Hussman: Hyper-Inflation Ahead, Fed to Blame Tuesday, May 26, 2009 4:38 PM By: Julie Crawshaw
John Hussman says the government has crowded out $1 trillion of private investment and virtually guaranteed double-digit inflation by insisting on bailing out bank bondholders to the tune of 100-cents on the dollar.
"Any incipient recovery will be cut short, because the only reason that our economy is able to absorb the present supply of government liabilities is extreme risk aversion that creates a demand for default-free instruments," Hussman, of Hussman Strategic Growth Fund, writes in his weekly note to investors.
By issuing an enormous volume of debt, the Treasury has effectively financed a massive and largely needless transfer of wealth to bank bondholders over the short-term that the longer-term cost has been almost completely obscured, Hussman notes.
Hussman says that by transferring wealth from those who did not finance reckless loans to those who did — "providing monetary compensation without economic production" — the Treasury and Federal Reserve pushed aside “investment that would have otherwise have been made by responsible people in the coming years, shifted assets to the control of those who have proven themselves to be irresponsible destroyers of capital, and have planted the seeds of inflation that will cut short any emerging recovery.”
Philadelphia Federal Reserve Board President Charles Plosser issued a stern warning that inflation pressures will likely be greater than most anticipate, and dismissed the output gap theory that many point to as a reason why inflation should not be feared, according to Reuters.
Plosser said he sees inflation near 1.2 percent in 2009 and 2.5 percent by 2011, and said these predictions take into account steps the Fed will take to curb inflation.
100trillion Pharmaceutical giants circuz evilz clownz to skinn the public alive
The French Government (666bolshevikz) is developing secret plans to impose mandatory vaccination of the entire French population, allegedly against possible Swine Flu disease according to reports leaked in a French newspaper. The plan is without precedent and even defies recommended public health advice. Pharmaceutical giants benefit from the move, as the Swine Flu increases the trend towards the militarization of public health and use of needless population panic to advance the agenda.
According to a report in the May 30 edition of the French newspaper, Le Journal du Dimanche, the Sarkozy government has authorized spending of an estimated €1 billion to buy vaccines allegedly to combat or protect against H1N1 Swine Flu virus. The only problem is that to date neither the WHO nor the US Government’s Center for Diseases Control (CDC) have succeeded to isolate, photograph with an electron microscope and chemically classify the H1N1 Influenza A virus. There is no scientifically published evidence that French virologists have done so either. To mandate drugs for a putative disease that has not even been characterized is dubious to say the least.
Even more bizarre is the admission by the US Government’s Food & Drug Administration, an agency responsible for health and safety of its citizens, that the ‘test’ is approved for premature release to test for H1N1 is not even a proven test. More to the point, there is no forensic evidence in any of the deaths reported to date that has been presented that proves scientifically that any single death being attributed to H1N1 Swine Flu virus was indeed caused by such a virus. European epidemiologists believe the deaths reported to date are ‘coincidental’ or what are called opportunistic infections.
What we know conclusively is that the people who died often had prior respiratory complications of an undisclosed nature. People die every day with respiratory diseases. In the USA alone some 36,000 flu-related deaths are recorded yearly with no undue panic or alarm. Most are elderly or patients with lung diseases. To date in all France, 24 people have been identified by health authorities as even having ‘symptoms’ of H1N1. It is worth noting that the WHO and CDC list the symptoms of H1N1: temperature, coughing, headache, runny nose. Hmmmmm. Do you know anyone with such Swine Flu symptoms? Also worth noting is that in the counting of the more than 15,000 ‘confirmed’ H1N1 Swine Flu cases worldwide the vast majority made miraculous recovery within three to seven days, just as in the case of a bad cold.
The goal: Militarization of Public Health
Increasingly it is becoming clear that the successive waves of mass panic created in recent years by CDC, WHO and leading government agencies has an ulterior motive. We have been hit with mass panic over eating beef when cattle in the UK and elsewhere developed fatal illness that was called BSE or ‘Mad Cow’ disease. Later evidence emerged that BSE was the result of vaccination of the cows to kill harmless insects that got under the animal’s skin. More recently, after reports of incidence of what is called ‘Blue Tongue’ disease in cows, sheep and goats in Belgium and Holland in 2006, animal veterinary authorities in Germany, Switzerland and Austria imposed mandatory vaccination or treatment with drugs allegedly to protect the animals from bites by insects allegedly carrying the usually harmless illness.
The vaccinations of the animal herds has been made mandatory for an illness that typically was so mild as to go unnoticed and in only extreme rare cases could be tied to death. All animals after three months must be vaccinated. The vaccines, according to a report in the Swiss publication Aegis-Impuls from 2008, resulted in mass deaths, decreased birth rates, decline in milk yields, heart attack and other severe effects. The vaccines were used despite the fact none apparently had been previously certified as safe. They typically contained aluminium hydroxide and Thiomersol or mercury, as adjuvants and or preservatives, both highly toxic and both also used in most human vaccines.
Despite mass protests and reports to the veterinary authorities in Germany, Switzerland and Austria, the warnings went unheeded and mandatory mass vaccinations continued. Little wonder that farmers are taking their tractors to the streets to protest.
The report of a secret French government plan to vaccinate every French citizen over three months of age, over 100 million doses, is more than alarming. According to the French Le Journal du Dimanche, anticipating a probable return of the virus in the fall, the government will spend nearly a billion euros to buy vaccines. Authorities will announce in the fall if they decide to make the vaccine mandatory. "We will be ready to go in a very short time", explains the Minister of Health. According to sources, the state wants to order 100 million doses of flu vaccine from three laboratories, GlaxoSmithKline, Sanofi and Novartis. The latter two are French companies.
The French report comes just after the State of Massachusetts State Senate passed a mandatory vaccination bill that authorizes mandatory vaccination against purported H1N1 Swine Flu. In New York State the state hospital planning authority is debating making mandatory annual vaccination against flu of all public health employees, despite the fact that no approved vaccine for H1N1 exists. More and more it is beginning to appear that the scare about pandemic from flying birds or flying pigs is an excuse to justify mandatory vaccination with substances whose harmful side effects are demonstrably worse than any flu they should guard us against.
Novavax, a US pharmaceutical company based in Rockville, Maryland, conveniently enough just announced it is developing a vaccine for H1N1 based on “virus-like particles” that contain three key proteins of the flu virus without the genes required for replication. The vaccine is produced by techniques of genetic modification of organisms or GMO. The announcement came within days of the company announcing losses for the fiscal year of $36 million.
The drug Tamiflu which is officially recommended by the WHO as treatment to ‘ameliorate’ the symptoms of possible Swine Flu or H1N1 Influenza A as it has been renamed, is itself highly toxic. Health Canada informed Canadians of international reports of hallucinations and abnormal behaviour, including self harm, in patients taking the antiviral drug Tamiflu. In some cases death was the result and severe lung complications are widely reported associated with Tamiflu, the drug whose main financial benefactor is believed to be its largest stockholder, former Defense Secretary Donald Rumsfeld.
In 1976 in the US President Gerald Ford, nervous about winning a close election ordered mass immunisation of the population in the face of a possible pandemic to show voters he was a ‘hands on’ President. The 1976 pandemic never came but a vast number of people suffered serious neurological side effects from the vaccine that was rushed into production, including 25 reported deaths from Guillain-Barré syndrome.
Mandatory vaccination with drugs whose side effects are unknown because they have not been rigorously and independently tested begins to smack of the kind of inhuman mass human experiments carried out in the United States with mentally retarded, prisoners and other disadvantaged people or in Germany during the 1930’s.
F. William Engdahl is author of the just-released book Full Spectrum Dominance: Totalitarian Democracy in the New World Order. He may be reached through his website at www.engdahl.oilgeopolitics.net
Seeds of Destruction
The Hidden Agenda of Genetic Manipulation
by F. William Engdahl
Global Research, 2007 ISBN 978-0-937147-2-2
To order click here
This skillfully researched book focuses on how a small socio-political American elite seeks to establish control over the very basis of human survival: the provision of our daily bread. "Control the food and you control the people."
This is no ordinary book about the perils of GMO. Engdahl takes the reader inside the corridors of power, into the backrooms of the science labs, behind closed doors in the corporate boardrooms.
The author cogently reveals a diabolical World of profit-driven political intrigue, government corruption and coercion, where genetic manipulation and the patenting of life forms are used to gain worldwide control over food production. If the book often reads as a crime story, that should come as no surprise. For that is what it is.
Engdahl's carefully argued critique goes far beyond the familiar controversies surrounding the practice of genetic modification as a scientific technique. The book is an eye-opener, a must-read for all those committed to the causes of social justice and World peace.
What is so frightening about Engdahl's vision of the world is that it is so real. Although our civilization has been built on humanistic ideals, in this new age of "free markets", everything-- science, commerce, agriculture and even seeds-- have become weapons in the hands of a few global corporation barons and their political fellow travelers. To achieve world domination, they no longer rely on bayonet-wielding soldiers. All they need is to control food production. (Dr. Arpad Pusztai, biochemist, formerly of the Rowett Research Institute Institute, Scotland)
If you want to learn about the socio-political agenda --why biotech corporations insist on spreading GMO seeds around the World-- you should read this carefully researched book. You will learn how these corporations want to achieve control over all mankind, and why we must resist... (Marijan Jost, Professor of Genetics, Krizevci, Croatia)
The book reads like a murder mystery of an incredible dimension, in which four giant Anglo-American agribusiness conglomerates have no hesitation to use GMO to gain control over our very means of subsistence... (Anton Moser, Professor of Biotechnology, Graz, Austria).
To order Seeds of Destruction click here
F. William Engdahl is a frequent contributor to Global Research. Global Research Articles by F. William Engdahl Please support Global Research Global Research relies on the financial support of its readers.
Is Obama an elitez 100%bolshevikz nwo pawn clown? - giving it all for the elitez fed banksterz and doing absolute nothing for the people? - Administration calls for financial system overhaul 15 minutes ago By MARTIN CRUTSINGER AP Economics Writer
(AP:WASHINGTON) The Obama administration says it is committed to overhauling the country's financial rule book by giving the Federal Reserve increased powers to guard against the types of risks that could bring down the entire system.
All large institutions whose failure could threaten the stability of the financial system will be subjected to regulation by the Fed, administration officials said. The proposal also would create a council of regulators with broad coordination responsibility across the financial system.
The officials also said the administration will offer a stronger framework for investor protection, including increased oversight of consumer products ranging from credit cards to annuities.
Speaking in New York on Monday, Treasury Secretary Timothy Geithner said the regulatory overhaul will eliminate "gaps" in the financial system that encouraged risky behavior leading up to the meltdown.
"We had a financial system that was fundamentally too unstable and fragile, and it did a bad job of basic protection of consumers and investors," Geithner said during an economic conference hosted by Time Warner Inc. "Those are things we have to change."
The administration's regulatory proposals were included as part of an opinion piece by Geithner and Lawrence Summers, director of the president's National Economic Council, published Monday in The Washington Post.
The administration appears to have backed away from a more extensive overhaul that would have consolidated all banking regulation into one agency. Supporters of this approach, including Sen. Chuck Schumer, D-N.Y., have argued that the current system is inefficient.
"It does not make sense for up to four different regulatory bodies to retain oversight over the safety and soundness of banks and bank holding companies," Schumer said in a letter to Geithner on Friday. "Retaining multiple regulatory entities preserves the regulatory arbitrage that allows institutions to pick the oversight scheme that benefits them the most, often at the expense of consumers and the health of the system overall."
The White House said Monday that Obama would unveil his regulatory overhaul plan on Wednesday.
"Like all financial crises, the current crisis is a crisis of confidence and trust," Geithner and Summers wrote in The Washington Post. "Reassuring the American people that our financial system will be better controlled is critical to our economic recovery."
The two officials said the administration's overhaul will propose increasing capital and liquidity requirements for all financial institutions and will impose more stringent requirements on the largest and most interconnected firms.
Geithner said the administration would seek to ensure that tougher rules don't bog down the banking system with red tape. "You want to have a system where innovation is rich and healthy, so we have to find a balance. We did not get the balance right," he said.
At his appearance in New York, Geithner declined to give specifics on the regulatory reform plan or say whether it will include eliminating certain agencies. After Obama unveils the financial overhaul proposals on Wednesday, Geithner is scheduled to testify Thursday before both the Senate Banking Committee and the House Financial Services Committee.
The administration was still expected to call for the functions of the Office of Thrift Supervision to be merged into the Office of the Comptroller of the Currency. But it would leave the Fed, the OCC and the Federal Deposit Insurance Corp. as major banking regulators.
The administration's plan will impose "robust reporting requirements" on issuers of asset-backed securities and require institutions that sell them to retain a financial interest in their performance, Summers and Geithner wrote.
The sale of securities backed by subprime mortgages was among the major causes of the financial crisis that struck with force last fall.
"The basic objective is to have a system where people are less likely to be taken advantage of," Geithner said Monday, singling out the bad lending practices that helped trigger the meltdown.
The administration plan will give federal regulators greater powers to deal with any large financial holding company whose failure could disrupt the entire system. The opinion piece said those increased powers mean the government no longer will be forced to choose between bailouts and a financial collapse that could rock the entire system.
Officials said they had no good choices when faced the potential failure last fall of insurance giant American International Group Inc.
Summers and Geithner said the administration also will work to raise international standards for financial regulation.
"We don't want a situation where we have so many entities crawling over institutions and sending mixed signals," Geithner said. "We should be able to design a system where there are limits on excessive risk and more clarity on the rules of the game."
_____
AP Business Writer Stevenson Jacobs in New York and Jim Kuhnhenn in Washington contributed to this report. -- Marc Faber: 'It Will All End in Disaster' -- Seeking Alpha Marc Faber will be long and gone by the time this all shakes out...for that .... nova · 364 Comments. It is funny people expect to get accurate economic ..... Gold standard? I now believe Americans will eventually have the option of a ...... banks controlled by the robber barons and their immediate superiors. ...elitez bolshevikz 666pawns of killerz nwo ussrz clownz - www.seekingalpha.com/article/127659-marc-faber-it-will-all-end-in-disaster -
Ron Paul's "Audit the Fed" bill now has 222 co-sponsors
which is more than enough to be passed
The Senate hurdle is next..
Audit the Fed Bill Reaches Crucial Benchmark
Washington, D.C. - Congressman Ron Paul's Federal Reserve Transparency Act, HR 1207, has reached and surpassed the level of 218 cosponsors in the House of Representatives, which means it is now cosponsored by a majority of the members.
The 218th cosponsor was Dennis Kucinich (OH-10), and the bill has since received its 222nd cosponsor.
“The tremendous grass-roots and bipartisan support in Congress for HR 1207 is an indicator of how mainstream America is fed up with Fed secrecy,” said Congressman Paul. “I look forward to this issue receiving greater public exposure.”
Hearings on Federal Reserve transparency are expected within the next month, as part of the Financial Services Committee's series of hearings on regulatory reform.
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