, Istanbul, Yemen and elsewhere were actually the work of CIA/Mossad operatives, as are the murders of thousands of innocent people in Iraq. The anthrax murder investigation was stopped when the trail led back to the White House.
In 2001, terror attacks by this same organization created by White House speechwriters and CIA recruiters killed more than 3,000 Americans in New York and Washington. The government had steadfastly impeded an investigation of the events of 9/11, and the commission it has empaneled to conduct a probe has consistently failed to address the major questions asked by thousands of researchers around the world.
Specifically, billions of dollars were made in profits from insider trading in the days before 9/11. The FBI has investigated and said there was nothing suspicious about these profits. How the American people can accept this blatant lie is a preposterous example of the soporific stupor that has engulfed the U.S. populace. The identity of the perpetrators of the treasonous attacks of 9/11 is known by those investors, yet the government refuses to pursue those criminals.
Plentiful photographic evidence and eyewitness testimony exists that the World Trade Center was brought down by explosions. The evidence was carted off and disposed of without an adequate investigation. The Air Force failed to defend the nation against the air attacks on 9/11. The people in charge of our air defenses were promoted, because they were complicit in the crime of the century.
The mainstream media has for years failed to report on crimes by the federal government. It has failed to report that the ingredients of major soft drinks puts holes in your brain with extended use. Mainstream media conducted a powwow after the last election to review the voting process, concluded the election had been stolen, but then decided to cover up the crime.
Most people agree that Senator Paul Wellstone was murdered after an argument with Vice President Dick Cheney. There was no real investigation. A woman in Texas who filed a lawsuit against the president for rape and torture was found shot to death. It was ruled a suicide. No one is investigating. Bush reportedly dated the woman in high school and speculation is that he was using the woman as his sex slave because he is above the law.
Virtually all members of the Congress, shortly after 9/11, voted to pass legislation that nullified most of the basic protections in the Constitution for the American people. Few Americans protested. Additional legislation has further eroded the rights of Americans.
The right to privacy in America has all but disappeared. The government operation to deprive Americans of their privacy, once guaranteed by the Constitution, was headed by a known felon, who lied to Congress and was convicted for it during the reign of Ronald Reagan.
American citizens are being infected with unknown diseases by strange practices called chemtrails that appears in our skies. Doctors in league with evil pharmaceutical companies are forcing mind-numbing drugs on both children and adults, and after paying off politicians are granted legal immunity from mistakes they may make, from outright poisons they choose to prescribe.
The American government is criminal enterprise, and American law enforcement is complicit in the crime. The only way to stop the continuing crime spree is by a military takeover and a declaration of martial law. Hundreds of cops, attorneys and judges need to be in jail.
We need a new government, one that sees to the needs of people, not to the needs of bankers and corporations.
Ordinary citizens might be worried about such a move, but they shouldn't be. The purpose of this martial law situation would not be to curtail American liberty, but to restore it.
The thrust of a military takeover should be directed at the people committing the crimes, primarily government officials, executives of the petroleum and pharmaceutical industries, and bankers and stock traders. All officials of the Federal Reserve Board, Council on Foreign Relations and Trilateral Commission should be immediately jailed for future interrogations concerning their crimes against humanity.
And investigation needs to be conducted into the FBI and CIA for their creation of the terror apparatus known as al-Qaeda, which has been blamed for innumerable instances of terror around the world. A good place to start would be the Philippines, where American agents have fomented revolution against that government and exported terrorist double agents around the world as part of a devious plan to increase profits for American defense contractors.
The entire Congress needs to be indicted for treason, simply for their vote on the Patriot Act, but for plenty of other corrupt actions as well.
The entire Bush administration, and many officials from previous presidential adminstrations, need to be arrested for corruption for taking bribes from corporations and then promptly passing laws advantageous to those corporations.
Thousands of investment bankers, securities dealers, and stock traders need to be arrested for theft. Kenneth Lay, George Bush's top contributor, needs to be in jail immediately for his theft of a billion dollars from the people of California.
In addition, the military needs to take an immediate hard look at Israel, whose agents have penetrated virtually all aspects of the operation of the American government and American society as well. Next to the United States, Israel is the greatest threat to peace in the world, as it has already admitted it has missiles aimed at all the capitals of Europe, and it continues to conduct its heartless genocide against the hapless Palestinian people.
Ordinary people should not be affected at all by martial law. The military should leave them and their families alone. Ordinary Americans have not broken the law, but have been the victims of governmental leaders who have.
First of all, the military needs to bring as many troops home as possible, immediately. Arrangements can be made with other grateful countries to stem the needless bleeding America has caused in so many places around the world. Our continuing commitment to Iraq should not be to fatten the coffers of corporations, but to apologize to the Iraqi people that Americans have committed in the name of so-called democracy.
The military needs to investigate virtually every law enforcement operation in America. Every town, city, county and state in America is afflicted by criminal behavior in its law enforcement and court apparatus.
And first and foremost, as a new government of the United States is reconstituted in a democratic way guided by the principles of the Constitution, America needs to regain control of its money supply from the international bankers who control the world. Most of those international bankers need to be in jail, too, in orange jumpsuits at Guantanamo alongside the whole Bush family, Cheney, Rumsfeld, Ashcroft, Myers, Rice, Perle, Wolfowitz, Libby, Scalia, Rehnquist, Clarence Thomas, Tenet, Freeh, and all those other corrupt law enforcement officials and judges, corporate presidents, and corrupt Congressmen.
I know, the prospect of a military takeover is scary. But consider the choice: do you want men in control who are sworn to defend the Constitution, as is the military, or those who are sworn to make money for the super-rich, as are both Bush and Kerry and practically anybody else who runs for office.
Consider what will happen is this DOESN'T happen. It's really no exaggeration to say we likely are looking at the end of the world as we know it. At the very least, we are headed toward a slave society in which many Americans will starve to death if Bush and Kerry are allowed to continue on their merry way.
In addition, there is another important reason for a military takeover, and that is to redeploy our forces to defend our country, rather than to misuse and abuse them by plundering innocent nations for the criminal corporations who control so many of our politicians.
I really trust our people in uniform, because I really am an American. And as an American, I am terribly ashamed of my country for the horrific things it has done, both to people around the world and its own citizens. It's the criminals in Washington who have no allegiance to any country who have ordered our military to do all those bad things. The Bush family and their criminal sidekicks are not really Americans, they're murderous crooks who lie about everything and whose only allegiance is to their own wallets, their own sexual perversions, their own sick visions of the world which decent people want no part of.
Martial law now. Military tribunals for Bush, Cheney and the rest of those sick sociopaths.
It's the only way we're ever going to find peace again. And the only way we're really ever going to be able to defend our country.
Otherwise, it's curtains for everyone.
John Kaminski is the author of "America's Autopsy Report," a collection of his Internet essays published on hundreds of websites around the world. In addition, he has more recently written "The Day America Died: Why You Shouldn't Believe the Official Story of What Happened on September 11, 2001," a 48-booklet written for those who still believe the government's version of that say day. A second collection of his essays, titled "The Perfect Enemy," will be published later this summer. For more information, or to make a badly needed contribution to his work, please visit http://www.johnkaminski.com/
Comment
From Ted Twietmeyer
tedtw@frontiernet.net
6-16-4
1. I have never disagreed with any of John's articles, until now. Here are the reasons I give, some of which have already appeared in a some of my past essays:
1. History shows that when the military takes control of any country, they don't let go. After all, why would they ? Martial law instantly creates thousands of jobs, too.
2. How can we be sure that the military would hold them accountable ? The flaw in the reasoning John ignores, tends to ignore the fact that Haliburton/KBR and the military are tightly connected. And Cheney is connected to Haliburton as well as the former presidents. It's like a cabal of its own.
3. Who would do the judging of Bush and company ? We can't ignore the fact that historically the executive branch has been tightly connected to the CIA and their "security division" inside that agency, which takes care of problem people. Whomever it is on capital hill that promotes such an idea, would have a bad "accident." Look at what happened to Kennedy when he crossed the wrong people.
Now that Tenet is gone, we have really no clear idea of who will take his place. There is a power group within the agency that also could take matters into their own hands, too.
Few people accept the line that Tenet wants to "get closer to his 18 year old son" line. After all, just how many parents that ignore their child for 18 years, can get close to them at the 11th hour of their life ?
No, Tenet had to go. If memory serves me correctly, in one of my past articles I commended Tenet for standing up at the 911 commission hearings and telling the truth, and also stated it would cost him his job. In fact, I actually sent an email to the CIA to the director's attention commending him for standing up and being truthful. And sending a positive email to the agency, is something I never, ever thought I'd have reason to do. Many people must have expected Tenet to leave, too.
4. The stock market plunge would CRASH the economy, and it most likely would never come back.
In summary, martial law will turn our lives into a LIVING HELL as EVERYTHING we do is monitored and watched. Would anyone like a ration book just for going to the store for time and eternity ? And who could believe that the government would see to our care and feeding ? There is movie with Bruce Willis where he plays an army general that takes martial law control of NY city. It portrays life quite well under it, and what would happen, including torture and execution in a public toilet.
Sir Francis Bacon had it right- Absolute power corrupts, absolutely.
Comment
From Jean Gordon
6-17-4
I fully agree and applaud you for this wonderfully explicit work of journalism. It's hard to resist the need to put things in black and white, especially when it becomes clear that THEY thrive on "incrontrovertable confusion!"
Here, in middle America, the masses still believe in the power of their vote and in the Democratic party. There's absolutely no chance in persuading these "vegetables" that ALL of this is actually taking place. That Orem Hatch is trying to ammend the Constitution, so that Arnie can be our next Dictator.
I guess they decided our fate at the last Bohemian Grove! That's pretty much the time-frame when Kerry turned into a true zombie. Least we forget, Americans should also demand some reasonable explination how the Gov. 'lost' a Trillion dollars over the past 10 years. The process of apprehending information from meetings, such as the G8, which we pay for, should be a front-end portion of the strategy to convince people this is quite literally a necessity.
"Pray for President Bush" -They said, as 100,000 soldiers were shipped off to the Queen's poppy fields: "Sublimate the Masses and Restore the flow of Heroine!" should somehow be included in our revised National Anthem.
Tom Gordon
Comment
By Muehlbauer
6-17-4
I always enjoy reading what John has to say. In this review, I think he exposes a lot of the illegality that is a big part of America's government and courts today. Just as illegality has been a big part of the American government and courts for a long time, it has become most obvious though since the advent of the Federal Reserve, World War One, after that the Second World War.
I agree with every word John writes in this report, except, I should not be intimidated as to call the problems we have here in America as being problems assisted by or mandated by Israel. Rather, I would put the mark more squarely on the House of Rothschild, assisted by other English Royalty, the Queen of England, and, the International Bankers.
It is the family members of the House of Rothschild who are controlling things, yesterday and today. World policy, as it is determined by the West to be, is orchestrated - rubber stamped - from the seats of the British Parliament, from the houses of Congress and the Whitehouse, and made fashionable for all the world, by the Courts and Media here in America. Such mandatedy policy is
then enforced by the US military.
Just as the House of Rothschild sponsored and paid for the construction of the Supreme Court building in Israel, a lavish construction, the House of Rothschild also sponsors and pays for the undertakings of The IMF and The Federal Reserve.
It is really only a small step backward in time, back to the Dark Ages, back to a time when Western humanity truly was indentured by and to the wealthy landowner, and, set upon by diseases, religious idiocy, and murder. Murder, in the form of wars, was always sponsored by the wealthy aristocrats; murder in the form of church and court-ordered executions, murder, the likes of which the world had never seen before. Most of that continues in earnest today.
It is as impossible for one to not connect the dots between the Supreme Court building in Israel, the designing of it and paying for it accomplished by the House of Rothschild, from that to total control of the Israeli government. That control moves north and seats directly in England, in the English houses of Royalty and into the International Bankers guild. It then steps over Atlantic ocean, landing in Manhattan, and going but a short distance south to Washington, D.C.. All along the way, it is corrupting the politicians, the courts, the professions and the media all along the way. The instruments of corruption being blackmail and an endless supply of printed m-o-n-e-y.
Going back to Mayer Amschel Bauer - aka the House of Rothschild - Waterloo, the treaty of Versailles, the illegal establishing of the Federal Reserve Banks here in America, World Wars One and Two and most major events in history...the dots lead straight to the front door of the House of Rothschild.
Any person unable to see this is likewise and of choice unable to see the connection between FDR and Pearl Harbor, LBJ and the assassination of President Kennedy, the second Bush presidency and 911, the aggressions in Afghanistan and Iraq for what they are, wars, instigated, but only to gain total control over the production, distribution and sale of drugs and oil.
Déjà vu, all over again.
"Give me control of the money and I don't care who makes the laws." A statement, attributed to Mayer Amschel Bauer, who was the first father of the House of Rothschild, the inventor of the modern day God, the terror of all mankind, then and now. Most certainly there has never been born of a woman a child more important to the affairs of the world, a person more cunning and in tune with the times, a creature in the world but not of the world, and more intelligent, above all the rest. None, more than Mayer Amschel Bauer.
From him, we have all come under the dominion of the House of Rothschild, monitored and commanded by his modern day army of Zionists. Fed or starved by his policies, we struggle to survive daily but only because it was he, Mayer Amschel Bauer, it was he who first discovered 'God.' God, is money, and, no man knew God before nor like, Mayer Amschel Bauer knew God.
ALERT: Gun Confiscation, Maritial Law and Civil War in America!
Video:
http://whitewraithe.wordpress.com/2008/12/02/alert-gun-confiscation-maritial-law-and-civil-war-in-america/
All you pollyannas out there, don’t say you were not warned!
Last night’s Q-files with Steve Quayle (Dec 1), he provided extremely relevant information on what will be occurring in the country within the next 12 months; Lindsey Williams also made the same nearly verbatim dire prediction on Alex Jones show sometime last week in that America’s Middle-Class will be destroyed, which will result in gun confiscation, martial law and finally civil war.
I’ve been following Quayle for several years and I do not agree with him on every point, most of all, his interweaving of religious rhetoric into his broadcasts, nor do I agree with his opinion that radical Islam is a threat to the US or the world. Anyone reading this blog knows full well where I stand on “what” the significant threat is. Disregarding those two issues, Quayle is a patriot and his insider knowledge is invaluable especially right now.
When someone like Steve Quayle starts recommending the purchase of BACK ROAD ATLASES everyone needs to get their heads out of the sand and pay attention!
Whitewraithe~
Financial Tsunami cannot be stopped; Great Depression 2 coming fast
http://halturnershow.blogspot.com/2008/12/financial-tsunami-cannot-be-stopped.html
December 2, 2008, was a landmark in the saga of the collapsing international monetary system, yet it did not get any mention in the press: gold went to backwardation for the first time ever in history. The facts are as follows: on December 2nd, at the Comex in New York, December gold futures (last delivery: December 31) were quoted at 1.98% discount to spot, while February gold futures (last delivery: February 27, 2009) were quoted at 0.14% discount to spot. (All percentages annualized.) The condition got worse on December 3rd, when the corresponding figures were 2% and 0.29%. This means that the gold basis has turned negative, and the condition of backwardation persisted for at least 48 hours.
According to the December 3rd Comex delivery report, there are 11,759 notices to take delivery. This represents 1.1759 million ounces of gold, while the Comex-approved warehouses hold 2.9 million ounces. Thus 40% of the total amount will have to be delivered by December 31st. Since not all the gold in the warehouses is available for delivery, Comex supply of gold falls far short of the demand at present rates. Futures markets in gold are breaking down. Paper gold is progressively being discredited.
Already there was a slight backwardation in gold at the expiry of a previous active contract month, but it never spilled over to the next active contract month, as it does now: backwardation in the December contract is spilling over to the February contract which at last reading was 0.36%. Silver is also in backwardation, with the discount on silver futures being about twice that on gold futures.
The gold basis is a pristine, incorruptible measure of trust, or the lack of it when it turns negative, in paper money. Of course, it is too early to say whether gold has gone to permanent backwardation, or whether the condition will rectify itself (it probably will). Be that as it may, it does not matter. The fact that it has happened is the coup de grâce for the regime of irredeemable currency. It will bleed to death, maybe rather slowly, even if no other hits, blows, or shocks are dealt to the system. Very few people realize what is going on and, of course, official sources and the news media won’t be helpful to them to explain the significance of all this. I am trying to be helpful to the discriminating reader.
Gold going to permanent backwardation means that gold is no longer for sale at any price, whether it is quoted in dollars, yens, euros, or Swiss francs. The situation is exactly the same as it has been for years: gold is not for sale at any price quoted in Zimbabwe currency, however high the quote is. To put it differently, all offers to sell gold are being withdrawn, whether it concerns newly mined gold, scrap gold, bullion gold or coined gold. I dubbed this event that has cast its long shadow forward for many a year, the last contango in Washington ― contango being the name for the condition opposite to backwardation (namely, that of a positive basis), and Washington being the city where the Paper-mill of the Potomac, the Federal Reserve Board, is located. This is a tongue-in-cheek way of saying that the jig in Washington is up. The music has stopped on the players of ‘musical chairs’. Those who have no gold in hand are out of luck. They won’t get it now through the regular channels. If they want it, they will have to go to the black market.
Gold and silver basis serves as an early warning system and it is signaling the beginning of the end. The end is approaching with the inevitability of the climax in a Greek tragedy, as the heroes and heroines are drawn to their own destruction. The present reactionary experiment with paper money is entering its death-throes.
The situation with gold backwardation is, for the money system, like the confrontation of the Titanic (representing the international monetary system) with the iceberg (representing gold and its vanishing basis) as the latter is emerging from the fog too late to avoid collision. The vanishing gold basis and its corollary, the seizing up of the paper money system threatens the world with a Great Depression eclipsing that of the 1930’s.
Once entrenched, backwardation in gold means that the cancer of the dollar has reached its terminal stages. The progressively evaporating trust in the value of the irredeemable dollar can no longer be stopped.
Negative basis (backwardation) means that people controlling the supply of monetary gold cannot be persuaded to part with it, regardless of the bait. These people are no speculators. They are neither Scrooges nor Shylocks. They are highly capable businessmen with a conservative frame of mind. They are determined to preserve their capital come hell or high water, for saner times, so they can re-deploy it under a saner government and a saner monetary system. Their instrument is the ownership of monetary gold. They blithely ignore the siren song promising risk-free profits. Indeed, they could sell their physical gold in the spot market and buy it back at a discount in the futures market for delivery in 30 days. In any other commodity, traders controlling supply would jump at the opportunity. The lure of risk-free profits would be irresistible. Not so in the case of gold. Owners refuse to be coaxed out of their gold holdings, however large the bait may be. Why?
Well, they don’t believe that the physical gold will be there and available for delivery in 30 days’ time. They don’t want to be stuck with paper gold, which is useless for their purposes of capital preservation.
December 2 is a landmark, because before that date the monetary system could have been saved by opening the U.S. Mint to gold. Now, given the fact of gold backwardation, it is too late. The last chance to avoid disaster has been missed. The proverbial last straw has broken the back of the camel.
Few people realize that the shutting down of the gold trade, which is what is happening, means the shutting down of world trade. This is a financial earthquake measuring ten on the Greenspan scale, with epicenter at the Comex in New York, where the Twin Towers of the World Trade Center once stood. It is no exaggeration to say that this event will trigger a tsunami wiping out the prosperity of the world.
Posted by HalTurnerShow.com at 12/06/2008 04:01:00 PM
Survivalist business booms as economy flails
http://money.cnn.com/news/newsfeeds/articles/apwire/3f4a0a30089c66e254afc11f2350fc57.htm
The Armchair Survivalist offers practical advice for surviving global economic meltdown
December 01, 2008: 12:13 PM EST
NEW YORK (Associated Press) - The Armchair Survivalist believes the nation is falling into chaos, and he wants to help.
He offers practical advice for dealing with riots, wars, natural disasters and food shortages, which he says are imminent because of the worldwide economic meltdown and the incoming Obama administration.
"Too many things are occurring at the same time. It's upsetting people," said the Survivalist, whose real name is Kurt Wilson.
So this Martha Stewart for the camo-and-compound crowd provides valuable information on nonperishable foods, portable water purifiers and defensive weapons. His catalog business, Survival Enterprises, sells what you need for the coming hard times.
Northern Idaho has long been a magnet for anti-government types and Wilson moved his business here from California in 1998.
He operates out of a modest strip mall that is, ironically, on Government Way in Coeur d'Alene. Much of the work is packing and shipping orders for survival supplies such as canned bacon with a camouflage label and cases of military MREs.
Wilson started "The Armchair Survivalist" radio show about a year ago because so many people were asking him for advice on what he considered simple problems. The Saturday show can be heard over his Web site, on shortwave radio, or a few broadcast stations.
The survivalist movement was considered somewhat on the decline since it peaked around 1996, according to the Southern Poverty Law Center, which studies fringe movements around the country. But the SPLC warned last week of a rise in "hyper-survivalist paramilitary groups" as a result of the Obama election.
"Some conspiracy theorists and fringe "Patriot" radio hosts are seeking to reverse that course by calling on their friends and countrymen to arm themselves, organize and head for the hills in preparation for a fast-approaching second Civil War," the SPLC said on its web site.
Jim Rawles, editor of survivalblog.com said unique visits to his site are climbing. They've doubled to about 107,000 a week, he said. But he doesn't think Obama's election is the main reason.
"The main driver right now is the economic situation," he said. "A lot of people are deeply concerned we are on the cusp of another economic depression."
While the term "survivalist" often carries negative connotations of reactionary politics, advocates of the lifestyle say it has a long, proud place in history _ see Lewis and Clark _ and in fiction such as "The Swiss Family Robinson."
Barton Biggs, former chief global strategist for Morgan Stanley, recently wrote a book in which he warned that people should anticipate the breakdown of civilized society. He suggested creating a "safe haven" and stocking it with canned food, liquids, medicine, seed, fertilizer and other tools for survival.
In the same vein, Wilson devotes most of his program to topics like vacuum packing of food, generator silencing, and fire starting
But his politics are also clear. During a recent program he referred to "low-life interesting creatures that crawl over the border to get on Social Security." He said Barack Obama was a communist whose election was largely due to his race.
Yet business is booming at levels Wilson has not seen since the Y2K scare.
He attributes that to Americans' sense of vulnerability because of economic woes and a series of high profile disasters, most notably Hurricane Katrina. People feel they have to fend for themselves, he said.
Wilson spent part of his childhood living in a log cabin in the woods, where he picked up many of the skills once common among rural Americans but now largely forgotten.
During the Depression, for example, many Americans survived by planting gardens, he said.
Wilson said his show is intended for a mainstream audience, but it's not exactly "Paul Harvey."
On a recent program, he ripped the Wall Street bailout package, Democrats, rising taxes, disappearing pensions and the possible expansion of welfare. He warned that the worldwide credit crunch may leave cargo ships stranded in ports, making food imports to the U.S. impossible.
During breaks, there were advertisements for a product that can obscure license plates from red light cameras ("when cameras flash, you'll save some cash"), a cure for intestinal parasites, and a device for converting humidity into drinking water.
He doesn't worry so much about people who live in the country, figuring they can fend for themselves.
"The guy in an apartment has no chance in hell," he said. "I help people to become more self-sufficient."
One customer lives in a small Manhattan apartment, where he keeps stacks of canned food covered by tablecloths in his living room so they look like end tables, Wilson said.
Wilson recommends spending whatever it takes to have a year's worth of food on hand because grocery stores will be immediately stripped bare when disaster strikes.
Survival food and equipment can be expensive, but there are tricks to cutting the costs, such as buying cases of canned food on sale.
"I like yard sales," he said. "All true survivalists like yard sales."
'2025' Report: A World of Resource Strife
http://www.commondreams.org/view/2008/12/03-8
by Michael Klare
A new report by the National Intelligence Council (NIC) on the emerging strategic landscape, "Global Trends 2025," has attracted worldwide attention because it forecasts a future environment in which the United States wields less power than it does today and must contend with a constellation of other, newly ambitious great powers. "Although the United States is likely to remain the single most important actor," the report notes, "the United States' relative strength — even in the military realm — will decline and U.S. leverage will become more constrained." Of all the many revealing findings in the study, this has been the most widely quoted.
That the United States is likely to experience a decline in its strength relative to other great powers over the next 10 to 15 years is, of course, an observation bound to attract keen attention around the world, where criticism of U.S. foreign policy — over the Iraq War, the handling of the war on terror, our failure to sign the Kyoto Protocol on climate change — remains strong. The fact that "Global Trends 2025" emanated from a U.S. government agency — the NIC is part of the "national intelligence community" and reports to the Director of National Intelligence — lends additional weight to its findings. Still, when all is said and done, it's hardly surprising that professional analysts would come to this conclusion, given the enormous toll on America's military and economic resources taken by five-and-half years of fighting in Iraq and the accompanying loss to our influence, prestige, and goodwill abroad.
Climate and Competition
Far more striking and original, I believe, is the report's emphasis on the role of climate change and resource competition in the world of 2025 and beyond. Until now, these issues have appeared solely on the margins of U.S. strategic and intelligence studies. Now, for the first time, they have moved front and center.
"Resource issues will gain prominence on the international agenda," the NIC report notes. "Unprecedented global economic growth — positive in so many other regards — will continue to put pressure on a number of highly strategic resources, including energy, food, and water, and demand is projected to outstrip easily available supplies over the next decade or so."
The likely future availability of energy and water receives especially close attention. Oil, in particular, is seen as being at risk of failing to meet anticipated world requirements: "Non-OPEC liquid hydrocarbon production — crude oil, natural gas liquids, and unconventionals such as tar sands — will not grow commensurate with demand. Oil and gas production of many traditional energy producers already is declining…Countries capable of significantly expanding production will dwindle; oil and gas production will be concentrated in unstable areas." The bottom line: global oil supplies will be inadequate to satisfy demand, and importing nations will be forced to consume less and/or speed the production of alternatives.
Water scarcity is seen as an equally significant problem: "Lack of access to stable supplies of water is reaching critical proportions, and the problem will worsen because of rapid urbanization worldwide and the roughly 1.2 billion persons to be added [to the world's population] over the next 20 years." At present, we are told, some 600 million people in 21 countries are suffering from inadequate water supplies; by 2025, an estimated 1.4 billion people in 36 countries will face this peril.
Global warming will further exacerbate resource pressures, especially with respect to water and food. Although the impact of climate change will vary from region to region and cannot be predicted with precision, "a number of regions will begin to suffer harmful effects, particularly water scarcity and loss of agricultural production." Some areas will suffer more than others, "with declines disproportionately concentrated in developing countries, particularly those in sub-Saharan Africa." For many of these countries, "decreased agricultural output will be devastating because agriculture accounts for a large share of their economies and many citizens live close to subsistence levels."
Resource Wars
That resource scarcity and climate change will become increasingly severe in the decades ahead are hardly novel observations — many "peak oil" and environmental groups have been saying the same thing for years. But the NIC report takes this one step further by describing how these phenomena will intrude into international affairs and could provide the spark for armed violence. Increased scarcity, it suggests, could lead to greater efforts by states to secure control over overseas sources of energy and other key resources, producing geopolitical struggles among the major energy-deficit nations and possibly provoking all-out war.
"The rising energy demands of growing populations and economies may bring into question the availability, reliability, and affordability of energy supplies," the report notes. "Such a situation would heighten tensions between states competing for limited resources…In the worst case this could lead to interstate conflicts if government leaders deem assured access to energy resources to be essential to maintaining domestic stability and the survival of the regime."
Even in the absence of major interstate conflict, the report argues, growing competition for dwindling energy supplies could lead to heightened tensions, internal conflict, and terrorism. "Even actions short of war will have important geopolitical implications as states undertake strategies to hedge against the possibility that existing energy supplies will not meet rising demands." For example, "energy-deficient states may employ transfers of arms and sensitive technologies and the promise of a political and military alliance as inducements to establish strategic relationships with energy-producing states." Such relationships are already emerging in Central Asia, where China, Russia, and the United States are all competing for access to and control over the region's oil and gas reserves.
The growing concentration of wealth in the hands of petro-elites in places like Angola, Azerbaijan, Kazakhstan, and Nigeria will be another source of potential conflict. Because such elites rarely allocate oil revenues on an equitable basis or allow for a democratic transfer of power, any alteration in national governance (and the distribution of wealth) is likely to be accompanied by violence — often in the form of attacks on pipelines, refineries, and other oil-industry infrastructure. This, in turn, could invite "military intervention by outside powers to stabilize energy flows."
Several areas of the world are likely to figure in energy conflicts of this sort, especially Sub-Saharan Africa, the Middle East, and Central Asia. Each is the site of overlapping lines of conflict produced by a combination of ethnic and religious schisms, internal disputes over the allocation of resource revenues, and the contending geopolitical interests of the major powers. Under these circumstances, it would not take much for a minor skirmish — such as that between Georgia and Russia last August — to escalate into something much greater.
Water and land scarcity brought about or exacerbated by climate change could also trigger armed conflict, suggests the NIC report, although mostly of the internal sort. "Climate change is unlikely to trigger interstate war, but it could lead to increasingly heated interstate recriminations and possibly to low-level armed conflicts." A particular danger zone is the Himalayan region, where the ongoing melting of major glaciers is expected to diminish the annual flow of vital rivers in Bangladesh, China, India, and Pakistan — many of them shared by two or more of these countries and a perennial source of friction among them.
Clusters of Hostility
Terrorist violence will also be spurred by the struggle over critical resources. As climate change and water scarcity renders many rural areas uninhabitable — especially in high-population-growth areas of North Africa, the Middle East, and Asia — hundreds of millions of unemployed young men will pour into the sprawling mega-cities of the developing world, often facing unfriendly reception from the original inhabitants of these areas (who often will be of another religion or ethnicity). Some of these desperate, bitter young men will be drawn to crime; others to militant ideologies and movements.
"As long as turmoil and societal disruptions, generated by resource scarcities, poor governance, ethnic rivalries, or environmental degradation, increase in the Middle East, conditions will remain conducive to the spread of radicalism and insurgencies," the report concludes. And these clusters of hostility will not be confined to the Middle East: "Increasing interconnectedness will enable individuals to coalesce around common causes across national boundaries, creating new cohorts of the angry, downtrodden, and disenfranchised."
As the report makes clear, these phenomena will have an ever-increasing impact on world affairs. For one thing, the growing uninhabitability of large parts of North Africa, the Middle East, Asia, and Central America will force more and more people to migrate to the cities — producing political and social unrest, as noted — or across international boundaries, to countries less severely affected by climate change and resource scarcity. This surely will produce increased political debate over immigration in receiving countries — and, in all likelihood, an increase in anti-immigrant violence. At the same time, it will complicate the task of combating international terrorist networks that recruit from and hide within immigrant communities in Europe and elsewhere.
New Technologies
Eventually, the report suggests, entrepreneurs and their government backers in the industrialized world will develop new materials and technologies to replace substances in short supply or methods for using them more sparingly. For example, we can expect further improvements in wind and solar power, advanced biofuels, hydrogen fuel-cells, and other alternative energy systems making them more efficient and affordable. This technological revolution will be well underway by 2025 — but not so far advanced as to erase the problems raised by inadequate supplies of oil and natural gas. Also, land and water scarcity will remain a significant worry no matter how much progress is made in other areas. The report's warning of intensified resource strife in 2025 and beyond should, therefore, be read with considerable alarm.
Copyright © 2008, Institute for Policy Studies
Michael T. Klare is a professor of peace and world security studies at Hampshire College, the author of Rising Powers, Shrinking Planet: The New Geopolitics of Energy (Metropolitan Books, 2008), and a Foreign Policy In Focus columnist. Klare's previous book, Blood and Oil: The Dangers and Consequences of America's Growing Dependency on Imported Petroleum has been made into a documentary movie — to order and view a trailer, visit www.bloodandoilmovie.com
Americans turning to survivalists for advice
http://seattlepi.nwsource.com/local/390140_survivalist02.html
By NICHOLAS K. GERANIOS
THE ASSOCIATED PRESS
COEUR D'ALENE, Idaho -- The Armchair Survivalist believes the nation is falling into chaos, and he wants to help.
He offers practical advice for dealing with riots, wars, natural disasters and food shortages, which he says are imminent because of the worldwide economic meltdown and the incoming Obama administration.
"Too many things are occurring at the same time. It's upsetting people," said the Survivalist, whose real name is Kurt Wilson.
So this Martha Stewart for the camo-and-compound crowd provides valuable information on nonperishable foods, portable water purifiers and defensive weapons. His catalog business, Survival Enterprises, sells what you need for the coming hard times.
Northern Idaho has long been a magnet for anti-government types and Wilson moved his business here from California in 1998.
He operates out of a modest strip mall that is, ironically, on Government Way in Coeur d'Alene. Much of the work is packing and shipping orders for survival supplies such as canned bacon with a camouflage label and cases of military MREs.
Wilson started "The Armchair Survivalist" radio show about a year ago because so many people were asking him for advice on what he considered simple problems. The Saturday show can be heard over his Web site, on shortwave radio, or a few broadcast stations.
The survivalist movement was considered somewhat on the decline since it peaked around 1996, according to the Southern Poverty Law Center, which studies fringe movements around the country. But the SPLC warned last week of a rise in "hyper-survivalist paramilitary groups" as a result of the Obama election.
"Some conspiracy theorists and fringe "Patriot" radio hosts are seeking to reverse that course by calling on their friends and countrymen to arm themselves, organize and head for the hills in preparation for a fast-approaching second Civil War," the SPLC said on its web site.
Jim Rawles, editor of survivalblog.com said unique visits to his site are climbing. They've doubled to about 107,000 a week, he said. But he doesn't think Obama's election is the main reason.
"The main driver right now is the economic situation," he said. "A lot of people are deeply concerned we are on the cusp of another economic depression."
While the term "survivalist" often carries negative connotations of reactionary politics, advocates of the lifestyle say it has a long, proud place in history -- see Lewis and Clark -- and in fiction such as "The Swiss Family Robinson."
Barton Biggs, former chief global strategist for Morgan Stanley, recently wrote a book in which he warned that people should anticipate the breakdown of civilized society. He suggested creating a "safe haven" and stocking it with canned food, liquids, medicine, seed, fertilizer and other tools for survival.
In the same vein, Wilson devotes most of his program to topics like vacuum packing of food, generator silencing, and fire starting
But his politics are also clear. During a recent program he referred to "low-life interesting creatures that crawl over the border to get on Social Security." He said Barack Obama was a communist whose election was largely due to his race.
Yet business is booming at levels Wilson has not seen since the Y2K scare.
He attributes that to Americans' sense of vulnerability because of economic woes and a series of high profile disasters, most notably Hurricane Katrina. People feel they have to fend for themselves, he said.
Wilson spent part of his childhood living in a log cabin in the woods, where he picked up many of the skills once common among rural Americans but now largely forgotten.
During the Depression, for example, many Americans survived by planting gardens, he said.
Wilson said his show is intended for a mainstream audience, but it's not exactly "Paul Harvey."
On a recent program, he ripped the Wall Street bailout package, Democrats, rising taxes, disappearing pensions and the possible expansion of welfare. He warned that the worldwide credit crunch may leave cargo ships stranded in ports, making food imports to the U.S. impossible.
During breaks, there were advertisements for a product that can obscure license plates from red light cameras ("when cameras flash, you'll save some cash"), a cure for intestinal parasites, and a device for converting humidity into drinking water.
He doesn't worry so much about people who live in the country, figuring they can fend for themselves.
"The guy in an apartment has no chance in hell," he said. "I help people to become more self-sufficient."
One customer lives in a small Manhattan apartment, where he keeps stacks of canned food covered by tablecloths in his living room so they look like end tables, Wilson said.
Wilson recommends spending whatever it takes to have a year's worth of food on hand because grocery stores will be immediately stripped bare when disaster strikes.
Survival food and equipment can be expensive, but there are tricks to cutting the costs, such as buying cases of canned food on sale.
"I like yard sales," he said. "All true survivalists like yard sales."
The Toilet Paper Survivalist
How I Became a Survivalist and Remained Squeezably Soft
By John Galt
December 3, 2008
In the great year of 1999, I was prepared to hunker down in my humble home with my wife and critters for the end of the world as we know it (TEOTWAWKI for all you still learning the lingo). I was cushioned by my vast supplies of rice, beans, canned foods, guns, ammo and the one thousand rolls of toilet paper which I insisted would save our lives one day.
Sadly, the non-event of Y2K shattered so many of my illusions and dreams of leading a “Red Dawn” style movement to liberate the programmers that would save the day. Instead, the only thing that failed technologically in my household was a calculator which flickered off and on, which turned out to be a dying battery and not an error in code implanted by Chinese Communist agents looking to destroy our nation.
This lost dream forced me into a spiraling staircase of doubt that the survivalist mentality was not only wrong but misguided by people who wanted me to buy camouflage and learn how to roast pine beetles with dandelions in my back yard instead of just firing up the Weber Grill and creating my own masterpieces of culinary delight. Events in the coming year would prove my doubts wrong and my desire to resheeple during the year an almost irreconcilable mistake.
When the terrorist struck our nation on September 11, 2001, I feared the worst. I ran to my supply closets and started breaking out the ammo cans expecting an invasion of Islmofacist hordes much like the Mongols stormed the Turkish steppes centuries earlier. As I loaded magazines and watched the horror unfold on television, the realization that President Bush was in our area, speaking to those kids, hit me that indeed we could be at risk. As the President departed Sarasota on television, I had to go out into my front yard and see Air Force One as it ascended from our airport now fully realizing the horror of our new future began to sink in as the fighter jets roared overhead with the Boeing 747. “God help us” I thought to myself. Indeed, we, as a nation needed prayer and guidance more than ever.
As time moved forward, the doubts about the entire 9-11 disaster entered my mind, primarily via shortwave radio broadcasters who started to convince me that all of those years of college and information my professors relating to the fanaticism of the Islamic extremists was indeed a myth. I actually had a little doubt in mind about the events I witnessed with my own eyes on television or if Bin Laden was a real person or not or just a psychotropic illusion induced by a CIA planted hallucinogenic agent introduced into those red berries in my Captain Crunch Berries cereal.
Alas, the whiplash of being slapped back into the real world hit me like a ton of bricks as some personal misfortune made me realize that I needed the survivalist mentality to get by and to succeed. That is why I began to understand that allowing my stash to drop below three hundred rolls was a mistake, and learning to research to find out the truth about so many things became an important part of my life.
So I could help my wife and I and our families survive the coming times.
The tongue in cheek metaphor for so many people in the “prepper” or “survivalist” community is the measure of how many rolls of toilet paper you have stored up for hard times. There are some folks that I know who take that issue dead seriously, even creating spreadsheets measuring usage and cost which is fine unless of course you use more than the average bear which is much more information than I need to know in this lifetime. Alas, that is not the reality though, as freedom and independence are the real story which is what every fine person within this community has always tried to defend and convey.
The mindset in reality is to be prepared for almost anything, and that is what I have tried my best to get my family prepared for. You have to learn to live your lives and balance the day to day needs, practical and emotional, of your spouse and yourself. There is no reason to wake up every morning expecting to put green camouflage paint on your face and play Rambo in the reality of the proverbial real world. Yet letting one’s guard down is not an option as September 11, 2001 so vividly illustrated. That is where learning and dealing with the balance is so important.
I have tried my best to balance my time to prepare with the real world so I do not have my friends and relatives looking to have my household visited by those nice young men with the jackets with lots of buckles and snaps in the back. It is a difficult balance, at times annoying my lovely wife beyond belief, yet you have to find it or you will go insane. The times we are entering are historic for our nation and will eventually lead to the final revision of our system of economic and political structure which means our Constitution shall sadly be drastically revised. To me this means you have to follow the proverbial “prepare for the worst, pray for the best” line of thinking and hope to the dear Lord your actions will take care of those that you love.
I shall always endeavor to seek out like minded souls so I can learn more. The education process is so critical at this time that without it, I might slide back into the Jerry Springer version of America where reality is defined by the insane lack of practical morals and dependence on others to survive. That is not living if you think about it. That is leeching, the process of latching on to others for your existence which requires no moral compass, no spiritual guidance and a total abandonment of the principles which created our nation. The Marxist ideals so carefully infused into our education system and life principles one teaspoon at a time have finally born fruit for those that wished to bring freedom and capitalism down to their knees. The dual concepts of dependence and submission are creating the problems we see now, and unfortunately shall multiply in intensity in the years to come.
With that desire for the preservation of the original American system in mind, I hope that everyone takes a breath of fresh air and pauses to reflect on what your moral center is and how your own personal Declaration of Independence might help you to survive the trying times we are now in the midst of. I could suggest a list of goods, training and programs to help you start down this path but there is only one thing each individual must do. I feel you must look inward, which in my case was an insightful revelation during prayer, to get the guidance you will need to survive this morbid future our technocratic designers have in mind. Once you have taken that time, that moment to look inside yourself and then seek the knowledge you will need, you are light years ahead of your Playstation Two playing, Jerry Springer lifestyle living, four car and a home in debt over their heads neighbor who has three kids, a wife, a girlfriend and a lifestyle which they model after all those reality television shows.
Come to think of it, when I think about those neighbors which we all seem to have encountered at some point in our lives, it makes me want to take a deep breath and take some action to give me peace of mind:
Excuse my while I inventory the Charmin.
The Coming Great Depression: Leaving Fantasyland
http://charleshughsmith.blogspot.com/2008/11/coming-great-depression-leaving.html
Wall Street Journal commentator Peggy Noonan is undoubtedly not alone is seeing no evidence of Depression in America--yet: Turbulence Ahead:
"One of the weirdest, most perceptually jarring things about the economic crisis is that everything looks the same. We are told every day and in every news venue that we are in Great Depression II, that we are in a crisis, a cataclysm, a meltdown, the credit crunch from hell, that we will lose millions of jobs, and that the great abundance is over and may never return. Three great investment banks have fallen while a fourth totters, and the Dow Jones Industrial Average has fallen 31% in six months. And yet when you free yourself from media and go outside for a walk, everything looks . . . the same.
Everyone is dressed the same. Everyone looks as comfortable as they did three years ago, at the height of prosperity. The mall is still there, and people are still walking into the stores and daydreaming with half-full carts in aisle 3. Everyone's still overweight.
But the point is: Nothing looks different.
In the Depression people sold apples on the street. They sold pencils. Angels with dirty faces wore coats too thin and short and shivered in line at the government surplus warehouse."
Peg would be well-served by reading up a bit on the Depression's timeline. As noted here last week, (The Coming Great Depression: Scapegoats and Exploitation) the Dow Jones Industrial Average actually recovered in early 1930 to early-1929 levels. (Look for the same this time around, too--DJIA 12,600 is in the cards a few months out, despite all the structural damage to the market and economy.)
Breadlines didn't form in November 1929--the structural damage took years to play out then, and it will take years to play out now. So don't rush things, Peggy--we'll get to a visible Depression soon enough.
Great Depression: (Wikipedia)
The Great Depression was not a sudden, total collapse. The stock market turned upward in early 1930, returning to early 1929 levels by April, though still almost 30 percent below the peak of September 1929. Together, government and business actually spent more in the first half of 1930 than in the corresponding period of the previous year. But consumers, many of whom had suffered severe losses in the stock market the previous year, cut back their expenditures by ten percent, and a severe drought ravaged the agricultural heartland of the USA beginning in the summer of 1930.
In early 1930, credit was ample and available at low rates, but people were reluctant to add new debt by borrowing. By May 1930, auto sales had declined to below the levels of 1928. Prices in general began to decline, but wages held steady in 1930, then began to drop in 1931. We can already anticipate "ample credit at low rates" in 2009, just as we can also anticipate wages holding steady for awhile even as sales fall. The wheels will fall off later in 2009 and deteriorate further in 2010, 2011 and 2012.
Here are the structural realities which have yet to play out:
1. You can't force households or businesses to borrow more money and spend it. Japan's central bank has flooded that nation with liquidity and low interest money for 19 years to little effect.
2. U.S. consumers and corporations are already burdened with staggering debt. Not only can't you force people to borrow more, you also can't force lenders to loan more money to insolvent households and businesses.
3. Whatever money people get their hands on is going to paying down debt and savings. Studies of the first "stimulus package" checks which went out to taxpayers in 2008 revealed that 2/3 of the money was not spent but used to service debt or saved. Future "stimulus checks" will also fail to boost spending; people already have more stuff than they know what to do with.
4. The FIRE economy is dead. Finance, insurance and real estate (FIRE) all prospered for one reason: the velocity of transactions and debt instruments. With the volume of transactions off by 2/3 (real estate) or 99% (home equity loans), the FIRE economy is shrinking fast, with no barriers to further declines. With lending standards rising even as real estate values plummet, there is nothing to stop transaction and debt velocity from falling much further.
5. Governments and corporations alike are living with Fantasyland expectations of revenue. I recently pored over the 2009 fiscal year budget of my town of 120,000 people (general fund spending is $135 million, which doesn't include capital projects or bond-funded spending) and was dumbstruck by the insanely unrealistic revenue expectations.
The city expects to reap the same amount of easy money from real estate transfer taxes (1% of any real estate transaction goes to the city) in 2009 as it did in 2007 and 2008: about $11 million.
Huh? As transaction volumes decline by 2/3 and the sales prices plummet, then how can you possibly expect to rake in the same transfer tax revenues?
The downtown shopping district was eerily quiet on Black Friday; empty storefronts are everywhere, and sales are falling even at the town's sales-tax heavyweights, the Toyota and Honda auto dealerships. Yet the city expects to haul in the same sales tax revenue as in 2008. Based on what?
The entire nation is in the grip of massive, total denial that revenues will drop in a recession. Companies are trimming travel costs, as are consumers; San Francisco International Airport was virtually empty on Wednesday, once one of the busiest travel days of the year. Airports almost empty day before Thanksgiving.
"The dreaded Day before Thanksgiving was not so dreadful after all. Bay Area airports were eerily empty for much of what traditionally has been among the busiest travel days of the year.
"There's nobody here," said Deborah Vainieri, who was waiting at San Francisco International Airport with her husband, Humberto, for a flight to Portland. In a plot to beat the crowds, the Vainieris had arrived at the airport four hours early. They walked right up to the check-in machine and were done in less than a minute."
6. If lenders make risky loans, they will go under--and most U.S. households and businesses are no longer creditworthy risks. So there you have it: This conflict cannot be resolved. Lenders who foolishly extend credit to over-indebted, risk-laden borrowers will be paid back with losses and insolvency, yet as lending standards tighten and assets plummet in value, the number of creditworthy borrowers in the U.S. has shrunk.
As noted here many times: many of those who qualify for loans are deadset against debt. That's why they're creditworthy--they've refused to take on huge debt for cultural or fiscal-prudence reasons. They have zero interest in taking on debt, even at zero interest.
You can't force people to borrow money, especially when they're already overloaded with debt, and you can't force prudent people to borrow when they have no need for more property, nor can you force people to buy real estate even as the values continue falling.
7. The U.S. already has too much of everything: too many hotels, malls, office towers, homes, condos, strip-malls, lamps, furniture, CDs, TVs, clothing, etc. As 50 million storage lockers filled to capacity with consumer crap are emptied in a desperate move to reduce expenses and raise cash, the value of literally everything ever manufactured will fall to near-zero.
As noted here many times before, the entire U.S. housing market was held aloft by two anomalies: speculators hoping to "flip" for huge profits, and a "one dwelling for every person" mentality that confused rising population with a rising number of households.
We are already seeing how population can continue rising slowly even as the number of households declines. It's called moving back home, doubling up, renting out a room, etc. There are at least 20 million surplus dwellings in the U.S. right now; there is no need for 700,000 more a year to be built, or even 70,000 more.
The FIRE economy based on transaction and debt volume/velocity: gone, over, toast. Housing market based on speculative flipping and one-person households: over, gone, toast. Loose lending by delusional lenders to risky, over-indebted borrowers: gone, over, toast. Borrowing based on rising real estate values: gone, over, toast.
The notion that we "need" more of anything: gone, over, toast. The idea that you can force lenders to lend to uncreditworthy borrowers: gone, over, toast. The idea you can force people drowning in debt to borrow more: gone, over, toast.
Thank you, Bruce M. ($25) for your most-welcome generous donation to this site. I am greatly honored by your support and readership. All contributors are listed below in acknowledgement of my gratitude.
posted by Charles Hugh Smith at 12:36 PM
30 reasons for Great Depression 2 by 2011
New-New Deal, bailouts, trillions in debt, antitax mindset spell disaster
http://www.marketwatch.com/news/story/well-great-depression-2-2011/story.aspx?guid={B28B49B5-EFD1-4941-B57E-A2BA1545BA09}&dist=TNMostRead
10 Significant Signs why this will be the worst Recession since World War II.
http://www.doctorhousingbubble.com/10-significant-signs-why-this-will-be-the-worst-recession-since-world-war-ii/
Replete with charts and graphs.
MUST READ: The deflation-inflation two-step: Too complex for deflationsts to grasp?
By mistaking the short term for the long term, they are missing the trade of the century
http://www.itulip.com/forums/showthread.php?p=60311#post60311
First deflation...that's what we have now...then inflation that's what we can look forward to next...
Lots of charts and graphs and an explanation even a dolt like me can understand...
21 slides worth reading: The Five Stages of Collapse
by Dmitry Orlov
http://www.energybulletin.net/node/47157
1.
Hello, everyone! The talk you are about to hear is the result of a lengthy process on my part. My specialty is in thinking about and, unfortunately, predicting collapse. My method is based on comparison: I watched the Soviet Union collapse, and, since I am also familiar with the details of the situation in the United States, I can make comparisons between these two failed superpowers.
I was born and grew up in Russia, and I traveled back to Russia repeatedly between the late 80s and mid-90s. This allowed me to gain a solid understanding of the dynamics of the collapse process as it unfolded there. By the mid-90s it was quite clear to me that the US was headed in the same general direction. But I couldn't yet tell how long the process would take, so I sat back and watched.
I am an engineer, and so I naturally tended to look for physical explanations for this process, as opposed to economic, political, or cultural ones. It turns out that one could come up with a very good explanation for the Soviet collapse by following energy flows. What happened in the late 80s is that Russian oil production hit an all-time peak. This coincided with new oil provinces coming on stream in the West - the North Sea in the UK and Norway, and Prudhoe Bay in Alaska - and this suddenly made oil very cheap on the world markets. Soviet revenues plummeted, but their appetite for imported goods remained unchanged, and so they sank deeper and deeper into debt. What doomed them in the end was not even so much the level of debt, but their inability to take on further debt even faster. Once international lenders balked at making further loans, it was game over.
What is happening to the United States now is broadly similar, with certain polarities reversed. The US is an oil importer, burning up 25% of the world's production, and importing over two-thirds of that. Back in mid-90s, when I first started trying to guess the timing of the US collapse, the arrival of the global peak in oil production was scheduled for around the turn of the century. It turned out that the estimate was off by almost a decade, but that is actually fairly accurate as far as such big predictions go. So here it is the high price of oil that is putting the brakes on further debt expansion. As higher oil prices trigger a recession, the economy starts shrinking, and a shrinking economy cannot sustain an ever-expanding level of debt. At some point the ability to finance oil imports will be lost, and that will be the tipping point, after which nothing will ever be the same.
This is not to say that I am a believer in some sort of energy determinism. If the US were to cut its energy consumption by an order of magnitude, it would still be consuming a staggeringly huge amount, but an energy crisis would be averted. But then this country, as we are used to thinking of it, would no longer exist. Oil is what powers this economy. In turn, it is this oil-based economy that makes it possible to maintain and expand an extravagant level of debt. So, a drastic cut in oil consumption would cause a financial collapse (as opposed to the other way around). A few more stages of collapse would follow, which we will discuss next. So, you could see this outlandish appetite for imported oil as a cultural failing, but it is not one that can be undone without causing a great deal of damage. If you like, you can call it "ontological determinism": it has to be what it is, until it is no more.
I don't mean to imply that every part of the country will suddenly undergo a spontaneous existence failure, reverting to an uninhabited wilderness. I agree with John-Michael Greer that the myth of the Apocalypse is not the least bit helpful in coming to terms with the situation. The Soviet experience is very helpful here, because it shows us not only that life goes on, but exactly how it goes on. But I am quite certain that no amount of cultural transformation will help us save various key aspects of this culture: car society, suburban living, big box stores, corporate-run government, global empire, or runaway finance.
On the other hand, I am quite convinced that nothing short of a profound cultural transformation will allow any significant number of us to keep roofs over our heads, and food on our tables. I also believe that the sooner we start letting go of our maladaptive cultural baggage, the more of a chance we will stand. A few years ago, my attitude was to just keep watching events unfold, and keep this collapse thing as some sort of macabre hobby. But the course of events is certainly speeding up, and now my feeling is that the worst we can do is pretend that everything will be fine and simply run out the clock on our current living arrangement, with nothing to replace it once it all starts shutting down.
Now, getting back to my own personal progress in working through these questions, in 2005 I wrote an article called "Post-Soviet Lessons for a Post-American Century". Initially, I wanted to publish it on a web site run by Dale Alan Pfeiffer, but, to my surprise, it ended up on From The Wilderness, a much more popular site run by Michael Ruppert, and, to my further astonishment, Mike even paid me for it.
And ever since then, I've been asked the same question, repeatedly: "When? When is the collapse going to occur?" Being a little bit clever, I always decline to give a specific answer, because, you see, as soon as you get one specific prediction wrong, there goes your entire reputation. One reasonable way of thinking about the timing is to say that collapse can occur at different times for different people. You may never quite know that collapse has happened, but you will know that it has happened to you personally, or to your family, or to your town. The big picture may not come together until much later, thanks to the efforts of historians. Individually, we may never know what hit us, and, as a group, we may never agree on any one answer. Look at the collapse of the USSR: some people are still arguing over why exactly it happened.
But sometimes the picture is clearer than we would like. In January of 2008, I published an article on "The Five Stages of Collapse," in which I defined the five stages, and then bravely stated that we are in the midst of a financial collapse. And ten months later it doesn't seem that I went too far out on a limb this time. If the US government has to lend banks over 200 billion dollars a day just to keep the whole system from imploding, then the term "crisis" probably doesn't do justice to the situation. To keep this game going, the US government has to be able to sell the debt it is taking on, and what do you think the chances are that the world at large will be snapping up trillions of dollars of new debt, knowing that it is being used to prop up a shrinking economy? And if the debt can't be sold, then it has to be monetized, by printing money. And that will trigger hyperinflation. So, let's not quibble, and let us call what's happening what it looks like: "financial collapse".
2.
So here are the five stages as I defined them almost a year ago. The little check-mark next to "financial collapse" is there to remind us that we are not here to quibble or equivocate, because Stage 1 is pretty far along. Stages 2 and 3 - commercial and political collapse, are driven by financial collapse, and will overlap each other. Right now, it is unclear which one is farther along. On the one hand, there are signs that global shipping is grinding to a halt, and that big box retailers are in for a very bad time, with many stores likely to close following a disastrous Christmas season. On the other hand, states are already experiencing massive budget shortfalls, laying off state workers, cutting back on programs, and are starting to beg the federal government for bail-out money.
Even though the various stages of collapse drive each other in a variety of ways, I think that it makes sense to keep them apart conceptually. This is because their effects on our daily life are quite different. Whatever constructive ways we may find of dodging these effects are also going to be different. Lastly, some stages of collapse seem unavoidable, while others may be avoided if we put up enough of a fight.
Financial collapse seems to be particularly painful if you happen to have a lot of money. On the other hand, I run across people all the time, who feel that "Nothing's happened yet." These are mostly younger, relatively successful people, who have little or no savings, and still have good paying jobs, or unemployment insurance that hasn't run out yet. Their daily lives aren't much affected by the turmoil on the financial markets, and they don't believe that anything different is happening beyond the usual economic ups and downs.
Commercial collapse is much more obvious, and observing it doesn't entail opening envelopes and examining columns of figures. It is painful to most people, and life-threatening to some. When store shelves are stripped bare of necessities and remain that way for weeks at a time, panic sets in. In most places, this requires some sort of emergency response, to make sure that people are not deprived of food, shelter, medicine, and that some measure of security and public order is maintained. People who know what's coming can prepare to sit out the worst of it.
Political collapse is more painful yet, because it is directly life-threatening to many people. The breakdown of public order would be particularly dangerous in the US, because of the large number of social problems that have been swept under the carpet over the years. Americans, more than most other people, need to be defended from each other at all times. I think that I would prefer martial law over complete and utter mayhem and lawlessness, though I admit that both are very poor choices.
Social and cultural collapse seem to have already occurred in many parts of the country to a large extent. What social activity remains seems to be anchored to transitory activities like work, shopping, and sports. Religion is perhaps the largest exception, and many communities are organized around churches. But in places where society and culture remain intact, I believe that social and cultural collapse is avoidable, and that this is where we must really dig in our heels. Also, I think it is very important that we learn to see our surroundings for what they have become. In many places, it feels as if there just isn't that much left that's worth trying to save. If all the culture we see is commercial culture, and all the society we see is consumer society, then the best we can do is walk away from it, and look for other people who are ready to do the same.
3.
There is nothing particularly deep or magical about the five stages I chose, except that they seem convenient. They correspond to the commonly distinguished aspects of everyday reality. Each stage of collapse also corresponds to a certain set of beliefs in the status quo, that is about to go by the wayside.
It is always an impressive thing to observe when reality shifts. One moment, a certain idea is seen as preposterous, and the next moment it's being treated as conventional wisdom. There seems to be a psychological mechanism involved, where nobody wants to be seen as the last fool to finally get the picture. Everybody starts pretending that they've thought that way all along, or at least for a little while, for fear of appearing foolish. It is always awkward to ask people what caused them to suddenly change their minds, because with the fear of looking foolish comes a certain loss of dignity.
The most compelling example of lots of minds suddenly going "snap" is, to my mind, the sudden demise of the USSR. It happened with Boris Yeltsin standing atop a tank, and being asked the question: "But what will become of the Soviet Union?" And his answer, pronounced with maximum gravitas was: "Henceforth I shall only refer to it as the FORMER Soviet Union." And that was that. After that, whoever still believed in the Soviet Union appeared as not just foolish, but actually crazy. For a while, there were a lot of crazy old people parading around with portraits of Lenin and Stalin. Their minds were too old to go "snap".
Here in the US, we are yet to experience any of the really major, earth-shattering realizations, the ones that look preposterous immediately before and completely obvious immediately after they occur. We have had minor tremors, mostly relating to financial assumptions. Is real estate a good investment. Will private retirement allow you to retire? Will the government bail us all out? All the major realizations are yet to come, or, as my die-hard Yuppie friends keep telling me, "Nothing's happened yet."
But by the time something does happen, it will have been too late for us to start planning for it happening. It doesn't seem all that worthwhile for us to sit around waiting for the happy event of everybody else feeling foolish all at the same time. Arrogant though that may seem, we may be better off accepting their foolishness before they do, and keeping a safe distance ahead of the prevailing opinion.
Because if we do that, we may yet succeed in finding ways to cope. We may learn to dodge financial collapse by learning to live without needing much money. We may create alternative living arrangements and informal production and distribution networks for all the necessities before commercial collapse occurs. We may organize into self-governing communities that can provide for their own security during political collapse. And all of these steps put together may put us in a position to safeguard society and culture.
Or we can just wait until everyone starts agreeing with us, because we wouldn't want them to look foolish.
4.
The important dynamic, when it comes to financial collapse, is obvious by now. It's the collapse of credit pyramids, "the whole house of cards" as President Bush put it. The technical term is "deleveraging," and the response is the bailout. The federal government will be bailing out the banks and the insurance companies, the auto companies, and state governments. Call it the bail-out treadmill: we are borrowing faster and faster just to keep from falling down. The treadmill is actually a good metaphor. Imagine what would happen if you went to a gym, got on a treadmill machine, and just kept punching up the speed, as high as it will go. What happens is you trip and fall, and find yourself flying backwards.
It is instructive to ask the question, Who are we borrowing this bail-out money from? People will tell you that we are borrowing it from "the taxpayer." But it's not as if federal tax receipts have automatically shot up by a few trillion over the past couple of months, and so this begs the question, Who is "the taxpayer" going to borrow this money from in the meantime? From other Americans? No, because our savings rate has been abysmally low for quite some time now, and what little we have saved is in housing equity, which is dwindling, and in stocks and bonds, through mutual funds and 401ks and such, which are down by a third or so. The value of these investments is crashing, and if we dumped these investments to raise the cash to fund this new debt, that would just make them crash even faster. In effect, we'd only be moving money from one pocket to another. So, really, the bailouts have to be financed by foreigners. And what if these foreigners decide not to trust us with any more of their savings? Then our only recourse is to "monetize" the debt: to print money.
And so the next question is, how much money would we have to print? The purpose of the bailouts is to provide liquidity to insolvent companies, to avoid deleveraging. To understand what that means, we have to understand that for every actual dollar within the economy, in the sense of it not being borrowed, there are over 13 dollars of borrowed money, which only exists while the debt can be rolled over. If our credit is maxed out while the economy is growing, that's bad enough, but the US economy is shrinking because of the recent oil shock. A smaller economy cannot carry as much debt, and this is part of the reason why we have deleveraging. Once the process of debt going sour gets started, it is hard to stop, and if deleveraging were to run its course, we would be down over 1300%. To monetize that much debt would require over 1300% inflation. And once that gets started, it becomes very hard to stop.
And, that, believe it or not, is actually the good news. Because most of our debt is denominated in our own currency - the US dollar - the US will not have to declare sovereign default, like Russia was forced to do in the 1990s. Instead, we can inflate our way out of national bankruptcy, by printing a lot of dollars. We will repay our national debt, but we will do so in worthless paper money, bankrupting our international creditors in the process. There is sure to be plenty of pain for everyone, especially everyone who is used to having plenty of money, because their money will no longer make the world go around. Once the US has to start earning foreign currency in order to pay for imports, you can be sure that imports will become quite scarce.
5.
Here are before and after snapshots of the most salient characteristics of financial collapse, as they will affect the vast majority of the population. Here, I am assuming that commercial and political collapse are slower in arriving, and that government is still there to step in with emergency aid of various sorts, and that a market economy of some sort continues to function. It could come down to everyone walking around with their little food stamps debit cards, and the only place they can use them that's within walking distance is McDonalds, but I am assuming some semi-stable period during which other adjustments can occur before other stages run their course.
The adjustments would have to do with major aspects of the living arrangement, from where we live to how we grow food to how we relate to each other. With money scarce and not particularly potent, other ways of winning the cooperation of others would need to be evolved in a hurry. The financial realm can be seen as a complex system of fences: your bank account is fenced off from my bank account. This arrangement allows you and me to not worry too much about each other, provided each of us has enough to live on. Though this is largely a fiction, we can fancy ourselves to be independent economic players on a level playing field. But once these conceptual fences become irrelevant, because there is nothing behind them, we become each others' burden, in an immediate sort of way, that would come as a shock to most people. The indignity of such physical interdependence would be psychologically devastating to many people, raising the human toll from financial collapse beyond what you'd expect from a problem that really only exists on paper. This is going to be particularly hard for a nation brought up on the myth of rugged individualism.
6.
Commercial collapse, when it arrives, will again cause much more of a psychological crack-up than you'd expect from a purely organizational problem. The quantities of immediately available goods and services right before and right after the collapse would remain about the same, but because market psychology is so ingrained in the population, no other ways of coping would be considered. Hoarding would become widespread, with looting as the obvious antidote. There would be an instant, huge black market for all sorts of necessities, from shampoo to vials of insulin.
The market mechanism works well in some cases, but it doesn't work at all when key commodities become scarce. It leads to profiteering, hoarding, looting, and other pernicious effects. There is usually a knee-jerk reaction to regulate the markets, by imposing price controls, or by introducing rationing. I found it quite funny that the recent clamoring for re-regulating the financial markets was greeted with cries of "Socialists!" Failing at capitalism doesn't make you a socialist, any more than getting a divorce automatically make you gay.
If by the time commercial collapse is upon us, there is still enough of the political system left intact to implement rationing and price controls and emergency distribution schemes, then we should count these among our blessings. Such heavy-handed governance is certainly not a crowd-pleaser during times of plenty, when it's also unnecessary, but it can be quite a life-saver during times of scarcity. The Soviet food distribution system, which was plagued with chronic underperformance during normal times, proved to be paradoxically resilient during collapse, allowing people to survive the transition.
7.
If prior to commercial collapse the challenge is finding enough money to afford the necessities, afterward the challenge is getting people to accept money as payment for these same necessities. Many of the would-be sellers will prefer to be paid in something more valuable than mere cash. Customer service comes to mean that customers must provide a service. Given that most people won't have much to offer, other than their now worthless money, should they still have any, most purveyors of goods and services decide to take a holiday.
With the disappearance of the free and open market, even the items that still are available for sale come to be offered in a way that is neither free nor open, but only at certain times and to certain people. Whatever wealth still exists is hidden, because flaunting it or exposing it just increases the security risk, and the amount of effort required to guard it.
In an economy where the vast majority of manufactured items is imported, and designed with planned obsolescence in mind, it will be difficult to keep things running as imports dry up, especially imports of spare parts for foreign-made machinery. The pool of available equipment will shrink over time, as more and more pieces of equipment become used as "organ donors." In an effort to keep things running, entire cottage industries devoted to refurbishing old stuff might suddenly come together.
8.
It is sometimes hard to discern political collapse, because politicians tend to be quite good at maintaining the pretense of power and authority even as it dwindles. But there are some telltale signs of political collapse. One is when politicians start moonlighting because their day job is no longer sufficiently gainful. Another is when regional politicians start to openly defy orders from the political center. Russia experienced plenty of each of these symptoms.
One thing that makes political collapse particularly hard to spot is that the worse things get, the more noise the politicians emit. The substance to noise ratio in political discourse is pretty low even in good times, making it hard to spot the transition when it actually drops to zero. The variable that's easier to monitor is the level of political embarrassment. For instance, when Mr. Nazdratenko, the governor of the far-east Russian region of Primorye, stole large amounts of coal, made strides in the direction of establishing an independent foreign policy toward China, and yet Moscow could do nothing to reign him in, you could be sure that Russia's political system was pretty much defunct.
Another telltale sign of political collapse is actual disintegration, where regions declare independence. In Russia, that was the case with Chechnya, and it led to a prolonged bloody conflict. Here, we might have a "Reconquista" where former Mexican territories become ever more Mexican, the South might rise again. New England, California, and the Pacific Northwest might decide to go their separate ways. Once the interstate highway system is no longer viable and the remaining domestic airlines are extinct, there is not much to keep the two coasts together. What once united the country was the construction of the continental railroad, but railroads have been too neglected to hold it together now. A country consisting of two halves tied together via Panama Canal is de facto at least two countries.
Yet another thing to watch for is foreign incursions into domestic politics. When foreign political consultants start stage-managing elections, as happened with Yeltsin's reelection campaign, you can be sure that the country is no longer in charge of its own political system. In the US, there is a gradual surrender of sovereignty, as sovereign wealth funds buy up more and more US assets. That sort of thing used to be considered akin to an act of war, but these are desperate times, and they are allowed to do so without so much as a nasty comment. Eventually, they may start making political demands, to extract the most value out of their investments. For instance, they could start vetting candidates for public office, to make sure that we remain friendly to their interests.
Lastly, the power vacuum created by the collapse of legitimate authority tends to be more or less automatically filled by criminal syndicates. These often try to commandeer the political establishment by getting their heads elected or appointed to political offices. Examples include Russian oligarchs, such as Boris Berezovsky, who got himself elected to Duma, the Russian parliament, and Mikhail Khodorkovsky, who thought he could use his oil wealth to buy his way into the political establishment. Luckily for Russia, Berezovsky is in exile in England, and Khodorkovsky is in jail.
9.
A great many people in the US insist that they do not need government help, and that they would do just fine if only the government would leave them alone. But this is really just a pose; there is a great deal that that government does to make their lives possible. In the United States, the federal government keeps many people alive through programs such as Medicaid, Social Security, and food stamps. Local governments provide for trash removal and water and sewer line maintenance, road and bridge repair, and so on. Police departments try to defend people from each other.
When all of that starts to unravel, it is likely to do so from the bottom, not from the top. Local officials are more accessible than remote Washington bureaucrats, and so they will be the first to be overwhelmed by the anger and confusion of their constituents, while Washington remains unresponsive. One likely exception may have to do with the use of federal troops. It seems almost a given that troops repatriated from the more than 1000 foreign military bases will see action right here at home. They will be reassigned to domestic peacekeeping duties.
10.
Aside from the big government programs, there is little available in the US to help those in need. Again, Americans make a big show of their philanthropy, but, compared to other developed countries, they are in fact quite stingy when it comes to helping those in need. There is even a streak of political sadism, which, for example, shows up in people's attitudes toward welfare recipients. This sadism can be seen in the so-called welfare reform, which has forced single mothers to work jobs that barely cover the cost of daycare, which is often substandard.
Aside from the government, there are charities, many of which are church-based, and so they have the ulterior motive of recruiting people to their cause. But even when a charity does not make any specific demands, its real purpose is to reinforce the superiority of those who are charitable, at the expense of those who are the recipients. There is a flow of forced gratitude from the beneficiary to the benefactor. The greater the need, the more humiliating is the transaction to the beneficiary, and the more satisfying it is to the benefactor. There is no motivation for the benefactor to provide more charity in response to greater need, except in special circumstances, such as immediately following a natural disaster. Where the need is large, constant, and growing, we should expect charities to matter very little when it comes to satisfying it.
Since neither government largesse nor charity is likely to provide for those who cannot provide for themselves, we should look for other options. One promising direction is a revival of mutual help societies, which take membership contributions and then use them to help those in need. At least in theory, such organizations are vastly better than either government aid or charities. Those who are helped by them do not have to surrender their dignity, and can survive difficult times without being stigmatized.
To make it intact through times of great need, the only reasonable approach, it seems to me, is to form communities that are strong and cohesive enough to provide for the well-being of all of their members, that are large enough to be resourceful, yet small enough so that people can relate to each other directly, and to take direct responsibility for each other's well-being.
11.
If this effort fails, then the outlook becomes dire indeed. I would like to emphasize, once again, that we must do all we can to avoid this stage of collapse. We can allow the financial system, and the commercial sector, and most of the government institutions to collapse, but not this.
What makes this particularly challenging is that the existence of finance and credit, of consumer society, and of government-imposed law and order has allowed society, in the sense of direct, mutual help and of freely accepting responsibility for each others' welfare, to atrophy. This process of social decay may be less advanced in groups that have survived recent adversity: immigrant and minority groups, or people who served together in the armed forces. The instincts that underlie this behavior are strong, and they are what helped us survive as a species, but they need to be reactivated in time to create groups that are cohesive enough to be viable.
12.
Culture can mean a great many things to people, but what I mean here is a specific very important element of culture: how people relate to each other face to face. Take honesty, for instance: do people demand it of themselves and others, or do they feel that it is acceptable to lie to get what you want? Do they take pride in how much they have or in how much they can give? I took this list of virtues from Colin Turnbull, who wrote a book about a tribe in which most of these virtues were almost entirely missing. Turnbull's point was that these personal virtues are also all but destroyed in Western society, but that for the time being their absence is being masked by the impersonal institutions of finance, commerce, and government.
I believe that Turnbull has a point. Ours is a cold world, in which the citizens are theoretically expected to fend for themselves, but in reality can only survive thanks to the impersonal services of finance, commerce, and government. It only allows us to practice these warm virtues among family and friends. But that is a start, and from there we can expand this circle of warmth to encompass more and more of the people who matter to us and we to them.
13.
In his amazing book about the legacy of European colonialism, Exterminate all the Brutes, Sven Lindqvist makes the stunning observation that violence renders one unrecognizable. The aggressor, whether active or passive, becomes a stranger.
The violence does not have to be physical. One subtle type of mental violence that abounds in our world is the act of refusing to acknowledge someone's existence. We may believe that it makes us safer to walk past people without making eye contact. That is certainly true if our look is blank and indifferent, and it is then better to avert one's gaze than to look, and in effect to say: "I do not recognize you." That definitely does not make you any safer. But if your look says "I see you, you are OK," or even "I recognize you," then the effect is quite the opposite. Dogs understand this principle perfectly well, and so should people.
14.
When I was doing a radio tour to promote my book, a lot of the AM radio motor-mouths who interviewed me would sum up the interview with something like "So this is all doom and gloom, isn't it." And then I would have maybe 15 seconds for a rebuttal. So here is my standard 15 second rebuttal: "No, my message is actually quite hopeful. I want to let people know that they can find ways to lead happy, fulfilling lives even as this doomed system crumbles all around them." Here, I can give you a longer answer.
I believe that the financial pyramid scheme and globalized consumerism are done. But I think that having no government at all is not an option. Forget entitlements, forget military bases on foreign soil, forget the three-ring circus that passes for representative democracy here, but we will still need agencies to print passports, to control the nuclear stockpile, as well as many other mundane but essential services that only a central government can provide. For most other needs, local self-government may be the best we can do, but that may not be bad at all.
Commercial collapse need not be final. It is quite possible that a new economy will arise spontaneously, one without all the frills and the waste, but able to provide for most of the basic needs. In the places that are socially and culturally intact, this is almost inevitable, as people take charge and start doing what's necessary without waiting for official sanction.
As far as social and cultural collapse, as I already mentioned, to some extent they have already happened, but this is being masked, for the time being, by the availability of finance, commerce, and government. But they can be undone, not everywhere, of course, but in quite a few places, because the instincts are there, and a dire common predicament can be the catalyst that changes society, bringing it closer to the human norm.
15.
Knowing what to expect can provide us with peace of mind, even in the midst of collapse. Wallowing in nostalgia over the good old days, or denying that sweeping changes are before us -- these responses are definitely unhealthy.
If we know what's coming, we can start ignoring the things that we will not be able to rely on. If we do enough of this, we may find ourselves in a different world, quite possibly a better one, rather quickly. Here is a personal example. Some years ago, I decided to give up the car, finding it quite impractical, and started bicycling instead. It wasn't that easy at first, but once I got used to it, a strange thing happened to my perception: I started seeing cars quite differently. On the way to work in the morning, I would ride along a stretch of highway, which was always packed with cars. When you are driver, you see it as normal, because you are part of this herd of mechanized insects. But what I saw was sheet metal boxes with people imprisoned inside them, strapped down to a chair inside a tiny padded cell, and most of these poor crazies were just pictures of misery: an angry, desperate, lonely mob, condemned to move about in circles. And then I would happily pedal away, through a park and around a pond, and leave that horrible, dying world behind.
And so it is with a great many things. We can wait until the lifestyle that is killing the planet and is making us crazy and sick is no longer physically possible, or we can opt out of it ahead of time. And what we replace it with can be difficult at first, but quite a lot better for us in the end.
16.
So let us summarize our findings. Financial collapse is already quite far along, and is guaranteed to run its course. Bailouts can make insolvent institutions look solvent for a time by providing liquidity, but one thing they cannot provide is solvency. For instance, no matter how much we bail out the auto companies, making any more cars will still be a bad idea. Similarly, no matter how much money we give to banks, their loan portfolios, loaded down with houses built in places that are inaccessible except by car, will still end up being worthless. By continuously nationalizing bad debt, the country will make itself into a bad credit risk, and foreign lenders will walk away. Hyperinflation and loss of imports will follow.
17.
Commercial collapse is likewise guaranteed to happen. One key import is oil, and here the loss of imports will cause much of the economy to shut down, because in this country nothing moves without oil. But it should be possible to come up with new, far less energy-intensive ways to provide for the basic needs.
18.
Political collapse is guaranteed as well. As tax receipts dwindle, municipalities and states will no longer be able to meet the minimal maintenance requirements for existing infrastructure: roads, bridges, water and sewer mains, and so forth. Municipal services, including police, fire departments, snow removal and garbage collection, will also be curtailed or eliminated. The better-organized communities may be able to find ways to compensate, but many communities will become impassable and uninhabitable, generating a flood of internal refugees.
Currently, the political class couldn't be farther from understanding what is about to happen. I listened in on one of the recent presidential debates (I don't have a television set, but I caught a chunk of it on NPR). It struck me that the two candidates spent most of the time arguing over ways of spending money that they don't have. For me, listening to them was a waste of time that I didn't have. I suspect that my book, would sell better if McCain got elected; nevertheless, I choose to remain selflessly apolitical. National politics is a distraction and a waste of time.
Actually, I should be gratified. A while ago I proposed a whimsical Collapse Party. The Collapse Party platform featured planks such as the freeing of prisoners to whittle down the prison population before a general amnesty becomes necessary due to lack of funds, a jubilee - forgiveness of all debts - to wipe the slate clean of all these bad loans, and a few others. Elsewhere, I proposed that it is a good idea to stop making new cars - just run down the ones we already have, and we'll run out of cars just as we run out of gas. I am happy to report that this has been banner year for the Collapse Party. Without fielding a single candidate, we managed to push through much of our agenda: many states are releasing prisoners due to the fiscal crisis, the federal government is now involved in avoiding foreclosures, a huge credit card debt write-off is in the works (not quite a jubilee, but still...) and now automakers are ready to consolidate or declare bankruptcy. Next year, perhaps we will repatriate troops and shut down overseas military bases, also in line with the Collapse Party platform.
19.
Continuing with our recap, I see social collapse as avoidable, but not in all places. In many places, the task is to reconstitute society before the first three stages run their course, and it may already be too late. But this is where we need to make a stand, if only to be remembered for something more than the sum total of our mistakes.
20.
Lastly, cultural collapse is something that's almost too horrible to contemplate, except that in some places it seems to have already happened, and is being masked by the various institutions that still exist, for the time being. But I believe that a lot of people will come around and remember their humanity, the better parts of their natures, when dire circumstances force them to rise to the occasion.
Also, there are some intact pockets of culture here and there that can be used as a sort of cultural seed stock. These are communities and groups that have seen some adversity in recent times, and have some social cohesion left over from the experience. They may also be those who made certain conscious decisions, to simplify their living arrangements in order to lead saner, more fulfilling lives. We must do all we can to avert this final stage of collapse, because what is at stake is nothing less than our humanity.
21.
I hope that, if you have been following along, by this point this slide is self-explanatory. Collapse is not one monolithic thing. Each kind of collapse requires a response, be it jumping clear ahead of time, sitting it out, or opposing it with all you got. At this point, if anyone in this room got up and tried to tell us what to do to avoid financial collapse, we would probably find that quite funny. On the other hand, if we stand by and let social and cultural collapse unfold, then what's the point of any of this?
That's all. Thank you for listening.
~~~~~~~~~~~~~~~ Editorial Notes ~~~~~~~~~~~~~~~~~~~
This article is a talk that was originally given by Dmitry Orlov at the Community Solutions Conference in Michigan in November 2008.
Thanks to SO and KS for the formatting. This was an especially difficult job.
-BA
Beginning of Hyperinflation
http://en.epochtimes.com/n2/world/commentator-discusses-long-business-cycles-and-the-current-financial-crisis-6206.html
Hard Cash Investor Walter K. Eichelburg Sees Hard Times (Part 1)
By Florian Godovits
Epoch Times German Staff
GERMANY—Hard-Cash investor Walter K. Eichelburg, predicted the mortgage bubble bust and insolvency of Fannie Mae and Freddie Mac in the United States in an early 2007 Epoch Times interview. He made himself available for another interview with The Epoch Times.
Epoch Times (ET): Mr. Eichelburg, what can we learn from today’s crisis?
Walter K. Eichelburg (WKE): This [crisis] is a progression of the entire economic system. Everything repeats itself. My thinking is that for every investment there is a specific time frame within a cycle, which one must recognize. If one acts at about the right time, one can make a good living. But, I must tell you that I’m not here to save the world. What I’m doing here is educating the investor.
I discovered that the true problem is not the business, but the information. There is a pent-up demand for correct information and that is what I want to satisfy.
ET: Would you share which area of information we need to address?
WKE: You must ask for different information than from today’s “Bubble-Media.” I have studied the history from the Dutch ‘Tulip Crash’ (1624-1636), and it always repeats itself over and over again. The values are artificially pushed up by easy borrowing, which brings investors running – the money comes in for a time and then the insiders quickly exit shortly thereafter, the bubble bursts. It is always the same scenario.
There is something else, called a Kondratiev cycle [1]. A Kondratiev cycle lasts from 50 to 70 years and is present in any national economy where credit (borrowing) is available.
If one invested 5 cents one-hundred years ago, during the time of Franz Josef [2], one would have a shilling today [3]. But, after about 1,460 years, one would have a globe of gold – which in truth is not possible.
Common sense says that at some point in time, there must be at a bottoming out. This is cyclical and was discovered by the Russian scientist Kondratieff. So, [according to his theory] we are in the spiraling downward phase. This is generally called the Kondratieff Winter.
These cycles expand and contract slowly. Therefore very few people notice it. But, a seasoned investor must be able to recognize these contractions. A man in Canada arranged these cyclical movements by the four seasons. A different investment ideal governs during each of these business seasons. Such a phase generally lasts between 10 and 20 years. If one does not change ones investment strategy one will suffer enormous losses.
ET: Can you explain about today’s Kondratiev cycle?
WKE: The present German Kondratiev cycle began in 1948 with the monetary reform. In the beginning, credit is granted prudently. Therefore, there is little inflation. The “growth cycle” began in 1966. Borrowing activities were on the rise, but it was still on the positive side. That continued until 1980. Then, we saw the Kondratieff-maturity cycle. This is the ideal time for trading with paper money, such as stock and bond issues, as well as property types of transactions. Their price depends on credit availability.
ET: Can you explain please? Perhaps using Iceland’s growth as an example?
WKE: For us, there was only one creditworthy entity—that was the state. And now the state was also fully tapped. That means, when the state loses its creditworthiness and their guarantees are worthless, it will crash.
There is something that Robert Rubin, the former U.S. treasury secretary said, when he was asked what he wanted to be in his next life. He responded, “The bond market.” Why? “The bond market controls everything.”
ET: Why is this the case?
WKE: Because interest and credit terms control everything. The reason for an economy to crash is because the bond market collapses. This is the reason.
ET: What do you think about the situation in other countries?
WKE: It was rumored in Austria that the SPO [Social Democratic Party of Austria] politician Hannes Swoboda said the following, “If the 100 billion Euro used for guarantees granted by the State were called, the Austrian State would be bankrupt. This is what could happen and that would be a catastrophe. And the Americans are running out of money. That means they monetize government bonds like crazy.
ET: What do you mean by monetize [4]?
WKE: What is the United States doing? The government sells bonds to the U.S. Federal Reserve Bank, and the bank then has money. A bond is not the same as money. One has to be careful about this point. This is called monetizing. It is not important if it is through borrowing activities or through time debentures. The importance lies in the fact that the central bank generates the money.
ET: Do central banks print the money?
WKE: In the past they printed money, now it is done electronically.
ET: Is it known which bank will fail and which will not?
WKE: Today, no one can predict which institution is safe and which is not. One does not know which bank will collapse first; perhaps Raiffeisen [Raiffeisen International Bank Holding AG] is going to be the first one, or perhaps Constantia Privatbank [5]. No one can predict it.
ET: What about the bank managers? Don’t they know?
WKE: No, they themselves have no clue. I couldn’t believe my eyes and thought that it was completely irrational when Raiffeisen International assumed the Russian Oligarchs Oleg Deripaska debt, held by the Deutschen Bank AG. Banks are just like small investors.
ET: In the past, the currency was backed by gold. Does it mean that this increases the risk of bankruptcy?
WKE: As I mentioned earlier, the last solvent creditor – the State -- was drawn into the crisis. If the banks go under and need to call on the guarantees, then the state will collapse. That can be seen in Iceland, Hungary, the Ukraine and other countries. Then, they sell-off the government bonds for currency, which is now worthless. If that happens then all has reached the end.
ET: What does this mean for the public?
WKE: The collapse happens because all the money is worthless. There will be hyperinflation at the supermarket. Then hunger will begin.
ET: What do you suggest an investor should do?
WKE: Don’t keep paper money. The Euro has become toilet paper, and the Franc is not better off. I suggest that people have sufficient food, buy an acre of arable land and invest in gold. Gold is still cheap at US$3,000 an ounce.
Notes
[1] The Kondratiev wave/cycle theory was discovered by Nikolai Dmitriyeivich Kondratiev (1892-1938), a Russian economist. Proponents of the Kondratiev wave theory note it successfully predicted the 1929 stock market crash based on the 1870 crash. The Kondratiev wave is also referred to as the Kondratiev cycle.”
[2] Franz Josef was the oldest son of Archduke Franc Karl and crowned Emperor of Austria in 1848 at the age of 18.
[3] A shilling is a coin formerly used in the United Kingdom.
[4] When one monetizes, one converts government debt from bonds to currency. The currency is then used to buy products or services.
[5] Constantia Privatebank was taken over by five Austrian banks. The Austrian Central Bank has told Reuters that “the bank was relevant to Austria's financial health because it had a fund subsidiary managing 10 billion Euros (US$13.5 billion) in client assets.”
Last Updated
Oct 27, 2008
Dandelion Root Cancer Cure? At No Cost!
11-13-6
http://www.rense.com/general74/DANDI.HTM
Make sure the soil it grows in hasn't been treated with round up or ther herbicides...or you will get sick...which is why organic potatoes are a must...any root picks up some toxins, often neutralizes most of those toxins but not all, and certainly not the ones in the dirt on the root...Gerson also said if the soil is organic not to worry too much about washing the vegetables...clean but not didatic about it...
George Cairns Writes...
Please save this page as it won't be printed again by me. It may save your life or the life of a love one or a friend. Anyone may reprint this if they print it word for word.
Every week around 10,000 people die of cancer. Government figures show the death rate for cancer deaths has not changed in the last 10 years. Chemo and radiation only save around 10% of the people treated. So this shows our doctors don't have much to work with. As this article goes on, I will explain how to prepare this plant and how much to take. There is nothing to buy. For some reason, the Lord has picked me to carry these words to you. I am only the delivery boy, and none of this is my idea. I do believe every word I write here, and I'm living proof it works. The cost of printing is my thanks to God for giving me back my life and health.
A little over three years ago I was about done in with cancer. One morning as I was waking up and hoping the end would come soon, a voice came to me and said. "You have to do something about your prostate cancer. Take the root of the dandelion. Don't expect a miracle. It took you a long time to get in this condition." The voice was gone. I thought the voice was kidding to use the dandelion. When this voice tells you to do something, you do it. You must do it, like writing this article. It is the last thing I ever expected to do. Then I thought he didn't tell me how much to take or how to prepare it. As soon as you could blink an eye. I knew how much to take, how to prepare it, and it would take 4 to 6 months to cure me. I also knew I wasn't to make a penny on it.
As soon as I got around that morning, I dug some roots and started to prepare it. About a week l! ater I started taking it. Three weeks later the pain in my back and side was gone and my bowels had improved. Five and one half months later they could find no cancer problem in me at all.
I, then wanted to find someone else to try it, and that was the biggest problem yet. Nobody seems to want to help. When I told doctors, they just smiled as if I was nuts. Finally, I was telling a friend about it and he said he had a friend that was dying of lung cancer. He had it in both lungs and was bed ridden. They were tapping his lungs. He had been given 4 to 6 weeks to live. After he had been on this powder about six weeks, he was up and around doing his chores and driving his car. He went to his doctor's office, and the doctors could not believe it. They took him to the hospital and gave him a CAT scan. They found no cancer lesions in his lungs and said it was a miracle. I then put an ad in The Northwest Herald offering it free, and four people's aid they would try it. Slowly one person told another and it spread. There was a fair amount of people taking it for different kinds of cancer and several for other things. For instance, a man lost the use of his immune system and was told he wouldn't be able to work again for three years, in six months he is now working ? days and feeling better. I know this is not a cure all. It won't help everyone or all kinds of cancer. I know it is not a cure for skin cancer and it hasn't had luck with brain tumors.
There is a doctor in Boston, Massachusetts that has developed a vaccine that is doing great things. This has been successful with prostate, colon, breast, liver and best of all with lung cancer. Five people have taken it for lung cancer and all five have been cured once. The immune system controls the cancer cells in your body. As long as the immune system is healthy, you don't usually have a cancer problem. When your immune system gets run down, it loses control of the cancer cells, and they start eating live cells and this is what they call cancer. This powder made from dandelion root has something in it that builds up the blood and the immune system.
When the immune system is built up so far, it gets back control of cancer cells, and they do an about face and start cleaning up the mess they've made. This is why you must have a fair appetite because your body must build itself up and be healthy if your immune system is going to be strong. This will not work for people that have lost their appetite or are on CHEMO. Doctors try to blast the cancer out of your body with Chemo or radiation. By doing so, it destroys your immune system and appetite. These are the most important things your body needs to beat cancer. Operations also knock the immune system haywire. This is why so many people that have operations for cancer find that a short time later it has spread somewhere else.
Many of the worst diseases that have plagued the world have been cured quite easily. When I was a boy, women dreaded the goiter more than cancer. A little iodine in the diet cured that. For hundred of years the most dreaded diseases was leprosy and lockjaw. A doctor found he could produce penicillin from moldy bread and could cure them and many more things. How long has moldy bread been around? I'm sure scientists will find many uses for the powder made from the root of the dandelions besides cancer. I have already found it builds up the blood so you heal much faster.
To make the powder from the dandelion root you must follow my directions to the letter. Any changes and it won't work. Dig a handful of dandelion roots any time of the year, it doesn't matter. Cut the leaves off just below the crown. DO NOT WASH. Then they must be dried around 100 degrees. I do it in an incubator with no water. You can also dry them under a heat light bulb if you raise or lower it so it's 100 degrees. You can also use the sun or put them in the attic if it's not too hot. It takes about 5 or 6 days in the incubator. I have not done this all the way under the heat light. When you break a root and it snaps it is ready to powder. Take an old iron frying pan and a clean hammer. Take one root at a time and place in the frying pan and start tapping. Don't hit hard or it will fly all over the place. I put my hand around the root to keep most of it in the pan. If it sticks to the hammer and pan, and doesn't crumble in your fingers, it isn't dry enough. Keep it up until you have enough to start. It takes about 20 minutes to ? hour to prepare enough for a week. When you get used to it you can go much faster.
I have an old vessel that druggists used to pound pills, this goes much faster. DO NOT USE AN ELECTRIC GRINDER, it won't work if you do. You lose too much of the good part in dust. You must do it as I have said or don't do it at all. I've tried shortcuts, but it seems someone was looking over my shoulder, and I know when I made a mistake. I'm just an old farmer and not a scientist, so I wouldn't know the correct amount to take on my own. Now take a little over one half teaspoon once a day at any time and mix it with water, orange juice, etc.. Do not use in soft drinks, liquor, or anything hot. When mixed, use it all. Don't let it stand around. Keep the power in a dry place. After taking it three or four days, you will feel good, but nothing else. That is because your blood is building up. When you blood is happy, you're happy. In most cases, this will build your immune system in from three days to three weeks to the point it takes back control of cancer cells and thus the cancer stops spreading. In most cases it is going to help. There is no body feeling as it works. You just feel a little better each week. After three weeks most of the pain will be gone in your back and you know it's working if you had pain there like I did. If you have bone cancer in the spine, it will take three months to work. This is not an overnight cure. It took a while to get in this condition and it will take a while for your body to heal. The sooner you start, the quicker you will be over cancer. Young people heal faster than old people, but it will help at any age. I know because I'm 80 and have been taking it for over three years.
No cancer has come back and no side effects except when my body has had enough, it lets me know by getting heart burn. Then I back off some.
Some people get stomach aches when they need less. It also means your cancer is under control and you don't need as much. You will also find you probably won't catch a cold while you are taking it full strength.
The biggest enemy for this root is Chemo. The stronger the Chemo, the less chance the power has to help you as Chemo tears your immune system and appetite down, two of the most important things you need to cure cancer. There is only a ten percent chance Chemo will cure you. With no chemo, your chances are 75 to 80% but you must take it every day. Don't let your doctor give you that old treat if you turn him down that goes, "If you want to throw your life away, I can't stop you". Just remember that 90% of the people that take his advice and take chemo are in the cemetery. Don't blame the doctor, he is doing his best with what he has to work with or you could ask for a written guarantee.
I have only mentioned cancers that I know people have had and used this root. It should help pancreas cancer if taken before the appetite is gone and most body cancer. This is food, not a drug. It shouldn't interfere with medicine your doctor may be giving you. Only two doctors have told patients to keep taking the power when they have made a miracle recovery. The rest of the doctors have run the power down and blasted the people even if the cancer has disappeared.
The medical world is not going to accept this easily.
Going back to not washing the roots and leaving a little soil on them, it is for your own good. A good bit of immunity comes from the soil, it starts as soon as you are born. Your fingers touch something, and you put them in your mouth. A little dirt at first, and more as you grow older and start crawling. Then everything you touch goes in the mouth. When children go outside to play and when they come in, they are the dirtiest around the mouth and hand. The hands go in their mouths no matter how dirty they are. Many diseases and bacteria live in the ground, but they don't seem to cause any trouble but it does build up the immune system. Some animals can't live if they can't eat a certain amount of soil. If you read this article over, you will see it! all goes back to common sense. I wish all of you people with cancer and other problems the best.
George Cairns (815) 338-1526 Or send self addressed envelope to: 708 Hughes Road Woodstock, IL 80096
This ad does not necessarily reflect the opinion of the Northwest Herald.
The dandelion root power you can buy at a Health Food Store is not made the same way. It is not known to help cancer.
*This is a reprint of the ad in The Northwest Herald. Printing donated by Viking Lithographic, Elkhorn, WI 53121
How to Make Roasted Dandelion Root Coffee
Best of all it's tasty, I'm drinking some right now...well as I type this who knows what I'm doing when you read this...
http://www.prodigalgardens.info/dandelion%20coffee.htm
Dandelion Root
http://www.naturalherbsguide.com/dandelion.html
Dandelion Root Traditionally, dandelion has been used to cure breast illnesses, bloating, disorders of the gastrointestinal system, aching joints, and skin conditions. The leaves have large amounts of numerous vitamins, including A, C, D, and B-complexes, as well as minerals like iron, magnesium, zinc potassium, manganese, copper, choline, calcium, boron, and silicon.
General Information
For many people, dandelions are simply a yard pest. However, dandelions are very rich in nutrients. Traditionally, the roots and leaves of the plant have been used as medicines for breast maladies, bloating, digestive disorders, aching joints, fevers, and skin disorders. The leaves of the plant are very rich in vitamins, including A, C, D, and B-complex. They also have high levels of minerals like iron, magnesium, zinc potassium, manganese, copper, choline, calcium, boron, and silicon. The most active ingredient in dandelions, eudesmanolide and germacranolide, are found only in dandelions.
Dandelion Uses and Health Benefits
The leaves of the plant are very nutrient-rich, and so they make good supplements for women who are pregnant or elderly women. Dandelion can also be used as a gentle diuretic and can decrease serum cholesterol in some people. The root can be an appetite stimulant and it can treat some digestive disorders. Today, many herbal doctors use dandelion to purify the liver and gallbladder of toxins. Research indicates that dandelions can treat pneumonia, bronchitis, and other respiratory disorders. Dandelion can improve general health, and is beneficial to the kidneys, pancreas, spleen, stomach, and other organs. Dandelion is also recommended for the treatment of tinnitus, tonsillitis, osteoporosis, abscesses, anemia, boils, mammary tumors, cirrhosis, water retention, hepatitis, jaundice, rheumatism, and warts. Dandelion may also be effective in eliminating or averting age spots. Some people also use toasted dandelion root as a healthier alternative to coffee.
Dandelion Benefits also include:
* It is a gentle diuretic
* It can purify the bloodstream and liver, and it can stimulate the manufacture of bile
* It can decrease the amounts of serum cholesterol and uric acid
* It can maximize the performance of the kidneys, pancreas, spleen, and stomach
* It is very beneficial to menopausal women
* It is effective in treating abscesses, anemia, boils, breast tumors, and cirrhosis of the liver
* It may avert the development of age spots or breast cancer
Dandelion Nutritional Content
Lactupicrine, a bitter principle, tannin, inulin and a latexlike substance, polysaccharides, carotene
Side Effects/Interactions
Some individuals experience stomach pain because of hyperacidity.
It is safe to use with other drugs.
And of course:
Dandelion Root Cancer Treatment
http://cancertutor.com/Cancer02/DandelionRoot.html
Note from the CancerTutor webmaster
This article was sent to me by email. When I receive such emails I may or may not put them on my web site.
The reason I include this email is because I have known for some time that Dandelion Root was a potential treatment for cancer. I just didn't have any details on how to make it or use it. [Detailed instructions with lots of pictures in the first link above.]
Dandelion Root is frequently used by herbalists to treat liver, kidney and gallbladder problems. Dandelion Root has been used in China for certain kinds of cancers for centuries. It is incredibly high in potassium and Vitamin A, among other things.
I personally spoke on the phone with the fine gentleman who made this treatment public and he noted to me that the treatment was great for the liver. He has also sent me by snail mail a more up to date way to make the powder. I have put these new instructions below the original article.
When dealing with herbs and plants, it is usually best to use fresh herbs and plants and make the product yourself, as this article explains. When you buy an herb or plant from a health food store, it may not be as effective as making it yourself fresh, especially if it has been dehydrated or stored for long periods of time before it got to the store.
However, to be realistic, it can take many weeks to grow and make it yourself. Cancer can spread during this delay!! I was happy to be told of a vendor who hopefully sells high quality dandelion root products. The link to this farm is at the bottom of this article.
Webster Kehr,
Webmaster
Dandelion Root Cancer Treatment
(Reprint of ad in The Northwest Herald)
George Cairns Writes:
Every week around 10,000 people die of cancer. Government figures show the death rate for cancer deaths has not changed in the last 10 years. Chemo and radiation only save around 10% of the people treated. So this shows our doctors don't have much to work with.
As this article goes on, I will explain how to prepare this plant and how much to take. There is nothing to buy. For some reason, the Lord has picked me to carry these words to you. I am only the delivery boy, and none of this is my idea. I do believe every word I write here, and I'm living proof it works.
The cost of printing is my thanks to God for giving me back my life and health.
A little over three years ago I was about done in with cancer. One morning I was waking up and hoping the end would come soon, a voice came to me and said. "You have to do something about your prostate cancer. Take the root of the dandelion. Don't expect a miracle. It took you a long time to get in this condition." The voice was gone.
I thought the voice was kidding to use the dandelion. When this voice tells you to do something, you do it. You must do it, like writing this article. It is the last thing I ever expected to do. Then I thought he didn't tell me how much to take or how to prepare it.
As soon as you could blink an eye, I knew how much to take, how to prepare it, and it would take 4 to 6 months to cure me. I also knew I wasn't to make a penny on it. As soon as I got around that morning, I dug some roots and started to prepare it.
About a week later I started taking it. Three weeks later the pain in my back and side was gone and my bowels had improved. Five and one-half months later they could find no cancer problem in me at all.
I then wanted to find someone else to try it, and that was the biggest problem yet. Nobody seems to want to help. When I told doctors, they just smiled as if I was nuts. Finally, I was telling a friend about it and he said he had a friend that was dying of lung cancer. He had it in both lungs and was bed ridden. They were tapping his lungs. He had been given 4 to 6 weeks to live.
After he had been on this powder about six weeks, he was up and around doing his chores and driving his car. He went to his doctor's office, and the doctors could not believe it. They took him to the hospital and gave him a CAT scan. They found no cancer lesions in his lungs and said it was a miracle.
I then put an ad in The Northwest Herald offering it free and four people said they would try it. Slowly one person told another and it spread. There was a fair amount of people taking it for different kinds of cancer and several for other things.
For instance, a man lost the use of his immune system and was told he wouldn't be able to work again for three years, in six months he is now working ½ days and feeling better.
I know this is not a cure all. It won't help everyone or all kinds of cancer. I know it is not a cure for skin cancer and it hasn't had luck with brain tumors. There is a doctor in Boston, Massachusetts that has developed a vaccine that is doing great things. This has been successful with prostate, colon, breast, liver and best of all with lung cancer. Five people have taken it for lung cancer and all five have been cured once.
The immune system controls the cancer cells in your body. As long as the immune system is healthy, you don't usually have a cancer problem. When your immune system gets run down, it loses control of the cancer cells, and they start eating live cells and this is what they call cancer.
This powder made from dandelion root has something in it that builds up the blood and the immune system. When the immune system is built up so far, it gets back control of cancer cells, and they do an about face and start cleaning up the mess they've made This is why you must have a fair appetite because your body must build itself up and be healthy if your immune system is going to be strong.
This will not work for people that have lost their appetite or are on CHEMO. Doctors try to blast the cancer out of your body with Chemo or radiation. By doing so, it destroys your immune system and appetite. These are the most important things your body needs to beat cancer.
Operations also knock the immune system haywire. This is why so many people that have operations for cancer find that a short time later it has spread somewhere else.
Many of the worst diseases that have plagued the world have been cured quite easily. When I was a boy, women dreaded the goiter more than cancer. A little iodine in the diet cured that. For hundred of years the most dreadeddiseases was leprosy and lockjaw. A doctor found he could produce penicillin from moldy bread and could cure them and many more things. How long has moldy bread been around?
I'm sure scientists will find many uses for the powder made from the root of the dandelions besides cancer. I have already found it builds up the blood so you heal much faster. To make the powder from the dandelion root you must follow my directions to the letter. Any changes and it won't work.
Dig a handful of dandelion roots any time of the year, it doesn't matter. Cut the leaves off just below the crown. DO NOT WASH. Then they must be dried around 100 degrees. I do it in an incubator with no water. You can also dry them under a heat light bulb if you raise or lower it so it's 100 degrees. You can also use the sun or put them in the attic if it's not too hot. It takes about 5 or 6 days in the incubator.
I have not done this all the way under the heat light. When you break a root and it snaps it is ready to powder. Take an old iron frying pan and a clean hammer. Take one root at a time and place in the frying pan and start tapping. Don't hit hard or it will fly all over the place. I put my hand around the root to keep most of it in the pan. If it sticks to the hammer and pan, and doesn't crumble in your fingers, it isn't dry enough. Keep it up until you have enough to start.
It takes about 20 minutes to ½ hour to prepare enough for a week. When you get used to it you can go much faster. I have an old vessel that druggists used to pound pills, this goes much faster. DO NOT USE AN ELECTRIC GRINDER, it won't work if you do. You lose too much of the good part in dust. You must do it as I have said or don't do it at all. I've tried shortcuts, but it seems someone was looking over my shoulder, and I know when I made a mistake.
I'm just an old farmer and not a scientist, so I wouldn't know the correct amount to take on my own. Now take a little over one half teaspoon once a day at any time and mix it with water, orange juice, etc. Do not use in soft drinks, liquor, or anything hot.
When mixed, use it all. Don't let it stand around. Keep the power in a dry place. After taking it three or four days, you will feel good, but nothing else. That is because your blood is building up. When you blood is happy, you're happy. In most cases, this will build your immune system in from three days to three weeks to the point it takes back control of cancer cells and thus the cancer stops spreading. In most cases it is going to help. There is no body feeling as it works. You just feel a little better each week.
After three weeks most of the pain will be gone in your back and you know it's working if you had pain there like I did. If you have bone cancer in the spine, it will take three months to work. This is not an overnight cure. It took a while to get in this condition and it will take a while for your body to heal.
The sooner you start, the quicker you will be over cancer. Young people heal faster than old people, but it will help at any age. I know because I'm 80 and have been taking it for over three years. No cancer has come back and no side effects except when my body has had enough, it lets me know by getting heart burn. Then I back off some. Some people get stomach aches when they need less. It also means your cancer is under control and you don't need as much.
You will also find you probably won't catch a cold while you are taking it full strength. The biggest enemy for this root is Chemo. The stronger the Chemo, the less chance the power has to help you as Chemo tears your immune system and appetite down, two of the most important things you need to cure cancer. There is only a ten percent chance Chemo will cure you. With no chemo, your chances are 75 to 80% but you must take it every day. Don't let your doctor give you that old threat if you turn him down that goes, "If you want to throw your life away, I can't stop you".
Just remember that 90% of the people that take his advice and take chemo are in the cemetery. Don't blame the doctor, he is doing his best with what he has to work with or you could ask for a written guarantee. I have only mentioned cancers that I know people have had and used this root. It should help pancreas cancer if taken before the appetite is gone and most body cancer.
This is food, not a drug. It shouldn't interfere with medicine your doctor may be giving you. Only two doctors have told patients to keep taking the power when they have made a miracle recovery. The rest of the doctors have run the power down and blasted the people even if the cancer has disappeared. The medical world is not going to accept this easily.
Going back to not washing the roots and leaving a little soil on them, it is for your own good. A good bit of immunity comes from the soil, it starts as soon as you are born. Your fingers touch something, and you put them in your mouth. A little dirt at first, and more as you grow older and start crawling. Then everything you touch goes in the mouth. When children go outside to play and when they come in, they are the dirtiest around the mouth and hand. The hands go in their mouths no matter how dirty they are.
Many diseases and bacteria live in the ground, but they don't seem to cause any trouble but it does build up the immune system. Some animals can't live if they can't eat a certain amount of soil. If you read this article over, you will see it all goes back to common sense.
I wish all of you people with cancer and other problems the best.
This ad does not necessarily reflect the opinion of the Northwest Herald. The dandelion root power you can buy at a Health Food Store is not made the same way. It is not known to help cancer. This is a reprint of the ad in The Northwest Herald. Printing donated by Viking Lithographic, Elkhorn, WI 53121
George Cairns' New Instructions
[Note: After the original article was published, I talked to him on the phone and he told me he had newer and better instructions. He sent them to me and they are below. However, cancer patients cannot wait months to pick the dandelions at just the right time and wait more months to freeze, plant and harvest a new crop of dandelions. In this new article, concentrate on the harvesting and processing of the dandelions, and hope they are in season when you need them.]
To make dandelion root powder, let's start at the beginning. This would be collecting the seed. The seed is at the base of the white fluffy crown that appears when the yellow flower matures. Blow on them and they fly away. These little seeds do not grow until the next spring. I collect the seeds in May and June, then I put them in the freezer. This way you fool Mother Nature as the seeds must freeze before they grow. This way you can grow the seed the same year you collect them. Work up the land where you are going to plant them and spread the seeds on top of the ground and rake them [into the soil] very lightly and water [them]. I usually plant the seeds in August.
I dig up the seedlings the next April. I try to do all my transplanting in April as by the end of April they start blooming which takes the energy away from making roots. It's a good thing to pick the buds off for the first couple of months. When I dig the seedlings up in April, I plant them about 6 inches apart in rows 18 to 20 inches apart. I hoe them when needed and keep the weeds and grass out of them. After about 2 months you won't be able to hoe as they will cover the ground. Then I pull the weeds and grass out of the bed. Water when needed.
I usually start digging them up in October. By this time some of the roots will be 1 inch in diameter. I shake off most of the dirt [but not all] and slice lengthwise the bigger roots to about 1/4 inch so they will dry evenly. To dry them I use a forced-air incubator without any water in it. I set the incubator at 100 degrees or a little less. It takes about 5 days until they are ready to grind. You can use a dehydrator set around 100 degrees. If it doesn't have settings, don't use it. You can also dry in the sun if you put them in something the wind can blow through, like a small potato or onion sack. Hang them in the sun but take them down in late afternoon and put in a plastic sack and tie it. If you don't they will pick up moisture and you will be back where you started. Then put them out the next day when the sun is up. Once you have heat in the house, it's no trouble as they will dry OK most anywhere there is heat, like near a register or stove. The excess dirt will pop off as they dry. Mother Nature knows how much to leave. If the roots are very clean, add a little dirt as this powder won't work without the dirt.
When you make powder, try not to lose anything. Pound the roots flat, then put in an electric coffee grinder for 25 seconds and you have powder. You can also keep pounding and crumbling until you have it the right fineness. What I did for a long time, a friend gave me a cast iron pestle and mortar. With this you can get it down as fine as you wish.
To store, put in an air-tight jar and fill as near to the top as possible. I've kept it 10 months this way. Also, keep in a dry place.
George Cairns
Woodstock, Illinois, USA
Closed for Business
http://www.thetreeofliberty.com/vb/showthread.php?t=33994
By John Galt
October 26, 2008
The first section of this essay is a look into a possible future our society might encounter in the months, or perhaps weeks, ahead.
Mary Jo Schlumpunfunk (with all kudos to Glenn Beck) was driving home from work in the suddenly cold November air of her home town of Jeffersonville, Indiana. Mary Jo was sick and tired of listening to the depressing news about all the problems all those rich bankers and Wall Street types were having so instead of listening to the news station, she switched over to her favorite pop music station tuning out reality and enjoying the drive back to her humble apartment on the outskirts of town. Her neighbors greeted her with a friendly ‘hello’ as she walked up the steps and they asked her if her company was going to shut down or not next week for the holiday. Mary Jo paused with a puzzled look and said “We are open, even for Thanksgiving Day as far as I know.” They nodded and looked at her like she was crazy and then went inside out of the cold air of the night. Mary Jo’s position as the Assistant Manager at the local Kroger’s gave her the confidence that her job was secure because after all, people had to eat.
As the alarm went off at 3 a.m. Mary Jo did not even think about what was being broadcast and just hit the off switch on her clock so she could start getting ready for work. She turned her computer on as she passed by it on her way to the bathroom so she could get ready to relieve the night manager at five. Mary Jo returned to her computer after getting ready to log in and check her email only to receive a message on her browser that there was a connectivity issue. With that frustrating bit of news, she looked at the cable router and sure as heck, it was down again. The regular routine of having to dig an old cable bill out to call the idiots at Time Warner has long been replaced by having the tech support number on speed dial on her telephone and cell phone. When she picked her telephone up, it was dead with no dial tone or service of any kind. Then she grabbed her cell phone and called finally getting through only to get the message “We are aware of the current outage in all of our services and we are working diligently to restore service to all of our customers as soon as possible. At this time, all internet access is restricted to certain business accounts only and will be restored to residential customers as soon as we can.” With that cheery bit of good news, she grabbed her coffee and hopped into her car to go to the local combination gas station to grab some breakfast and gas on her way to work.
With a little bit of stunned disbelief she pulled into the pumps at the local Gas-N-Go where literally every pump but hers had a car sitting there and the inside of the store was packed with people. She dutifully popped the gas cap off and slid her debit card into the slot as her breath steamed up the morning air. The card reader displayed “INVALID CARD, PLEASE SEE CASHIER” in the tiny LCD display. With that she grabbed her keys and purse and huffed inside to the station now leaving her only forty minutes to get to work. The line at the poor cashier was murder with people yelling and screaming at the young lady demanding that she fix the problem immediately but she kept saying she couldn’t and was on the verge of tears. Mary Jo grabbed a bagel and a bag of chips the hopped into the line from hell. When it was her turn at the front she started to say “My card…” and was cut off by the young lady who blurted out “I know, I know, it does not work. It doesn’t matter what card, what bank, whatever but none of them are working and I don’t know why. I can only take cash now. Would you still like to buy gas at Pump 4 or not?” Mary Jo said “Sure give me $20 worth plus this stuff”, knowing full well that would leave her less than twenty bucks in her wallet after buying all the groceries and gas but she could get more food at work because after all, she worked in a grocery store.
After that encounter she turned the radio off in her car and headed off to work, listening to her favorite Johnny Cash CD. “The heck with all this idiocy” she thought to herself. Maybe work will be peaceful and we can get the Christmas food display moved to the front of the store to boost the sales. Mary Jo pulled into the parking lot expecting to see only the usual five or six cars that were normally there. Instead of a usual day, she would see what happens when the world is turned on its side, as the lot was full and there was a line of people standing in front of the ATM machine outside which had to be forty plus people deep. On a day like today, Mary Jo knew she would have to park in the back and sneak in through the receiving door just like it was the peak shopping season. After parking the car, she wolfed the bagel down while walking inside while trying to slurp down her coffee. Oh the shock she would see.
The night manager was sitting in the receiving area with his head in his hands sobbing like a baby. Mary Jo would not think this was unusual except he was a fifty-three year old man, and as an ex-Marine his will usually was emotionless, all business, and stalwart. “Mike, what is the matter, are you okay?” Mary Jo tried to ask as she approached him in an effort to comfort him. Mike replied “You should never have come here Mary, this is a disaster. Do you know how many times we have had to call Law Enforcement out here to restore order? Don’t you listen to the news or anything? This is a nightmare, an utter, disastrous nightmare.” Mary Jo noticed a half empty bottle of bourbon at his feet and that enraged her immediately. She snapped back “Get your self together mister. There is nothing that severe that justifies drinking on the job. You have a job to do and you need to get your damned butt on that floor out there right now!”
“Mary Jo,” Mike said in a soft spoken and measured manner, “you do not have a job. I do not have a job. Kroger’s does not have a job for us any longer. You need to go report to the new resource manager who is running the show here. We are just clerks in their eyes and you had best get used to it. The State of Indiana Resource Manager showed up at one o’clock in the morning. His name is Tom O’Donnell and he’ll remind you of his power every hour, on the hour. Our store has never been the same since.”
“Mike, you’re drunk. You need to get home and sober up. I’ll go meet Mr. O’Donnell and straighten this out now!” Mary Jo confidently stated as she slammed the doors of the docks open and walked out on to the floor. As she looked at the shoppers in the meat and deli section, her only reaction was to drop her full cup of coffee on the floor, creating a huge puddle of hot steaming java on the floor. She stomped up to the manager’s office in the front of the store only to be greeted by a deputy in the doorway who told her “Ma’am, only authorized personnel are allowed in that office.” She snapped her name badge off her bloused and put it in the deputy’s face and in an angry tone told him “I’ve been in this office longer than you’ve had your job son. Now let me into my office to meet with Mr. O’Donnell and find out what is going on in my damn store.”
As she walked into the office she closed the door and saw another deputy, this one armed with a shotgun, the resource manager and the store manager, Bill. Mary Jo looked at him sternly and spouted out “Why are there two men armed with assault rifles in my deli department?” Bill, looking tired, disturbed and frustrated already said “Mary Jo, please sit down. We have a lot to cover. Let me introduce you to our new boss, Tom O’Donnell from the State of Indiana Department of Resource Allocation.” Stunned and now silent, she fell back into a chair in the office as Mr. O’Donnell arose to shake her hand and said “Hello Mary Jo, I know this is going to be difficult, but I think we can all work well together. I assume you have not heard any news since you woke up early this morning?” Mary Jo in a soft voice said “No, I was listening to a music CD in my car. I noticed my debit card did not work and that is about the only thing that was unusual other than my internet being down, but that’s a regular problem now.”
When she was finished, the news was dropped on her. Mr. O’Donnell explained to her that 11:30 p.m. last night President Bush declared a banking holiday and shut down all civilian internet access and non-emergency telephone communications to insure a smooth transition while the cash rationing and bank consolidation programs were implemented nationwide. Mary Jo stuttered “why the internet, if you do not mind my asking?” He explained to her that it was to prevent an external internet based attack on the financial system and that the U.S. stock and bond markets would now be closed for thirty days until the new banking system could be implemented. Mr. O’Donnell then went into a detailed explanation that ATM machines would be reactivated at 6 a.m. sharp and that each individual will be limited to $50 per week, regardless of the number of bank accounts in their name. He went on further to highlight that all credit cards will be suspended for the same time period as the stock market to enable the banks to evaluate who would be allowed to own or utilize the cards in the future.
After that bit of shocking news causing tears to well up in her eyes, Mary Jo then asked the obvious question, “So what is your position in all this?” O’Donnell knew this was coming and replied “Emergency food, gas and energy rationing has been declared nationwide. Every state officer or manager with a certain clearance level received training from FEMA and the Department of Treasury as to this possibility this past summer. Every American has to be guaranteed access to food and energy and those gas stations that do not have a military or state police unit there by now, will have one by 7 a.m. We have to insure safety and stability to prevent people from over-reacting as the Bush administration transitions over to the Obama administration in the next sixty days. I will be helping you with re-organizing your store into a more efficient model to deal with the foodstuff and merchandise purchase restrictions so the civilians will not freak out. Only forty customers will be allowed into the store at any given time and each customer will be handed a shopping list that they can abide by until the rationing program moves into full swing. Price controls are in full effect and we are in the process of working with your main offices to reprogram all computers to these limitations. We can accept cash today and hopefully the debit card system returns to normal in the next two hours. Sadly, we are rationing everything this cold winter, including electricity and most importantly, money.”
Mary Jo was speechless. She looked at her store manager and wanted to cry but couldn’t. “What do you need me to do?” was all she could say. Mr. O’Donnell explained that the entire Christmas display had to come down as well as any non-essential goods removed from the shelves. He handed her a file and said “At all times you will have an armed escort for your protection. I know these are your neighbors and regular customers but you never know when someone will go Waco on you.” As she opened the file, she realized the gravity of the situation. She had to remove the entire electronics and gift section. Christmas decorations and greeting cards had to be removed; alcohol shipped on a company truck to the new “State of Indiana Resource Distribution Center”; all drugs including over-the-counter moved into the pharmacy. It was a stunning bit of news. And she realized with the dread of the moment that this had been planned for months, perhaps years.
Mary Jo now realized why the headline on the Louisville newspaper said “Closed for Business” and announced the government program on the front page as well as a brief story about the midnight bankruptcy filing for the paper. She thought to herself “I guess America is now closed for business also” as she sauntered over towards the cashiers to comfort them and begin the process of re-organizing the store to the new Federal and state mandated standards.
“There You Go Again”
I know exactly what my readers are thinking; he goes on vacation for a week in a tropical paradise and comes back with a more depressing outlook than ever which means that
(a)the sailboat flipped over and he swam to shore only to discover his Crocs were not really waterproof
(b)it snowed unexpectedly causing the Iguanas and bartenders to go on strike
(c)the wife spent more time shopping and my debt load now exceeds that of twenty third world countries
(d)the author is in dire need of Xanax
Fortunately, the correct answer is (z) none of the above. With the time used to clear my head and enjoy what in most likely will be the final vacation my family enjoys this decade of any expense, it gave yours truly a chance to reflect on the course our nation is on and the solutions to the problems that are so numerous, so extensive and so dire that few people wish or are allowed to discuss them publicly.
The vacation was not spent totally in a void as I was able not only to see the satellites in orbit as they zoomed by among the stars, I was able to tune into Bubblevision and the other various news channels who spend more time focusing on make up and dresses than those minor issues like a financial collapse or the progress Iran is making constructing a viable atomic weapon. Thankfully the Vice-Presidential apparel debate has taken over the front page so that leaves us doomsayer bloggers who dutifully report in our opinion pieces a blank slate to comment on the insanity we are about to experience as if the short term fiasco already underway was not enough fun.
The fictional start to this entry is nothing more than that, a potential outcome based on the current situation inside the United States. The great nationalization has begun in earnest and as of the date of this writing, the government is now entertaining the idea of buying into the insurance industry even further because Lord knows the “good hands people” can’t survive by just picking the pockets of their customers and investing in hedge funds who buy subprime paper and Zimbabwe dollar futures.
Nationalization is not a joke however, and the American people are snoozing their way through the process, much like the Italians did in the early 1920’s as the march to Fascism was well under way. The United States, as I have joked sadly and often, is turning into the largest banana republic in the history of modern capitalism. You and I are witnessing banks being ordered to consolidate, ordered to issue loans, ordered to sell ownership stakes to the government and ordered to shut down under FDIC supervision where the bad part of their portfolios become a taxpayer problem but the deposits create larger and larger entities to maintain the “too big to fail” mantra.
Government bureaucrats have had over seventy years to improve upon the “New Deal” and insure that they can implement a Keynesian philosophy to prevent the meltdown we are witnessing. Unfortunately every enterprise the government has endeavored in over this time, they have butchered any and every attempt at running a private enterprise operation as a government entity. Despite this obvious fact, the government is seeking to expand the ability of various and yet unnamed agencies to acquire “investments” in various industries across the land. Worse yet, even as we sleep at night, the Federal Reserve (a private entity) and the Department of Treasury are devising new ways to react to the anticipated wave of bank failures which will accelerate in 2009.
While many are backing off of their original predictions, I stand by my recent statements that over 3000 banks will cease to exist either through a FDIC takeover or forced M&A action. This means the scenario described above is not out of the realm, nor too hard to imagine. Any direct takeover of the entire banking system via a holiday or other government action will require a large level of centralized control of not just banking operations but credit card, third party contracted bank related corporations, and telecommunication systems. This opens the door for more discrete acquisitions which might on the surface seem innocent enough but in reality might well have a darker intent.
It’s the Supply Chain, Stupid
The plight of Mary Jo being subordinated to a fictional “Department of Resource Allocation” may sound so far fetched and third worldesque as to cause many readers to have bypassed the true intent of this ranting and proceed back to the anticipated debut of the Sundance Channel’s Boy George Movie Marathon. In reality though, such plans do exist, are part of government planning on the Federal and State level and can be implemented in hours in much of the nation. The problem, as always, is the unpredictability of human beings and their reactions which determine the viability of any government based plan of action.
There is an understanding within our emergency operations community that the benefits of the J.I.T. supply chain are also a curse. The average community has only a three to five day supply of foodstuffs in the various grocery stores and regional distribution centers. The energy supply is in even worse shape due to the irregularities of our refinery production thanks to supply interruptions over the last six years.
Transportation companies would have to trust the government to insure payment and escort to keep stores stocked and functioning. The ruling party would have to insure that an orderly raw material and finished good flow is maintained just to keep peace and quiet in many communities. Obviously it is impossible to insure that food and supplies are equitably distributed so the military and any law enforcement entities would have to be employed to insure tranquility. The implementation of government J.I.T. controls is a given as the allocation of goods and services would shift from the supply demand model to that of a nation facing the real prospect of starvation on a large scale basis.
With such an enterprise under the control of various state and Federal bureaucrats, one can only anticipate the level of graft, corruption and outright theft involved. Add in the black market which would spring up overnight and you get the idea that the food and energy requirements for many major cities would not and could not be met, creating an entirely new regime of problems. These problems would sadly engender the necessity of deploying and enacting martial law on a regionalized basis to ensure the needy and middle class who were oblivious to the storm are taken care of. Let that sink in as President McCain or Obama is sworn in.
Rations, Rations, Everywhere
Imagine a banking crisis so severe that the real supply chain issue, money, gets rationed also! That is not a crazy proposition in the times we are in. Such an event could be triggered by a non-FNC Alert happening which hits in a smoke filled back room in Zurich or New York. Imagine a hedge fund failure of such magnitude it freezes the entire derivatives clearing system causing banks to beg governments world wide for a holiday to prevent an institutional and individual run on the existing cash on hand. We apparently have come very close to that event with the Lehman bankruptcy and good luck getting someone other than “a source” to speak openly about the dangers of this happening.
It is real and could occur at any time within the next one hundred and eighty days as there is that much instability in the banking system at this time.
The implications of such a seizing up of the cash flow are obvious. The governments of the world would have to act immediately because news of shortages and the inability to deliver are what create and trigger bank runs on a national basis. The United States would have to control the news, the events and the ability of everyone to transfer, use or withdraw monies immediately or risk the end of not just the system, but quite possibly the Constitution.
In an interview on PBS this past Tuesday, October 21, Nassim Nicholas Taleb the author of “The Black Swan” said quite bluntly that this was “I don't know if we're entering the most difficult period since -- not since the Great Depression, since the American Revolution.” The fact that he made that statement startled the interviewer, but it is not far from the truth. The allowance of a supply chain collapse is what will trigger the preventative action or “excuse” needed to allow the nations of the world to modify the methodology of their government functions and the system of finance currently in use.
The meeting that President Bush called for November 15, 2008 will indeed include the new President elect and that will create the format for the official transition and the future of our nation. Regardless of who is elected, with the ‘D’ or the ‘R’ after their name, you will have no vote, no say, no input as to the direction our nation will take regarding capitalism and the future of our currency. The new banking system and perhaps a consortium of powers, outside of the United Nations, will probably be created to oversee the management of a new type of Bretton Woods Treaty. Our nation will never be the same after this as credit will be restricted and offered to only the select few and the ratings criteria will be revised to prevent another meltdown like the one we are only about forty percent through the de-leveraging process at best at this time.
The flow of cash will be rationed, either in name via the fictional scenario above (currency controls via a bank holiday) or through the creation of alternate currency schemes. It must happen to separate the debt and instruments denominated in the weaker currencies from the new or approved nation’s currencies. This will put intense pressure on small businesses and individuals as credit will distributed at will via the government but commerce may have to be conducted using two types of currency; the old, rationed currency being used to pay employees and conduct business within the borders of the U.S. to pay off old obligations, and a new script approved and accepted by other nations for the purpose of trade or large obligations. The model for this idea was established with the collapse of the Soviet Union in the 1990’s and unfortunately we are on a similar path if corrective action is not taken soon. The same double standard could be applied to our current dollar to finally resolve the outstanding debt pyramids for which the U.S. banking system is still currently liable.
For the average citizen, the implications are obvious.
Universal Currencies Already Exist So Use Them
There is a misguided belief that a universal one world currency does not exist. That is patently false.
If you were to approach a dealer in precious metals or many banks in Europe or Asia, the Middle East or Honduras, etc. with a United States $20 gold piece, you could immediately convert that one coin into a substantial amount of the local fiat currency currently in use. The same applies for Swiss or British gold, American or Canadian silver, you name it.
There are many vendors in third world countries that will conduct business or barter with you as an individual by using these true universal currencies. To prepare for the upcoming scenario displayed in the fictional piece above, you had best not be too dependent on your local stock broker to rescue your hide nor the ability to withdraw monies from a money market fund. The solution is to have a universal currency ahead of your neighbors, but not to flaunt it so blatantly in the open that your family’s safety is at risk. Discretion will be the better part of valor in such a scenario. The basics of getting ready for something like the story above is far beyond three cans of tuna, a roll of duct tape and plastic sheeting as Hurricane Katrina demonstrated so well. It is the more likely scenario that you and your family will deal with and the only warning you will get will be the crash of the Belarus Securities Exchange (just an example) or the implementation of currency exchange limitations by various nations throughout the world to insure they can pay their dollar denominated debts back.
Thus why I fear the time is short and very soon you might wake up to a nightmare despite another Saturday morning Presidential address telling you that the “future is so bright you will have to wear shades” or some other such nonsense. Amazingly, there is some good news to this entire scenario if the system stabilizes and the current reflationary effort succeeds in creating the desired inflationary reaction the central banks of the world desire. By next spring some asset prices will start to skyrocket in price and the perceived growth in GDP will cause the stresses in world equity markets to subside, enabling the hedge funds and other unregulated instruments to liquidate without further damage to banks throughout the world.
You will recognize this success immediately in the spring of 2009; just by going grocery shopping. We’ll discuss what I feel will be America’s final bubble in the weeks to come…
__________________
I've always wondered what the 1920's and 1930's were like, but I never wanted to see it from the German perspective.....
Stop Whining, Please. Look at Your Neighbors.
http://www.kitco.com/ind/nadler/oct232008B.html
By Jon Nadler
Oct 23 2008 4:26PM
www.kitco.com
Good Afternoon,
Bullion prices dipped to under $700 for the first time this year. If we can say one good thing about today's continuing price rout, it is that it might not end with the metal closing in the 600's. Comparisons are futile, as each successive freefall since the middle of the year had its own peculiar but deadly flavor - this last one however, is perhaps even more perverse and worrisome than most that came before it. There remains no technical chart to be found on Kitco's back pages that does not show gold breaking through 200-day moving-average lines with a depth and sharpness such as what began on July 7.
An ugly, unmitigated disaster, this. And this morning, as well as this afternoon the metal continued to fall despite an easing dollar and rising crude oil price. Decoupling? Depends on your definition of the term. The nosecone has come off this rocket, and the gyroscope has spun out of control. You are now actually being told not to read the gold-related news in order to avoid fainting. Don't know about you, but there are faint signs that some may be ready to capitulate. In any case, they have run out of explanations faster than the cheese shopkeeper in the Monty Python sketch.
New York spot trading maintained double-digit losses after the close of futures. Fund liquidation remained quite visible during the day. At last check, the yellow metal was trading at $715, off $13 on the day. Raising cash is still at the top of everyone's list of priorities. Even the World Gold Council has chimed in on the 'bewildering slump' by acknowledging the unwinding of the long-gold short-dollar positions that have served so many, so well, over the past several years. Silver lost 2 cents at $9.47 and more sharp losses were recorded in platinum, which stayed at $793 per ounce, off $50. Palladium gave up $6 to finish at $169.
Frankly, we fail to see the 'surprised' part of this, and other recent analyses. Didn't gold's buyers buy the stuff as the asset of 'last resort'? Are we not at a juncture where 'last resorts' are being...resorted to? Why wouldn't a buyer of $400 gold let go of at least some of it, at a time when his stock portfolio shows it has lost half of its value? Exactly when, is the time to sell gold? Oh, yes, we know. At a time when the socio-economic landscape looks like something from "Soylent Green." A little late, no? See the BBC story below and think for a minute.
Today's news roundup reveals more of the same, only the players' names are different: Goldman will mothball 3200 employees, Credit Suisse loses billions, Wachovia loses the most ever lost by a bank, Sweden and New Zealand cut interest rates, UK retail figures worst since 2006, Japan's trade surplus shrinks 94%, GM starts ;involuntary' layoffs of salaried workers. We could go on. What's the point. Mr. Bush is hastily arranging another global summit to discuss ways to avoid a repeat of what is taking place now. May we humbly offer a couple of pieces of advice: skip the obligatory gourmet dinner the night before, show up in short-sleeve shirts, and address not that which might happen, but that which is happening. Oh, and don't forget to invite your successor, Mr. Bush. Wouldn't be prudent...at that juncture.
And now, for something really serious. We would like you to stop and step aside from the day's micro-worries and all of the fretting about money, and put things into perspective. The starkest, most graphic perspective. See how you feel when you start your day tomorrow, after you read this shattering report from the BBC:
This year's harvest in Zimbabwe has been the worst in the country's modern history.
In Mashonaland West province, some people are trying to survive by eating wild fruit and digging for roots
If we don't get help now, most of us are going to die. Nearly everyone here is starving
Mashonaland West villager
"It's very very bad. I've got 12 children and it's hard to find anything to give them," says a local village chief. "The whole of my village is struggling. No-one has food.
"There's nothing left here. So there's nothing I can do."
Driving deep into Mashonaland West is a reminder that most Zimbabweans live in rural areas.
The area around Karoi - 200km (124 miles) north of the capital, Harare - provides an illustration of the suffering currently being experienced in the countryside.
Farmers are without seeds, fertiliser and fuel. Next year's harvest is already being written off as a disaster as well.
As the political paralysis over the formation of the new power-sharing government continues, people are experiencing severe food shortages brought on by the catastrophic mismanagement of the economy and the virtual destruction of the country's commercial agricultural sector.
School dropouts
Some Zimbabweans get by on one meal a day if they are lucky, but there is a growing sense of desperation.
A person hold the amount of money needed to buy a loaf of bread in Harare in September 2008
Wads of cash are needed to buy what food is available in towns
One consequence is that thousands of children are said to be dropping out of school to look for food.
"In one district, 10,000 children of a population of 120,000 left school in a period of six months," says Rachel Pounds, country director of UK charity Save the Children.
"There's a lot of lost hope. Zimbabweans put up with things that get worse and worse, but you can see the despair in some of the poorer families in the villages.
"It's causing a breakdown of the community when people have to leave in order to find food," she added.
One villager in Mashonaland West pleaded for help before it was "too late".
"If we don't get help now, most of us are going to die. Nearly everyone here is starving."
Map
He showed me three tins of stored maize, but said that with seven children to feed, the supply would only last for a week.
Earlier this month, the UN World Food Programme appealed for $140m (£86m) to provide vital relief rations over the next six months.
The UN warned that more than five million people (45% of the population) could need assistance by early 2009.
In the meantime however, non-governmental organisations working in Zimbabwe have been hit hard by the economic collapse of this once prosperous country, and the resulting cash crisis stemming from levels of inflation that are now completely out of control.
But it is not just the rural population which is suffering.
Bizarre and depressing
In the towns and cities, food is also in increasingly short supply.
A walk around a suburban supermarket in Harare is a bizarre and depressing experience.
We are distinctly aware that this is a food crisis that is growing
USAid's KarenFreeman
One store I visited looked as though it was in the final stages of a clearance sale.
Only two of the 19 check-out tills were operating, and most shelves were entirely empty.
There was no milk, cheese, margarine or yoghurt.
Some cabbages, onions and limp bunches of spinach were available, along with a few odd packs of frozen meat.
The aisles intended for household goods such as soap and toilet paper were empty and closed off.
The only fresh-looking food items in the shop were a few loaves of bread, priced this week at Z$30,000 a loaf (about $1).
However, Zimbabweans are only permitted to withdraw Z$ 50,000 a day from the banks.
A boy lifts a tin of water from a hole in Harare in September 2008
Residents of Harare are digging holes to find water
Most people often cannot afford what little food is available.
Only those fortunate enough to have access to foreign currency can circumnavigate the shortages.
"We are distinctly aware that this is a food crisis that is growing," says Karen Freeman, the director of USAid in Zimbabwe.
"The issue of urban vulnerability has never really been felt here before.
"You could go to the store and buy food in the past, but now you have no option.
"There's no food in the store and there's no food on the ground. The crisis now is one where you can neither buy food nor grow food."
This is almost entirely a man-made crisis, created by President Robert Mugabe's government, and his administration stands accused of having done nothing to help."
There are lessons in this, for all of us. The sooner we recognize them, the better. By the way, where are the Zimbabwe residents who are bartering small gold coins among themselves for that last drop of water or morsel of bread? Which newsletter writer is brave enough to step forward and propose that the next stop for the rest of the world is the state of affairs we now see in Zimbabwe? Let's hear it. Louder, please.
The $700 level did not offer much opposition, but a rally from current levels is very much overdue. Alas, the Liquid - ation. Capping the morning's news, reports of a 50% drop in Indian festive season gold sales. Someone had wondered what rising premia would do to gold sales in India and expected a mega-surge. Say no more. Know what I mean? Say no more. Topper of the day? Greenspan's admission that there was a multi-trillion dollar fly in his economic model ointment. Oops. Say no more.
Hasta Manana,
Jon Nadler
Senior Analyst
Kitco Bullion Dealers Montreal
****
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Police prepare for unrest
http://thehill.com/leading-the-news/police-prepare-for-unrest-2008-10-21.html
No tellin' what them white folk will do if Obama gets in...no tellin what them black folk will do if they try to steal another one...
Threepeat!
Threepeat!
Threepeat!
Context of '1996-2008: FBI Uses InfraGard to Train Private Citizens to Cooperate with Government, Potentially Enforce Martial Law'
http://www.historycommons.org/context.jsp?item=a962000infragard#a962000infragard
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1996-2008: FBI Uses InfraGard to Train Private Citizens to Cooperate with Government, Potentially Enforce Martial Law
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InfraGard logo.InfraGard logo. [Source: Progressive.org]Twenty-three thousand executives and employees of various private firms work with the FBI and the Department of Homeland Security. The group, called InfraGard, receives secret warnings of terrorist threats well in advance of public notification, and sometimes before elected officials. In return, InfraGard provides information to the government. InfraGard is a quiet quasi-governmental entity which wields an unknown, but extensive, amount of power and influence. Michael Hershman, the chairman of the advisory board of the InfraGard National Members Alliance (INMA) and the CEO of an international consulting firm, calls InfraGard “a child of the FBI.” The organization started in Cleveland in 1996, when business members cooperated with the FBI to investigate cyber-threats. The FBI then “cloned it,” according to Phyllis Schneck, chairman of the board of directors of the INMA. Schneck is one of the biggest proponents of InfraGard. As of February 2008, 86 chapters of InfraGard exist in each of the 50 states, operating under the supervision of local FBI agents. “We are the owners, operators, and experts of our critical infrastructure, from the CEO of a large company in agriculture or high finance to the guy who turns the valve at the water utility,” says Schneck. According to the InfraGard website, “At its most basic level, InfraGard is a partnership between the Federal Bureau of Investigation and the private sector. InfraGard chapters are geographically linked with FBI Field Office territories.” After the 9/11 attacks, InfraGard experiences explosive growth—from 1,700 members in November 2001 to 23,682 members in January 2008. 350 members of the Fortune 500 have members in InfraGard. Prospective members are sponsored by existing members, then vetted by the FBI. The organization accepts members from agriculture, banking and finance, and chemical industry, defense, energy, food, information and telecommunications, law enforcement, public health, and transportation industries.
Controlled Exposure - InfraGard’s inner workings are not available to the general public; its communications with the FBI and DHS are not accessible through the Freedom of Information Act under the “trade secrets” exemption. And InfraGard carefully controls its exposure and contact with the media. According to the InfraGard website: “The interests of InfraGard must be protected whenever presented to non-InfraGard members. During interviews with members of the press, controlling the image of InfraGard being presented can be difficult. Proper preparation for the interview will minimize the risk of embarrassment.… The InfraGard leadership and the local FBI representative should review the submitted questions, agree on the predilection of the answers, and identify the appropriate interviewee.… Tailor answers to the expected audience.… Questions concerning sensitive information should be avoided.”
Advance Warning from the FBI - InfraGard members receive quick alerts on any potential terrorist threat or a possible disruption of US infrastructure. Its website boasts that its members can “[g]ain access to an FBI secure communication network complete with VPN encrypted website, webmail, listservs, message boards, and much more.” Hershman says members receive “almost daily updates” on threats “emanating from both domestic sources and overseas.” Schneck adds, “We get very easy access to secure information that only goes to InfraGard members. People are happy to be in the know.” Shortly after the 9/11 attacks, an InfraGard member passed along an FBI warning about a potential threat to California’s bridges to then-Governor Gray Davis, who had not yet heard anything from the FBI (see November 1, 2001). In return, InfraGard members cooperate with FBI and DHS operations. Schneck says: “InfraGard members have contributed to about 100 FBI cases. What InfraGard brings you is reach into the regional and local communities. We are a 22,000-member vetted body of subject-matter experts that reaches across seventeen matrixes. All the different stovepipes can connect with InfraGard.” The relationships between the FBI and InfraGard members are key, she says. “If you had to call 1-800-FBI, you probably wouldn’t bother,” she says. “But if you knew Joe from a local meeting you had with him over a donut, you might call them. Either to give or to get. We want everyone to have a little black book.” InfraGard members have phone numbers for DHS, the FBI, and to report cyber-threats. InfraGard members who call in “will be listened to,” she says; “your call [will] go through when others will not.” The American Civil Liberties Union, who has warned about the potential dangers of Infragard to constitutional liberties (see August 2004), retorts, “The FBI should not be creating a privileged class of Americans who get special treatment. There’s no ‘business class’ in law enforcement. If there’s information the FBI can share with 22,000 corporate bigwigs, why don’t they just share it with the public? That’s who their real ‘special relationship’ is supposed to be with. Secrecy is not a party favor to be given out to friends.… This bears a disturbing resemblance to the FBI’s handing out ‘goodies’ to corporations in return for folding them into its domestic surveillance machinery.”
Preparing for Emergencies, Martial Law - InfraGard members are “very much looped into our readiness capability,” says a DHS spokeswoman. Not only does DHS “provide speakers” and do “joint presentations” with the FBI, but “[w]e also train alongside them, and they have participated in readiness exercises.” InfraGard members are involved with the Bush administration’s “National Continuity Policy,” which mandates that DHS coordinate with “private sector owners and operators of critical infrastructure, as appropriate, in order to provide for the delivery of essential services during an emergency.” InfraGard members participate in “national emergency preparation drills,” Schneck says, sometimes by the hundreds. InfraGard members are drilling in preparation for martial law, members say. One business owner recently attended a meeting conducted by FBI and DHS officials. He recalls, “The meeting started off innocuously enough, with the speakers talking about corporate espionage. From there, it just progressed. All of a sudden we were knee deep in what was expected of us when martial law is declared. We were expected to share all our resources, but in return we’d be given specific benefits.” In the event of martial law being declared, Infragard members will have the ability to travel in restricted areas and to evacuate citizens. But they will have other abilities and duties as well. InfraGard members, says the business owner, will be authorized to “shoot to kill” if necessary to maintain order and “protect our portion of the infrastructure. f we had to use deadly force to protect it, we couldn’t be prosecuted.… We were assured that if we were forced to kill someone to protect our infrastructure, there would be no repercussions. It gave me goose bumps. It chilled me to the bone.” Other InfraGard members deny that they have ever been told such; Schneck says InfraGard members will have no civil patrol or law enforcement responsibilities. The FBI calls such assertions “ridiculous.” But the business owner’s story has been corroborated by other InfraGard members. “There have been discussions like that, that I’ve heard of and participated in,” says Christine Moerke, an InfraGard member from Wisconsin. [InfraGard, 2008; Progressive, 2/7/2008]
Entity Tags: Michael Hershman, Department of Homeland Security, Christine Moerke, Bush administration, American Civil Liberties Union, Federal Bureau of Investigation, InfraGard National Members Alliance, Gray Davis, Phyllis Schneck, InfraGard
Timeline Tags: Civil Liberties
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Summer 2001: Computer Intruders Probe US Infrastructure’s Digital Switches; Al-Qaeda Connection Feared
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A police officer with the Mountain View Police Department in California uncovers a pattern of suspicious electronic probing of the computer systems of public utilities and government offices in the San Francisco Bay area. He notifies the FBI’s computer intrusion squad. The investigation reveals that the intruders are operating from the Middle East and South Asia. They are targeting the computer systems used to control the physical infrastructure of water systems and power plants throughout the US, suggesting a plan for a cyber attack. For many experts who have long warned against cyber terrorism or warfare, the “Mountain View case” as it is called, should be seen as a wake-up call for the government as well as the private sector (see 1996-2008). In a later interview, Richard Clarke, the national presidential adviser on cyberspace security from 2001 to 2003, will say: “The bottom line on the Mountain View case is the ease with which people can do virtual reconnaissance from overseas on our physical infrastructure and our cyber infrastructure.… We were lucky… that there were good people watching.” [Washington Post, 6/27/2002] Despite fears that al-Qaeda may be behind the intrusions (see 2002), the identity of the hackers will not be established. In 2003, Ron Dick, who was the head of the FBI’s National Infrastructure Protection Center (NIPC) at the time, will say that the “case is still pending.… We never were… able to tie it back to any terrorist organizations.” [PBS Frontline, 3/18/2003]
Entity Tags: National Infrastructure Protection Center (NIPC), Federal Bureau of Investigations (FBI), Ron Dick, Al-Qaeda, Richard A. Clarke
Timeline Tags: Complete 911 Timeline
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November 1, 2001: FBI Alerts Business Community About Terrorist Threat, but Not Elected Officials
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The FBI alerts InfraGard members (see 1996-2008) of a potential terrorist threat to bridges in California. Officials of Enron are also notified. However, the FBI does not immediately notify California governor Gray Davis, who learns of the threat from his brother, Barry Davis, an employee of the financial firm Morgan Stanley. Davis’s press secretary, Steve Maviglio, later recalls: “[Governor Davis] said his brother talked to him before the FBI. And the governor got a lot of grief for releasing the information. In his defense, he said, ‘I was on the phone with my brother, who is an investment banker. And if he knows, why shouldn’t the public know?‘… You’d think an elected official would be the first to know, not the last.” [Progressive, 2/7/2008]
Entity Tags: Enron, Barry Davis, Steve Maviglio, InfraGard, Gray Davis, Federal Bureau of Investigation
Timeline Tags: Civil Liberties
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February 7, 2003: Government Includes Informing InfraGard Members in Terror Threat Preparations
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When the secretary of homeland security and the attorney general announce that the national terror level is being raised from yellow to orange (see February 7-13, 2003), InfraGard members are specifically mentioned. InfraGuard is a program in which private companies work with the FBI and the Department of Homeland Security, which provides these companies with information not available to the public (see 1996-2008). In their listing of “additional steps” that federal agencies are taking to “increase their protective measures,” one of those steps is to “provide alert information to InfraGard program.” [Progressive, 2/7/2008]
Entity Tags: InfraGard
Timeline Tags: Civil Liberties
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August 2004: ACLU Warns that InfraGard May Train Private Citizens to Be ‘Surrogates’ for FBI
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The American Civil Liberties Union warns that InfraGard, the private organization that cooperates with the FBI in law enforcement and other areas (see 1996-2008), is a potential threat to constitutional freedoms. “There is evidence that InfraGard may be closer to a corporate TIPS program [TIPS is a program proposed by the Bush administration to encourage Americans to spy on one another], turning private-sector corporations—some of which may be in a position to observe the activities of millions of individual customers—into surrogate eyes and ears for the FBI,” the ACLU says in its report, “The Surveillance-Industrial Complex: How the American Government Is Conscripting Businesses and Individuals in the Construction of a Surveillance Society.” [Progressive, 2/7/2008]
Entity Tags: Bush administration, American Civil Liberties Union, InfraGard, Federal Bureau of Investigation, Operation TIPS
Timeline Tags: Civil Liberties
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August 9, 2005: Mueller Urges InfraGard Members to Inform FBI of ‘Suspicious Activities’ and ‘Disgruntled Employees’
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FBI Director Robert Mueller tells an audience at an InfraGard convention, “Those of you in the private sector are the first line of defense.” InfraGard is an organization made up of private business executives and employees who work with the FBI in counterterrorism, surveillance, and other areas (see 1996-2008). Mueller urges InfraGard members to contact the FBI if they “note suspicious activity or an unusual event.” And he urges members to inform the FBI about “disgruntled employees who will use knowledge gained on the job against their employers.” After the convention, Muller says of InfraGard, “It’s a great program.” [Progressive, 2/7/2008]
Entity Tags: Federal Bureau of Investigation, Robert S. Mueller III, InfraGard
Timeline Tags: Civil Liberties
Hard times have some flirting with survivalism
Economic angst has Americans stockpiling 'beans, bullets and Band-Aids’
http://www.msnbc.msn.com/id/27244465/
The Panic of 2008
GO for sales pitch on those two companies:
http://www.321gold.com/editorials/moriarty/moriarty102108.html
Bob Moriarty
Archives
Oct 21, 2008
"The two companies I saw a week ago not only have real business models, each is selling for less than the cash they have in the bank. At this point, they are worth more dead than alive. That's no risk at all."
People who have been following this site know that I have been predicting a depression for years. It's here. Even the dolts in Washington are starting to figure it out. The credit system has ground to a halt. Commerce is on the verge of a complete breakdown. 18 hours after the bank holiday starts, the riots begin.
LOL
Physical gold and silver are insurance policies against financial chaos. We have financial chaos. You can still buy an insurance policy and that's the greatest deal in investment history. You think governments printing of $7 trillion dollars of kerosene dumped on a financial holocaust won't have an effect? It will.
The United States dollar is going to default soon. We have known since late 2002 that the US was in deep trouble. Treasure Secretary Paul O'Neill revealed the United States Government had a real debt of $44 trillion and it was growing at a rate of $2-$4 trillion per year. As of last year the debt was up to $59.1 trillion.
Even before the government started throwing money around like a drunken sailor US spending was totally out of control. In the fiscal year ended September 30, 2008, the actual yearly deficit totaled $1.017 trillion. We are broke and anyone who passed Economics 101 has figured that out. Soon, very soon, the US will officially default on their obligations.
I've made mention many times the incredible figure of $596 trillion dollars worth of derivatives. The world economy is only $60 trillion dollars. It's a giant crap game where everyone is playing with Monopoly money. Everyone believes that when the music stops, they will find a chair. But there are no chairs. The number of nearly $600 trillion is so large that it has to be fraud. Derivatives have doubled in two years. How? The world economy hasn't doubled in two years.
Soon there will be a mad rush into "things." There is no choice. You can buy TBills and frame them so you can mount them on your wall. Then you can point to them when your grandkids come over and say, "See that? That used to be considered money." TBills are toast.
Fannie Mae? Forget it, they are bankrupt. The greedy dullards in Washington think they can actually do a better job of running Fannie Mae than the greedy dunderheads who used to run it for a profit? Are you kidding?
Swiss Francs? I doubt it. They are about to go the way of Iceland. Actually the Swiss government is deeper in debt than Iceland was.
"Things!" You need to be in "things" else your assets are going to be poured down a black hole. I am even coming to the point of view that gold and silver ETFs have joined the "Useless as teats on a boar pig" category. The risk is no longer market risk or even "Do they have the gold risk?" The risk in everything today is counterparty risk. That's why banks wouldn't dream of trusting each other. They do have a point. They have looked in their own cupboards and found them bare.
The best and safest forms of investment (as opposed to an insurance policy of physical gold and silver) will be high quality gold and silver producers. We need to get away from the business model of "Print and Drill, Print and Drill" and exchange it for the 7-11 Business model.
Think about it for a minute. How many 7-11s sell a quart of milk at a loss? The answer is zero. Never have, never will. If you are going to invest in a junior, you need to know that they have a business model that will make money some day.
That's easier than you might think. I just came back from a visit to Nevada and Wyoming where I saw two great juniors that you can safely buy even if you think the 2nd Coming is tomorrow.
Let's talk about gold and gold shares for just a moment. We have just gone though the most crushing crash of gold stocks in history. 1929 was nothing in comparison. Many stocks lost 50% in a week. What happened and why didn't anyone warn us?
Well, I'm one of the guys who has been preaching that gold shares were a safe haven and they obviously have not been. I could plead manipulation and please the conspiracy crowd. People love the manipulation theory because it means you never have to admit you were wrong. When the market moves against you, just scream, "manipulation" as loud as you can and you get a free pass.
I'd love a free pass. I was dead wrong, and I feel bad, especially for the new readers who have only just recently shown an interest in the resource stocks. But if it's any consolation, my accounts are down just as much as yours. But I don't warp facts to fit my theories. When my theories don't match the facts, I revise my theory.
We have $596 trillion dollars worth of derivatives. When the first Bear Sterns funds exploded in June of 2007 it started a process of deleveraging. We need to unwind hundreds of trillions of dollars worth of fraud. There are going to be trillions and trillions in losses. Governments around the world have dumped $7 trillion in kerosene on the fires and naturally they are getting worse. Governments and Central Banks screw up everything they do.
Hedge funds, investment banks and investors of all sizes are dumping everything and anything on the market to raise money. As a result, the greatest transfer of wealth in history is taking place. As the overleveraged fools dump, at the right time you can pick up assets representing real "things" for pennies on the dollar.
I think we are at a bottom in the juniors. We saw a crash into September. We have had a test in the last week. and we are about to explode higher. There is a lot of money on the sidelines just waiting to find a safe home. When people realize the only safe haven is in shares of companies holding real "things" those companies are going through the roof.
As of Friday October 18th, gold has dropped 7 days in a row. On Tuesday October 21st, $400 billion dollars payable to holders of Credit Default Swaps on Lehman Brothers comes due and that could get real exciting. But basically resource stocks are cheap, they have tested the September lows, October is typically the month for things to crash and we've had ours. It's time for a rally if for no other reason resource shares are cheaper in every way than they have ever been before in history.
I'm going to be a lot more careful in the companies I invest in. I'm going to study the business model and if it doesn't have a way to make money, I'm not investing.
How to ZAP a Camera: Using Lasers to Temporarily Neutralize
Camera Sensors
Go for pics I was too lazy to post:
http://www.naimark.net/projects/zap/howto.html
Michael Naimark
michael@naimark.net
www.naimark.net
October 2002
draft - not for distribution
©2002 Michael Naimark
Updates:
Oct 02: Featured in NY Times, CS Monitor
Dec 05: Why the "Anti-Paparazzi Flash" Capture Resistant Environment is problematic
INTRODUCTION
Cameras are ubiquitous today, and, from a technology perspective, the revolution is just beginning. Video cameras are becoming smaller and cheaper while the Internet is enabling unlimited live webcasting. Web camera usage has grown from one in 1991 to hundreds in the mid-1990s to hundreds of thousands today. Video cameras the size of postage stamps can be procured for under $100, and will certainly become even smaller and cheaper.
To many, this is good news. Public webcams enable remote users to see what they would otherwise need to visit, and empower local subjects to have a voice and a face to the outside world. Private webcams empower friends and family to see each other remotely, and to check up on the safety of their homes and their loved ones.
But there is a dark side. While hidden cameras are clearly an invasion of privacy, visible public cameras can be as well. A camera placed in a legally valid site can peer into otherwise private spaces. Their connections to the Internet enable arbitrary numbers of users to watch anonymously. And telephoto lenses enable cameras far greater vision than that of the human eye. Imagine looking out your window and seeing someone on top of a building with a large telescope looking down at you. Now imagine the nightmarish vision of seeing thousands of people on top of the building with telescopes looking down at you. Laws and conventions acceptable for a single live gaze do not scale for remote multiple ones.
Live image from robotic webcam near Paris aimed by anonymous web user
On a personal note, I'm a camera-guy. For over twenty years I've worked as an artist and researcher exploring new ways to represent place, work which often involved custom-designed cameras for 3D, immersion, and interactivity. Last fall I moved to a small town in Japan for an artist residency, ostensibly to continue my work with VR and webcams. But the dark times caught up with me and I felt compelled to ask some deeper questions, like, when cameras are everywhere, is it possible to become invisible from them?
The more I learned, the more I realized the answer is, well, yes and no. I began by aiming an inexpensive laser pointer directly into the lens of a video camera. The results were striking. The tiny beam neutralized regions of the camera sensor far larger than the actual size of the beam. Properly aimed, it could block a far-away camera from seeing anything inside of a large window.
Then I looked around the Web. Relevant articles existed but were highly scattered. Not surprisingly, a lot of data exists in the military literature (much of which appears to be getting "re-classified" and disappearing from the Web day by day). I realized that I could more or less cover everything there is to know about camera zapping during my residency, both in terms of practical information and of larger metaphors.
I have some artistic and ethical discomfort with this work. It's divided my artist colleagues into those who see a new activist tool and those who liken it to burning canvasses. Indeed, is an anti-tool a tool? Then there's the question of releasing potentially useful information to criminals and terrorists. Perhaps, but anyone who really wanted to knock out a camera wouldn't waste their time with harmless, temporary techniques.
My interest and motivation is to provide the creative community with some stimulating and provoking stuff. These are stimulating and provoking times. This is a report of my findings.
BASICS
Cameras
Camera zapping is possible because cameras are not perfect machines. Two such imperfections are blooming and lens flare. Blooming is the technical term for when a portion of the camera's sensor is overloaded, resulting in "leakage" to neighboring regions. For example, a candle in an otherwise dark setting may cause blobs or "comet tails" around the flame. Many video cameras today advertise "anti-blooming" capabilities, but it's ultimately a matter of degree. Most can indeed handle a candle light without blooming but almost certainly not direct sunlight.
The other relevant imperfection is lens flare, caused by unwanted light bouncing around the glass and metal inside the camera. Multi-coated optics and good design can minimize lens flare but not completely eliminate it. For example, it is virtually impossible to eliminate the multi-facet reflection of the lens' diaphragm blades in today's cameras when they're aimed at the sun.
Another imperfection common in digital cameras occurs in the electronics downstream from the camera sensor. Often, when one small portion of an image is unnaturally brighter than its immediate surroundings, the electronics get confused. The result may be large digital "blocky" artifacts in the image.
In addition to these imperfections, cameras' strengths can also contribute to their weakness, for example with long, or telephoto, lenses. These lenses act as telescopes, allowing the camera to fill its frame with a magnified image. Since the field of view is small, the amount of light needed by the sensor is proportionally larger. Consequently, telephoto lenses are typically large, making concealment more difficult and detection easier.
Further, telephoto lenses exhibit a strong retro-reflective effect, the bright reflection caused when viewing such things more or less on-axis with a light source. Examples include animal eyes viewed with a flashlight (held close to the observer's eyes), "red eye" in flash photography, and the reflection of car headlights from retro-reflective material common on today's running shoes. When a telephoto lens is aimed at you, you will see a "glint" in the lens if you are shining a light in its direction.
Lasers
Lasers are near-perfect monochromatic light sources, in that they emit a single narrow wavelength, one pure color (actually some lasers emit several pure colors). The first lasers were made of glass tubes with polished mirror ends and had the additional feature of emitting collimated light, a parallel beam so precise that it could be extremely narrow (and therefore concentrated) or could converge to a microscopic point.
It is important to understand that a parallel beam of collimated light does not lose any of its brightness travelling through empty space. Here on earth, the atmosphere has enough density to diffuse and weaken a collimated beam. But on a clear day or at night, a small bright spot from a well-collimated laser will remain a small bright spot for distances of hundreds of meters.
The solid-state revolution that replaced vacuum tubes with silicon chips had a similar effect on lasers. Solid-state technology allowed lasers to become smaller, more efficient, and much cheaper. Useful new industries emerged, such as laser printers and laser-scanning at supermarket checkout counters. Useless ones appeared as well, such as cheap home laser light shows and laser pointers.
Laser pointer like this can be found for $1 on the Web
Laser pointers represent a case study of what happens when technological advancement and high volume production reduce costs so much that a product simply happens, regardless of need or utility. Laser and other light-based pointing devices were originally made to help a lecturer highlight something on an accompanying projection screen. So in theory, there need not be more pointers in the world than lecterns or projection screens (or lecturers). But because laser pointers could be made and sold for a few dollars, they found a market as a novelty item. Red laser pointers can be bought on the Web today for $1 or $2 each, while green ones are much more expensive ($200-$400) and blue ones are still in commercial development.
Today lasers come in extremely wide varieties of type, wavelength, and power. (Everything one would ever want to know about lasers can be found on the Web at Sam's Laser FAQ.) They range from lasers capable of destroying missiles to tiny lasers that create images directly on the human retina.
Laser Safety
Though lasers are often associated with danger (think Goldfinger), their hazard level is related to power, wavelength, and concentration, but primarily to power. Lasers are classified into four classes (two of which have sub-classes). These range from "Class I" lasers which are deemed never harmful (e.g., laser printers), to "Class IV" lasers that can blind, burn, and sometimes cut through steel. The big dividing line lies between Class IIIa and Class IIIb lasers, with the major criteria being whether or not the laser emits more or less than 5 milliwatts. Class IIIb and Class IV lasers must be registered in many countries, though a casual Web search suggests it's pretty easy to buy serious Class IV lasers if one desires.
All off-the-shelf laser pointers are Class IIIa lasers, emitting light from 1 - 5 milliwatts. The official view is that they cannot burn or damage skin, but can produce "spot blindness" under the right conditions and should have a "danger" label attached. Spot, or temporary, blindness can indeed be hazardous, for example, while driving a vehicle. But, contrary to the popular belief, not a single instance of permanent eye damage from laser pointers has been recorded anywhere, according to a report published in the Industrial Safety and Hygiene News in May 2000.
In addition to spot blindness, laser pointers can get people into other kinds of trouble. Today, many sports arenas and concert halls ban laser pointers. Various direct and indirect laws can be used to cite irresponsible use of laser pointers as a misdemeanor. And since the beam from a laser pointer looks the same as the beam from a laser-sighted firearm, you don't want to aim your laser pointer at someone carrying a weapon. In June 2000, LAPD booked an unarmed juvenile, who aimed a laser pointer at an officer's torso, for "602 WIC 417.26 (c) P.C., (Laser Scope Pointed at a Police Officer)."
HISTORY
Art and Activism
Using bright light as an aggressive tool goes back to ancient Greek mathematician Archimedes and the legend that he burned invading Roman ships with large mirrors and reflected sunlight. The activist art group, Rtmark (pronounced "arteemark"), inspired by the Archimedes legend, distributed 1,000 hand-held mirrors to protesters at the 2001 G8 summit in Genoa, to use against the police by spot blinding them with sunlight.
The proliferation of surveillance cameras has increasingly become a topic of concern in the arts and activist communities. Rtmark has a Web guide to closed circuit television destruction. (Though the guide includes laser pointers as a method, it is not recommended, in part because it doesn't leave any visible sign of inoperability. They prefer plastic bags, paint guns, axes, and rocks to make their point.)
Community-made maps showing the locations of surveillance cameras in public spaces are appearing on the Web. For example, the NYC Surveillance Camera Project has mapped over 2,000 surveillance cameras in Manhattan through a network of volunteers. The artist/activist group Institute for Applied Autonomy created a web-based application allowing New Yorkers to find walking routes to avoid surveillance cameras.
Other forms of artist activism against surveillance cameras are more light-hearted. The Surveillance Camera Players, a New York based group, perform unannounced street theater "for the entertainment, amusement and moral edification of the surveilling members of the law enforcement community." The SCP organized a protest against surveillance held on September 7, 2001, with 22 participating organizations in 6 countries. Currently the SCP has several satellite groups, including in Italy, Sweden, and Lithuania.
Anti-Surveillance Products
Detecting and stopping cameras turns out to be fundamentally difficult. Cameras don't emit anything (e.g., the way cellular phones do). With a great deal of surveillance and anti-surveillance products on the Web, virtually none could be found to simply detect and stop cameras. (Cameras connected to transmitters, perhaps, but cameras alone, no.) [October 2002 update: see Laser Dissuader below.]
A Google search of "anti paparazzi device" yielded two hits, both about near-identical devices called "Eagle Eye" and "Backflash" (and both unfindable as actual products). These devices apparently couple a light sensor to a flash unit: when a flash of light is detected, the devices instantaneously flash back. They're both small, made to be worn, and claim to obscure a portion of the photographic image near them whenever a flash is used (ostensibly as protection against intruding photographers). If these devices work, they obviously would only work for still, flash photography.
Military
The gold vein of camera zapping material can (or could) be found in the military literature. Indeed, the race to build the first laser (built in 1960) was fueled by DARPA funding. During the Cold War, both the Pentagon and the Kremlin spent billions of dollars developing high-power laser weapons, which continued during Reagan's "Star Wars" initiative in the 1980s and continues today. But as the silicon revolution made lasers smaller and more efficient, the international military community looked into additional opportunities. Two such opportunities were "antisensor" and "antipersonnel" weapons.
Antisensor lasers are capable of scanning a region looking for "glints" of reflected light coming from lenses aimed at them, then switching to a high energy laser capable of overloading or destroying the sensor (or whatever) behind the lens. The U.S. developed such a system called the Stingray and deployed two tank-based prototypes in Saudi Arabia during the Gulf War (they allegedly were not used). The Stingray's range of operation is claimed to be several kilometers. It's not clear if (or how) the Stingray could discriminate between lenses and eyeballs, or between sensors behind a lens and human eyeballs behind a lens.
Antipersonnel lasers are made to "dazzle" (the technical term for spot-blindness plus its effects, such as disorientation and delay). One such system developed by the U.S. Air Force is the Saber 203. It's designed to fit in the grenade launcher of an M-16 rifle and emits a beam in-line with the rifle's scope, with an effective range of 300 meters. Its 28 milliwatt laser is considerably more powerful than the 5 mw laser pointers, but it is claimed to be below the threshold of eye damage.
The line between antisensor and antipersonnel lasers is vague, since there is nothing preventing a soldier from using a Stingray to permanently blind soldiers in the battlefield. The Human Rights Watch and the International Committee of the Red Cross led a campaign for a United Nations ban on blinding laser weapons, which was adopted in 1996. Some believe this only drove such development further into secrecy. Rumors persist that Israel acquired U.S. Stingrays after the ban, and that China has been making a cheap version of the Stingray called the ZM-87 that can blind soldiers 2 miles away and disable soldiers 7 miles away.
At the same time, at least two companies are marketing commercial versions of the laser dazzler developed for the U.S. Military. The "Laser Dissuader" and the "Laser Dazzler" both claim to be safe, and better alternatives than bullets. [October 2002 update: The Laser Dissuader link has changed since last summer to include "SpyFinder," a new product that appears to detect cameras by aiming a small laser and detecting the retro-reflection from the lens.]
It remains uncertain whether any 100% successful antisensor detecting system actually exists.
FIELD TESTS AND PROTOTYPES
First field tests were conducted simply with an inexpensive laser pointer aimed into the lens of a video camera. At close range (1 - 5 meters), the beam was easy to aim by hand. The laser beam almost completely obliterated the image, covering it with a red starburst.The effect completely disappeared when the laser was aimed away, leaving no trace of any permanent damage.
Inexpensive laser pointer (1 mw, 650 nm red)
Laser pointer aimed at video camera from 3 meters away.
This cheap laser pointer emitted an oval-shaped beam (as is often the case) that was about 2mm by 4mm in diameter at very short distances, and expanded to over 5cm by 10cm at 100 meters (due to cheap collimating optics). In medium and bright light, it was difficult to see with an unaided eye. The obvious solution was to couple the laser to an optical scope and pre-calibrate them.
Telescopes and binoculars generally do not have cross-hair reticules built in, but rifle scopes do. Rifle scopes are available at prices upwards of $2,000, but like handguns, most of the market appears targeted at lower-income customers, and cheap rifle scopes can be found for under $10. All rifle scopes have built-in reticules with some form of cross-hair or dot at the center, which are internally adjustable with set screws. The only problem is that, unlike telescopes, rifle scopes are made to be viewed with the eye several centimeters from the rear optics, since they are mounted in front of the operator's face. (This distance is specified as "eye relief," and is typically 2 - 5 inches but is never zero.)
A simple prototype system was built with a $30 mail order 5mw red laser (635 nm wavelength, which appears much brighter than 670 or 690 nm red) and a $10 rifle scope with a 4X magnification (Tasco Rimfire, made for small game hunting). The laser and scope were secured together and the cross-hair adjusted to center on the laser beam at 100 meters.
Simple laser / rifle scope system
Telephoto view from 100 meters, cloudy day (video)
Wide angle view from 100 meters (video)
Through the rifle scope, the glint reflected from the lens was indeed apparent, particularly when the camera lens was zoomed in. It was easy to intermittently hit the lens but difficult to maintain aim by hand.
A second prototype expanded in several directions. First, it is tripod-based, with a precision head allowing independent adjustment of its 3 axes (Bogen/Manfrotto "Junior Geared Head," complete system costs around $200). Then, a larger rifle scope was used for a bigger, brighter image (Tasco World Class 3-9x zoom, $70). Finally, the cheap laser pointer was replaced with a laser gun sight, which has the same Class IIIa power rating but much better optics, resulting in a more circular and collimated beam (Beamshot 1001 for $110). These gun sights also have adjustment screws to align the beam, durable metal cases, and many options of mounting hardware. So, for under $400, a rather serious camera zapper can be assembled.
Laser gun sight, zoom rifle scope, 3-axis adjustable tripod head
Camera Zapper in window approx. 200 meters from camera, early evening (video)
Telephoto view (video)
The system was portable and could be quickly deployed. Aiming was extremely critical, and at long distances, very careful fine tuning was necessary. But when the camera was aimed in the direction of the zapper and zoomed in, the glint reflected from the lens was very obvious. This system can work well for cameras which are visible and stationary.
If either the camera, or target, is moving, then some form of aiming and dynamic tracking is required. One solution is to do it ourselves. A third prototype was built to be small and hand-held for near and medium range moving cameras.
Hand-held unit with laser gun sight and golf scope
The result was made with a Beamshot 1001 laser gun sight and a small monocular made for golf range finding (Tasco Golf Scope, $20), basically a small telescope with a grid-like reticule inside. Unlike a rifle scope, its eye relief distance is zero, which makes it comfortable to use hand-held. This new system could fit in a pocket and was very easy to use. It turns out that precise calibration was not necessary, since the beam is easily visible in the scope at near and medium range distances. If one wanted to scare away a news cameraperson, this system would be ideal.
LIMITATIONS AND APPLICATIONS
It would indeed be a achievement to be able to wear a small device that prevents your image from ever being seen by a camera. (I once recklessly predicted such a device myself.) And though it may be possible, it would not be without limitations.
One limitation of using lasers to zap cameras is due to their purity of color, which makes it possible to filter out. Filtering can be done either optically (e.g., using a special green filter to filter a red laser) or electronically, downstream from the camera sensors. Neither are perfect solutions, and at best, filtering may provide a recognizable image but without full color.
Original image, zapped, and filtered (and readjusted by hand) to show green channel only
Filtering can also be counter-measured. The best method is to use 3 lasers (e.g., red, green, and blue). The next best method is to use a green laser, since most of the signal coming from a color camera sensor is from the green element, the color to which our eyes are most sensitive. The military solution is to use "wavelength-agile" lasers that can randomly change color, rendering any filtering useless.
Another limitation is how to track a moving camera automatically. In the long term, this is (arguably) solvable using computer vision techniques. The problem is more solvable if a human operator first constrains the range and an automated system does the fine tuning.
The biggest limitation - and this is where things ultimately get depressing - is detection. Look out any window and ponder that cameras can be the size of buttons. Cameras don't even need lenses; they can use "pinholes." It's my conclusion that the problem of detecting cameras is ultimately unsolvable: if someone wants to hide a camera, they can hide a camera.
There is good news. Long, telephoto lenses, whose powers are greater than human vision and therefore of special concern, are detectable. At least for the foreseeable future, cameras that see far away can also be seen.
So in the end, two applications of camera zapping are immediately possible. If a camera's location is known, and can be seen, and is stationary, a tripod/rifle scope/gun sight laser system can successfully zap it, even at distances greater than 100 meters. If a camera is roving, a golf scope/gun sight laser can intermittently zap it by hand with little effort.
DE-PRESENTATION
The umbrella issue, on top of camera zapping, is perhaps most provocative of all: how does one stop, or at least gain control of, representation of oneself? Suppose, for example, you wanted to eliminate every instance of your name that appears in a Google search. You could, in theory, contact each website and demand they remove your name (though it's not clear what, if any, leverage you might have). And of course, it would be naïve to assume that every database with your name in it will be found with a Google search.
One approach is simply to not care about one's representation.
Another approach is to go through life avoiding cameras, never submitting your name on any form, and only using cash. (I know of at least two people like this.)
Whatever alternative or optimal approaches may exist, it's clear that "de-presentation" is as fundamental a force as re-presentation as we approach the brave new world of massive databases and cameras everywhere. Some new and difficult issues need to be addressed. Camera zapping may provide a robust metaphor for these deeper issues and help to stimulate and provoke solutions.
The author gratefully acknowledges support from the Institute of Advanced Media Arts and Sciences, Ogaki, Japan, and the IAMAS community, particularly President Itsuo Sakane and Professor Hiroshi Yoshioka. Special thanks to researcher Arnaud Pilpre of the Human and Object Interaction Processing Group, Softopia Center, Ogaki, Japan, and a very special thanks to artist Marie Sester.
New board I made:
http://investorshub.advfn.com/boards/board.aspx?board_id=13668
Peak oil myth.
What If US Collapses? Soviet Collapse Lessons Every American Needs To Know
http://madconomist.com/what-if-us-collapses-soviet-collapse-lessons-every-american-needs-to-know
What To Expect When Martial Law Is Declared
http://www.nolanchart.com/article5188.html
Coming Soon To A Neighborhood Near You After The World-Wide Economic Collapseby Timothy K. Perry
(Libertarian)
Sunday, October 12, 2008
After the coming economic financial collapse, a state of world-wide martial law will be declared. Considering the current events which are in direct alignment with documented plans for totalitarian one-world government, (white paper plans published by the Tri-Lateral Commission, Council on Foreign Relations, and Club of Rome), martial law will be imposed without official dissent upon the various countries of the world. Martial law is military rule imposed upon civilian populations in a time of war or during a (sic) "State of Emergency". The following elements can be expected to occur once the t.v. news anchors tell people not to panic, but that a State of Emergency has been declared due to the crash, and a (sic) temporary state of martial law has been declared, which will be rescinded once the State of Emergency has passed.
What the news people won't tell you is that given the history of martial law, the suspension of such a draconian state is far more difficult to achieve than its original imposition. Esteemed reader, ask yourself the question, why dictator or group of dictators ever voluntarily relinquished their dictatorial powers? I'm searching really hard through the history files of the world to find out the handful of amazing people who did so. So far, all I can find is George Washington who declined being elected "King".
Whenever the "Powers That Be" decide to impose martial law, the following items can be expected:
:1. CONSTITUTIONAL RIGHTS ARE ENDED-Under martial law, the U.S. Constitution is suspended and the citizens immediately lose all the protections, safeguards, and human rights guaranteed by that document. The citizens also lose every rights and privileges granted under The Bill of Rights. The constitutions of other countries will likewise be suspended with similar conditions imposed upon the citizens of those other countries.
2. CURFEW ENFORCEMENT-Anyone caught outside after curfew can be shot dead. There are no exceptions for personal emergencies unless of course, these people have some sort of official written permission or are in possession of other material which gives them a "Get Out Of Jail Free" card.
3. WRIT OF HABEUS CORPUS SUSPENDED-This means that soldiers can bust into your house, or arrest you on the street without warrants, and can throw you into prison without explanation or access to legal counsel. They can hold you there for months, even years, since there are no time limits imposed on how long you can be imprisoned.
4. PERSONAL FIREARMS WILL BE SEIZED-Armed forces can invade your home and force you to surrender any weapons you have, regardless of your constitutional right or need to bear arms for your self-defense. If you refuse, you could be shot dead in your living room, and all your possessions seized. If you're lucky, you might just get Tasered, or butt-ended with an AK-47, to eventually wake up in a Federal Emergency Management Agency (F.E.M.A.) Detention Center with a Prison Identification Number which you will go by as a "name" instead of your old name, the one on your birth certificate.
5. PERSONAL PROPERTY CAN BE SEIZED-This means that under the excuse of "requisitioning", soldiers can kick you out of your home, and seize both your home, all the contents inside that home, as well as any vehicles, or other items you have on your grounds. They also can claim the actual real estate of the acreage as well. If you refuse or resist in some way well....I guess you can fill in the blanks or use your imagination.
The following list of Executive Orders have already been signed by past U.S. presidents are in effect immediately upon declaration of a national State of Emergency or Martial Law:
Executive Order 10995: All communications media will be taken over by federal authority: radio, television, websites, newspapers, even CB and Ham radio systems. Freedom of expression, otherwise known as the First Amendment will be canceled until further notice.
Executive Order 10997: All fossil fuels, related substances as well as all electrical power, both corporate as well as privately owned devices and generators will be seized by the federal government.
Executive Order 10998: All food, means to produce such food and related products and machinery, warehouses and collectives which obviously include corporate and private farms will be seized by the government. You will not be allowed to hoard food since this is regulated. If you are caught hoarding food, you could be shot dead, or perhaps you will be lucky enough to be Tasered, knocked to the ground, sent to a FEMA camp and be immediately classified as a "domestic terrorist", otherwise known as an "Enemy of the State".
Executive Order 10999: All modes of transportation will be placed under complete government control. Any vehicle can be seized.
Executive Order 11000: All civilians will be drafted into forced labor which the t.v. anchors will euphemistically call "volunteer labor" at a variety of designated work places or camps under federal supervision. Go watch old film reels of the slave labor images under Nazi prison camps, or if you prefer, go watch a copy of Cool Hand Luke with Paul Newman, to get a more modern updated "American flavor" of what it's like to be part of a slave labor chain gang. Of course, you must always remember, that if you go against the Boss, you will be accused of "A Failure To Communicate."
Executive Order 11490: Absolute dictatorial "presidential" control will be exercised over all US citizens, business as well as church institutions during a State of Emergency where martial law is declared necessary.
Executive Order 12919: At the direction of the president, this Executive Order allows various Cabinet officials to take over all aspects of the US economy during a State of National Emergency.
Executive Order 13010: This Executive Order allows FEMA to take control over all other government agencies.
Executive Order 12656: "ASSIGNMENT OF EMERGENCY PREPAREDNESS RESPONSIBILITIES" -This order allows for the declaration of a State of Emergency during natural disaster, military attack, technological emergency, or other emergencies that seriously threaten the national security of the United States. This order allows for total, unquestioned federal takeover of every local police enforcement agencies, as well as local price fixing and wages. It also forbids reassignment of personal financial assets within or outside of the United States.
All in all, it makes me wish I was born several hundred years in the future, because by then, we will be genetically designed to obey without question, with no personal will or identity of our own. So in that case, we won't know what we've lost, because all the history books, or shall I say history "discs" will have been rewritten. Hopefully, this game plan will be abandoned, and the planned scenario will never happen to us, even though plans have been written for just such a scenario. Hopefully, the decision will be made to abandon this plan and revitalize the world economy without dramatic incident so such draconian methods are not necessary to unite all countries under the one world globalist banner. I don't think anyone is going to resist the transition to a one world police state anyway. Most people just want to be able to pay their bills and get by, and enjoy what little free time they have, no matter what group is ruling. After all, this transition is already being achieved as we speak.
WRITE IN RON PAUL.
Secret Bush Administration Plan to Suspend US Constitution
"Continuity of Government" (COG) Provisions activated in 2001
http://www.globalresearch.ca/index.php?context=va&aid=10473
SOMETHING. Sorry, couldn't help myself! lol
Truth? Where? (Why Credit is Locked)
http://market-ticker.denninger.net/archives/610-Truth-Where-Why-Credit-is-Locked.html
Hattip Calculated Risk:
"Meredith Whitney: I just want to be clear in terms of the decline in originations on your mortgage portfolio, was that more credit based or in terms of tightening underwriting standards or LIBOR challenge?
Jamie Dimon: The origination business, and I think it's true for a lot of people in the industry, Meredith, people have gone back to old fashioned 80% LTV, real verified income, more disciplined appraisals, and then in some areas they won't even go to 85% LTV because of expected home decreases so we are not at 85% in California, Nevada, or Florida we're at 65. So that's why it's down. I think it's true for us and everybody else. Almost everything being originated is eligible for Fannie Mae, Freddie Mac, or FHA. So therefore you have this great reduction. Obviously the quality of that stuff is going to be much higher."
The response from someone in the loan closing business on my board:
"Umm, Jamie, I close your loans....you lying sack of ***t "
And we wonder why the credit markets are locked up?
A better question is why Jamie Dimon isn't locked up.
The automated-underwriting game is alive and well, as are high-DTI loans with all the agencies.
Until the lying stops and lending returns to 36% DTI, 80% LTV (30/fixed implied) home prices will not find their bottom and the losses will not end.
Nor will the credit markets unlock, because everyone involved with more than two firing neurons in their head knows that the lies continue to come thick and fast.
This, by the way, was supposed to be made a criminal offense by SarBox and other regulation after ENRON blew up.
You can see for yourself how good of a job it did.
Hank, Ben and Congress: If you do not stomp on this here and now, continuing instead to "throw money at the problem", we are going to get that bond market dislocation and an economic depression.
I and others have been hammering on this for close to 18 months and you continue to play your same old tune with identical (failed) results, because you have refused, for the entirety of that time, to put a stop to the blatant lying across the financial industry.
Quarter after quarter we saw "kitchen sink" claims only to find that we then had to rip out the plumbing! Whre is the accountability for those failed claims Hank, Ben and CONgress?
This is identical to what happened in the 1990s in the Internet sector (I know, I ran a company in that space and saw it every day) but that was one sector of the economy.
This time its everyone that gets screwed because this is at the heart of the economy, and that heart is rotten at the core.
When do you stop coddling the liars and thieves and instead start forcing them into the open where they can be prosecuted and jailed?
I understand they are your friends Ben and Hank but when do you put the good of the country in front of protecting the billions that your buddies have extracted from ordinary Americans over the last 10 years?
As just one example a simple discounted cash-flow analysis (which used to be taught in sixth grade, but no longer is) on your latest "injection" shows that you are screwing the taxpayer to the tune of more than half of your "equity injection" in these same institutions.
If you want credit to unlock you must put a stop to this across the entire financial system and force the truth into the open.
If you do not stop the games our entire economy is headed straight for the hole in the center of the toilet.
Your latest "intervention" was good for one hour worth of rocket ride higher, and now we are down 350 points on the DOW - again - and its only 10:00 CT. At this rate in another 30 days or so the market will be at zero - it can't go lower than zero, right?
America is tired of the lies Hank and Ben, and we're tired of you covering for and giving our money to the liars.
Cut it out NOW while we still have an economy and financial system left to rescue.
Oh, my anecdotal evidence on LOCs is no longer anecdotal. This is precisely the sort of disruption that, if not cured immediately, can lead to empty store shelves:
"``Letters of credit and the credit lines for trade currently are frozen,'' Khalid Hashim, managing director of Precious Shipping Pcl, Thailand's second-largest shipping company, said in Singapore yesterday. ``Nothing is moving because the trader doesn't want to take the risk of putting cargo on the boat and finding that nobody can pay.'' "
Cut it out H-h-h-h-Hank.
Oh sure, but no member marks...
19 board marks though...cool...
Somebody else POST SOMETHING.
The 101 most useful websites
Define "useful".
http://www.telegraph.co.uk/connected/main.jhtml?xml=/connected/2008/03/30/sv_101websites.xml&page=1
The North American Union and the Larger Plan
By Dennis L. Cuddy, Ph.D.
In order to bring about a North American Union (NAU), the public first has to be conditioned to think of themselves as North Americans. In that regard, Thomas Donohue (president and CEO of the U.S. Chamber of Commerce) on June 16, 2006 remarked that "for CEOs, North America is already a single market, and business decisions are no longer made with a Mexico strategy---or a Canada strategy---but, rather, with a North American strategy.... I think it's pretty clear now that it no longer makes sense to talk about U.S. competitiveness and Mexican competitiveness- --or, for that matter, about the competitiveness of Canada. We are all in this together---we, as North Americans."
Also relevant to this process is the publication of NORTH AMERICAN INTEGRATION MONITOR since 2002 by the Center for Strategic and International Studies (CSIS). Very soon, CSIS also will publish (and has agreed to send me) their final document on their "North American Future 2025 Project." The Project has "an emphasis on regional integration, " and the year 2025 A.D. was selected "on the basis of the data presently available on overall global projections. " Seven closed-door roundtable sessions have been looking at the methodology of global and North American projections, as well as labor mobility, energy, the environment, security, competitiveness, and border infrastructure and logistics.
Zbigniew Brzezinski has been a CSIS counselor, and at Mikhail Gorbachev's first State of the World Forum in 1995, Brzezinski revealed: "We cannot leap into world government through one quick step....The precondition for eventual and genuine globalization is progressive regionalization because by that we move toward larger, more stable, more cooperative units." This is why the CSIS Project has "an emphasis on regional integration. " (Brzezinski also described the regions that would be formed, that Israel and the Palestinians would be part of a Middle Eastern region, how Communist China would be brought into an Asian region, and that Iran would be part of a Central Asian region which would have important oil and gas pipelines constructed. )
At this point, it is worth remembering that in Stalin's January 1913 address in Vienna, he advocated national loyalties becoming subservient to regions. And 3 years later, Lenin in 1916 proclaimed: "The aim of socialism is not only to abolish the present division of mankind into smaller states and all-national isolation, not only to bring the nations closer to each other, but also to merge them."
You may recall that in Brzezinski's BETWEEN TWO AGES (1970), he praised Marxism, and he claimed that "the nation-state is gradually yielding its Sovereignty." One aspect of American sovereignty that is being yielded is ownership of American companies by Americans. In the first 9 months of 2007, 69 companies in New England alone have been sold to foreign buyers. Nationally, the French company Alcatel bought Lucent Technologies in the U.S. last year, and in September 2007 announced it will be cutting thousands of jobs.
Relevant to this, Alan Tonelson (research fellow at the U.S. Business and Industry Council) said foreign companies are "acquiring control over the most dynamic pieces of the American economy, and they're acquiring control over America's future." Also relevant to this was the assessment by Donald Klepper-Smith (chief economist at DataCore Partners) regarding decisions made overseas and how they would effect American workers. He opined: "It raises some red flags and some real questions about our independence. "
Part of the conditioning process to cause Americans to accept a NAU is the role of past and present government officials explaining the alleged economic benefits of such a union. For example, Harry Roegner in a letter titled "An economic union would be beneficial" in THE GREENVILLE (South Carolina) SUN (October 15, 2007) pointed out the large oil reserves of both Canada and Mexico that would be useful to the U.S., as well as Mexico's excess manpower who, as immigrants, would help support U.S. and Canadian economic growth. Roegner was an adviser on foreign trade issues to the U.S. Department of Commerce from 1984 to 1994, and in his letter said: "A North American economic union would provide the free flow of capital and labor across national borders needed to address many of the (aforementioned) imbalances."
Often regional economic integration into some type of union is argued on the basis of free trade. However, John Fonte (who had an office next to mine at the U.S. Department of Education) of the Hudson Institute has explained that the concept of regional economic arrangements or trading blocs actually is contrary to free trade to an extent. For example, in a NAU, there would be trading arrangements among the 3 nations which would limit the ability of the U.S. to trade freely with nations outside the NAU trading bloc.
But hasn't President Bush recently said all this talk about a NAU is nonsense? On August 21, 2007 at the concluding press conference for the Security and Prosperity Partnership (SPP) in Montebello, Quebec, Fox News reporter Bret Baier asked if the SPP is a prelude to a NAU similar to the European Union (EU), and if there are plans to build some kind of superhighway connecting all 3 countries. President Bush replied: "If you've been in politics as long as I have, you get used to that kind of technique where you lay out a conspiracy and then force people to try to prove it doesn't exist."
The truth, of course, is that the U.S., Canada and Mexico are being connected by 4 Trade Corridors. On November 20, 2007, Lt. Governor John Harvard of Manitoba delivered a "Speech From The Throne," in which he revealed: "Manitoba has been working with the Canadian government and state governments in the U.S. to protect and enhance our access to key trade markets. In response to U.S. border and security measures, Manitoba will begin offering an enhanced driver's license as an affordable and secure form of identification for travelers. The new license will be available in the Fall of 2008. Manitoba is also taking a major role in the development of a Mid-Continent Trade Corridor, connecting our northern Port of Churchill with trade markets throughout the central United States and Mexico. To advance the concept, an alliance has been built with business leaders and state and city governments spanning the entire length of the Corridor. When fully developed, the trade route will incorporate an 'in-land port' in Winnipeg with pre-clearance for international shipping."
The SPP is also an important part of the power elite's plan for a techno-feudal fascist world government because it is a "partnership. " For years, the American people and their leaders have been conditioned to accept educational and other partnerships as solutions to their problems. For example, city governments strapped for funds are approached by corporations or their related private foundations with plans and funds to improve education, which the city leaders are only too glad to accept. This conditions the people eventually to accept government/corporat e rule. This is a form of Socialism known as fascism, and it will be the type of world government the power elite plans ultimately to bring about and control. In this government, the power elite will control politicians who will become government leaders who will promulgate laws, rules and regulations favorable to certain transnational corporations (controlled by the power elite) and unfavorable to any possible competition to those select corporations.
So why did President Bush ridicule Bret Baier's question, especially since there are already 47 Mexican Consulates across the U.S.? Lou Dobbs in his CNN commentary "Beware the Lame Duck" (October 17, 2007) wrote: "Although many conservatives refuse to accept the reality, George W. Bush is a one-world neo-liberal who drove budget and trade deficits to record heights....Presiden t Bush has pressed hard for the Security and Prosperity Partnership, the first step toward a North American Union that will threaten our sovereignty. The administration has permitted American businesses to hire illegal aliens, encouraged the invasion of 12 million to 20 million illegal aliens and has given Mexico and corporate America dominion over our borders and our immigration policy....The assault on our national sovereignty continues... .The president is urging the Senate to act favorably on our accession to the U.N. Convention on the Law of the Sea....The treaty will submit the United States to international tribunals largely adverse to our interests, and dispute resolution mechanisms are stacked against the United States....The treaty would undermine our national sovereignty and act as a back door for global environmental activists to direct U.S. policy." Fortunately, in Congress, House Concurrent Resolution 40 states: "Expressing the sense of Congress that the United States should not engage in the construction of a North American Free Trade Agreement (NAFTA) Superhighway System or enter into a North American Union with Mexico and Canada."
If I could have followed up Bret Baier's question with one of my own, here's what I would have asked: "So, President Bush, will the massive 10-lane toll road TransTexas Corridor funded by Cintra of Spain and to be built by Zachry Construction of Texas come to a screeching halt at Oklahoma's border?" What are all the vehicles supposed to do---merge all of a sudden into a small road? I don't think so ! And by the way, Cintra is legally represented in Texas by leading Republican presidential candidate Rudy Giuliani's law firm Bracewell & Giuliani, which also just happens to have an office in Dubai (remember Dubai Ports was about to take over operation of a number of America's largest ports) ! Perhaps before President Bush was too critical of people warning about a NAU, he should have read what Mexico's President Vicente Fox said May 16, 2002 at Club 21 in Madrid: "Eventually, our long-range objective is to establish with the United States, but also with Canada, our other regional partner, an ensemble of connections and institutions similar to those created by the European Union" (or as Gorbachev refers to the EU, the "European Soviet").
I would also have asked President Bush at the press conference why on September 6, 2007 at 9pm did he open all U.S. highways to Mexican trucks? Earlier in the day, U.S. Rep. Peter DeFazio said President Bush was "_ _ _ _ bent" on getting Mexican trucks in the U.S. by stealth. Currently, the Federal Motor Carrier Safety Administration website lists 10 Mexican carriers that are approved to transport goods throughout the U.S., and nearly 40 more Mexican carriers will soon join them on the list.
Will all Mexican truck drivers be stopped at the border to see if they can read road signs in English, if they have criminal backgrounds, and how long they already have been driving that day (U.S. law prohibits more than 10 consecutive hours)? I doubt it, since no more than 2% of Mexican trucks entering the U.S. today are inspected ! Many of these trucks will be a danger to Americans' safety, and could be used for smuggling drugs, illegal aliens, and terrorists into the U.S.
Many countries deliberately release their criminal elements into the U.S., often coming across the Mexican border. And if the criminals are caught, our federal government releases them into American society if their own countries refuse to take them back. Our government knows how to solve this problem (e.g., stop issuing visas to people from those countries), but has refused to take such action most of the time. Ask yourself why our government would release murderers, rapists, arsonists, and other criminals into our society to commit violent crimes against us. Think about it !
Returning to Bret Baier's question to President Bush about the SPP being a prelude to a NAU similar to the EU, what would we get if we became like the EU, which has certain characteristics of fascism? Mrs. Kitty Werthmann (a survivor of Hitler's reign and Soviet rule afterward) recently returned to Europe and interviewed many senior citizens. They informed her they were told conversion to the Euro would bring prosperity via free trade, lower prices for goods, etc. In reality, though, their money was devalued greatly, and they're now living on welfare and food stamps. Unemployment in Europe is high while guest workers are brought in, and the people are angry.
In terms of what is planned for Americans relevant to the EU and the Euro, Vicente Fox on CNN's "Larry King Live" show October 8, 2007 explained that what he and President Bush agreed to "is a trade union for all the Americas," and he suggested that eventually there would be a regional currency. He made similar comments on the "Daily Show" the same day. Earlier in 2007, Bolivian President Evo Morales proposed a single currency for all South American nations.
Concerning North American nations, in June 1991, Dallas Federal Reserve publication no. 9115, "Free Trade and the Peso" by Darryl McLeod and John Welch, analyzed the potential for a single North American currency. In 1999, former Canadian parliament member Herbert Grubel published "The Case for the Amero: The Economics and Politics of a North American Union," giving 2010 as the possible date for introducing the "amero" as the new North American currency. And in the Atlanta Federal Reserve's ECONOMIC REVIEW (4th quarter, 2000), Michael Chriszt (director of the Reserve's Latin America Research Group) wrote "Perspectives on a Potential North American Monetary Union" in which one reads that "the idea of a single currency for NAFTA is on the table." In July 2000, Vicente Fox had already proposed a North American common market with a continental monetary policy.
More recently, David Dodge, Governor of the Bank of Canada, in May 2007 said that a common currency with the U.S. is definitely possible. What will happen is the power elite will cause the dollar to be devalued to the point where Americans reluctantly will accept the amero. As Bob Chapman in his December 2006 newsletter, INTERNATIONAL FORECASTER, said: "(The amero) will be presented to the American public as the administration' s solution for dollar recovery."
On June 14, 2007 BankIntroductions. com told their clients that in the next 10-20 years, as the global economy moves toward regional trading blocs, the amero or "North American Monetary Unit" (NAMU) will be introduced. The power elite's plan is to form regional unions with their own currencies and then link them into a world government with one global currency. Relevant to this, Reuters reporter Emmanuel Jarry on October 23, 2007 wrote "Sarkozy (French President) Calls for Mediterranean Union Launch in 2008." And the African Union's African Central Bank plans to mint the "Gold Mandela" as a single African currency by 2010 (the date the NAU is supposed to form).
If you look at the top of the website for the Single Global Currency Association (SGCA), there is a quote by former Federal Reserve chairman Paul Volcker, saying: "A global economy requires a global currency." The SGCA "is dedicated to the goal of implementing a single global currency by 2025...managed by a single international central bank." I have already indicated that on the cover of THE ECONOMIST (June 9, 1988) is a picture of "The Phoenix," a global currency suggested for implementation in 2018.
Whatever the date of the global currency's introduction, it will be advertised as facilitating world trade, which the power elite will control. This will be like in the days of Solomon when he fortified Gezer, Hazor and Megiddo (the Har, or Mount, of Megiddo would be called Armageddon). Through this fortification, he controlled the Via Maris and world trade, thereby controlling the world of his day. The power elite today plans to do likewise, but in a Biblical sense their plan will lead to the Battle of Armageddon.
© 2007 Dennis Cuddy - All Rights Reserved, Reprinted with Permission
http://www.augustreview.com/index.php?option=com_content&task=view&id=84&Itemid=33
http://www.newswithviews.com/Cuddy/dennis118.htm
How America Fell
http://www.consortiumnews.com/2008/101308.html
By Robert Parry
October 14, 2008
As the American people pick through the wreckage left
by the Bush administration, many may wonder how the
most powerful nation on earth got so far off track. An
illustrative case study is the bogus story of Al
Gore’s “Chinagate” scandal.
The story doesn’t explain all that’s gone wrong in the
past eight years, but it reveals how aggressive
right-wing operatives, aided and abetted by a lazy or
complicit news media, can create an impression for
millions of voters that is nearly the opposite of the
truth.
So, in the razor-thin presidential election of 2000 –
at the dawn of the George W. Bush era – a significant
number of Americans went to the polls believing a
right-wing canard, that Al Gore was implicated in a
treacherous scheme to trade American nuclear secrets
to China for campaign cash.
The smear had been pushed by a combination of
Republicans and right-wing activists relying on the
Internet, talk radio, direct mail, Fox News and TV
ads. Meanwhile, the mainstream news media did little
to dispel the ugly suspicions, even though exculpatory
evidence existed that would have cleared Gore.
A bitter irony of the story was that Americans, who
voted against Gore to stop a “traitor” whom they
thought had bargained away life-and-death nuclear
secrets to China, were letting back in Republicans
upon whose watch the nuclear secrets apparently were
leaked.
Up had become down. The votes of those misguided
Americans then helped make Election 2000 close enough
for Bush and the Republicans to steal the White House.
[For details on that election, see our book Neck
Deep.]
Daisy Ad
The “Chinagate” story surfaced dramatically in the
weeks before Election 2000 when a pro-Republican group
from Texas, called Aretino Industries, ran an
emotional ad modeled after Lyndon Johnson’s infamous
1964 commercial that showed a girl picking a daisy
before the screen dissolved into a nuclear blast.
The ad remake accused the Clinton-Gore administration
of selling vital nuclear secrets to communist China
for campaign donations in 1996. The compromised
nuclear secrets, the ad said, gave China “the ability
to threaten our homes with long-range nuclear
warheads.”
The ad – airing in “swing” states including Ohio,
Michigan, Missouri and Pennsylvania – suggested that a
Chinese government front funneled $30,000 in illegal
“soft money” donations to the Democrats in 1996 in
exchange for the nuclear secrets. The most important
secret had been the blueprint for the W-88
miniaturized nuclear warhead.
The allegation hit a nerve with many voters because
the Bush campaign had run other ads showing grainy
photos of Al Gore with saffron-robed monks at a
Buddhist temple in California, implying corruption
with mysterious Asians.
The daisy ad also played off an earlier report by a
Republican-controll ed congressional investigation into
China’s apparent theft of the W-88 warhead design and
other U.S. nuclear secrets. The so-called Cox report,
named for the probe’s chairman Rep. Christopher Cox,
accused the Clinton-Gore administration of failing to
protect top-secret nuclear data from Chinese
espionage.
When released on May 25, 1999, the Cox report was
greeted by conservative groups and much of the
national news media as another indictment of the
Democrats in the aftermath of President Bill Clinton’s
Monica Lewinsky sex scandal. By then the press corps,
addicted to “Clinton scandals,” paid little attention
to the sleight of hand in the Cox report.
Cox’s key trick was to leave out dates of alleged
Chinese spying in the 1980s and thus obscure the fact
that the floodgates of U.S. nuclear secrets to China –
including how to build the miniaturized W-88 nuclear
warhead – had opened wide during the Reagan-Bush
years.
While leaving out Republican time elements, Cox shoved
references to the alleged security lapses into the
presidencies of Jimmy Carter and Bill Clinton.
For instance, the Cox report’s “Overview” stated that
“the PRC (People’s Republic of China) thefts from our
National Laboratories began at least as early as the
late 1970s, and significant secrets are known to have
been stolen as recently as the mid-1990s.”
In this way, Cox started with the Carter presidency,
jumped over the 12 years of Ronald Reagan and George
H.W. Bush, and landed in the Clinton years. In the
“Overview” alone, there were three dozen references to
dates from the Clinton years and only five mentions of
dates from the Reagan-Bush years, with none related to
alleged wrongdoing.
Cox’s stacking of the deck carried over into the
report’s two-page chronology of the Chinese spy
scandal. On pages 74-75, the Cox report put all the
information boxes about Chinese espionage suspicions
into the Carter and Clinton years.
Nothing sinister is attributed specifically to the
Reagan-Bush era, other than a 1988 test of a neutron
bomb built from secrets that the report says were
believed stolen in the “late 1970s,” the Carter years.
Only a careful reading of the text inside the
chronology’s boxes made clear that many of the worst
national security breaches could be traced to the
Reagan-Bush era.
But the major U.S. news media did little to challenge
Cox’s misleading findings, even though some newspapers
knew then or learned later that the evidence pointed
to a hemorrhage of nuclear secrets during the 1980s.
For instance, the Washington Post reported on Oct. 19,
2000, just weeks before the election, that when
federal investigators translated previously ignored
documents turned over by a Chinese defector in 1995,
they learned that the exposure of nuclear secrets in
the Reagan-Bush years was worse than previously
thought.
“The documents provided by the defector show that
during the 1980s, Beijing had gathered a large amount
of classified information about U.S. ballistic
missiles and reentry vehicles,” the Post reported. But
the newspaper didn't dispute Cox’s earlier findings or
debunk the treasonous “Chinagate” allegations then
being spread about Gore.
[Cox is now chairman of the Securities and Exchange
Commission, where he has come under criticism for
failing to adequately regulate Wall Street banks. One
of his aides on the Cox report was I. Lewis Libby, who
became Vice President Dick Cheney’s chief of staff and
was later convicted of perjury and obstruction of
justice in the “Plamegate” affair.]
Iran-Contra Connection
Other evidence, also available before Election 2000,
suggested that conscious decisions by senior
Reagan-Bush officials in the 1980s may have put
communist China in a position to glean those sensitive
secrets.
The rupture of U.S. nuclear secrets followed an
extraordinary decision by Ronald Reagan’s White House
in 1984 to collaborate with Beijing on a highly
sensitive intelligence operation, the clandestine
shipment of weapons to the Nicaraguan contra rebels,
in defiance of U.S. law.
The collaboration was especially risky because
Congress had forbidden military shipments to the
contras and the administration was insisting that it
was abiding by the law. In reality, President Ronald
Reagan had tapped a National Security Council staffer,
Oliver North, to oversee an off-the-books contra
supply operation.
Reagan’s White House turned to China hoping that it
would deliver surface-to-air missiles that might turn
the tide of the battle against Nicaragua’s leftist
Sandinista government, which had been inflicting heavy
losses on the contras by using Soviet-built attack
helicopters.
In his 1989 Iran-Contra trial, North described this
procurement of China's SA-7 anti-aircraft missiles as
a “very sensitive delivery.”
For the Chinese missile deal in 1984, North said he
received help from the CIA in arranging false end-user
certificates from the right-wing government of
Guatemala. But China balked at selling missiles to the
Guatemalan military, which was engaged in a
scorched-earth war against its own leftist guerrillas.
To resolve this problem, North was dispatched to a
clandestine meeting with a Chinese military official.
The idea was to bring the Chinese in on what was then
one of the most sensitive secrets of the U.S.
government – the missiles were not going to Guatemala,
but rather into a clandestine pipeline arranged by the
White House to funnel military supplies to the
contras.
“In Washington, I met with a Chinese military officer
assigned to their embassy to encourage their
cooperation,” North wrote in his autobiography, Under
Fire. “We enjoyed a fine lunch at the exclusive Cosmos
Club in downtown Washington.”
North said the Chinese saw the collaboration as a way
to develop “better relations with the United States.”
Possession of this sensitive information also put
Beijing in position to leverage future U.S. actions by
the Reagan administration. It was in this climate of
cooperation that secrets, including how to make
miniaturized hydrogen bombs, allegedly went from the
United States to China.
The Wen Ho Lee Case
While the details of how China learned the W-88
secrets are still unclear, it is clear that the Reagan
administration authorized a broader exchange program
between U.S. and Chinese nuclear physicists. The
Chinese were even given access to the Los Alamos
nuclear facility.
By 1985, the Reagan administration’ s expanded nuclear
exchanges with China were in full swing. In March
1985, Los Alamos nuclear physicist Wen Ho Lee (who
would later come under suspicion of espionage) was
seen talking with Chinese scientists during a
scientific conference in Hilton Head, South Carolina,
according to a New York Times chronology that was not
published until after Election 2000 (on Feb. 4-5,
2001).
In 1986, with approval of the Los Alamos nuclear lab,
Wen Ho Lee and another scientist attended a conference
in Beijing. Wen Ho Lee traveled to Beijing again in
1988.
“With the Reagan administration eager to isolate the
Soviet Union, hundreds of scientists traveled between
the United States and China, and the cooperation
expanded to the development of torpedoes, artillery
shells and jet fighters,” the Times wrote. “The
exchanges were spying opportunities as well.”
The fruits of any Chinese espionage during Ronald
Reagan’s presidency became apparent during the
presidency of George H.W. Bush.
“On Sept. 25, 1992, a nuclear blast shook China’s
western desert,” the Times wrote. “From spies and
electronic surveillance, American intelligence
officials determined that the test was a breakthrough
in China’s long quest to match American technology for
smaller, more sophisticated hydrogen bombs.”
Assessing this Chinese breakthrough, U.S. intelligence
experts began to suspect that the Chinese had
purloined U.S. secrets.
“It’s like they were driving a Model T and went around
the corner and suddenly had a Corvette,” said Robert
M. Hanson, a Los Alamos intelligence analyst.
By the early years of the Clinton administration,
investigators had begun looking back at the mid-1980s
when the Reagan administration had authorized U.S.
nuclear scientists to hold a number of meetings with
their Chinese counterparts.
Though the American scientists were under restrictions
about what information could be shared, it was never
fully explained why those meetings were held in the
first place – given the risk that a U.S. scientist
might willfully or accidentally divulge nuclear
secrets.
A breakthrough in the probe didn’t occur until 1995
when a Chinese walk-in to the U.S. Embassy in Taiwan
provided documents indicating that China apparently
had gained access to American nuclear designs back in
the 1980s.
‘Chinagate’
It took four more years – until March 1999 – for the
Chinese nuclear story to gain national attention, when
the New York Times published several imprecise
front-page stories fingering Wen Ho Lee as an
espionage suspect.
During those chaotic first weeks of “Chinagate,”
Republicans and political pundits mixed together the
suspicions of Chinese spying and allegations about
illegal Chinese campaign donations to the Democrats in
1996. Clinton’s Justice Department overcompensated by
demonstrating how tough it could be on suspect Wen Ho
Lee.
Amid the spy frenzy, however, no one took note of the
logical impossibility of Democrats selling secrets to
China in 1996 that China seemed to have obtained a
decade or so earlier during a Republican
administration.
Instead, pro-Republican groups grasped the political
and fund-raising potential, especially since President
Clinton had just survived his impeachment ordeal and
there was a strong appetite for more “Clinton
scandals.” Plus, Clinton’s sidekick, Al Gore, was the
frontrunner to succeed his boss.
Larry Klayman’s right-wing Judicial Watch sent out a
letter seeking $5.2 million for a special “Chinagate
Task Force” that would “hold Bill Clinton, Al Gore and
the Democratic Party Leadership fully accountable for
election fraud, bribery and possibly treason in
connection with the ‘Chinagate’ scandal.”
The hysteria had especially ugly consequences for Wen
Ho Lee, the 60-year-old physicist who was imprisoned
on a 59-count indictment for mishandling classified
material.
The Taiwanese-born naturalized U.S. citizen was put in
solitary confinement with his cell light on at all
times. He was allowed out of his cell only one hour a
day, when he shuffled around a prison courtyard in leg
shackles.
However, the tenuous case against Wen Ho Lee began to
collapse in 2000 against the backdrop of the
presidential campaign. On Sept. 13, 2000, the
scientist pled guilty to a single count of mishandling
classified material, and U.S. District Judge James A.
Parker apologized to Lee for the “demeaning,
unnecessarily punitive conditions” under which Lee had
been held.
Still, the suspicions about Clinton-Gore treachery
with China lingered and reemerged during the final
days of Campaign 2000 with the “daisy ad” remake. The
closing message was blunt: “Don’t take a chance,” the
ad said. “Please vote Republican.”
George W. Bush’s campaign also exploited the
“Chinagate” suspicions, albeit a touch more subtly, by
running those ads showing Gore meeting with the
saffron-robed monks at a Buddhist temple in
California.
So, millions of Americans went to the polls in
November 2000 thinking that Gore’s temple appearance
and the Chinese nuclear spying were somehow linked.
The mainstream news media – still bristling with
hostility toward Clinton and Gore – offered no timely
explanation that the Chinese espionage represented a
Reagan-Bush scandal, not a Clinton-Gore scandal.
Through disinformation from the Right and acquiescence
from the mainstream media, the stage was set for a
historically close presidential election and for the
Republicans to be returned to the White House.
The rest, as they say, is history.
Robert Parry broke many of the Iran-Contra stories in
the 1980s for the Associated Press and Newsweek. His
latest book, Neck Deep: The Disastrous Presidency of
George W. Bush, was written with two of his sons, Sam
and Nat, and can be ordered at neckdeepbook. com. His
two previous books, Secrecy & Privilege: The Rise of
the Bush Dynasty from Watergate to Iraq and Lost
History: Contras, Cocaine, the Press & 'Project Truth'
are also available there. Or go to Amazon.com.
WRITE IN RON PAUL.
Good resource for books and useful stuff:
http://www.lifeaftertheoilcrash.net/Index.html
WRITE IN RON PAUL.
The Nausea Express
By James Howard Kunstler for ClusterFuck Nation
The G-7 world, the club of "developed" western nations plus Japan, has commenced an ordeal of suddenly waking up much poorer. All the desperate work-arounds being engineered by governments and central banks on an al fresco basis are intended to overcome this stunning basic fact, and none of them will. The benchmarks of everything are in flux -- stocks, bond values and yields, commodity prices, most especially currencies -- but these tend to disguise the basic fact of growing and spreading impoverishment. Is oil priced at $80 a barrel this morning? That's nice. Except if the company that employs you is about to fold up and you face a holiday season of driving frantically around Atlanta in search of another job, which the odds are against you find finding. Or if you're living on a retirement fund that's just lost 37 percent of its value and it's time to fill the heating oil tank.
Iceland is the poster-child du jour for this. The little island nation of about 320,000 souls (roughly half of Vermont's population) lately grew a banking sector that thrived on something-for-nothing finance. In little more than a month, its banks have imploded like mini death stars, leaving Iceland with a pariah currency. Since it has to import just about everything, and it suddenly finds itself unable to pay for imports, the people are stripping the grocery markets of whatever remains there now. You wonder what they will do in two weeks. Ten years from now there may be 32,000 of them left, subsisting on blubber sandwiches.
I exaggerate perhaps a little, but who really knows where all this leads? Here in the USA, the Treasury, enjoying new and seemingly limitless powers of discretionary spending, has begun shoveling dollars into every truck that backs up to the loading dock. The numbers are staggering. In ten days it's reached into the trillions in loans and handouts. Most of this money is getting sucked directly into the black hole of debt and margin calls of one kind or another. This is previously-presumed wealth that is now un-presumed. It's leaving the system, never to be seen again. One useful way of thinking about it is to regard it as our society's previous borrowings against our own future. Thus, we are seeing our future vanish into a black hole -- our future comfort, health, and basic nourishment.
This is the kind of fiasco that brings down governments, propels societies into revolutions, and starts wars. In a few months, America will be full of angry economic losers. We're not the same nation that crowded around the old radio consoles for Franklin Roosevelt's fireside chats. Back then, we were mostly a highly-disciplined, regimented, industrial society full of citizens who mostly did what they were told to do, and mostly trusted in authority. Today we're a nation of tattooed barbarian "consumers" with no impulse control, a swollen sense of entitlement, ruled by a set of authorities ranging from one G.W. Bush to the grifter-billionaire pantheon of Wall Street CEOs -- now heading into secret bunkers with their stashes of krugerrands, freeze-dried veal Milanese, and private security squads armed with XM-8 carbines.
I go along with Nassim Nicholas Taleb's idea -- read "The Black Swan" -- that nobody really knows anything. We construct our narratives to try and explain circumstances that are unraveling non-linearly before us, and some narratives are more plausible than others, depending on your vantage point. There are infinite narratives. This is nothing more than my narrative. The circumstances we're entering appear, for the moment, to take the shape of a compressive deflationary depression with the cherry-on-top add-on of a hyper-inflation further down the road -- meaning initially that jobs, incomes, and pensions are lost, but that later on even the little money that people manage to get -- perhaps mostly from government hand-outs of one kind or another -- steadily loses its value. Every way you jigger things, it just ends up meaning the same thing: a much poorer society. It certainly won't be a society of recreational shoppers plying the Target store aisles for scented candles and home accents. Hyper-inflation could make old debts meaningless, but it would also make credit meaningless and spending absurd.
Given the way our society has evolved to operate -- as an endless upward spiral of borrowings -- you can see an awful lot of things not working anymore, and an awful lot of people not working in them or at them. Maybe the governments of the G-7 will get lending unstuck at the upper levels, but who, exactly, is able to borrow now besides companies on the verge of bankruptcy -- and why continue to lend to them? (Except to maintain the pretense that "something is being done.") Besides, there's much too much previously borrowed money that won't ever paid back, and the "work-out" of all that debt only implies the continued distress sale of any-and-all assets -- so that the USA in effect becomes yard-sale nation.
Personally, I think all the rejiggering in the world of numbers and indexes will not solve anything, and really only represents a kind obsessive-compulsive neurosis related to numerology that will do nothing to readjust our daily activities toward the production of things that have real and enduring value. In my narrative, the fate of industrial nations really depends on energy resources. The price of oil may be going down for the moment -- perhaps due to the deleveraging of hedge funds, banks, and invested individuals, perhaps combined with a perception of "demand destruction" -- but the geology and geopolitics of oil have not changed since June of this year when oil was at $147. Let's say US oil consumption is down one million barrels of oil a day. Within the next two years, we're liable to lose more than that in import declines from Mexico and Venezuela alone. The International Energy Agency's latest estimate is for only slightly less of an increase in worldwide oil demand than was previously posted. It's still a net demand increase. World oil consumption still exceeds world production now, perhaps permanently so. Finally, the current plunge of oil prices has suddenly halted the very capital ventures in exploration and development that were hoped to increase the worldwide supply of oil. All this portends an aggravation of oil supply and allocation problems in the five years ahead, and ultimately much more expensive, harder-to-get oil.
What we can't face is the prospect that we might become something other than an industrial "consumer" society. My narrative includes the conviction that we will have trouble producing food for ourselves as petro-agriculture fails, and since society can't go on without food production, I see this activity coming back much closer to the center of our daily lives. We're not ready to think about that. The downside of our unreadiness may be that a lot of Americans will go hungry in the decade ahead.
None of this is an argument for despair, by the way, but it certainly invokes the need for steeply revised expectations and serious attention to a national "to-do" list. We're on our way to becoming another nation, whether we like it or not. No amount of numerological augury or even hand-wringing will change that. The big question for, say, the 24 months ahead is: how disorderly will we allow this transition to be?
Go for lots of cool solar powered stuff.
http://www.lifeaftertheoilcrash.net/Archives2008/KunstlerAuctionOctober13.html
Now that's an interesting concept....
MEGA DEPRESSION - THEN MEGA CIVIL WAR
http://www.rumormillnews.com/cgi-bin/forum.cgi?read=133724
Posted By: TOMCHITTUM <Send E-Mail>
Date: Monday, 13 October 2008, 9:32 p.m.
Mega Depression First, Then Mega Civil War in the Glorious Empire
I am Thomas W. Chittum, the author of the book, Civil War Two - The Coming Breakup of America.
My book asserted that because America is a multiethnic empire it will experience a violent shattering along tribal lines just as other such empires have throughout history. I further predicted that this implosion will occur relatively soon, probably no later than the year 2020, based on ongoing demographic trends. My book was published in 1993 and it ignited a mini firestorm of controversy. To date, it is still the ONLY non-fiction book on the topic of a civil war here in America.
Did anyone write a book predicting our first civil war? I did some research on that subject and I was unable to find a single book warning Americans that they were fast approaching an abyss. That’s not to say that people were unaware of the approaching war. In fact, many people were perfectly aware that a civil war was inevitable. My guess is that not a single person wrote a book on the coming war because they thought it would be a sort of picnic with a little gunfire mixed in, and in any case it would be over in a few months. As history records the war ground the entire southern half of America into a smoking wasteland and killed or crippled almost an entire generation of American men.
Today, people are even less aware of the seriousness of the approaching calamity than our ancestors were. If you mention the possibility of a Yugoslav-style ethnic war here in America in our lifetime most people will scoff at the idea. Five years ago most people would have likewise scoffed at the prospect of a second depression. Now, most people are waking up to the horrid fact that a second depression is upon us – that their retirement cookie jars have been systematically looted.
I’m sure that most visitors to the Rumor Mill News site are perfectly aware that a devastating depression is unfolding and that the economy is in a crash and burn mode with no plausible salvation in site. In this and following rants I will attempt to make the case that this economic meltdown will hasten our descent into an internal civil war that will depopulate the entire North American continent, wiping out 50% or more of the population.
No, I’m not kidding. I’m going to say that again – most of you people reading these words right now are going to starve to death in the tribal wars that will follow close on the heels of the economic meltdown.
Before I go on I’d like to revisit my book and go over what I got right and what I got wrong. I mentioned the New World Order in my book. At the time I wasn’t aware that the New World Order was an active conspiracy of bankers and aristocrats centered in London. I thought it was a sort of lose alliance of giddy globalists, trendy tree huggers and politically correct airheads. Then along came both the internet and the 911 terrorists attacks. I took me approximately three months to wise up to the fact that 911 was an inside job. I’d always followed military events closely and that’s how I woke up to the 911 scam. For years the American military had been encircling Afghanistan with military bases and pre-positioned stockpiles of military goodies. Then along came Osama bin Subcontractor like some boogie man in a bad movie. It all seemed like a low-budget Hollywood production. That’s because it was.
So … I got on the internet and started listening to commentators like Eustace Mullins, John Coleman, Henry Makow, Charles Savoie and anybody else who didn’t depend on the establishment for their supper.
Even before 911 I knew from personal experience that nothing in this rotting empire was as it was spray painted by the establishment media. After my book was published I got my 15 minutes of fame. I was on Television. I was a guest on numerous radio shows. I was a guest speaker at a lot of political meetings. I met a lot leaders of (mostly) right-wing type extremist groups. I remember telling one rightist-type leader that my presence as a speaker at their meeting did not mean that I was endorsing his organization or its stated goals. I told him I’d gladly speak to a “roomful of Rabbis” if they would invite me.
I made it plain to everybody that I was pretty much a one-trick pony. My self-assigned task was simply explaining to people why we were headed for a Yugoslav-style civil war and in our lifetime. I wanted to explain this to every living American, and I didn’t care two cents what their own political beliefs were. I made no apologizes then for speaking to right-wing extremists and I make no apologies now. After a while I began to realize that something really strange was going on inside the so-called extremist right-wing groups.
At every meeting there were always one or two dudes who just didn’t fit in. My favorite was a investment banker and Yale graduate. What, I wondered, was a blue-blood Yale investment banker doing mixing it up with all these guys who drove pickup trucks draped with confederate flags. Mind you, I wasn’t totally naive. I knew that the FBI and/or the CIA routinely sent guys to monitor these groups. Frankly, I didn’t give a damn. As far as I was concerned the more people that listened to me the more I liked it. Nazis, rabbis, government spooks, good-ole-boys in pickup trucks – I didn’t care – the more the merrier because my warning was for everybody.
Ultimately, it dawned on me that these obvious government spooks weren’t there to spy on these groups – these government spooks were there because THESE GOVERNMENT SPOOKS WERE ACTUALLY RUNNING THESE RIGHTIST GROUPS. Most of these right-wing groups were conceived, planned, created and then run by government spooks. It’s all part of what I call peasant management.
The powers that be know full well that their policies will always generate opposition both leftist and rightist … so … they create and subsidize false flag opposition movements that they can lead around in eternal circles thus creating no real problems for the establishment. And don’t forget that it’s the same exact scam with the phony baloney leftist groups. They are mostly establishment creations. In fact, it’s a double payoff for the establishment. They create false flag rightist groups to stampede leftists into the ranks of their false flag leftist groups, and they create the false flag leftist groups to stampede rightists into their false flag rightist groups.
Our Current Mess:
Here are my guesses about the future:
The New World Order is in a hell of a jam. Both Russia and China have how shaken off communism which was imposed on them by the London Banking Cartel. Both have turned to state-directed development and growth policies and are striving to feed their people and increase their standard of living. This is the exact opposite of the global depopulation and genocide via starvation and war that the New World Order is imposing on the rest of the globe via the Club of Rome and their other psychotic think tanks and NGOs. Russia and China and some neighboring states have formed a double whammy military and economic bloc called the Shanghai Cooperation Organization.
The London Banking Cartel cannot let this situation continue or it’s just a matter of time until the Russian/China economic bloc takes their place. Furthermore, it has long been the military doctrine of the London Banking Cartel that the Eurasian landmass is the key to the military control of the globe. See Halford Mackinder. From the perspective of the London Banking Cartel it’s all or nothing and here and now. The clock is ticking against the London Banking Cartel and the only solution to fulfilling both their military and economic blueprints is pedal to the metal all-out war.
It isn’t like the good old days when a handful of Zionist assassins in communist clothing could overthrow a decadent Russian government, and the tiny British fleet and army can no longer kick a decadent Chinese oligarchy around and impose imported communism. Nothing but all-out war will suffice, and that means nuke warfare.
The only card the London Banking Cartel has to play is the American nuclear arsenal. They have to get America into a nuclear shootout with both Russia and China, and the sooner the better. Now I know what some of you are thinking: But golly, don’t these guys realize that a nuclear war will leave the planet a radioactive wasteland? Now hear this: The nutcase LBC boys perceive nuclear warfare as winnable and survivable. In any case that’s the ONLY card they have left to play. It didn’t get much play in the national media, but VP Cheney has been digging his personal nuke bunker in DC deeper and deeper like a beaver on go pills. He’s getting ready for it … and so should you.
The LBC has to sell global war to the American airheads, hence the 911 terrorist attacks. Dictatorships cannot stampede the people into giving up their property and their liberty without conjuring up both foreign AND DOMESTIC ENEMIES. That’s why a civil war is in the offing. A civil war in America is not only possible – IT IS ESSENTIAL. It’s all part of the plan. Flood the Southwest with millions of Mexicans and then trash the economy so the starving and ticked off Mexicans will burn an entire geographic region right down to the ground. This should be sufficient to stampede the rest of the peasants into accepting anything the LBC pukes up and presents as a solution to the resulting mess.
To understand their logic we’ll have to take a quickie refresher course in the history of Western war. Napoleon resurrected the concept of the citizen soldier that had been doormat since the Roman Republic. He was thus able to raise massive armies of peasants who perceived themselves as citizen soldiers. Deluded as they were they nevertheless simply swept aside smaller armies of professional soldiers. The ONLY military reply his opponents could make was to raise massive armies of their own so-called citizen soldiers.
Under the new military system large populations were an absolute military necessity. The increasing mechanization of warfare didn’t change the situation at all. Massive peasant armies were still required because hordes of deluded peasants were still needed to drive the trucks and armored vehicles that delivered themselves to the slaughterhouse. There existed a rough balance between the quantity of military supplies an industrial society could churn out and the quantity of “citizen soldiers” needed to transport and then use the supplies at the front. Massive quantities of peasants were necessary for both production and subsequent usage at the front.
The pendulum didn’t begin to swing back the other way until the arrival of nukes on the scene. Massive peasant armies were no longer a necessity due to the extreme energy density of nukes. The industrial infrastructure necessary to generate a really impressive nuke arsenal was far greater than the relatively small number of professional soldiers (read airforce) necessary to deliver them.
When peasants became useless for war the bulk of them became useless. Before nukes the rule was the more peasants the better. After nukes only a smaller number of peasants were needed to produce goodies for the idle aristocrats.
Today, massive peasant armies are obsolete and are maintained chiefly on a reduced scale for theatrical purposes. They are there for peasant perception control purposes exactly as are the false flag leftist and rightist mock opposition groups I mentioned earlier. Ordinary infantry such as our current army and marine divisions are obsolete. Ordinary infantry are useful only for fighting other likewise obsolete infantry, and for suppressing uprisings of lightly armed domestic peasants … and for pure theatre.
Now that you understand this point I can get back to America via a short detour through the Middle East. The primary objective of our current insane activities in Asia is the conquest of the Asian heartland. A secondary but also necessary objective is the total destruction of our current and obsolete military machine to transform it into one more useful to insure the destruction and dismantling of the American Republic. Russia and China have both slipped the grasp of the London Banking Cartel and they dare not risk America going the same route, hence their stealth plot to carve up America like pizza into manageable mini-states.
The destruction of the American military in Iraq and Afghanistan will pave the way for its replacement by privatized military contractors formerly known as warlords. Citizen soldiers might balk at massive ethnic cleansing operations in California for example, but warlords won’t. Picture armies of Blackwater mercs composed of mostly non-Americans recruited from all points of the globe. They will gladly slaughter everything in their path including any remaining American military units who might oppose them. The LBC must first ignite a civil war in America and then ultimately ensure the that the secessionist win after their hired warlords and mercenary hordes have stomped the new mini states into malleable mush which may or may not be glued together in some sort of North American Confederation with “Ameros” for money and some multi-colored rag for a flag.
I basically think it will work. I think the coming tribal/civil war in America will be roughly proportional to the severity of the economic collapse that sets it off. Meanwhile, while you are waiting for Osama bin Subcontractor to nuke us and waiting for your starving neighbors to batter your door down, keep an eye on California. It’s the canary in the coal mine. When it croaks the rest of America will follow sooner or later.
The E-book version of Civil War Two can be purchased at http://amfirstbooks.com/
Here’s a site about adjusting to homelessness http://www.geocities.com/ramjam501/?200822
My New web site will not be open till this comin January. You ban bookmark it now.
http://establishmentalmanac.com/
Final sign of the end times:
Rolling Stone ends large format after 4 decades
http://news.yahoo.com/s/ap/20081014/ap_en_ot/shrinking_rolling_stone
By ANICK JESDANUN, AP Business Writer
NEW YORK - Rolling Stone magazine is shrinking with the times.
After more than four decades of standing out with a larger format than other magazines, it will step back and look like everyone else starting with the Oct. 30 issue, due out this week.
The adoption of a standard format could boost single-copy sales and reduce production costs for advertising inserts such as scent strips and tear-out postcards. The magazine says any cost savings, though, will be offset by the inclusion of more pages and the shift to thicker, glossier paper.
Like other devoted readers, Eddie Ward, 35, said he will miss the old format, which was an inch taller and two inches wider. But he looks forward to the change and might even buy a "more fashionable" bag to carry his belongings.
"For years since I graduated from college, I have refused to buy a small messenger bag ... since it couldn't fit my Rolling Stone," said Ward, a publicist who lives in New York. "I never wanted to crease the pages or put cracks in the cover."
Rolling Stone chose Barack Obama, who is campaigning for president on a theme of change, for the cover of the Oct. 30 issue. By contrast, the last issue in the oversize format featured a cartoon of Obama's opponent, John McCain.
"Like the man we are featuring on the cover for the third time in seven months ... we embrace the idea of change," editor Jann S. Wenner wrote in the new issue. "Not change for the sake of change, but change as evolution and growth and renewal, change as the kind of cultural renaissance that gave birth to Rolling Stone more than four decades ago."
Magazines constantly undergo redesigns — The Atlantic, for instance, debuts new sections with its November issue out Tuesday. A few also have changed dimensions over the years, including TV Guide, which grew into a full-size format in 2005.
In fact, Rolling Stone has changed formats twice before. It first published in 1967 as a tabloid-size newspaper because that was all its budget covered. It began printing on a four-color press in 1973 and magazine-quality paper in 1981, when it also shrank to its just-abandoned 10-by-12-inch size and adopted the feel of a magazine-newspaper hybrid.
The switch to a standard format completes the magazine's transformation into, well, a magazine and comes as readers depend less on the printed pages for breaking news common in newspapers, said Anthony DeCurtis, a longtime writer for the magazine.
And size may not matter in the Internet era, though Rolling Stone says the Web site will remain supplemental to print, which has seen circulation stable since 2006 at about 1.45 million.
The decision to change officially came down to this: Why not?
"The size is a nostalgic element but not the iconic part of the magazine," publisher Will Schenck said in an interview. "Evolution and change is part of our DNA."
Will Dana, the magazine's managing editor, said the size change forced Rolling Stone to "think a little differently ... (and) open our minds out a little more." He said editors can now squeeze in more content and better sprinkle longer stories with photos, though he insists the length and types of stories won't change.
Rolling Stone said it will add enough pages to each issue to offset the loss of space from switching to the smaller size. The 148 pages in the next issue, for instance, accommodate about as much material as 100 pages in the old size.
The smaller format lets the magazine run more full-page photos, however, because each now takes up less surface area. Comic strips and other elements also take less space, even though they are in the same proportion to the rest of the page. That opens the added pages to new content.
Likewise, full-page ads will take less space — though ad rates won't drop.
"It's like, should somebody pay more for a commercial on TV if it's a 50-inch screen or a 20-inch screen?" Schenck said. "We're really selling the relationship with readers, and the size of the ad is really irrelevant."
This summer, Rolling Stone produced one issue in both formats and sent 3,000 copies of the smaller version to selected subscribers. The feedback was mostly positive — to the surprise of even many at Rolling Stone.
The new paper should make photographs shine more, and the smaller size will make it easier to carry and read. A glued rather than stapled binding should make ad inserts easier to produce.
The new size also will fit better on magazine racks and could help boost single-copy sales, which now account for only 8 percent of the magazine's circulation.
"We're expecting to get better placement," Schenck said. "Right now because of the size, it tends to be placed on the floor."
Ana Barbu, a student at Adelphi University near New York who regularly reads the magazine, said she hopes the change will expose the magazine to readers previously intimidated by seeing so much text on the larger pages.
"Switching the format to attract more readers is a logical decision that will continue Rolling Stone's tradition of revolutionizing society's way of thinking," Barbu said.
Is Posse Comitatus Dead?
http://www.alternet.org/rights/102220/is_posse_comitatus_dead/?page=entire
By Amy Goodman, Democracy Now!. Posted October 8, 2008.
Why are there active duty soldiers stationed on U.S. streets?
Amy Goodman: In a barely noticed development last week, the Army stationed an active unit inside the United States. The Infantry Division's 1st Brigade Team is back from Iraq, now training for domestic operations under the control of U.S. Army North, the Army service component of Northern Command. The unit will serve as an on-call federal response for large-scale emergencies and disasters. It's being called the Consequence Management Response Force, CCMRF, or "sea-smurf" for short.
It's the first time an active unit has been given a dedicated assignment to USNORTHCOM, which was itself formed in October 2002 to "provide command and control of Department of Defense homeland defense efforts."
An initial news report in the Army Times newspaper last month noted, in addition to emergency response, the force "may be called upon to help with civil unrest and crowd control." The Army Times has since appended a clarification, and a September 30th press release from the Northern Command states: "This response force will not be called upon to help with law enforcement, civil disturbance or crowd control."
When Democracy Now! spoke to Air Force Lieutenant Colonel Jamie Goodpaster, a public affairs officer for NORTHCOM, she said the force would have weapons stored in containers on site, as well as access to tanks, but the decision to use weapons would be made at a far higher level, perhaps by Secretary of Defense, SECDEF.
I'm joined now by two guests. Army Colonel Michael Boatner is future operations division chief of USNORTHCOM. He joins me on the phone from Colorado Springs. We're also joined from Madison, Wisconsin by journalist and editor of The Progressive magazine, Matthew Rothschild.
We welcome you both to Democracy Now! Why don't we begin with Colonel Michael Boatner? Can you explain the significance, the first time, October 1st, deployment of the troops just back from Iraq?
Col. Michael Boatner: Yes, Amy. I'd be happy to. And again, there has been some concern and some misimpressions that I would like to correct. The primary purpose of this force is to provide help to people in need in the aftermath of a WMD-like event in the homeland. It's something that figures very prominently in the national planning scenarios under the National Response Framework, and that's how DoD provides support in the homeland to civil authority. This capability is tailored technical life-saving support and then further logistic support for that very specific scenario. So, we designed it for that purpose.
And really, the new development is that it's been assigned to NORTHCOM, because there's an increasingly important requirement to ensure that they have done that technical training, that they can work together as a joint service team. These capabilities come from all of our services and from a variety of installations, and that's not an ideal command and control environment. So we've been given control of these forces so that we can train them, ensure they're responsive and direct them to participate in our exercises, so that were they called to support civil authority, those governors or local state jurisdictions that might need our help, that they would be responsive and capable in the event and also would be able to survive based on the skills that they have learned, trained and focused on.
They ultimately have weapons, heavy weapons and combat vehicles and another service capability at their home station at Fort Stewart, Georgia, but they wouldn't bring that stuff with them. In fact, they're prohibited from bringing it. They would bring their individual weapons, which is the standard policy for deployments in the homeland. Those would be centralized and containerized, and they could only be issued to the soldiers with the Secretary of Defense permission.
So I think, you know, that kind of wraps up our position on this. We're proud to be able to provide this capability. It's all about saving lives, relieving suffering, mitigating great property damage to infrastructure and things like that, and frankly, restoring public confidence in the aftermath of an event like this.
AG: So the use of the weapons would only be decided by SECDEF, the Secretary of Defense. But what about the governors? The SECDEF would have -- Secretary of Defense would have -- would be able to preempt the governors in a decision whether these soldiers would use their weapons on U.S. soil?
MB: No, this basically only boils down to self-defense. Any military force has the inherent right to self-defense. And if the situation was inherently dangerous, then potentially the Secretary of Defense would allow them to carry their weapons, but it would only be for self- and unit-defense. This force has got no role in a civil disturbance or civil unrest, any of those kinds of things.
AG: Matt Rothschild, you've been writing about this in The Progressive magazine. What is your concern?
Matthew Rothschild: Well, I'm very concerned on a number of fronts about this, Amy. One, that NORTHCOM, the Northern Command, that came into being in October of 2002, when that came in, people like me were concerned that the Pentagon was going to use its forces here in the United States, and now it looks like, in fact, it is, even though on its website it says it doesn't have units of its own. Now it's getting a unit of its own.
And Colonel Boatner talked about this unit, what it's trained for. Well, let's look at what it's trained for. This is the 3rd Infantry, 1st Brigade Combat unit that has spent three of the last five years in Iraq in counterinsurgency. It's a war-fighting unit, was one of the first units to Baghdad. It was involved in the battle of Fallujah. And, you know, that's what they've been trained to do. And now they're bringing that training here?
On top of that, one of the commanders of this unit was boasting in the Army Times about this new package of non-lethal weapons that has been designed, and this unit itself is going be able to use, according to that original article. And in fact, the commander was saying he had even tasered himself and was boasting about tasering himself. So, why is a Pentagon unit that's going to be possibly patrolling the streets of the United States involved in using tasers?
AG: Colonel Boatner?
MB: Well, I'd like to address that. That involved a service mission and a service set of equipment that was issued for overseas deployment. Those soldiers do not have that on their equipment list for deploying in the homeland. And again, they have been involved in situations overseas. And having talked to commanders who have returned, those situations are largely nonviolent, non-kinetic. And when they do escalate, the soldiers have a lot of experience with seeing the indicators and understanding it. So, I would say that our soldiers are trustworthy. They can deploy in the homeland, and American citizens can be confident that there will be no abuses.
AG: Matt Rothschild?
MR: Well, you know, that doesn't really satisfy me, and I don't think it should satisfy your listeners and your audience, Amy, because, you know, our people in the field in Iraq, some of them have not behaved up to the highest standards, and a lot of police forces in the United States who have been using these tasers have used them inappropriately.
The whole question here about what the Pentagon is doing patrolling in the United States gets to the real heart of the matter, which is, do we have a democracy here? I mean, there is a law on the books called the Posse Comitatus Act and the Insurrection Act that says that the president of the United States, as commander-in-chief, cannot put the military on our streets. And this is a violation of that, it seems to me.
President Bush tried to get around this act a couple years ago in the Defense Authorization Act that he signed that got rid of some of those restrictions, and then last year, in the new Defense Authorization Act, thanks to the work of Senator Patrick Leahy and Kit Bond of Missouri, that was stripped away. And so, the President isn't supposed to be using the military in this fashion, and though the President, true to form, appended a signing statement to that saying he's not going to be governed by that. So, here we have a situation where the President of United States has been aggrandizing his power, and this gives him a whole brigade unit to use against U.S. citizens here at home.
AG: Colonel Michael Boatner, what about the Posse Comitatus Act, and where does that fit in when U.S. troops are deployed on U.S. soil?
MR: It absolutely governs in every instance. We are not allowed to help enforce the law. We don't do that. Every time we get a request -- and again, this kind of a deployment is defense support to civil authority under the National Response Framework and the Stafford Act. And we do it all the time, in response to hurricanes, floods, fires and things like that. But again, you know, if we review the requirement that comes to us from civil authority and it has any complexion of law enforcement whatsoever, it gets rejected and pushed back, because it's not lawful.
AG: Matthew Rothschild, does this satisfy you?
MR: No, it doesn't. One of the reasons it doesn't is not by what Boatner was saying right there, but what President Bush has been doing. And if we looked at National Security Presidential Directive 51, that he signed on May 9th of 2007, Amy, this gives the President enormous powers to declare a catastrophic emergency and to bypass our regular system of laws, essentially, to impose a form of martial law.
And if you look at that National Security Presidential Directive, what it says, that in any incident where there is extraordinary disruption of a whole range of things, including our economy, the President can declare a catastrophic emergency. Well, we're having these huge disturbances in our economy. President Bush could today pick up that National Security Directive 51 and say, "We're in a catastrophic emergency. I'm going to declare martial law, and I'm going to use this combat brigade to enforce it."
AG: Colonel Michael Boatner?
MB: The only exception that I know of is the Insurrection Act. It's something that is very unlikely to be invoked. In my 30-year career, it's only been used once, in the LA riots, and it was a widespread situation of lawlessness and violence. And the governor of the state requested that the President provide support. And that's a completely different situation. The forces available to do that are in every service in every part of the country, and it's completely unrelated to the -- this consequence management force that we're talking about.
AG: You mentioned governors, and I was just looking at a piece by Jeff Stein -- he is the national security editor of Congressional Quarterly -- talking about homeland security. And he said, "Safely tucked into the $526 billion defense bill, it easily crossed the goal line on the last day of September.
"The language doesn't just brush aside a liberal Democrat slated to take over the Judiciary Committee" -- this was a piece written last year -- it "runs over the backs of the governors, 22 of whom are Republicans.
"The governors had waved red flags about the measure on Aug. 1, 2007, sending letters of protest from their Washington office to the Republican chairs and ranking Democrats on the House and Senate Armed Services committees.
"No response. So they petitioned the party heads on the Hill."
The letter, signed by every member of the National Governors Association, said, "This provision was drafted without consultation or input from governors and represents an unprecedented shift in authority from governors … to the federal government."
Colonel Michael Boatner?
MB: That's in the political arena. That has nothing to do with my responsibilities or what I'm -- was asked to talk about here with regard to supporting civil authority in the homeland.
AG: Matthew Rothschild?
MR: Well, this gets to what Senator Patrick Leahy of Vermont was so concerned about, that with NORTHCOM and with perhaps this unit -- and I want to call Senator Leahy's office today and ask him about this -- you have the usurpation of the governor's role, of the National Guard's role, and it's given straight to the Pentagon in some of these instances. And that's very alarming. And that was alarming to almost every governor, if not every governor, in the country, when Bush tried to do that and around about the Posse Comitatus Act. So, I think these are real concerns.
AG: Matt Rothschild, the Democratic and Republican conventions were quite amazing displays of force at every level, from the local police on to the state troopers to, well, in the Republican convention, right onto troops just back from Iraq in their Army fatigues. Did this surprise you?
MR: It did. It surprised me also that NORTHCOM itself was involved in intelligence sharing with local police officers in St. Paul. I mean, what in the world is NORTHCOM doing looking at what some of the protesters are involved in? And you had infiltration up there, too. But what we have going on in this country is we have infiltration and spying that goes on, not only at the -- well, all the way from the campus police, practically, Amy, up to the Pentagon and the National Security Agency. We're becoming a police state here.
AG: Colonel Michael Boatner, a tall order here, could you respond?
MB: Well, that's incorrect. We did not participate in any intelligence collection. We were up there in support of the U.S. Secret Service. We provided some explosive ordnance disposal support of the event. But I'd like to go back and say that, again, in terms of --
AG: Could you explain what their -- explain again what was their role there?
MB: They were just doing routine screens and scans of the area in advance of this kind of a vulnerable event. It's pretty standard support to a national special security event.
AG: And are you saying there was absolutely no intelligence sharing?
MB: That's correct. That is correct. … We're very constrained--
MR: But even that, Amy, now the Pentagon is doing sweeps of areas before, you know, a political convention? That used to be law enforcement's job. That used to be domestic civil law enforcement job. It's now being taken over by the Pentagon. That should concern us.
AG: Why is that, Colonel Michael Boatner? Why is the Pentagon doing it, not local law enforcement?
MB: That's because of the scale and the availability of support. DoD is the only force that has the kind of capability. I mean, we're talking about dozens and dozens of dog detection teams. And so, for anything on this large a scale, the Secret Service comes to DoD with a standard Economy Act request for assistance.
AG: Boatner, in the Republican Convention, these troops, just back from Fallujah -- what about issues of, for example, PTSD, post-traumatic stress disorder?
MB: Well, my sense is that that's something that the services handled very well. There's a long track record of great support in the homeland. If those soldiers were National Guard soldiers, I have no visibility of that. But for the active-duty forces, citizens can be confident that if they're employed in the homeland, that they'll be reliable, accountable, and take care of their families and fellow citizens in good form.
AG: Last word, Matthew Rothschild?
MR: Well, this granting of the Pentagon a special unit to be involved in U.S. patrol is something that should alarm all of us. And it's very important to the Army.
Riots in Hong Kong after heavy stock losses
Wednesday, 8 October 2008 13:34
http://www.rte.ie/news/2008/1008/hongkong.html
There have been riots on the streets of Hong Kong following heavy losses at the city's Hang Seng index.
The Hang Seng closed over 8% lower with losses in banks, communications companies and exploration companies.
Customers are trying to get their money out of bank branches and many are protesting about losses related to the collapse of Lehman Brothers.
Earlier, trading on the stock exchange in Jakarta was halted because today's falls were so severe.
Good thing there's fluoride in our water...
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A Collection of articles and posts that prepare the gentle reader for the disruption that comes.
Pure Ugly Ahead. May as well make the best of it.
"When a well-packaged web of lies has been sold gradually to the masses over generations, the truth will seem utterly preposterous and its speaker a raving lunatic." ~ Dresden James
"Men think in herds, go mad in herds, but recover their senses one by one." ~ Charles Mackay
There will never be a really free and enlightened State until the State comes to recognize the individual as a higher and independent power, from which all its own power and authority are derived, and treats him accordingly. ~ Henry David Thoreau
OF COURSE:
http://www.loompanics.com/
http://www.canningpantry.com/
This is must a read site, has a bit of everything:
http://www.endtimesreport.com/
You can spend days reading it. The other thing you can do to prepare is "spend a week with the Amish"....
100 Items to Disappear First
1. Generators (Good ones cost dearly. Gas storage, risky. Noisy...target of thieves; maintenance etc.)
2. Water Filters/Purifiers
3. Portable Toilets
4. Seasoned Firewood. Wood takes about 6 - 12 months to become dried, for home uses.
5. Lamp Oil, Wicks, Lamps (First Choice: Buy CLEAR oil. If scarce, stockpile ANY!)
6. Coleman Fuel. Impossible to stockpile too much.
7. Guns, Ammunition, Pepper Spray, Knives, Clubs, Bats & Slingshots.
8. Hand-can openers, & hand egg beaters, whisks.
9. Honey/Syrups/white, brown sugar
10. Rice - Beans - Wheat
11. Vegetable Oil (for cooking) Without it food burns/must be boiled etc.,)
12. Charcoal, Lighter Fluid (Will become scarce suddenly)
13. Water Containers (Urgent Item to obtain.) Any size. Small: HARD CLEAR PLASTIC ONLY - note - food grade if for drinking.
16. Propane Cylinders (Urgent: Definite shortages will occur.
17. Survival Guide Book.
18. Mantles: Aladdin, Coleman, etc. (Without this item, longer-term lighting is difficult.)
19. Baby Supplies: Diapers/formula. ointments/aspirin, etc.
20. Washboards, Mop Bucket w/wringer (for Laundry)
21. Cookstoves (Propane, Coleman & Kerosene)
22. Vitamins
23. Propane Cylinder Handle-Holder (Urgent: Small canister use is dangerous without this item)
24. Feminine Hygiene/Haircare/Skin products.
25. Thermal underwear (Tops & Bottoms)
26. Bow saws, axes and hatchets, Wedges (also, honing oil)
27. Aluminum Foil Reg. & Heavy Duty (Great Cooking and Barter Item)
28. Gasoline Containers (Plastic & Metal)
29. Garbage Bags (Impossible To Have Too Many).
30. Toilet Paper, Kleenex, Paper Towels
31. Milk - Powdered & Condensed (Shake Liquid every 3 to 4 months)
32. Garden Seeds (Non-Hybrid) (A MUST)
33. Clothes pins/line/hangers (A MUST)
34. Coleman's Pump Repair Kit
35. Tuna Fish (in oil)
36. Fire Extinguishers (or..large box of Baking Soda in every room)
37. First aid kits
38. Batteries (all sizes...buy furthest-out for Expiration Dates)
39. Garlic, spices & vinegar, baking supplies
40. Big Dogs (and plenty of dog food)
41. Flour, yeast & salt
42. Matches. {"Strike Anywhere" preferred.) Boxed, wooden matches will go first
43. Writing paper/pads/pencils, solar calculators
44. Insulated ice chests (good for keeping items from freezing in Wintertime.)
45. Workboots, belts, Levis & durable shirts
46. Flashlights/LIGHTSTICKS & torches, "No. 76 Dietz" Lanterns
47. Journals, Diaries & Scrapbooks (jot down ideas, feelings, experience; Historic Times)
48. Garbage cans Plastic (great for storage, water, transporting - if with wheels)
49. Men's Hygiene: Shampoo, Toothbrush/paste, Mouthwash/floss, nail clippers, etc
50. Cast iron cookware (sturdy, efficient)
51. Fishing supplies/tools
52. Mosquito coils/repellent, sprays/creams
53. Duct Tape
54. Tarps/stakes/twine/nails/rope/spikes
55. Candles
56. Laundry Detergent (liquid)
57. Backpacks, Duffel Bags
58. Garden tools & supplies
59. Scissors, fabrics & sewing supplies
60. Canned Fruits, Veggies, Soups, stews, etc.
61. Bleach (plain, NOT scented: 4 to 6% sodium hypochlorite)
62. Canning supplies, (Jars/lids/wax)
63. Knives & Sharpening tools: files, stones, steel
64. Bicycles...Tires/tubes/pumps/chains, etc
65. Sleeping Bags & blankets/pillows/mats
66. Carbon Monoxide Alarm (battery powered)
67. Board Games, Cards, Dice
68. d-con Rat poison, MOUSE PRUFE II, Roach Killer
69. Mousetraps, Ant traps & cockroach magnets
70. Paper plates/cups/utensils (stock up, folks)
71. Baby wipes, oils, waterless & Antibacterial soap (saves a lot of water)
72. Rain gear, rubberized boots, etc.
73. Shaving supplies (razors & creams, talc, after shave)
74. Hand pumps & siphons (for water and for fuels)
75. Soysauce, vinegar, bullions/gravy/soupbase
76. Reading glasses
77. Chocolate/Cocoa/Tang/Punch (water enhancers)
78. "Survival-in-a-Can"
79. Woolen clothing, scarves/ear-muffs/mittens
80. Boy Scout Handbook, / also Leaders Catalog
81. Roll-on Window Insulation Kit (MANCO)
82. Graham crackers, saltines, pretzels, Trail mix/Jerky
83. Popcorn, Peanut Butter, Nuts
84. Socks, Underwear, T-shirts, etc. (extras)
85. Lumber (all types)
86. Wagons & carts (for transport to and from)
87. Cots & Inflatable mattress's
88. Gloves: Work/warming/gardening, etc.
89. Lantern Hangers
90. Screen Patches, glue, nails, screws,, nuts & bolts
91. Teas
92. Coffee
93. Cigarettes
94. Wine/Liquors (for bribes, medicinal, etc,)
95. Paraffin wax
96. Glue, nails, nuts, bolts, screws, etc.
97. Chewing gum/candies
98. Atomizers (for cooling/bathing)
99. Hats & cotton neckerchiefs
100. Goats/chickens
From a Sarajevo War Survivor:
Experiencing horrible things that can happen in a war - death of parents and
friends, hunger and malnutrition, endless freezing cold, fear, sniper attacks.
1. Stockpiling helps. but you never no how long trouble will last, so locate
near renewable food sources.
2. Living near a well with a manual pump is like being in Eden.
3. After awhile, even gold can lose its luster. But there is no luxury in war
quite like toilet paper. Its surplus value is greater than gold's.
4. If you had to go without one utility, lose electricity - it's the easiest to
do without (unless you're in a very nice climate with no need for heat.)
5. Canned foods are awesome, especially if their contents are tasty without
heating. One of the best things to stockpile is canned gravy - it makes a lot of
the dry unappetizing things you find to eat in war somewhat edible. Only needs
enough heat to "warm", not to cook. It's cheap too, especially if you buy it in
bulk.
6. Bring some books - escapist ones like romance or mysteries become more
valuable as the war continues. Sure, it's great to have a lot of survival
guides, but you'll figure most of that out on your own anyway - trust me, you'll
have a lot of time on your hands.
7. The feeling that you're human can fade pretty fast. I can't tell you how many
people I knew who would have traded a much needed meal for just a little bit of
toothpaste, rouge, soap or cologne. Not much point in fighting if you have to
lose your humanity. These things are morale-builders like nothing else.
8. Slow burning candles and matches, matches, matches
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