FRiDaY BioLoGY: KeYNeSiAN MoNKeY BuSiNeSS...

Submitted by williambanzai7 on 08/16/2013 16:33

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Alert Zero Hedge readers will recall that about this time last year a new species of monkey was discovered: CORRUPTOBERNANPITHICUS POMOMIENSUS.

Known by locals in remote parts of Keynesia as kleptula, the monkey apparently drinks ink, eats savings accounts and shits greenbacks.The species had been discovered just as it was being

threatened with being hunted and eaten into extinction by hungry banksters.

This week, scientists announced a startling new new discovery, a new heretofraud undiscovered species of Keynesian kleptovore...

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Although Oyellinquito is a member of the PhD racoon lodge, scientists believe Oyellinquito has similar eating, drinking and shitting habits as the Kleptula.

But even more startling, scientists now believe that Oyellinquito may be a kind of missing fiat link to an even bigger and better known creature.

One that has the same eating, drinking and shitting habits as the other two, only much much much much much much bigger....

BaRRaCK THe RoDeO CLoWN... Posted by : williambanzai7 Post date: 08/12/2013 - That's right, we said Rodeo Clown!!!

Submitted by williambanzai7 on 08/12/2013 14:18 -0400

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Obozo's a rodeo clown

He sports an insidious frown

His arrogant charm

Protects him from harm

While his lies bring a whole nation down

The Limerick King

Biting Our Tongues Doesn’t Keep Us Safe … It Only INCREASES Danger In the Long Run Posted by : George Washington Post date: 08/19/2013 - First They Came …

Move Over Obama Posted by: Pivotfarm Post date: 08/19/2013 - The daily presidential-tracking poll shows that on Sunday August 18th 51% of US citizens disapprove of what President Obama is doing in the country.

FRaNKeNDoDD CaBaReT... Posted by: williambanzai7 Post date: 08/19/2013 - Life is is a f*cking cabaret my friends...

FRaNKeNDoDD CaBaReT...

Submitted by williambanzai7 on 08/19/2013

Tritium Measurement In Fukushima Bay Highest Ever As TEPCO Admits 40 Trillion Becquerels Have Spilled Into Pacific

Submitted by Tyler Durden on 08/19/2013 - 17:22

Over the weekend we posted an in-depth narrative of what may happen in a theoretical worst case scenario in Fukushima, one in which the government continues to do nothing and pretends all is well, and where the end casualties are millions of innocent Japanese (and other) citizens, whose only crime is believing their government. Sadly, with every passing day the theoretical is becoming all too real, and moments ago reality struck again, when the Nikkei newspaper reported that readings of tritium in seawater taken from the bay near the crippled Fukushima nuclear plant has shown 4700 becquerels per liter. This was the highest tritium level in the measurement history. It gets better: Earlier, Tepco admitted that an estimated 20 to 40 trillion becquerels of tritium may have flowed into the Pacific Ocean since the nuclear disaster.

DOJ Picks Up Where FERC Left Off: Begins Investigation Of JPMorgan's "Enronesque" Energy Market Manipulation

Submitted by Tyler Durden on 08/19/2013 - 18:50

On July 30, when FERC announced that it had agreed to resolve it allegations of JPMorgan manipulation of the energy market for a $410 million fine, with the bank neither admitting nor denying guilt, we posited that the only question on Jamie Dimon's mind was whether to pay the fine from petty cash or just to charge it on his corporate Amex. Three weeks later he may have some other questions swirling in his head, such as "whose Christmas lobbying stocking did I not fill with campaign donations?" after the WSJ reported that it is no longer FERC, but the DOJ itself, led by Preet Bharara, which is investigating whether JPM manipulated energy markets. Ironically, this is a deja vu of the SAC take down by the same Bharara, when a few months after SAC settled with the SEC it was shocked to be crushed by the Department of Justice which pulled an "Arthur Anderson" on it and for all intents and purposes shut it down (although with nobody sent to prison). It remains to be seen if Bharara will have the balls to take this prosecution to the next level and whether after he made SAC into Arthur Anderson, he will make JPMorgan into the New Normal's Enron and whether Jamie Dimon or Blythe Masters will be the next Lay and/or Skilling. One can hope.

Europe's Next Crisis? Migrant Flows Are Surging

Submitted by Tyler Durden on 08/19/2013 - 18:25

With Greek haircuts likely (or Cyprus-style bail-ins), Merkel elections (and the potential for less positive coalitions and post-election 'sternness'), and the possibility for the German court to curtail plans for OMT; there is plenty to  remove the 'magic' that is supporting Europe's market 'recovery'. However one topic not often discussed is the ongoing surge in people seeking refuge in EU countries from North Africa and the Middle East. Countries such as Greece or Italy that make up the European Union's southern border have long struggled to deal with flows of refugees from across the Mediterranean. The issue, as Stratfor notes, has been magnified by high unemployment rates in destination countries, where social security systems are strained and anti-immigrant sentiment is high. However, the combination of continued northern flows of European migrants, the increase in asylum applications and the spread of the European economic crisis appears primed to weaken some of the achievements Europe has seen in integration.

Guest Post: Why We All Lose if the Fed Wins

Submitted by Tyler Durden on 08/19/2013 - 17:55

So let's pretend for the moment that the Federal Reserve gets everything it has stated it wants.  And even further: that Washington, D.C. gets everything it wants, too. The credit markets are repaired, and massive new loan growth flows out the door.  Loans are made to businesses that hire gobs of new people.  Consumers borrow and borrow some more to go to school and buy homes, cars, and gadgets. Inflation remains low and job growth explodes.  Tax receipts climb and the deficit falls.  The stock market goes higher and higher, gold falls and then falls some more, as confidence in the system, its masters, and its institutions grows. The Fed wins and D.C. wins. But in reality, we all lose. It's all just a matter of timing (and un-sustainability).

BlackRock Admits The Fed Is Causing "Tremendous Distortions"

Submitted by Tyler Durden on 08/19/2013 - 16:38

BlackRock's fixed income CIO Rick Rieder is worried about the impact that higher rates will have on the stock market. In this brief interview with Bloomberg TV's Tom Keene, Rieder explains that while equities look 'cheap' given where rates are, this is a mis-pricing and warns (as we have repeatedly) that "people don't spend any time looking at cash-flow discounted by cost of financing, which is really where we think equity should be valued." In that case (as we have noted), a surge in financing costs will weigh heavily on stocks. While he is concerned about investors' general lack of awareness of the risk in bond funds - "the volatility in fixed income could actually be higher than the equity market," he fears the impact of higher rates on mortgages and other credit vehicles on the recovery. However, as Rieder notes they have been saying for a long time, "QE’s too big. You’ve got to taper down QE. It's created this tremendous distortion in interest rates," as he sees fair-value for the 10Y around 3.25%.

Hindenburg Vindicated With 9 Of 11 Red S&P Closes And Counting

Submitted by Tyler Durden on 08/19/2013 - 16:06

Treasury bond yields have risen for 5 of the last 6 days (with the 7Y yield up 35bps in that period) adding 5bps today but since the latest cluster of Hindenburg Omens began to appear, the S&P 500 has fallen for 9 or the last 11 days (-3.6% from the 08/02 highs) and closed below its 50DMA today (on light volume). Today saw 430 new lows (the second highest since Oct 2011) and only 15 new highs. The S&P joined the Dow and the Trannies in the red for the period post-FOMC (June); and only Healthcare, Discretionary, and Industrials remain green from that 6/19 event. The USD ended the day practically unchanged but FX markets were very volatile (AUD and JPY all over the place in the majors and INR in the locals). Commodities in general slid lower by around 0.7% or so in a relativley highly correlated way with stocks. Credit markets continue to underperform, leading stocks lower. VIX was banged back above 15% to its highest close in 7 weeks. Today was the 4th negative close in a row for the S&P - the first time this year.

Phil Falcone Done: To Pay $18 Million, Admit Guilt, Agree To 5 Year Bar

Submitted by Tyler Durden on 08/19/2013 - 16:02

SEC SAYS FALCONE CONSENTS TO BAN FROM ASSOCIATION WITH ANY BROKER, DEALER, INVESTMENT ADVISER, OTHER ENTITIES, WITH RIGHT TO REAPPLY AFTER FIVE YEARS

What Happened In 1987?

Submitted by Tyler Durden on 08/19/2013 - 15:35

The equity rally that began in 2009 has pushed valuations higher, but has received little support from earnings. Indeed, as Morgan Stanley notes, since June 2012 the equity market rally was entirely driven by valuation and not earnings. While there have been cases when better economic conditions pushed up earnings, providing equity market support, there have also been occasions when valuation driven equity market rallies translated into weakness, as witnessed in October 1987. The equity market rally which began in 1986 and peaked in the summer of 1987 falls into this category.

Amazon Presents Its Latest Margin-Boosting Initative: Offline Website

Submitted by Tyler Durden on 08/19/2013 - 15:33

CIA Finally Admits It Is Behind Iran's 1953 Coup

Submitted by Tyler Durden on 08/19/2013 - 14:56

In case Ben Affleck was looking for his next Oscar-winning CIA-o-mentary, the Central Intelligence Agency (which alas in a time of NSA permasnooping has become a bit of an anachronism) may have just provided the script, with the first official admission that the flipflops on the ground orchestrated at least one Iranian coup and is ostesnibly behind all other global coups (and non-coups coughegyptcough) in the past 50 years, but until they are confirmed they will remain merely "conspiracy theories."

Fannie, Freddie Masking Billions In Losses, Watchdog Finds

Submitted by Tyler Durden on 08/19/2013 - 14:26

As is well-known by now, one of the main reasons why the Fed's hands are tied when it comes to the future of QE, is the dramatic drop in the US budget deficit which cuts down on the amount of monetizable gross issuance (read Treasurys) and for which a big reason is that the GSEs have shifted from net uses of government cash to net sources. So in what may be the best news for Bernanke, and/or his successor, we learn that according to a report written by the Federal Housing Finance Agency (FHFA) inspector general and reviewed by Reuters, "Fannie Mae and Freddie Mac are masking billions of dollars losses because of the level of delinquent home loans they carry."

Indian Rupee Collapses - Worst Day In 20 Years

Submitted by Tyler Durden on 08/19/2013 - 14:10

Presented with little comment (over our earlier detail) but just to note that around the world there are significant events occurring (even as the US equity market slumbers). So much for the gold coin ban - gold now trades at 4 month highs in Rupee terms.

Egypt's Next Crisis? China Dam(n)s The Nile

Submitted by Tyler Durden on 08/19/2013 - 13:49

In East Africa, the major water resource is the Nile river, the world’s longest, at 4,130 miles, referred to by Egypt since antiquity as the country’s heart. Instability, poor governance, lack of finances and the availability of other water sources left the issue largely dormant until the 1990s, when Nilotic governments seriously started to consider using their Nile Basin waters to generate energy and irrigate crops. But now, most African countries (expecting growth), where only about 25% of the population is connected to electricity grids, are seeking any and all electric power sources; guaranteeing an ongoing and increasingly fractious source of tension for Nilotic states. With the current political turmoil roiling Egypt, Cairo’s ability to influence upstream states is currently constrained, which until the dust settles may well provide Egypt with a number of aquatic fait accomplits. If Kampala and Addis Ababa press forward with their (Chinese-sponsored) hydroelectric projects in the interim, then they will probably eventually face some “frank and candid” diplomatic discussions with Egypt, which, after all, has a 4,000 year old history of Nile concerns. Not a happy scenario.

Obamacare For Dummies: The "Affordable Care Act" In One Chart

Submitted by Tyler Durden on 08/19/2013 - 13:19

Earlier today we learned that while some executives at Forever 21 were previously confused by Obamacare, subsequently they appear to have rectified their confusion... and full-time staffing levels. Of course, there would have been no confusion had Forever 21 known what it was getting with Obamacare. So for the benefit of all their executives, and for all others who may still be confused by America's new healthcare system, here, once again, is the chart that should explain everything.

7Y Yield Jumps 30% In A Week To 25 Month Highs

Submitted by Tyler Durden on 08/19/2013 - 12:46

For the 5th day in the last 6, US Treasuries are selling off notably. While equity volumes remain lack-luster and liquidity still thin in bonds, the weakness is most pronounced in the 7Y belly (even though selling is across the board). 10Y rates tagged 2.89% and 30Y 3.90% all pushing back to the pre-US-downgrade (debt-ceiling) levels of summer 2011. The 10Y yield has just joined the 30Y trading wider than they did when stocks hit their lows in March 2009.

Those That Are Not Preparing For The Coming Economic Depression Are Going To Bitterly Regret It

The next great economic crisis is rapidly approaching, and most people are going to be totally blindsided by it.  Even though the warning signs are glaringly obvious, most Americans continue to believe that our "leaders" know what they are doing and that everything will be just fine.  But what will happen when the next great financial crash happens and trillions of dollars of "paper wealth" disappear into thin air?  What will happen when the coming credit crunch causes economic activity to dramatically slow down and millions upon millions of people lose their jobs?  This shouldn't sound far-fetched to you.  Remember, this is exactly the kind of thing that we saw back in 2008, and the next great financial crisis is likely going to be significantly worse.  Our economy is in far worse shape than it was back in 2008, and government dependence is now at an all-time high even though most Americans are still enjoying debt-fueled false prosperity.  We are living in the largest debt bubble in the history of the planet, and when it bursts we are going to experience a crippling "adjustment" to our standard of loving.  Some people understand this and are busy preparing for what is ahead.  It has been estimated that there are approximately 3 million "preppers" in the United States, and that number is growing all the time.  Unfortunately, most Americans are not preparing for the coming economic depression and they are going to bitterly regret it. (Read More....) So what does preparing for the coming economic depression look like?

Well, it doesn't have to be complicated.  Most of the things that you should do are just common sense.

But there are some people that take things to extremes.  For example, a new National Geographic series is featuring a family that is actually constructing a "Doomsday Castle".  The former U.S. Army officer that is building this unusual home is trying to prepare for virtually every type of disaster that he can imagine...

Meet Brent Sr., the leader of the six-person family. Brent is a former Army Infantry Training Officer who is heading up the project to build an “EMP (electromagnetic pulse)-proof medieval castle in the woods of the Carolinas.”

According to National Geographic, Brent is teaching five of his 10 children survival skills.

The unfinished, fortified castle that Brent Sr. is building — an idea he got during the Y2K prep craze — will be able to sustain an EMP-event that could wipe out a power grid, but will also survive natural disasters like hurricanes.

He even plans to train his family members to use crossbows and a catapult to defend against potential home invaders.

Not many people out there are going to take "prepping" to such extremes.

But even if you don't plan to build a "Doomsday Castle", that doesn't mean that you should be doing nothing.

Sadly, most Americans are quite ill-prepared for a major economic downturn at this point.  In fact, most Americans seem to be doing almost nothing to prepare.

Just consider the following statistics.  Most of these numbers come from one of my previous articles...

-According to a survey that was recently released, 76 percent of all Americans are living paycheck to paycheck.

-46 percent of all Americans have less than $800 in savings.

-27 percent of all Americans do not have even a single penny saved up.

-Less than one out of every four Americans has enough money stored away to cover six months of expenses.

-Each year, 12 million Americans take out high interest payday loans.

-In 1989, the debt to income ratio of the average American family was about 58 percent.  Today it is up to 154 percent.

-It is estimated that less than 10 percent of the U.S. population owns any gold or silver for investment purposes.

-44 percent of all Americans do not have first-aid kits in their homes.

-48 percent of all Americans do not have any emergency supplies stored up.

-53 percent of all Americans do not have a 3 day supply of nonperishable food and water in their homes.

-One survey asked Americans how long they thought they would survive if the electrical grid went down for an extended period of time.  Incredibly, 21 percent said that they would survive for less than a week, an additional 28 percent said that they would survive for less than two weeks, and nearly 75 percent said that they would be dead before the two month mark.

Those numbers are absolutely appalling.

When the system fails, most people are going to be completely blindsided by it and millions upon millions of people are going to absolutely freak out.

Don't let that happen to you.

So what are some basic things that you can do to get prepared for the great economic storm that is coming?

The following are a few of the things that Nicole Foss suggests...

1) Hold no debt (for most people this means renting)

2) Hold cash and cash equivalents (short term treasuries) under your own control

3) Don’t trust the banking system, deposit insurance or no deposit insurance

4) Sell equities, real estate, most bonds, commodities, collectibles (or short if you can afford to gamble)

5) Gain some control over the necessities of your own existence if you can afford it

6) Be prepared to work with others as that will give you far greater scope for resilience and security

7) If you have done all that and still have spare resources, consider precious metals as an insurance policy

8) Be worth more to your employer than he is paying you

9) Look after your health!

I think all of those are great pieces of advice.

In addition, below I have posted some of the things that I personally recommend.  The following is an excerpt from one of my previous articles entitled "25 Things That You Should Do To Get Prepared For The Coming Economic Collapse"...

#1 An Emergency Fund

Do you remember what happened when the financial system almost collapsed back in 2008?  Millions of Americans suddenly lost their jobs, and because many of them were living paycheck to paycheck, many of them also got behind on their mortgages and lost their homes.  You don't want to lose everything that you have worked for during this next major economic downturn.  It is imperative that you have an emergency fund.  It should be enough to cover all of your expenses for at least six months, but I would encourage you to have an emergency fund that is even larger than that.

#2 Don't Put All Of Your Eggs Into One Basket

If the wealth confiscation in Cyprus has taught us anything, it is that we should not put all of our eggs in one basket.  If all of your money is in one single bank account, it would be easy to wipe out.  But if you have your money scattered around a number of different places it will give you a little bit more security.

#3 Keep Some Cash At Home

This goes along with the previous point.  While it is not wise to keep all of your money at home, you do want to keep some cash on hand.  If there is an extended bank holiday or if a giant burst from the sun causes the ATM machines to go down, you want to be able to have enough cash to buy the things that your family needs.  Just ask the people of Cyprus how crippling a bank holiday can be.  One way to keep your cash secure at home is by storing it in a concealed safe.

#4 Get Out Of Debt

A lot of people seem to assume that an economic collapse would wipe out all debts, but that will probably not be the case.  In fact, if you are in a tremendous amount of debt you will be very vulnerable if the economy collapses and you are not able to find a job.  Just ask the people who were overextended and lost their jobs during the last recession.  So please get out of debt.  Many debt collectors are becoming increasingly ruthless.  In many areas of the country they are now routinely putting debtors into prison.  You do not want to be a slave to debt when the next wave of the economic collapse strikes.

#5 Gold And Silver

In the long-term, the U.S. dollar is going to lose a tremendous amount of value and inflation is going to absolutely skyrocket.  That is one reason why so many people are investing very heavily in gold, silver and other precious metals.  All over the globe, the central banks of the world are recklessly printing money.  Everyone knows that this is going to end very badly.  In fact, there is already a push in more than a dozen U.S. states to allow gold and silver coins to be used as legal tender.  Someday you will be glad that you invested in gold and silver now while their prices were still low.

#6 Reduce Your Expenses

A lot of people claim that they can't put any money toward prepping, but the truth is that we all have room to reduce our expenses.  We all spend money on things that we do not really need.  Those that are "lean and mean" will tend to do much better during the times that are coming.

#7 Start A Side Business

If you do not have much money, a great way to increase your income is by starting a side business.  And it does not take a lot of money - there are many side businesses that you can start for next to nothing.  And starting a side business will allow you to become less dependent on your job.  In this economic environment, a job could disappear at literally any time.

#8 Move Away From The Big Cities If Possible

For many people, this is simply not possible.  Many Americans are still completely and totally dependent on their jobs.  But if you are able, now is a good time to move away from the big cities.  When the next major economic downturn strikes, there will be rioting and a dramatic rise in crime in the major cities.  If you are able to move to a more rural area you will probably be in much better shape.

#9 Store Food

Global food reserves have reached their lowest level in nearly 40 years.  As the economy gets even worse and global weather patterns become even more unstable, the price of food will go much higher and global food supplies will become much tighter.  In the long run, you will be glad for the money that you put into long-term food storage now.

#10 Learn To Grow Your Own Food

This is a skill that most Americans possessed in the past, but that most Americans today have forgotten.  Growing your own food is a way to become more independent of the system, and it is a way to get prepared for what is ahead.

#11 Nobody Can Survive Without Water

Without water, you would not even make it a few days in an emergency situation.  It is imperative that you have a plan to provide clean drinking water for your family when disaster strikes.

#12 Have A Plan For When The Grid Goes Down

What would you do if the grid went down and you suddenly did not have power for an extended period of time?  Anyone that has spent more than a few hours without power knows how frustrating this can be.  You need to have a plan for how you are going to provide power to your home that is independent of the power company.

#13 Have Blankets And Warm Clothing On Hand

This is more for emergency situations or for a complete meltdown of society.  During any major crisis, blankets and warm clothing are in great demand.  They also could potentially make great barter items.

#14 Store Personal Hygiene Supplies

A lot of preppers store up huge amounts of food, but they forget all about personal hygiene supplies.  During a long crisis, these are items that you would greatly miss if you do not have them stored up.  These types of supplies would also be great for barter.

#15 Store Medicine And Medical Supplies

You will also want to store up medical supplies and any medicine that you may need.  In an emergency situation, you definitely would not want to be without bandages and a first-aid kit.  Over the course of a long crisis, you do not want to run out of any medicines that are critical for your health.

#16 Stock Up On Vitamins

A lot of preppers do not think about this either, but it is very important.  These days, it is becoming increasingly difficult to get adequate nutrition from the foods that we eat.  That is why it is very important to have an adequate store of vitamins and other supplements.

#17 Make A List Of Other Supplies That You Will Need

During any crisis, there will be a lot of other things that you will need in addition to food and water.  The following are just a few basic things that it would be wise to have on hand...

- an axe

- a can opener

- flashlights

- battery-powered radio

- extra batteries

- lighters or matches

- fire extinguisher

- sewing kit

- tools

This list could be much, much longer, but hopefully this will get you started.

#18 Don't Forget The Special Needs Of Your Babies And Your Pets

Young children and pets have special needs.  As you store supplies, don't forget about the things that they will need as well.

#19 Entertainment

This may sound trivial, but the truth is that our entertainment-addicted society would become very bored and very frustrated if the grid suddenly went down for an extended period of time.  Card games and other basic forms of entertainment can make enduring a crisis much easier.

#20 Self-Defense

In the years ahead, being able to defend your home and your family is going to become increasingly important.  When the economy crashes, people are going to start to become very desperate.  And desperate people do desperate things.

#21 Get Your Ammunition While You Still Can

Your firearms will not do you much good if you do not have ammunition for them.  Already there are widespread reports of huge ammunition shortages.  The following is from a recent CNS News article...

"The run on ammunition has manufacturers scrambling to accommodate demand and reassure customers, as many new and seasoned gun owners stock up over fears of new firearms regulations at both the state and federal levels."

Don't just assume that you will always be able to purchase large amounts of ammunition whenever you want.  Get it now while you still can.

#22 If You Have To Go...

Have a plan for what you and your family will do if you are forced to leave your home.  If you do have to go, the following are some items that you will want to have on hand...

- a map of the area

- a compass

- backpacks for every member of the family

- sleeping bags

- warm clothing

- comfortable shoes or hiking boots

#23 Community

One of the most important assets in any crisis situation is community.  If you have friends or neighbors that you can depend upon, that is invaluable.  The time spent building those bonds now will pay off greatly during a major crisis.

#24 Have A Back-Up Plan And Be Flexible

Mike Tyson once said the following...

"Everyone has a plan until they get punched in the mouth."

No plan ever unfolds perfectly.  When your plan is disrupted, what will you do?

It will be imperative for all of us to have a back-up plan and to be flexible during the years ahead.

#25 Keep Your Prepping To Yourself

Do not go around and tell everyone in the area where you live about your prepping.  If you do, then you may find yourself overwhelmed with "visitors" when everything falls apart.

And please do not go on television and brag about your prepping to a national audience.

Prepping is something that you want to keep to yourself, unless you want hordes of desperate people banging on your door in the future.

*****

For much more on prepping, I would encourage you to check out the dozens of excellent websites out there that teach people advanced prepping techniques for free.

So what do you think about all of this?

Are you getting prepared for the coming economic depression?

Please feel free to share your perspective on prepping by posting a comment below...

Be Sociable, Share!

Obama Administration Makes Secret Deal With Mexico To Help Illegal Immigrants In The Workplace

Instead of making sure that U.S. employers are not hiring illegal immigrants, the Obama administration has actually signed a secret deal with Mexico to protect “the rights” of illegal immigrants in the workplace.  According to this “memorandum of understanding”, the Equal Employment Opportunity Commission will spend U.S. taxpayer dollars to educate illegal immigrants about their civil rights, workplace safety, and minimum wage laws.  This is yet another example of how the Obama administration is openly flouting the law and doing all that it can to promote even more illegal immigration.  We are rapidly becoming a lawless nation that has absolutely no regard for the rule of law, and it all starts with the horrendous example that is being set at the very top. (Read More.....)

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email [email protected] to buy additional rights. http://www.ft.com/cms/s/0/a3e35152-08a6-11e3-ad07-00144feabdc0.html#ixzz2cSeXq9IP

NOW IT'S PERSONAL! ‘…Mr Rusbridger was writing after the partner of Glenn Greenwald, the reporter who interviewed Edward Snowden, the former contractor for the National Security Agency who exposed the programme, was detained at Heathrow for nine hours under the Terrorism Act…’

White House Had Advance Notice on Heathrow Detention...
British security seized encrypted computer files...
'They said I would be put in jail if I didn't cooperate'...
Agents asked 'about my entire life'...
GUARDIAN: 'A betrayal of trust and principle'...
Britain forced newspaper to destroy copy of Snowden material...

Obama administration asks Supreme Court to allow warrantless cellphone searches...

1 in 4 adults in NJ moving back in with parents...

CHICAGO TRIB ON OBAMACARE: 'Let's delay, rewrite this ill-conceived law'...

Admin Has Missed Half of Legally Imposed Deadlines...

FOREVER 21 to do away with full-time employees...

Fed Ownership of U.S. Debt Breaks $2 Trillion...

Ex NSA head insults Bloggers As Privacy Violations Mount...

New Utah spy center requires 1.7M gallons of water daily to operate...

Kucinich: “Everybody Lies To Congress; Abolish NSA, Celebrate Snowden”

Steve Watson | There should be a ‘death penalty’ for government agencies that betray the American people.

TSA to Purchase 3.5 Million Rounds of Ammunition

Paul Joseph Watson | Enough for its agents to fire 9,400 bullets a day, every day of the year.

CIA Confirms Role in 1953 Iran Coup

Malcolm Byrne | American and British involvement in Mosaddeq’s ouster has long been public knowledge.

Forced Mass Drugging of US Troops an Underreported Scandal

Alex Jones & Paul Joseph Watson | Soldiers being forced to pop pills by exempt officer class.

Glenn Danzig Condemns Obama’s Drone Policies

Adan Salazar | Legendary rocker says Democrats are “fascists disguised as liberals.”

Time Reporter Who Advocated Drone Strike on Assange Loves Big Brother

Paul Joseph Watson | ‘Big government helps protect our rights’.

Video: The New Common Core Obama Math Standard: “3 x 4 = 11″

Mac Slavo | Earlier this year President Obama detailed his new educational initiatives aimed at “closing America’s school readiness gap.”

Why The 2,776 NSA Violations Are No Big Deal

Ron Paul | They are routinely breaking their own rules and covering it up.

Those That Are Not Preparing For The Coming Economic Depression Are Going To Bitterly Regret It

Economic Collapse | The next great economic crisis is rapidly approaching, and most people are going to be totally blindsided by it.

Krugman Admits Keynesian “Economics” Is About Empowering the State

LewRockwell.com | The essence of Keynesian “economics” is giving the Political Classes more power.

What Is Going To Happen If Interest Rates Continue To Rise Rapidly?

Michael Snyder | If you want to track how close we are to the next financial collapse, there is one number that you need to be watching above all others.

U.K. government thought destroying Guardian hard drives would stop Snowden stories

Washington Post | The British government raided the Guardian’s offices in order to destroy hard drives containing information provided by Snowden.

Kucinich: “Everybody Lies To Congress; Abolish NSA, Celebrate Snowden”

Steve Watson | There should be a ‘death penalty’ for government agencies that betray the American people.

The Transgender Bathroom-Locker Room Question

Media Research Center | You are now permitted to shower and change in the girls’ locker room despite the fact that you may have male…ahem….parts.

TSA to Purchase 3.5 Million Rounds of Ammunition

Paul Joseph Watson | Enough for its agents to fire 9,4000 bullets a day, every day of the year.

Greenwald Partner Was Questioned SOLELY About What Guardian Was Publishing Next

Paul Joseph Watson | Despite being detained under the Terrorism Act, Miranda was not asked anything about terrorism.

Mass Drugging of US Troops an Underreported Scandal

Alex Jones & Paul Joseph Watson | Soldiers being forced to pop pills by exempt officer class.

Cholera Strain Introduced to Haiti by UN Still Killing People

The Atlantic | It is time for the organization to apologize and take responsibility for the consequences of its actions and its inaction.

BREMMER: The UK And US Are Likely Preparing To Indict Journalist Glenn Greenwald Over Snowden Leaks

Business Insider | Geo-political expert Ian Bremmer of the Eurasia Group has suggested that the motive is far more serious than intimidation.

Time Reporter Who Advocated Drone Strike on Assange Loves Big Brother

Paul Joseph Watson | ‘Big government helps protect our rights’.

Why The 2,776 NSA Violations Are No Big Deal

Ron Paul | They are routinely breaking their own rules and covering it up.

It’s Official: 2012 Deficit Was $1.087T; $1T+ All 4 Yrs of Obama’s 1st Term

CNS News | The Congressional Budget Office last week released updated historical budget data for the federal government, reporting a deficit of $1.087 trillion in fiscal 2012.

Commodities: Egyptian bloodbath threatens crucial routes for oil and gas supplies

London Telegraph | Egypt is a key bottleneck in the global oil industry. Should the current turmoil in the North African country get any worse, a potential oil spike could damage any nascent economic recovery.

Germany recognizes Bitcoin as ‘private money’

RT | Bitcoin has been recognized for legal and tax purposes in Germany, making it the first country to take an official stance on the status of using the online currency as money.

JPMorgan Is Selling The Building That Houses Its Gold Vault

Zero Hedge | On the surface, there is nothing spectacular about the weekend news that JPMorgan is seeking to sell its 1 Chase Manhattan Plaza office building.

JPMorgan Is Selling The Building That Houses Its Gold Vault Zero Hedge
August 19, 2013

On the surface, there is nothing spectacular about the weekend news that JPMorgan is seeking to sell its 1 Chase Manhattan Plaza office building. After all, the former headquarters of Chase Manhattan Bank, located deep in the heart of the financial district and which was built by its then chairman David Rockefeller, is a remnant to another time – a time when banking was about providing loans, not about managing and trading assets which has become the realm of Midtown New York, and since JPM already has extensive Midtown exposure with its offices at 270, 270 and 245 Park, the 1 CMP building always stood out as a bit of a sore thumb. Of course, as Zero Hedge readers first learned, the big surprise is literally below the surface, some 90 feet below street level to be exact, where the formerly secret JPM gold vault is located, which also happens to be the biggest commercial gold vault in the world.

It was only a month ago when we learned that JPM was planning to exit the physical commodity business, and today we know that the firm is set on disposing of its one crowning asset in the commercial gold vaulting industry. This begs the question: is JPM set to fully and completely exit the precious metals vertical which it inherited when it was handed Bear Stearns on a $10 platter (together with the now defunct firm’s legacy short positions)? If so, is it also in the process of unwinding any and all legacy precious metals exposure including rumored “whale-sized” shorts in the paper silver and/or gold axes, and what happens to the price of silver and gold when a massive stock position becomes “flow” in the other direction (i.e., short covering)?

Finally, if indeed JPM is getting out dodge, is there some hope that a semblance of normalcy will return to a market best known for the AM-PM closing fix arbitrage, as well as the occasional bid stack take out slam and close (and open) banging? Or, will the buyer of the building, and vault, be none other than the Federal Reserve, which will merely take this opportunity to merge its own, and the world’s largest commercial gold vaults, which just happen to be located next to each other and connected by tunnel deep below the ironically named Liberty Street?

Inquiring minds certainly want to know.

More from Bloomberg on the sale process:

JPMorgan Chase & Co. (JPM) is seeking to sell 1 Chase Manhattan Plaza, the lower Manhattan tower built by David Rockefeller in the late 1950s, as the company reduces its office space in the city.

The bank would relocate about 4,000 employees, most of the people who work in the 60-story skyscraper, to other New York locations, said Brian Marchiony, a spokesman. JPMorgan occupies about half of the space in 2.2 million-square-foot (204,000-square-meter) building, according to CoStar Group Inc. (CSGP), a Washington-based firm that follows office leasing.

The building may fetch at least $600 million, according to a person with knowledge of the offering. The cost to buyers would be higher because they would assume any conversion expenses, said the person, who asked not to be identified because the discussions are private.

An offering of the tower, a city landmark designed by architect Gordon Bunshaft, would test the downtown office market. Shrinking financial companies have left lower Manhattan landlords with at least 6.3 million square feet of space to fill, according to data from brokerage Newmark Knight Frank Grubb. The tower may achieve its highest value as a mixed-use property, with a hotel, additional retail or apartments added, said Dan Fasulo, managing director of Real Capital Analytics Inc., a New York-based research firm that tracks commercial real estate sales.

“You could do a department store in the base,” he said. “It’s a very exciting potential mixed-use opportunity, in my mind. I think the market will receive it very well.”

And the vault in the basement, “longer than a football field,” would become a restaurant or a paintball arena?

* * *

For those who missed it, here is the excerpt from the exclusive Zero Hedge expose shining some light on the world’s biggest and now supposedly almost empty, commercial gold vault.

From: Why Is JPMorgan’s Gold Vault, The Largest In The World, Located Next To The New York Fed’s?

Curiously (or perhaps not at all), when the CME on behalf of JPM submitted the certification filing alongside the comparable such supplements as filed by Brinks above, it requested a FOIA (Freedom of Information Act) confidential treatment. As a reminder, to be eligible for FOIA exemption status the protected information must be of vital importance to the nation’s safety. This is precisely what JPM thought the details surrounding its New York vault are. To wit:

Pursuant to Sections 8 and 8(a) of the Commodity Exchange Act (“CEA”), as amended, and Commission Regulation 145.9(d), NYMEX and COMEX request confidential treatment of Appendix A, Appendix B, and this letter on the grounds that disclosure of Appendix A and/or Appendix B would reveal confidential commercial information of the submitters (NYMEX and COMEX) and of other persons. Pursuant to Commission Regulation 145.9(d)(5), NYMEX and COMEX request that confidential treatment be maintained for Appendix A and Appendix B until further notice from the Exchanges. We also request that the Commission notify the undersigned immediately after receiving any FOIA request for said Appendix A, Appendix B or any other court order, subpoena or summons for same. Finally, we request that we be notified in the event the Commission intends to disclose such Appendix A and/or Appendix B to Congress or to any other governmental agency or unit pursuant to Section 8 of the CEA. NYMEX and COMEX do not waive their notification rights under Section 8(f) of the CEA with respect to any subpoena or summons for such Appendix A or Appendix B.

Please contact the undersigned at (212) 299-2207 should you have any questions concerning this letter.

Sincerely, /s/ Felix Khalatnikov

Yet oddly enough, the FOIA request letter itself, while also being filed with a request for Confidential Treatment, never got it. As a result it was posted at this address. Ooops.

But a far bigger oops, is that on the first page of said declassified confidential FOIA app, in black ink, we get the missing piece:

In addition, the Exchanges are providing the Commission with the application summary of requirements for the JP Morgan Chase Bank N.A. facility located at 1 Chase Manhattan Plaza, New York, NY.

And so, despite the extended attempts at secrecy, we finally hit the proverbial goldmine vault.

So what do we know about 1 Chase Manhattan Plaza. Well, aside from the fact that the 60-story structure, built in the 1950s, was the headquarters of the once-legendary Chase Manhattan corporation, and which when it was built was the world’s sixth tallest building, not much.

So we set off to learn more.

To learn more, we first went to the motherlode: the Landmarks Preservation Commission, whose report on 1 CMP describes everyone one wants to know about this building and then much more, such as that:

One Chase Manhattan Plaza combines three main components: a 60-story tower, a 2½ acre plaza, and a 6-story base, of which 5 floors are beneath grade.

So the old Chase HQ, once the stomping grounds of one David Rockefeller, and soon to be the other half of JPMorgan Chase, has 5 sub-basements, just like the NY Fed…

Reading on:

Excavations, said to be the largest in New York City history, reached a depth of 90 feet

Or, about the same depth as the bottom-most sub-basement under the NY Fed…

But then we hit the jackpot:

Originally constructed with white marble terrazzo paving and enclosed by a solid parapet of white marble travertine that was personally selected by Bunshaft in Tivoli, Italy, the L-shaped plaza levels the sloping site and conceals six floors of operations that would have been difficult to fit into a single floor of the tower, including an auditorium seating 800 [and] the world’s largest bank vault.

And there you have it: the JPM vault, recommissioned to become a commercial vault, just happens to also be the “world’s largest bank vault.”

Digging some more into the curious nature of this biggest bank vault in the world, we learn the following, courtesy of a freely available book written by one of the architects:

On the lowest level was the vault, which rested directly on the rock – the “largest bank vault in the world, longer than a football field.” It was anchored to the bedrock with steel rods. This was to prevent the watertight, concrete structure from floating to the surface like a huge bubble in the event that an atomic bomb falling in the bay would blow away the building and flood the area.

In other words, the world’s biggest bank vault, that belonging to the private Chase Manhattan empire, and then, to JPMorgan, was so safe, the creators even had a plan of action should it sustain a near-direct hit from a nuclear bomb, and suffer epic flooding (such as that from Hurricane Sandy).

It is no surprise, then, that the street entrance to this world’s biggest vault located under 1 Chase Manhattan Plaza makes the entrance to any medieval impregnable fortress seem like child’s play in comparison. Courtesy of Google StreetView:

Yet it is not what is on this side of the street, which just happens to be known as Liberty Street, that is what is the most interesting part of this whole story. It is what is on the other:

Or, shown another way…

That’s right, ladies and gentlemen, as a result of our cursory examination, we have learned that the world’s largest private, and commercial, gold vault, that belonging once upon a time to Chase Manhattan, and now to JPMorgan Chase, is located, right across the street, and at the same level underground, resting just on top of the Manhattan bedrock, as the vault belonging to the New York Federal Reserve, which according to folklore is the official location of the biggest collection of sovereign, public gold in the world.

At this point we would hate to be self-referential, and point out what one of our own commentators noted on the topic of the Fed’s vault a year ago, namely that:

Chase Plaza (now the Property of JPM) is linked to the facility via tunnel… I have seen it.  The elevators on the Chase side are incredible. They could lift a tank.

… but we won’t, and instead we will let readers make up their own mind why the the thousands of tons of sovereign gold in the possession of the New York Fed, have to be literally inches across, if not directly connected, to the largest private gold vault in the world.

We think readers can do a good enough job on their own.

Related posts:

1. Why Is JPMorgan’s Gold Vault, The Largest In The World, Located Next To The New York Fed?
2. JPMorgan Reopens New York Gold Vault, Concurrently Launches Vaulting Facility In Asia (In Desperate Bid For Physical?)
3. JPMorgan’s Eligible Gold Plummets 65% In 24 Hours To All Time Low
4. The Latest Gold Fraud Bombshell: Canada’s Only Bullion Bank Gold Vault Is Practically Empty
5. “Hello HSBC, This Is JPMorgan – We Urgently Need Some Of Your Gold”

This article was posted: Monday, August 19, 2013 at 4:46 am

You Won’t BELIEVE What’s Going On with Government Spying on Americans Posted by : George Washington Post date: 08/17/2013 - New Revelations Are Breaking Every Day

Revelations about the breathtaking scope of government spying are coming so fast that it’s time for an updated roundup:

Just weeks after NSA boss Alexander said that a review of NSA spying found not even one violation, the Washington Post published an internal NSA audit showing that the agency has broken its own rules thousands of times each year

2 Senators on the intelligence committee said the violations revealed in the Post article were just the “tip of the iceberg”

Glenn Greenwald notes:  “One key to the WashPost story: the reports are internal, NSA audits, which means high likelihood of both under-counting & white-washing”.(Even so, the White House tried to do damage control by retroactively changing on-the-record quotes)

The government is spying on essentially everything we do. It is not just “metadata” … although that is enough to destroy your privacy

The government has adopted a secret interpretation of the Patriot Act which allows it to pretend that “everything” is relevant … so it spies on everyone

NSA whistleblowers say that the NSA collects all of our conversations word-for-word

It’s not just the NSA … Many other agencies, like the FBI and IRS – concerned only with domestic issues – spy on Americans as well

The information gained through spying is shared with federal, state and local agencies, and they are using that information to prosecute petty crimes such as drugs and taxes.  The agencies are instructed to intentionally “launder” the information gained through spying, i.e. to pretend that they got the information in a more legitimate way … and to hide that from defense attorneys and judges

Top counter-terror experts say that the government’s mass spying doesn’t keep us safe 

Indeed, they say that mass spying actually hurts U.S. counter-terror efforts.

They say we can, instead, keep everyone safe without violating the Constitution … more cheaply and efficiently than the current system

There is no real oversight by Congress, the courts, or the executive branch of government. And see this and this.

Indeed, most Congress members have no idea what the NSA is doing.  Even staunch defenders of the NSA now say they’ve been kept in the dark

A Federal judge who was on the secret spying court for 3 years says that it’s a kangaroo court

Even the current judges on the secret spying court now admit that they’re out of the loop and powerless to exercise real oversight

A former U.S. president says that the spying program shows that we no longer have a functioning democracy

The chairs of the 9/11 Commission say that NSA spying has gone way too far

Top constitutional experts say that Obama and Bush are worse than Nixon … and the Stasi East Germans

While the government initially claimed that mass surveillance on Americans prevented more than 50 terror attacks, the NSA’s deputy director John Inglis walked that position back all the way to saying that – at the most – one (1) plot might have been disrupted by the bulk phone records collection alone.  In other words, the NSA can’t prove that stopped any terror attacks. The government greatly exaggerated an alleged recent terror plot for political purposes (and promoted the fearmongering of serial liars).  The argument that recent terror warnings show that NSA spying is necessary is so weak that American counter-terrorism experts have slammed it as “crazy pants”

Even President Obama admits that you’re much less likely to be killed by terrorists than a car accident.  So the government has resorted to lamer and lamer excuses to try to justify mass surveillance

Experts say that the spying program is illegal, and is exactly the kind of thing which King George imposed on the American colonists … which led to the Revolutionary War

The top counter-terrorism Czar under Clinton and Bush says that revealing NSA spying programs does not harm national security

The feds are considering prosecuting the owner of a private email company – who shut down his business rather than turning over records to the NSA – for refusing to fork over the information and keep quiet.  This is a little like trying to throw someone in jail because he’s died and is no longer paying taxes

Whistleblowers on illegal spying have no “legal” way to get the information out

There are indications that the government isn’t just passively gathering the information … but is actively using it for mischievous purposes

Spying started before 9/11 … and various excuses have been used to spy on Americans over the years

Governments and big corporations are doing everything they can to destroy anonymity

Mass spying creates an easy mark for hackers. Indeed, the Pentagon now sees the collection of “big data” as a “national security threat” … but the NSA is the biggest data collector on the planet, and thus provides a tempting mother lode of information for foreign hackers

Mass surveillance by the NSA directly harms internet companies, Silicon Valley, California … and the entire U.S. economy. And see these reports from Boingboing and the Guardian

IT and security professionals are quite concerned about government spying

Some people make a lot of money off of mass spying.  But the government isn’t using the spying program to stop the worst types of lawlessness

Polls show that the public doesn’t believe the NSA … and thinks that the government has gone way too far in the name of terrorism

While leaker Edward Snowden is treated as a traitor by the fatcats and elites, he is considered a hero by the American public

Congress members are getting an earful from their constituents about mass surveillance

The heads of the intelligence services have repeatedly been caught lying  about spying.  And even liberal publications are starting to say that Obama has been intentionally lying about spying

Only 11% of Americans trust Obama to actually do anything to rein in spying

A huge majority of Americans wants the director of intelligence – Clapper – prosecuted for perjury

While the Obama administration is spying on everyone in the country – it is at the same time the most secretive administration ever (background). That’s despite Obama saying he’s running the most transparent administration ever

A Congressman noted that – even if a mass surveillance program is started for good purposes – it will inevitably turn into a witch hunt

Surveillance can be used to frame you if someone in government happens to take a dislike to you

Government spying has always focused on crushing dissent … not on keeping us safe

An NSA whistleblower says that the NSA is spying on – and blackmailing – top government officials and military officers (and see this)

High-level US government officials have warned for 40 years that mass surveillance would lead to tyranny in America

A top NSA whistleblower says that the only way to fix things is to fire all of the corrupt government officials who let it happen.  As the polls above show, the American public is starting to wake up to that fact

NSA BouNDLeSS INFoRMaNT... Posted by: williambanzai7 Post date: 08/17/2013 - Customer Service Hotline...

NSA BouNDLeSS INFoRMaNT...

Submitted by williambanzai7 on 08/17/2013 14:00 -0400

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Regarding our tyranny trend

Elites have a message to send

The rights we hold dear

May soon disappear

Our lives are a means to an end

The Limerick King

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By:@blumaberlin

On Civil Disobedience and Whistleblowing

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Dana Boyd: http://www.zephoria.org/thoughts/archives/2013/07/19/edward-snowden-whis...

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WB7: Vichy Congress...What does an institution that can't even balance it's own fucking checkbook know about checks and balances?

Stock Market Crash Just Ahead?

Lew Rockwell.com | Central bank manipulation are fueling recessions.

New Evidence Princess Diana Was “Killed by a Member of the British Military” Being Investigated

Sky News | It was passed to the police by the parents-in-law of a former soldier.

NSA revelations of privacy breaches ‘the tip of the iceberg’ – Senate duo

London Guardian | Leading critics of NSA Ron Wyden and Mark Udall say ‘public deserves to know more about violations of secret court orders’.

Egyptian protester cut down in hail of gunfire after standing ground in front of enemy tank

NY Daily News | It was a scene straight out of Tiananmen Square.

VIDEO: 2 Men Rob Priests at Gunpoint in Front of Church... { Niggers, of course! ‘…BSO describes the suspects as two black males. One suspect is about 5’7” tall and approximately in his late 20s or early 30s. His accomplice is about 6’ tall, heavy-set and was wearing a black shirt with a white stripe…’ }

NSA broke privacy rules 'thousands of times'...

Funds New 'Top Secret' Data Lab...

NOONAN: What We Lose if We Give Up Privacy...

Dems Angry...

Scotland Yard examines new information on death of Princess Diana...

Scotland Yard examines new information on death of Diana, Princess of Wales

Scotland Yard has launched an investigation into new claims that Diana, Princess of Wales was murdered by a member of the British military.

Princess Diana, Nigeria, 1990. Photo: REX FEATURES

By David Barrett, Home Affairs Correspondent

6:10PM BST 17 Aug 2013

It said last night that it had asked specialist detectives to examine new allegations and evidence passed to it “recently”. The move was approved by Sir Bernard Hogan-Howe, its most senior officer.

The claims were given to the force by the Royal Military Police, after surfacing during the trial of Sgt Danny Nightingale, the SAS sniper convicted of illegal weapons possession.

The dossier is said to include a claim that the SAS “was behind Princess Diana’s death”. Scotland Yard declined to confirm the content or origin of the material.

Officers from the specialist crime and operations command will carry out a “scoping” exercise to assess if a full-scale investigation is justified into whether the Princess, her boyfriend Dodi Fayed and driver Henri Paul were murdered.

Last night’s disclosure comes in spite of the inquest into the death of the Princess and Mr Fayed dismissing any claims of murder made by Mohammed Fayed, Dodi’s father, and conspiracy theorists.

Related Articles

BBC man calls for answers over Diana's death

16 Aug 2013

Naomi Watts: 'I was very nervous about Princess Diana's accent'

13 Aug 2013

Mohamed Fayed will not challenge Princess Diana inquest verdict

09 Apr 2008

Key events surrounding deaths Diana, Princess of Wales and Dodi Fayed

17 Aug 2013

Since then murder claims have continued to be made but have never been looked into by British police – making last night’s move unprecedented.

The decision to examine the new claims suggests that officers believe they must be looked at by detectives to assess whether they have any weight.

However they come from the estranged parents-in-law of “Soldier N”, an SAS soldier who was a key witness in the successful prosecution of Sgt Nightingale. He was himself convicted of illegal weapons possession.

His estranged wife’s parents wrote to the SAS’s commanding officer claiming the soldier had told his wife that the unit had “arranged” the Princess’s death and that this had been “covered up”.

The source of the claims will inevitably raise questions over their credibility, and why Scotland Yard acted.

Scotland Yard emphasised last night that it was not reopening the previous investigation into the deaths, Operation Paget, and highlighted the verdict of the inquest held after that inquiry was completed.

Officers will have to assess whether the information has not been investigated previously and can potentially shed new light on the deaths.

The development comes ahead of next week’s 16th anniversary of the Princess’s death as a result of injuries she suffered when the Mercedes in which she was travelling crashed in a tunnel in Paris.

A spokesman said: “The Metropolitan Police Service is scoping information that has recently been received in relation to the deaths and assessing its relevance and credibility.

"The assessment will be carried out by officers from the specialist crime and operations command. This is not a reinvestigation and does not come under Operation Paget.

“On April 7, 2008, the [inquest] jury concluded their verdict as 'unlawful killing, grossly negligent driving of the following vehicles and of the Mercedes’.”

Detectives are understood to have contacted the former soldier’s estranged wife.

A royal spokesman said there would be no comment from the Duke of Cambridge, Prince Harry or Clarence House.

A spokesman for Mr Fayed said he would be “interested in seeing the outcome”.

The jury at the inquest returned a majority verdict in April 2008, which indicated that paparazzi photographers who pursued the Princess were to blame for her “unlawful killing”.

Mr Paul was also culpable for her death due to his “gross negligence” in driving while three times over the drink-drive limit, the jury found.

An earlier French police investigation cleared the photographers of being directly linked to the tragedy.

19 Shocking Examples Of How Political Correctness Is Destroying America

If you say the “wrong thing” in America today, you could be penalized, fired or even taken to court.  Political correctness is running rampant, and it is absolutely destroying this nation.  In his novel 1984, George Orwell imagined a future world where speech was greatly restricted.  He called that the language that the totalitarian state in his novel created “Newspeak”, and it bears a striking resemblance to the political correctness that we see in America right now.  According to Wikipedia, Newspeak is “a reduced language created by the totalitarian state as a tool to limit free thought, and concepts that pose a threat to the regime such as freedom, self-expression, individuality, peace, etc. Any form of thought alternative to the party’s construct is classified as ‘thoughtcrime.’”  Yes, people are not usually being hauled off to prison for what they are saying just yet, but we are heading down that path.  Every single day, the mainstream media in the United States bombards us with subtle messages about what we should believe and what “appropriate speech” consists of.  Most of the time, most Americans quietly fall in line with this unwritten speech code.  In fact, most of the time we enforce this unwritten speech code among each other.  Those that would dare to buck the system are finding out that the consequences can be rather severe.  The following are 19 shocking examples of how political correctness is destroying America… (Read More.....) #1 The Missouri State Fair has permanently banned a rodeo clown from performing just because he wore an Obama mask, and now all of the other rodeo clowns are being required to take “sensitivity training“…

But the state commission went further, saying it will require that before the Rodeo Cowboy Association can take part in any future state fair, “they must provide evidence to the director of the Missouri State Fair that they have proof that all officials and subcontractors of the MRCA have successfully participated in sensitivity training.”

#2 Government workers in Seattle have been told that they should no longer use the words “citizen” and “brown bag” because they are potentially offensive.

#3 A Florida police officer recently lost his job for calling Trayvon Martin a “thug” on Facebook.

#4 “Climate change deniers” are definitely not wanted at the U.S. Department of the Interior.  Interior Secretary Sally Jewell was recently quoted as making the following statement: “I hope there are no climate-change deniers in the Department of Interior”.

#5 A professor at Ball State University was recently banned from even mentioning the concept of intelligent design because it would supposedly “violate the academic integrity” of the course that he was teaching.

#6 The mayor of Washington D.C. recently asked singer Donnie McClurkin not to attend his own concert because of his views on homosexuality.

#7 U.S. Senator Chuck Schumer is calling on athletes marching in the opening ceremonies at the Winter Olympics in Sochi next year to “embarrass” Russian President Vladimir Putin by protesting for gay rights.

#8 Chaplains in the U.S. military are being forced to perform gay marriages, even if it goes against their personal religious beliefs.  The few chaplains that have refused to follow orders know that it means the end of their careers.

#9 The governor of California has signed a bill into law which will allow transgendered students to use whatever bathrooms and gym facilities that they would like…

Transgendered students in California will now have the right to use whichever bathrooms they prefer and join either the boys’ or girls’ sports teams, thanks to landmark legislation signed by Democratic Gov. Jerry Brown on Monday.

The law amends the state’s education code, and stipulates that each student will have access to facilities, sports teams, and programs that are “consistent with his or her gender identity,” rather than the student’s actual biological composition. A male student who self-identifies as female could therefore use the girls’ bathroom, even if he is anatomically male.

#10 In San Francisco, authorities have installed small plastic “privacy screens” on library computers so that perverts can continue to exercise their “right” to watch pornography at the library without children being directly exposed to it.

#11 In America today, there are many groups that are absolutely obsessed with eradicating every mention of God out of the public sphere.  For example, an elementary school in North Carolina ordered a little six-year-old girl to remove the word “God” from a poem that she wrote to honor her two grandfathers that had served in the Vietnam War.

#12 A high school track team was disqualified earlier this year because one of the runners “made a gesture thanking God” once he had crossed the finish line.

#13 Earlier this year, a Florida Atlantic University student that refused to stomp on the name of Jesus was banned from class.

#14 A student at Sonoma State University was ordered to take off a cross that she was wearing because someone “could be offended“.

#15 A teacher in New Jersey was fired for giving his own Bible to a student that did not own one.

#16 Volunteer chaplains for the Charlotte-Mecklenburg Police Department have been banned from using the name of Jesus on government property.

#17 According to a new Army manual, U.S. soldiers will now be instructed to avoid “any criticism of pedophilia” and to avoid criticizing “anything related to Islam”.  The following is from a Judicial Watch article…

The draft leaked to the newspaper offers a list of “taboo conversation topics” that soldiers should avoid, including “making derogatory comments about the Taliban,” “advocating women’s rights,” “any criticism of pedophilia,” “directing any criticism towards Afghans,” “mentioning homosexuality and homosexual conduct” or “anything related to Islam.”

#18 The Obama administration has banned all U.S. government agencies from producing any training materials that link Islam with terrorism.  In fact, the FBI has gone back and purged references to Islam and terrorism from hundreds of old documents.

#19 According to the Equal Employment Opportunity Commission, it is illegal for employers to discriminate against criminals because it has a “disproportionate” impact on minorities.

It would be hard to overstate the power that all of this relentless “thought training” has on all of us.  And young people are particularly susceptible to the power of suggestion.  If you doubt this, just check out this video of a little boy praying to Barack Obama as if he was a deity…

It would be a huge mistake to underestimate the power of the mainstream media in America today.  As I mentioned the other day, Americans watch an average of about 153 hours of television a month.  When Americans go to work or go to school, the conversations that they have with others are mostly based on content that the media feeds them.  And about 90 percent of what we watch on television is controlled by just six gigantic corporations.

But the media is not the only source that is telling us what to think.  The truth is that the messaging that comes from all of our major institutions (the government, the media, the education system, etc.) is remarkably consistent.  The establishment wants to control what we say and how we think, and they have a relentless propaganda machine that never stops working.

The way that we all see the world has been greatly shaped by the thousands of hours of  “thought training” that we have all received over the years.  Understanding what is being done to us is the first step toward breaking free.

FRiDaY BioLoGY: KeYNeSiAN MoNKeY BuSiNeSS... Posted by: williambanzai7 Post date: 08/16/2013 - One that has the same eating, drinking and shitting habits as the other two, only much much much bigger...

Cisco CEO Chambers' Warning: Record Sales And “Lumpy” Demand (Just Like In November 2007, A Month Before Stocks Began To Crash) Posted by : testosteronepit Post date: 08/16/2013 - But this time it’s different

Snowden Revelations and NSA Posted by: Pivotfarm Post date: 08/16/2013 - Obama must be fuming like a pile of something in the pristine Oval Office today as he hears of the latest Edward-Snowden revelations. Follow ZeroHedge in Real-Time on FinancialJuice

Obama must be fuming like a pile of something in the pristine Oval Office today as he hears of the latest Edward-Snowden revelations. You can just imagine him sitting there saying to an imaginary spy behind the door of Russia something that would go like: “Come out and take it, you dirty, yellow-bellied rat, or I'll give it to you through the door!", a true Cagney tough guy (although the line is misquoted half the time by poor rate actors and imitators). No offence Mr. President. But anyhow, the scene would be perfect Hollywood action, and I’m sure a movie will hit the screens before the year is out. Maybe we could turn the whole world on its head and rather than having an actor that turns President of the US, we could have a President turn actor in Hollywood: “…and starring B. Obama in his very own role”.

The Snowden affair looks as if it will be keeping us interested for months to come as new revelations are made that he actually started downloading secret documents while he was working at Dell Inc. as far back as April 2012, which is a year prior to the date that he had officially announced. Although, one might well question the truth that comes from anyone these days. Is it true? Is it a lie? Is it what he did or is it what some would like to make us believe? Will the fact that he lied discredit him? Will the fact that he downloaded secret documents while working for Dell discredit the good that he might have been seen to do blowing the whistle on the state surveillance? There are too many subsidiary parameters and not enough calculations being made and the result is an unknown equation that even the best couldn’t fathom out right now.

It was in 2009 that Edward Snowden began working for Dell Inc. His contract ran until earlier this year, when he was transferred and assigned to the National Security Agency as a contractor in March, in the United States and also in Japan.

The information was revealed by an anonymous source that only spoke on that proviso. It was stated that while working at Dell Inc. Snowden downloaded information regarding the National Security Agency, the eavesdroppingand surveillance programs that they were running and left an electronic footprint after having accessed the files. He also downloaded information regarding fiber-optic cables, transoceanic cables and statistics regarding internet traffic and also related to communication over the internet.

The US government has announced ‘special measures’ that will be taken to stop unauthorized people from downloading documents to which they would normally have no access. What? You mean, Mr. President that that wasn’t done before? There seem to have been a whole string of events that have enabled Snowden to end up where he is today. But, they seem far too unlikely for them all to have happened in a chain that went off in reaction. Imagine the scenario: Snowden is employed by Dell, downloads documents, gets hired by the contractor to the NSA and accesses top-secret material without any vetting having taken place and no surveillance. Nice, but unlikely; or revealing of the failings of the NSA.

According to Reuters, Snowden seems to have written in 2010 on an internet forum called Ars Technica under the name ‘The True HooHA’. He wrote: “It really concerns me how little this sort of corporate behavior bothers those outside of technology circles” (regarding the technology companies and IT firms that provided the US government with information and allowed departments to access private data of individuals). He went on to state: “Society really seems to have developed an unquestioning obedience towards spooky types”.

Apparently, few have delved into Snowden’s stint at Dell Inc. and most concentration and focus has been on the contractor for whom Snowden was working while he was at the NSA: Booz Allen Hamilton Holding Corp. Although, perhaps if the NSA were spending less time listening into our own boring and anecdotal communications via Skype,Google and Facebook, they might be able to concentrate on the really good stuff. I think we should all sit down and apply the Tinkerbell Effect. Things only exist if we believe that they do, like the Fiat system and the value of money. It only has a value because we allow it to have, because we believe that it is valuable. If we all stop believing that the NSA is powerful, then they won’t exist anymore. Fairy magic! I can see the pixies running from the NSA right now.

NSA

We commonly call Snowden a whistleblower. But, was he really one? It seems doubtful since legally the definition of a whistleblower is one that reveals actions that are illegal by a body or a state and that are provided to the public. What Snowden did was reveal what was legally made possible by the US state in the name of security and in the fight against terrorism. He revealed nothing that was being done illegally by the country, only what was unknown by the public, but legal. Whistleblowing reveals corruption, wrong-doing, mismanagement and illegality. Snowden is no whistleblower.

But in the light of revelations also about the fact that the NSA kept hold of telephone conversations of 3, 000 US citizens from February 2012 (despite being ordered to destroy them) means that we have more information still to come on the NSA. Information that has been released shows today that the NSA audit mentions that there were 2, 776 violations of the code of conduct of the NSA. For example, if you dialed 020 for the US area code the computer system picked it up as +20 or the international dialing code for Egypt and your calls became immediately logged and recorded.

What was the objective of the revelation and what will be the effect on people today with regard to Edward Snowden? Does this mean that we shall see Snowden as a scheming ‘dirty rat’? Did he plan this long before and get taken on at the NSA in that objective? Or is that what some would have us believe? If it were true for one moment, then the first question that springs to mind is: why did the National Security Agency not manage to carry out adequate surveillance on Edward Snowden? The Prism program was listening in to everyone in the world and his wife. One thing is certain Edward Snowden has created a ‘true HooHA’.

But, was it impossible for the eavesdroppers to get hold of what Snowden was looking for? Rather dubious? Unquestioning obedience to spooky types!

Radioactive Water Leaking From Fukushima: Why Millions Of Lives Are At Stake

Submitted by Tyler Durden on 08/17/2013 - 17:44

In lieu of the Japanese government doing the right thing and finally coming clean about the epic environmental catastrophe that is Fukushima, which it hopes to simply dig under the rug even as the inconvenient reality gets worse and thousands of tons of radioactive water make their way into the ocean, one is forced to rely on third-party sources for information on this tragedy. We present a useful primer from Scientific American on Fukushima "water retention" problem and "what you need to know about the radioactive water leaking from Japan’s Fukushima nuclear plant into the Pacific Ocean."

Internet Traffic Plunges By 40% As Google Goes Dark For Five Minutes

Submitted by Tyler Durden on 08/17/2013 - 16:25

Want to throw the world into sheer panic and outright chaos? Then just take out Google. At least that is what a brief five minute outage of the world's favorite search engine on Friday night shows, when after all of Google's services were hit with unprecedented downtime from 3:52 pm until 3:57 pm Pacific Dauylight Time, some 40% of global internet traffic was lobbed off. According to Topsy analytics, tweets per minute skyrocketed around the point that Google went black, from an average of 200 tweets per minute about Google to more than 1,000. "For five freakin' minutes!" one Twitter user complained. Another wrote, "Google was down for five minutes… Is it a sign that the END OF THE WORLD has started?"

Hyperwhoops: California's "Other" Bullet Train Project On Verge Of Crashing And Burning

Submitted by Tyler Durden on 08/17/2013 - 14:52

There was so much excitement generated last week over Elon Musk's hyperloop idea, that the world almost forgot that California already has a high-speed rail project in place. A very, very expensive project. And the problem with that particular $68 billion project, which is just as unrealistic, just as unprofitable, and just as hyper-pipedreamy, is that as the SacBee reports, is that it is on the verge of being shut down now that over 5 years since its launch someone actually did the math and found out that, oops, there is no money!

Michael Pettis On China's Urbanization Fallacy

Submitted by Tyler Durden on 08/17/2013 - 13:53

The latest default bull argument supporting higher levels of growth in China than I believe possible is the urbanization argument. Beijing is planning another major urbanization push, and according to this argument China can resolve the problem of wasted investment by investing in the urbanization process, that is it can engage in a massive investment program related to the need to build infrastructure for all the newly urbanized. Like so many of the earlier bull arguments, however, this new belief that urbanization is the answer to China’s growth slowdown is based on at least one fallacy and probably more - urbanization accommodates, it doesn‘t cause, growth. It is not the act of building all this stuff that creates wealth or real, long-term growth. It is only if building the stuff caused overall productivity to rise by more than the cost of capital and labor employed in building it that a society gets richer.

What Corporations Spend Their Cash On

Submitted by Tyler Durden on 08/17/2013 - 12:28

While bullish talking heads are quick to point out that corporate earnings have never been higher, they tend to get very quiet the second corporate cash flow generation is mentioned. The reason is simple: where non-GAAP earnings, much of which are vaporware such as exclusions and other adjustment involving addbacks for "non-recurring" events such as Cisco's now annual mass termination announcement are indeed at nosebleed levels, actual corporate cash generation is a shadow if its former self which peaked in 2007 and has never been retraced. The problem is that since corporations generate less cash, they also spend less cash. As the following chart confirms, corporate capital use which peaked at a little over $1.8 trillion in 2007 has yet to be surpassed.

Why Stock Prices Are More Stretched Than You Think: A Tale Of 3 P/E Multiples

Submitted by Tyler Durden on 08/17/2013 - 11:16

The price-to-trend-earnings multiples also raise questions about the Federal Reserve’s long campaign to prop up asset prices through unconventional policies. The “wealth effects” sought by the Fed are mostly bringing forward gains that would have otherwise occurred in the future. They’re weakening tomorrow’s growth in return for a shot in the arm today. Of course, policymakers would like you to believe their actions are stabilizing. But the last two decades suggest otherwise. And the chart above reinforces the risk that we’re stuck in a Groundhog Day-like loop of living through the same boom-bust cycle over and over. It shows that the next policy-induced bust may be gradually coming into view.

Egypt Security Forces Fire On Mosque To End Siege

Submitted by Tyler Durden on 08/17/2013 - 10:29

Overnight the (pre) civil war in Egypt took a turn for the worse when the local military conducted the political and religious equivalent of shooting inside a hornets' nest, or rather at the al-Fatah mosque off Ramses square, where up to a 1000 Muslim Brotherhood supporters of the deposed president had been barricaded. Subsequently,  security forces rounded up protesters inside and forcefully dragged them out. As the Telegraph videos below suggest, the sound of gunfire could be heard in the background. Egypt's official news agency MENA reported that gunmen opened fire on security forces from the mosque's minaret. Local television stations broadcast live footage of soldiers firing assault rifles at the minaret. It goes without saying that firing on religious protesters inside a sanctum of a mosque will hardly derail the country's flaming train ride straight into civil war, but it also begs the question: why is Egypt so intent on culminating with a civil war, split along religious lines, that will be the bloodiest in decades, involve over 80 million people and is sure to lead to unprecedented death and destruction. Cui bono, aside from the Fed's balance sheet, of course?

Gold Or Tungsten? Here's How To Know

Submitted by Tyler Durden on 08/16/2013 - 20:18

We hope the Bundesbank, and certainly the German people, will be using one of these in the near-term (up to and including 2020) future.

The Only 'Chart' That Main Street Cares About

Submitted by Tyler Durden on 08/16/2013 - 18:56

Presented with little comment aside to note that while every night we are told by how much the Dow closed green, many await the day the chart below flashes anything but red.

Friday Humor: The New Normal Miranda Rights

Submitted by Tyler Durden on 08/16/2013 - 18:41

We can waste readers' time with the latest revelations about the NSA's espionage activities against Americans, highlighted fully in the following WaPo article "NSA broke privacy rules thousands of times per year, audit finds" whose title is sufficiently self-explanatory about how seriously the administration takes individual privacy, or we can just showcase the following cartoon which shows how the Miranda rights have been 'adjusted' for the New Normal...

Mursi Supporters Jump Off Bridge To Avoid Being Shot

Submitted by Tyler Durden on 08/16/2013 - 18:19

Real or fake, you decide (and there are ample reasons to consider doctored imagery). For Reuters it was definitive enough to go straight to the front page.

China's "Childish" Bond Market Crosses Tipping Point

Submitted by Tyler Durden on 08/16/2013 - 17:59

That China faces a number of serious economic (and potentially social) problems is no surprise and as Guggenheim's Scott Minerd notes, trying to predict when persistent structural problems will lead to a shock for markets is extremely difficult (as we noted here). However, from a symbiotic collapse in the previously 'virtuous' bond-market-to-banking-system relationship, to the drying up of easy credit for all but the largest (and least over-capacity) firms, it appears that China's private sector leverage has crossed the tipping point that signalled crises in the US, UK, Japan and South Korea. Although the recent data (believe it or not) show signs of a stabilization in the Chinese economy, the elevated debt burden should continue to cast doubt over its growth sustainability and the "childish" and non-transparent nature of China's bond market offers little or no hope for a free market solution.

Why Isn't There A Demonstrably Correct Economic Theory?

Submitted by Tyler Durden on 08/16/2013 - 16:51

After 2000 years, why do we not know which economic theory is correct: Keynesian, Marxism, or Hayek-Friedman? Surely, there is a demonstrably, statistically correct answer. It appears not. Then why do we have cargo-cult faiths (Keynesianism) instead of demonstrably correct models of economic behavior.

No Joy In Hilsenratville: Stocks Have Worst Week Of 2013 With Bonds Massacred; Precious Metals Soar

Submitted by Tyler Durden on 08/16/2013 - 16:19

The Hilsenrumor turned out to be a Hilsenstocktease, and with a closing that will leave many wondering "why hast he forsaken us" and ES going into the weekend at the lows, stocks end their worst week since November.

Hilsenrumor Strikes To Offset Damage From Gross Tweet

Submitted by Tyler Durden on 08/16/2013 - 15:23

Just in case there is still some confusion about what passes for a "catalyst" in this market, moments ago just as the 10 Year was threatening to run away on its unmerry way to 3.00% and higher in the aftermath of the fatalistic tweet by Bill Gross, there promptly emerged, since it is 3pm on a Friday after all, a rumor that Hilsenrath was about to hit public on the latest NYFed plant handed to him in order to stabilize the market. Not in itself surprising: we have seen it a million times in the past, the only difference is that this time the target of the WSJ "intervention" would be the bond market, not stocks. Which is the saddest thing: while idiot stocks traditionally move on the dumbest of triggers, at least bonds had been immune from such stupidity. To see even the bond market succumb to the lowest of rumormonerging, is indeed a slap in the face.

Video Shows Fake Muslim Brotherhood “Protesters” Staging Deaths & Injuries

Infowars | A video shows Muslim Brotherhood protesters posing for a staged photo-op in which deaths and injuries are hoaxed.

New Evidence Princess Diana Was “Killed by a Member of the British Military” Being Investigated

Sky News | It was passed to the police by the parents-in-law of a former soldier.

Nanny Bloomberg Wants to Fingerprint More Than a Half Million New Yorkers

Kurt Nimmo | Many residents ready to send legendary control freak packing.

You Won’t BELIEVE What’s Going On with Government Spying on Americans

Washington’s Blog | New revelations are breaking every day.

NSA revelations of privacy breaches ‘the tip of the iceberg’ – Senate duo

London Guardian | Leading critics of NSA Ron Wyden and Mark Udall say ‘public deserves to know more about violations of secret court orders’.

Egyptian protester cut down in hail of gunfire after standing ground in front of enemy tank

NY Daily News | It was a scene straight out of Tiananmen Square.

Mursi Supporters Jump Off Bridge To Avoid Being Shot

Zero Hedge | Real or fake, you decide (and there are ample reasons to consider doctored imagery).

What Is Going To Happen If Interest Rates Continue To Rise Rapidly?

Michael Snyder | If you want to track how close we are to the next financial collapse, there is one number that you need to be watching above all others.

What Is Going To Happen If Interest Rates Continue To Rise Rapidly?

If you want to track how close we are to the next financial collapse, there is one number that you need to be watching above all others.  The number that I am talking about is the yield on 10 year U.S. Treasuries, because it affects thousands of other interest rates in our financial system.  When the yield on 10 year U.S. Treasuries goes up, that is bad for the U.S. economy because it pushes long-term interest rates up.  When interest rates rise, it constricts the flow of credit, and a healthy flow of credit is absolutely essential to the debt-based system that we live in.  Just imagine someone squeezing a tube that has water flowing through it.  The higher interest rates go, the more economic activity will be squeezed.  If interest rates continue to rise rapidly, it will be more expensive for the U.S. government to borrow money, it will be more expensive for state and local governments to borrow money, the housing market may crash again, consumer debt will become more expensive, junk bond investors will be in for a world of hurt, the stock market will experience a tremendous amount of pain and there is a good chance that we could see the 441 trillion dollar interest rate derivatives bubble implode.  And that is just for starters. (Read More....)

Egypt Is Descending Into Civil War, But Don’t Expect Obama To Cancel His Golf Vacation

The largest Islamic nation in the Middle East is on the verge of descending into civil war, the Syrian civil war is starting to spill over into Lebanon, and the worst violence in five years has just hit Iraq, but Barack Obama is way too busy to be bothered with any of that.  Right now, Obama is enjoying one of the true loves of his life - golf.  According to the Washington Post, Obama has "played 18 holes of golf every day but one this week", and without a doubt he appears to really be enjoying his time up in Martha's Vineyard.  I hear that it is absolutely beautiful up there this time of the year.  And apparently he needs the rest.  After all, prior to this vacation he has only had time to play 133 rounds of golf since becoming president.  Between snubbing world leaders and getting the U.S. economy going again, it must be really tough for Obama to find enough time to sharpen his game. (Read More....)

Christie Will Ease Kids' Access to Pot With Doctor Notes...
Armed vigilantes and police clash with Muslim Brotherhood in Cairo...
'Urban Warfare'...
At least 60 dead in new clashes...
Tourism faces meltdown...
Saudi king calls on Arabs to stand with Egypt...
Military promises to rebuild churches...

NSA broke privacy rules 'thousands of times'...
... Funds New 'Top Secret' Data Lab
NOONAN: What We Lose if We Give Up Privacy...

Head of MO NAACP Calls Clown Mask 'Hate Crime'...
FLASHBACK: Obama wore Obama mask on 'Saturday Night Live'...
NAACP ripped for demanding federal probe...

NAACP attacks Dartmouth students for throwing 'Crips and Bloods' frat party...

The Dartmouth College chapter of the National Association for the Advancement of Colored People (NAACP) harshly criticized a “Bloods and Crips” themed-party, despite apologies from the sorority and fraternity that hosted the event earlier this summer.

A fraternity and sorority at Dartmouth College have come under fire for hosting a Bloods-Crips themed party.

The strongly worded letter, penned by the NAACP chapter on campus, and signed by the Afro-American Society and the Dartmouth Chapter of the and Women of Color Collective, accuses the mostly white students of hosting a “racist” event thinly veiled by the South Los Angeles gangland theme.

“Our peers mingled for hours while dressed as bloods or Crips while using racialized language,” accused the letter, circulated on campus. “It then turned into a ‘ghetto party’ with racialized language, speech and dress. Over 200 individuals attended this racist and classist event.”

The letter went on to urge students to report the event to the Dartmouth administration “as a bias incident” using an included hyperlink.

"We are asking everyone to flood the bias incident account with our call for justice, right now,” reads the email. “[O]rganizations across campus will be mobilizing for further steps. Reporting with the above link is our first step toward meaningful changes.”

That link leads to the college’s bias incident reporting page which promises to direct all complaints to the the Office of Pluralism and Leadership, and the office of Safety and Security.

According to a popular Dartmouth blog, the Dartblog, however, the NAACP’s letter came after apology letters from both the sorority and fraternity that hosted the event.

“The idea was never meant to be derogatory to any group, and was intended to introduce a costume theme to the party,” wrote the fraternity, Alpha Delta. We “now realize that it was insensitive and thoughtless to make light of a very serious issue.”

The Tri Delta sorority also emailed an apology to Dartblog pledging to “continue to educate our members regarding cultural sensitivity and awareness.”

The NAACP did not not acknowledge either apology in its letter, but demanded that Dartmouth administrators take action against those who had planned the party.

“The College has yet to deliver consequences to the aforementioned organizations, so we have to declare their lack of response as not only unacceptable but as disregard for our experiences,” read the letter.

Neither Dartmouth College, the NAACP, or Alpha Delta returned Campus Reform’s requests for comment.

Administrators at the school, however, released a statement suggesting an investigation has been launched into the incident.

“Dartmouth is continuing to gather information about the scope and nature of the event and will follow its standard process to review and determine whether any violations of College policy have occurred,” it said, according to the Huffington Post.

Follow the author of this article on Twitter: @kctimpf

The Only 'Chart' That Main Street Cares About

Submitted by Tyler Durden on 08/16/2013 - 18:56

Presented with little comment aside to note that while every night we are told by how much the Dow closed green, many await the day the chart below flashes anything but red.

Mursi Supporters Jump From Bridge To Avoid Being Shot

Submitted by Tyler Durden on 08/16/2013 - 18:19

Real or fake, you decide (and there are ample reasons to consider doctored imagery). For Reuters it was definitive enough to go straight to the front page.

China's "Childish" Bond Market Crosses Tipping Point

Submitted by Tyler Durden on 08/16/2013 - 17:59

That China faces a number of serious economic (and potentially social) problems is no surprise and as Guggenheim's Scott Minerd notes, trying to predict when persistent structural problems will lead to a shock for markets is extremely difficult (as we noted here). However, from a symbiotic collapse in the previously 'virtuous' bond-market-to-banking-system relationship, to the drying up of easy credit for all but the largest (and least over-capacity) firms, it appears that China's private sector leverage has crossed the tipping point that signalled crises in the US, UK, Japan and South Korea. Although the recent data (believe it or not) show signs of a stabilization in the Chinese economy, the elevated debt burden should continue to cast doubt over its growth sustainability and the "childish" and non-transparent nature of China's bond market offers little or no hope for a free market solution.

Why Isn't There A Demonstrably Correct Economic Theory?

Submitted by Tyler Durden on 08/16/2013 - 16:51

After 2000 years, why do we not know which economic theory is correct: Keynesian, Marxism, or Hayek-Friedman? Surely, there is a demonstrably, statistically correct answer. It appears not. Then why do we have cargo-cult faiths (Keynesianism) instead of demonstrably correct models of economic behavior.

No Joy In Hilsenratville: Stocks Have Worst Week Of 2013 With Bonds Massacred; Precious Metals Soar

Submitted by Tyler Durden on 08/16/2013 - 16:19

The Hilsenrumor turned out to be a Hilsenstocktease, and with a closing that will leave many wondering "why hast he forsaken us" and ES going into the weekend at the lows, stocks end their worst week since November.

Friday Humor: The New Normal Miranda Rights

Submitted by Tyler Durden on 08/16/2013 - 15:51

We can waste readers' time with the latest revelations about the NSA's espionage activities against Americans, highlighted fully in the following WaPo article "NSA broke privacy rules thousands of times per year, audit finds" whose title is sufficiently self-explanatory about how seriously the administration takes individual privacy, or we can just showcase the following cartoon which shows how the Miranda rights have been 'adjusted' for the New Normal...

Hilsenrumor Strikes To Offset Damage From Gross Tweet

Submitted by Tyler Durden on 08/16/2013 - 15:23

Just in case there is still some confusion about what passes for a "catalyst" in this market, moments ago just as the 10 Year was threatening to run away on its unmerry way to 3.00% and higher in the aftermath of the fatalistic tweet by Bill Gross, there promptly emerged, since it is 3pm on a Friday after all, a rumor that Hilsenrath was about to hit public on the latest NYFed plant handed to him in order to stabilize the market. Not in itself surprising: we have seen it a million times in the past, the only difference is that this time the target of the WSJ "intervention" would be the bond market, not stocks. Which is the saddest thing: while idiot stocks traditionally move on the dumbest of triggers, at least bonds had been immune from such stupidity. To see even the bond market succumb to the lowest of rumormonerging, is indeed a slap in the face.

"It’s The Law"

Submitted by Tyler Durden on 08/16/2013 - 15:06

John Adams famously described the American government as being “of laws and not men.” The managerial state has wiped clean that wisdom in favor of countless and arbitrary dictates enforced by worthless bodies. The narcolepsy-inducing USA Today recently reported the Federal Bureau of Investigation granted informants immunity to break government law in certain circumstances. Newly disclosed documents reveal that thousands of so-dubbed “crimes” were committed in 2011 by the FBI’s pet players. The misdeeds include drug trafficking, plotting robberies, and bribery. Last year, the New York Times published a damning report on how the good-natured agents of Washington’s infamous law investigator work tirelessly at foiling terrorist plots they go to great lengths at concocting. These faux plots of destruction are used to beef up the reputation of the agency so as to solidify its monopoly of police power.  The selective enforcement of law negates the very purpose of social order. How can there be a universally recognized limits to mankind’s behavior if a minority are permitted to disregard governing laws? The result is a contradiction – either the law applies everywhere or it does not.

What A Difference A Decade Makes

Submitted by Tyler Durden on 08/16/2013 - 14:26

With the latest hope-mongering rumor du jour that the beleaguered handheld device maker Blackberry will be LBO'd (or seek 'strategic partnerships'), we couldn't help but recall the proceedings of the previous decades' best known handheld device maker - Palm. As Needham's Charlie Wolf warns, "I saw what happened with Palm 3 years ago [HP's take-under] - the stories are very similar," as it appears the patents are what counts for BBRY.

Larry Summers' Fed Chair Odds Surge Again, Cross 70%; Yellen In The Dust

Submitted by Tyler Durden on 08/16/2013 - 14:02

Guess what comes next in the numbered sequence: 30.0%, 60.0%, 66.666%? If you said 71.4%, or 2/5, which just happens to be Larry Summers' latest Fed Chairmanship odds according to Paddy Power, you are correct. Janet Yellen, who was once a 1/3 favorite has now plunged to just 7/4 or about 30% odds. And while Bill Gross' tweet certainly moved the market, perhaps a far greater concern to longs everywhere (of both bonds and stocks) is the realization that with every passing day Larry Summers gets closer to becoming the next Fed chairman.

The Real Tapir Tantrum

Submitted by Tyler Durden on 08/16/2013 - 13:36

Bonds are being sold off as concerns about the Fed's taper (aka the Zero Hedge-penned in May "Taper Tantrum") propagate through the bond market, and as Bill Gross reminds everyone of what a non-centrally planned, and Fed-backstopped, market may one day look like (nothing good). But today's action is nothing compared to what a real tapir tantrum looks like as one unluckly child and its mother were forced to find out.

Bill Gross Tweets: "Without Central Bank Check Writing, We Only Have Ourselves To Sell To" Sends Yields Soaring

Submitted by Tyler Durden on 08/16/2013 - 12:54

Selling Spurt Takes 10 Year Treasury Yield To Fresh Two Year High

Submitted by Tyler Durden on 08/16/2013 - 12:38

There is one problem with the Fed's plan that bond yields will progress ever higher in calm, cool and collected fashion from here to 3%, 4%, 5% and onward: it assumes that those who don't sell today, will patiently await turn to sell (with much bigger) losses tomorrow. Of course, what happens instead is that everyone will try to sell today, to avoid any losses tomorrow. What results, are spikes such as the one seen on the chart below, which just took the 10 Year yield to a fresh 2 year high of 2.8269% and rising. But perhaps most important, there are now just under 70 bps until the 3.50% "disorderly rotation" threshold beyond which bad things start happening.

Compare And Contrast: Public Vs Private Retiree Underfunding In One Chart

Submitted by Tyler Durden on 08/16/2013 - 12:05

The chart below explains, in the simplest possible terms, why there are many more "Detroits" on deck. It shows the underfunded status of public vs private retiree healthcare plans. It needs no commentary, although it may deserve one question: what happens when all those public servants who have been promised over a trillion in healthcare benefits upon retirement, realize it was all a lie? And then come... the pensions.

Saudi King Voices Supports For Egyptian Coup

Submitted by Tyler Durden on 08/16/2013 - 11:46

Somehow it is not very surprising that the person who should be most concerned should the Egyptian (non) coup spread, namely the head of the House of Saud, is the one to condemn the previous US-supported regime, and to voice his praises for the current US-supported regime.

Wis. Police Arrest Journalist, Teen and Three Grannies During Capitol Sing Along

Julie Wilson | Arrested 14-year old says, “I have a right to peacefully protest my government.”

FBI Admits It Has Documents On Michael Hastings

Paul Joseph Watson | Federal agency initially denied it had investigated Rolling Stone journalist.

U.S. Army Buys Nearly 600,000 Soviet AK-47 Magazines

Kit Daniels | Each fully loaded, magazines combined hold almost 18,000,000 rounds.

Houston Deputy Sues Woman Who Dialed 9-1-1

Julie Wilson | Houston deputy sues 9-1-1 caller for $200,000.

Ron Paul Dismantles Corporate Boondoggle Known as Obamacare

Kurt Nimmo | Brainchild of the insurance and pharmaceutical industries.

Assange: Rand Paul Libertarians “Only Hope” For Future of America

Paul Joseph Watson | Wikileaks founder also praises Matt Drudge for ‘breaking media censorship’.

NSA Funds New “Top Secret” $60 Million Dollar Data Lab

Paul Joseph Watson | Center will analyze information from private emails, cell phone calls, Google searches.

Egypt Is Descending Into Civil War, But Don’t Expect Obama To Cancel His Golf Vacation

Michael Snyder | The largest Islamic nation in the Middle East is on the verge of descending into civil war.

Larry Summers’ Fed Chair Odds Surge Again, Cross 70%; Yellen In The Dust

zerohedge.com | Larry Summers’ latest Fed Chairmanship odds.

Stock Market Crash Just Ahead?

Lew Rockwell.com | Central bank manipulation are fueling recessions.

Ron Paul Dismantles Corporate Boondoggle Known as Obamacare

Kurt Nimmo | Brainchild of the insurance and pharmaceutical industries.

Record High Demand For Physical Gold Threatens To Break The Back Of The Paper Gold Market

The demand for physical gold is exploding all over the world, and bullion banks are now experiencing a supply crunch that is absolutely unprecedented.  As physical demand continues to rise, the massive Ponzi scheme that the bullion banks have been engaged in is going to become increasingly obvious, and at some point the lack of physical gold is going to break the back of the paper gold market and we are going to see the price of gold go to levels that we have never seen before.  You see, the truth is that the central banks of the world and the bullion banks have made “paper promises” that vastly exceed the amount of actual physical gold in existence.  This kind of scheme works fine if everyone does not come asking for their gold at the same time.  Unfortunately for the ones running this scheme, people are now starting to ask for their gold back and it is causing huge problems. (Read More.....)

AS THE NYT TURNS

PAPER TAKES DOWN CLINTON FOUNDATION...
'Ran multimillion-dollar deficits, despite vast amounts of money flowing in'...
Rife with Cronyism...

DC Obamacare Exchange Awards $375K Grant to PLANNED PARENTHOOD...
NBCNEWS: Businesses, Unions, Colleges all say employee hours being cut...

JESSE JACKSON JR, WIFE OFF TO JAIL...

Alex Jones Responds to MSNBC’s Defamation

Kurt Nimmo | Segment aired on Wednesday, August 14, 2013, and carried a number of unsubstantiated claims.

‘…Following MSNBC’s propaganda piece, Alex issued the following statement:

“No one should feel safe in this climate. The establishment media can put out whatever lie they want and the Republican Party, represented on Wagner’s show by Michael Steele, will just agree with it because it shows the establishment itself is threatened by the awakening that is happening. They’ve identified Infowars.com and the journalistic system we’re building as a major threat. That’s what the MSNBC segment is — a premeditated attack. Anyone who supports freedom of the press needs to get behind Infowars.com and other alternative media under attack, like investigative journalist Glenn Greenwald, whistleblower Edward Snowden, and so many others. This is exactly how countries fall to authoritarianism, because if they can intimidate us, shut us down and defame us, they can defame anybody. If you care about freedom, remember this quote from German pastor Martin Niemöller, who resisted the Nazis:

First they came for the communists,
and I didn’t speak out because I wasn’t a communist.

Then they came for the socialists,
and I didn’t speak out because I wasn’t a socialist.

Then they came for the trade unionists,
and I didn’t speak out because I wasn’t a trade unionist.

Then they came for the Jews,
and I didn’t speak out because I wasn’t a Jew.

Then they came for the Catholics,
and I didn’t speak out because I wasn’t a Catholic.

Then they came for me,
and there was no one left to speak for me.”

Alex then addressed defamation of character:

“This meets the precise definition of willful, conscious defamation with malice of forethought with intent to do harm. I have sued people before for defamation successfully. I don’t like to do this, but clearly, if I don’t respond to this they will make up even more outrageous stuff… will I be a child molester tomorrow? Will they say I’m the bomber? They’re already saying I made people bomb stuff and I’m deeply racist without showing a shred of proof. This is outrageous authoritarianism. So, I am putting them on notice. I want massive retractions right now. This is your tort warning. You are now on notice. Do you guys think you’re invincible because you have the White House behind you? Richard Nixon thought he was invincible, too. The American people are going to stand up against this intimidation against the press.”

MSNBC Blames Boston Bombing on “Deeply Racist” Alex Jones

Paul Joseph Watson | Claims Tsarnaev brothers inspired by talk show host, who is “getting paid to be racist”.

US Sends Warship to Bahrain In Response to Protests

Paul Joseph Watson | Washington will not tolerate “Arab Spring” that threatens puppet dictatorship.

Rubio: Obama May Sign Executive Order Legalizing Illegals

Kurt Nimmo | “I believe that this president will be tempted, if nothing happens in Congress,” said Florida senator.

Rand Paul: Obama’s Actions On Healthcare Legislation Are “Illegal And Unconstitutional”

Steve Watson | “He’s creating an economic incentive for people to actually drop their insurance.”

Teenager Denied Heart Transplant Over History of “Non-Compliance,” Added to Wait List

Julie Wilson | “Low grades in school” and “brushes with the law” initially kept teenager off heart transplant list.

NAACP Attacks Rodeo Stunt and Political Satire

Kurt Nimmo | Rodeo clown furor tyrannical attack as NAACP calls to criminalize free speech.

MIT: Future Smartphones Will ‘Listen to Everything All the Time’

Paul Joseph Watson | Ubiquitous surveillance to “detect your moods,” “pinpoint the sources of your stress,” and “present relevant information”.

Blunder at the Money Factory: Feds misprint $3 billion in $100 bills, Taypayers Foot Bill To Replace

New Yorker | Disposing of the bad bills? That’s on taxpayers… as are the additional hours spent making up for the mistake.

This Is The Biggest Cluster Of Hindenburg Omens Since The Last Stock Market Crash

Economic Collapse | Are we heading for a major stock market decline?

They Are Systematically Destroying Our Independence And Making Us All Serfs Of The State

Economic Collapse | The percentage of Americans that are economically independent has dropped to a stunningly low level.

Intelligence committee urged to explain if they withheld crucial NSA document

London Guardian | Critics demands answers from chairman Mike Rogers after claims that committee failed to share document before key vote

John Kerry: ‘This Little Thing Called the Internet … Makes It Much Harder to Govern’

CNS News | He also said that “ever since the end of the Cold War, forces have been unleashed that were tamped down for centuries by dictators.”

Black Citizens Group Files ‘Articles of Impeachment’ Against Obama

Paul Joseph Watson | Calls for removal of President over NSA spying, prosecution of whistleblowers, Benghazi cover-up.

I've Got Nothing to Hide Posted by : Capitalist Exploits Post date: 08/13/2013 - Regardless of what I (or you) do throughout the day we're tracked, logged, profiled and otherwise "identified" in a hundred different ways.

Obama: Worst President in History of the USA? Posted by: Pivotfarm Post date: 08/13/2013 - So is President Obama the worst President in history?

Letting Tepco "Clean Up" Fukushima Is Like Letting a Murderer Do Brain Surgery On a VIP Posted by : George Washington Post date: 08/14/2013 - In 3 Months, Do We Want to Entrust  U.S. "National Security" and Perhaps Even "Human Survival” In the Northern Hemisphere to THESE Guys?

GoOGLe PoRN... Posted by: williambanzai7 Post date: 08/14/2013 - Just think of the Goldfish who wanted to die...

GoOGLe PoRN...

Submitted by williambanzai7 on 08/14/2013 13:10 -0400

.

.

h/t @blumaberlin

WTF!

.

Can I rape you?

.

All Search with no Porn, makes Jack a dull boy...

.

Pitiful Net Serflings...

.

I would be concerned too if I weren't in the government...

.

.

Is it safe?

Bwahahahahahahaha!

.

Honey, you'll have to sleep in the Wookie House tonight...

.

Boom Booooooom!

.

.

Four More Years?

Submitted by Tyler Durden on 08/14/2013 - 20:18

Presented with no comment...

The "Obamacare Part-Time Jobs" Effect Goes Mainstream

Submitted by Tyler Durden on 08/14/2013 - 21:16

While many Wall Street economists and strategists shrugged in the face of tin-foil-hat-wearing bloggers who suggested the disaster that is the part-time jobs receovery was due to The Affordable Care Act - of 953,000 jobs created In 2013, 77%, or 731,000 are part-time - epitomized best by Larry Kudlow and Deutsche Bank's ever-smiling Joe Lavorgna; it seems the drag on employers' hiring has now hit the mainstream media. As NBC Nightly News reports in this succinct clip, things are not going according to plan for the President's better bargain even as Fed's Bullard proclaims "clear improvement in labor markets." Perhaps he should watch TV this evening?

Housing Bubble Bungle Posted by : Pivotfarm Post date: 08/15/2013 - The housing market. It would be the done-thing normally to imagine that one might learn from mistakes that have been made in the past; and not only learn from them, but make sure that they don’t...

Physical Gold Demand Surges 53% In Q2, Total Supply Down 6% - Price Falls 35% Posted by: GoldCore Post date: 08/15/2013 - The latest World Gold Council Gold Demand Trends report, which covers the period April-June 2013, confirms again how recent falls in the gold price were due to speculators selling paper gold...

RoDeO CLoWN GuLaG? Posted by: williambanzai7 Post date: 08/15/2013 - Who woulda' thought? I know who...

RoDeO CLoWN GuLaG?

Submitted by williambanzai7 on 08/15/2013 10:40 -0400

Rodeo Clown Gulag?

Who woulda' thought?

I know who...

Read George Orwell's letter on why he wrote 1984 via the Daily Beast: http://www.thedailybeast.com/articles/2013/08/12/george-orwell-s-letter-...

Two Down, One To Go

Submitted by Tyler Durden on 08/15/2013 - 18:03

We have the equity market surging to new highs. We now have the surge in yields. As Citi's FX Technicals group warn, that's "2 down and 1 to go"… A push above the 2011-2012 peaks in Brent crude ($127-128.40) would be the “straw” that breaks the proverbial camel’s back with the elevated likelihood of a negative feedback loop... knocking the third leg of consumer confidence out.

A Stunning 60% Of All Home Purchases Are "Cash Only" - A 200% Jump In Five Years

Submitted by Tyler Durden on 08/15/2013 - 17:29

Remember when housing was the primary aspirational asset for a still existent US middle class, to be purchased with some equity down by your average 30 year-old hoping to start a family in his or her brand new home, and, as the name implies, aspire to reach the American dream? Those days are long gone. Back in those days the interest rate on the 10 Year bond mattered as it determined the prevailing marginal affordability of leveraged real estate. That is no longer the case, at least not for about 90% of Americans, because as Goldman shows, while before the great crisis only 20% of home purchases were "all cash", since then the number has soared threefold, and currently the estimated percentage of cash transactions (by count and amount) has hit a record 60%. In other words, less than half of all home purchases are debt-funded, and thus less than half of all home purchases are actually representative of what middle-class America is doing.

Equity Bulls, Look Away

Submitted by Tyler Durden on 08/15/2013 - 16:44

It seems to us that the corporate bond market (now absent the underpinning of a dominating retail technical flow) has reverted back to the macro background reality.... the question is - what happens when the equity market 'admits' that perhaps things are not so rosy...

Stocks, Dollar Plunge While Precious Metals Surge

Submitted by Tyler Durden on 08/15/2013 - 16:09

Equity markets saw their highest volume in 7 weeks as the major indices plunged the most since June 20th, falling back to their lowest level in 5 weeks. 380 new 52-week lows dominated the meager 18 new 52-week highs. The early snap higher in Treasury yields (following the claims data) sparked the 'disorderly rotation' out of stocks that we have warned of and as stocks saw no significant BTFD mentality so Treasuries went modestly bid (ending the day only 5bps higher in yield) with the belly (7Y) 8bps off its intraday high yields. The USD was smashed lower as JPY and EUR strength dominated flow (and carry-unwind) which further helped push the story of the day - gold and silver - up large on the day (+2.1% and 5.6% respectively on the day). VIX surged to 14.5%, credit underperformed, as the Dow broke its 50DMA (15,280) closing near its 100DMA (15,097). Nikkei futures are -530 From yesterday's highs

Reaching For Yield... In Treasuries?

Submitted by Tyler Durden on 08/15/2013 - 15:57

For the last 18 months we have been inundated with asset-gatherers explaining that stocks are cheap and investors should by them for they yield advantage over Treasuries. However, that 'meme', like most others once it disagrees with the "Always Be Buying Stocks" thesis, has been ignored recently. At current levels, 10Y US Treasuries offer a 70bps yield advantage over the S&P 500 - the highest in 2 years (that is a 32% yield advantage over 'the most levered equity market ever'). Tapering 'rock' meet 'leverage-unwind' hard place...

US Naval Update: There's A Party In The Middle-East And All The Sailors Are Invited

Submitted by Tyler Durden on 08/15/2013 - 15:37

The last time there were two aircraft carriers and one more more amphibious groups in the 5th Fleet Area of Responsibility (i.e., the Middle East), an Israeli invasion of Iran seemed imminent. This time, Iran is deeply on the backburner, however Egypt, Syria, Lebanon and others certainly are front and center. So how are key US naval assets positioned this time around? As the Stratfor graphic below shows, the US is currently fully prepared for any "surprises" that may happen in the immediate and not so immediate future.

Gold - You Are Here

Submitted by Tyler Durden on 08/15/2013 - 15:11

It would seem the demand for physical gold and the apparent limit on paper-gold decompression (given recent musical chairs in COMEX and Gold ETF holdings rising) are hitting at an inopportune time for the confidence-inspiring central banks of the world... Seasonally (for 30 years), August has marked the cylical low.

Thursday Humor: President Obama In Action

Submitted by Tyler Durden on 08/15/2013 - 14:48

Earlier today, while looking for a certain picture of president Obama, we used the Google Images function searching for Obama Golfing Pics. We had no idea what Pandora's box we were about to unleash...

Spot The "Low Volume" Sell-off Day

Submitted by Tyler Durden on 08/15/2013 - 14:38

Unlike the supposed reality that is being broadcast on mainstream media TV, today's volume is considerably above average. In fact, S&P 500 futures have traded 1.8 million contracts against a recent average of 1.125 million for this time of day. The S&P 500 has already traded its highest volume in 7 weeks (and there remains 90 minutes until the cash close). So - where is the low volume that CNBC seems to be seeing?

14 Dead In Blast Near Pro-Syria Hezbollah HQ In Beirut, Syrian Rebels Take Responsibility

Submitted by Tyler Durden on 08/15/2013 - 14:11

Just in case the borderline civil war in Egypt isn't enough to inflame hostilities in the middle east region sufficiently so the US finally gets involved, the US-funded, Al-Qaeda backed Syrian rebels decided to launch a second escalation offensive, this time near the very headquarters of the pro-Damascus Shiite group Hezbollah when a powerful car bomb killed at least 14 people and wounded about 200 others, national news agency NNA said. AFP reports that a previously unknown group believed to be a Syrian rebel cell said it carried out the attack. The bombing, reminiscent of the frequent attacks during Lebanon's 1975-1990 civil war, caused enormous damage to buildings. Whether this provocation (US funded or not) will be sufficient to force a Lebanon escalation in the Syrian conflict is unknown, but there is only so much more that the region, already at its breaking point, can take.

Guest Post: Rising Inequality and Poverty: Can They Be Fixed?

Submitted by Tyler Durden on 08/15/2013 - 13:33

Conventional Left-Right ideologies shed little light on the structural causes of inequality or systemic solutions to poverty.

Gold Soars Above $1350 As Silver Crosses 100 DMA

Submitted by Tyler Durden on 08/15/2013 - 13:03

The reason why gold just did an upward spike move of the type not seen since the summer of 2011, when it exploded higher by $20 in seconds, is clear - as we noted yesterday, JPM is now actively buying up gold in the market to meet delivery demands. That, and countless stops getting hit, helps. But the most important factor: Paulson, Soros et al finally got out of the yellow metal. That meant there is only upside as the latent selling overhand is gone. As for silver: why not...

Fidelity Asks How Long Can Draghi's Bond-Buying Bluff Hold?

Submitted by Tyler Durden on 08/15/2013 - 12:59

Draghi is a clever man in charge of a pretend central bank (for it’s only equipped to fight inflation, not a banking-turned-sovereign-debt-and-unemployment crisis). He must guess that bond investors will soon figure out that a stateless central bank defending a stateless currency is so hamstrung politically that it carries far less firepower than, say, the Federal Reserve has over the US economy and US dollar. If his outright-monetary-transactions bluff collapses, he may well have other tricks ready to suppress yields on struggling sovereign debt and save the euro (without which there is no need for the ECB). If Draghi is out of surprises, he can be thanked for buying time for politicians to come up with durable solutions to the eurozone’s woes. Oh, that’s another flaw with Draghi’s scheme; it removed the pressure for politicians to act. So they haven’t.

Icahn Twitter Shots Fired (At Ackman, Of Course)

Submitted by Tyler Durden on 08/15/2013 - 12:46

As Goes Wal-Mart; So Goes America...?

Submitted by Tyler Durden on 08/15/2013 - 12:21

While the 'people of Wal-Mart' may reflect the people of America, we hope - based on the chart below - that the growth in Wal-Mart does not reflect the growth of America...

DEATH TOLL SURPASSES 600
Islamic group vows to bring down 'military coup' in Egypt...
Anger 'is beyond control now'...
Supporters storm gov't buildings, set on fire...
Military authorizes use of live fire on protesters...
'Scores' of Christian churches, homes torched...
Warning issued to tourists...

WIRE: Snowden downloaded NSA secrets while working for DELL...

LEVIN: FEDS MUST BE STOPPED BEFORE AMERICA IS LOST!

FBI raids Philadelphia Sheriff's Office...

If This Guy Is What The Future Of America Looks Like, We Are In BIG Trouble

Should taxpayer dollars be used to buy sushi and lobster for a young man whose future plans consist entirely of surfing and partying as much as he possibly can?  When I first saw the video that I am about to share with you, I was absolutely floored.  Recently, Fox News interviewed a self-described beach bum named Jason Greenslate who was very open about the fact that he has no problem sponging off of all the rest of us.  When he was asked if he ever had any interest in actually getting a job, his response was "not whatsoever".  Instead, he says that his job is to "make sure the sun's up and the girls are out" and he would rather spend his days partying.  Of course every American should be free to live their own lives as they see fit, but the problem is that Jason Greenslate is using food stamps to help support his lifestyle.  In fact, he took Fox News into the gourmet section of a local supermarket where he purchased sushi and lobster with his EBT card.  Sadly, he is just like millions of other young men in America today that seemingly have had the drive to succeed and to be independent totally sucked out of them.  But what is the future of America going to look like if we continue to produce millions upon millions of young men that have absolutely no desire to make a living, get married and start a family? (Read More....)

Cyber Attack Against Establishment Media Next Phase in Never Ending War On Terror

Kurt Nimmo | Ramped up propaganda effort to get you to love NSA surveillance.

SWAT Ties Up Students, Blows Out Tires During Bus Hijacking Drill

Julie Wilson | “Then he started tying everybody down and it just got really scary.”

Google Submits Patent For Minority Report Style Eye Tracking Device

Steve Watson | “Head mounted” technology will relay “emotional analytics” to advertisers.

Video: Obama Backed Militants Execute Teenage Boys

Paul Joseph Watson | Another grisly reminder that the White House is supporting jihadist extremists in Syria.

MSNBC Blames Boston Bombing on “Deeply Racist” Alex Jones

Paul Joseph Watson | Claims Tsarnaev brothers inspired by talk show host, who is “getting paid to be racist”.

Marine Corps Colonel: Homeland Security Building “Domestic Army”

Paul Joseph Watson | Fallujah veteran says government is afraid of its own citizens.

Alex Jones Responds to MSNBC’s Defamation

Kurt Nimmo | Segment aired on Wednesday, August 14, 2013, and carried a number of unsubstantiated claims.

MSNBC Attempts to Connect Hate Groups to Alex Jones

Julie Wilson | Hate groups rise because whites are no longer “geographically dominating.”

Obama’s Economic Approval Slips to 35%

Gallup | Approval slips even further from 42% from June.

Stocks and Bonds Are Plunging

Wall Street Journal | Dow Jones sheds 205 points.

If This Guy Is What The Future Of America Looks Like, We Are In BIG Trouble

Economic Collapse | Should taxpayer dollars be used to buy sushi and lobster for a young man whose future plans consist entirely of surfing and partying as much as he possibly can?

Ex-bosses at JPMorgan unlikely to face charges in ‘Whale’ scandal

Reuters | The JPMorgan Chase & Co executives who supervised the traders at the center of the “London Whale” scandal are unlikely to face any charges.

US oil reserves reach highest level in 28 years

Washington Examiner | The highest level since 1985.

The “Obamacare Part-Time Jobs” Effect Goes Mainstream

Zero Hedge | Of 953,000 jobs created In 2013, 77%, or 731,000 are part-time.

Beck Warns Of Mass Chaos: “The Likes of Which the Globe Has Never Seen”

Mac Slavo | There will come a time this decade when everything that we have come to believe about the stability of our socio-economics system will be revealed for the underlying disaster that it really is.

NBC’s ‘Meet the Press’ Sees Lowest Ratings in 21 years

Huffington Post | The New York Post promptly reported that Gregory could be dropped from the show.

SWAT Ties Up Students, Blows Out Tires During Bus Hijacking Drill

Julie Wilson | “Then he started tying everybody down and it just got really scary.”

Google Submits Patent For Minority Report Style Eye Tracking Device

Steve Watson | “Head mounted” technology will relay “emotional analytics” to advertisers.

Marine Corps Colonel: Homeland Security Building “Domestic Army”

Paul Joseph Watson | Fallujah veteran says government is afraid of its own citizens.

Video: Obama Backed Militants Execute Teenage Boys

Paul Joseph Watson | Another grisly reminder that the White House is supporting jihadist extremists in Syria.

MSNBC Attempts to Connect Hate Groups to Alex Jones

Julie Wilson | Hate groups rise because whites are no longer “geographically dominating.”

NSA Targets T-Shirt Makers Over Parody Designs

Paul Joseph Watson | Federal agency launches aggressive copyright claims to shut down free speech.

Citizens Alarmed as Militarized Cops Invade Missouri Neighborhood

Kurt Nimmo | “The army’s here,” frantic woman tells her husband.

As Egypt Burns, Obama “Strongly Condemns” Violence From Martha’s Vineyard Vacation House

Zero Hedge | Those damn Egyptians are so inconsiderate, breaking out in civil war just as Obama is on vacation.

City Reduces Police Force By Placing Public Under Constant Surveillance

Kit Daniels | In 40-foot high watch towers, police officers are practically prison guards over population.

Pictures From A Warzone (In Denial)

Submitted by Tyler Durden on 08/14/2013 - 20:47

With the US denouncing actions left, right, and center, it is tough to know what they stand for (or against) as the coup-less coup appears to have turned into a bloody civil war. Casualty reports vary; from 278 people dead (health ministry) to 2,000 dead (Muslim Brotherhood) including 43 policemen and from 2,001 injured (health ministry) to 10,000 (Muslim Brotherhood). As the dreadful images below suggest, the Egyptian people have grown divided beyond the point of no return, and despite the jingoist platitudes and rhetoric of John Kerry describing the "deplorable" situation on the ground, the reality of a civil war now seem inevitable. So with the US still stuck in denial (and for the CIA - phonetically so), pro-Mursi protesters clash with police, military, and one another as all hell breaks loose.

What Will Future Historians Think Of Our Time?

Submitted by Tyler Durden on 08/14/2013 - 19:38

Today, we believe, we are a bit more enlightened that those in the past. Humanity has progressed, and we can look back on those days with utter incredulity wondering how anyone could have possibly believed such nonsense... how anyone could pass off such ridiculous assertions as real science. Well guess what... in the future, they’ll probably look back and say the same thing about us. Only this time, our ‘faux science’ is economics.

Wednesday Humor: Kevin Henry, Moonlighter?

Submitted by Tyler Durden on 08/14/2013 - 19:10

Citi's Silver (Lining) Playbook

Submitted by Tyler Durden on 08/14/2013 - 17:58

With Silver's strong recent run, Citi FX Technicals suggest the present technical set up is now starting to look very constructive. At the same time, they add, Gold is also starting to move higher; and trending moves in the precious metals (up or down) tend to be led by the Silver price and the Gold/Silver ratio remains supportive of that view again. Given that they remain cautious near term about the fortunes of the US Dollar, all of the above would suggest, Citi concludes, that the "playbook" is to be long Silver against the USD.

CSCO Crashes 10% After-Hours, Laying Off 4000 Staff, Sees Weak Q4

Submitted by Tyler Durden on 08/14/2013 - 17:32

It seems like it was just yesterday when CSCO announced it would fire 10,000 people. And then another 1,300. And then another 500. Fast forward to today when the "one-time, non-recurring" termination charges are back, as the "recovery", now in its 5th year, progresses a little differently than expected, this time with another 4,000 FTE told to pack their bags.

CISCO TO CUT 4,000 JOBS OR 5% OF WORKFORCE
CISCO SAYS IT REMAINS 'VERY MUCH A COMPANY ON THE OFFENSIVE'

Nobody can blame the company, however: why keep full-time workers, when switching over to part-timers will do just as fine, and generate significant benefits to the bottom line and shareholders.

US Consumer Bankruptcies Jump By Most In Three Years; Third-Party Collections At All Time High

Submitted by Tyler Durden on 08/14/2013 - 16:36

Something funny happened on the road to the epic consumer balance sheet cleansing and subsequent releveraging (without which there can be no actual non-Fed sugar high fueled recovery): the second quarter. And specifically, as the Fed just disclosed in its quarterly Household Debt and Credit Report, the number of consumer bankruptcies during the second quarter, just jumped by 71K, to 380K from 309K in Q1, the biggest quarterly jump in precisely three years - on both an absolute and relative basis - and the most since the 158K jump recorded in Q2 2010. It appears that when the "releveraging" US consumer isn't busy buying stuff on credit, they are just as busy filing for bankruptcy. Healthy consumer-led recovery and all that.

Follow ZeroHedge in Real-Time on FinancialJuice

There’s an Obama Page on Facebook that has over 131, 000 likes from people, Americans or not. There are more than double that number of people that are ‘talking about’ the page by posting it on their own walls. A fan page (of sorts) dedicated to the President of the United States. But, not your normal fan page. It’s the ‘Obama is the Worst President Ever’ page.

By the time President Obama steps down from office, the USA will more than likely not be anything more than a shadow of its former self. That won’t be all due to the doing of President Obama, but the Chinese rise to glory as thefirst country in the world economically-speaking by the year 2016, amongst other things of course (it’s not all the fault of the Chinese either, is it?).

So is President Obama the worst President in history? Does he really live up to his fan (?) page on Facebook? How do you measure whether or not he is the worst, at any rate?

Obama: Worst US President?

Obama said in 2009 ‘the recession is over’, but few believed him. Anyhow, when he said that the US was doing ‘better’ at the time than ‘the worst of the recession’, that couldn’t have been hard, could it? By definition, recoveries are always better than the worst of the recessions that we have gone through in history. Isn’t that the way they always work? But, it’s not the recovery in comparison with the recession that should be compared, it’s the recovery and the boom-times after those historical recessions that need comparison to see just where we stand today and if the US has got back on track with President Obama’s policies.

Unemployment

According to the records of the Federal Reserve Bank of Minneapolis, it took an average of just over two years (25 months, to be exact) to regain the level of employment prior to every one of the last ten recessions that the country has gone through.

When the Great Recession officially began in December 2007, there was an unemployment rate of 4.9%.

Some analysts say that the US won’t reach that sort of level until at least 2023.

Obama will be long gone by then, somewhere probably with Ben Bernanke in a hide-out.

The latest figures for unemployment stand at 7.4%, although admittedly if we look at real unemployment figures, then we are talking at least 14% since many of those that are classed as U6 (who are seeking full-time employment) are not counted in the figures if they are marginally employed (working for as little as just one hour a week perhaps).

U3 people (but doesn’t include anyone who has not been looking for work for the previous four weeks) are the most used for figures to express US unemployment rates.

It’s not about the numbers; it’s all about what you actually do with them that counts. It’s a bit like a game of poker. Get the cards and it’s what you do with them that’s going to make you come up a winner when the chips get thrown on the table. Obama has thrown his cards in already.

It’s been 5 and a half years down the line now since the Great Recession began. It’s been over for over 3 years now that the Great Recession has officially been declared behind the US and part of history only to be remembered.

We are still waiting to see a return to the job level of pre-2007. Time’s up, Mr. Obama.

The six levels of unemployment are all published by the Bureau of Labor Statistics, but only one gets any coverage, and that’s not the real one.

The US is still trying to make up for a shortfall of at least 2% on the pre-Great Recession unemployment figures. The US has 2.5 million fewer jobs today (but that’s not the real unemployment).

The US has experienced the second longest period of unemployment above 8% ever between 1948 and 2013(the worst period being in 1981-1982).

Unemployment may well fall to around 6% in 2015 as estimated, but that might well be only due to the fact that people who are discouraged fall out of the figures.

Growth

In the past ten recessions before the Great Recession took place, Gross Domestic Product returned to levels seen prior to the recession within a period on average of 4-5 quarters.

The Obama recovery took 16 quarters.

GDP reached 1.1% in the first quarter of 2013 and then rose to 1.7% in the second quarter.

It managed to reach just 2.8% in 2012.

According to statisticians, if you were to take the real GDP growth under Obama and then double it (just for fun), Obama would still come out of it all as the worst president for the last 60 years.

Household Income

Real median household income in the USA fell by $4, 500 under Obama’s first mandate, which is the average monthly salary.

US middle-class households have lost a month’s salary, therefore; or about 8%.

In comparison with 2009, real median household income has declined under Obama by 6% today.

The decline in real median househould income during the official dates of the recession (2007 until 2009) only fell by 2.6%.

Under Obama it has doubled.

Poverty

Since 2009, the USA has seen the number of poor in the country increase by 31%.

There are now nearly 50 million that are classed as ‘poor’ in the country.

The Federal poverty threshold is an annual income of $23, 550 for four people in a family (subtracting or adding$4, 020 per person for additional or fewer people in the family).

A single poor person has an annual income of $11, 490.

The Census Bureau calculates in a different way, but the poverty threshold stands at $23, 283 (family of four).

The levels of poverty and the number of people living in poor conditions have never been higher for the past 50 years.

Is Obama the Worst President Really?

Yes, granted the Great Recession has been the worst possible recession experienced in history by its speed and by its knock-on effects, so the past might not be a useful tool to equate the new-style of slumps that we will possibly experience from now on. But, the Great Recession officially only lasted a short while. Maybe they were too quick at getting out the flags and the bunting to announce that it was over. At any rate, the Great Recession has had no Great Recovery. Not, yet, anyhow.

But why have all of these points been the failures of a man elected on a promise to rush in a new era in the US? Obama increased spending when he got into office and brought it to record levels.

The deficit was already nearly at $1 trillion when he arrived, to which he added the $830 billion stimulus program, plus the $1.7-trillion Obamacare, with the bailouts and the financial reforms to boot.

The second reason why Obama has not managed to reduce unemployment is because the economy has not been relaunched. The tax proposal issued in April this year would increase taxation for 98% of those on incomes over $200, 000 a year in the USA. Increasing taxation will not bring about a revamping of the economy.

Regulations have also increased under Obama and made doing business more difficult. The Code of Federal Regulations increased under Obama by more than 11 thousand pages. That means that businesses have to spend more money on complying with the regulations, at a time when they just don’t have it. Annual compliance has been estimated at roughly $1.7 trillion per year (all federal regulations).

Is Obama the worst President of the United States of all time? Who would you put forward as your worst candidate?

Follow ZeroHedge in Real-Time on FinancialJuice

You might also enjoy: New Revelations: NSA and XKeyscore Program | Obama's Corporate Grand Bargain Death of the Dollar | Joseph Stiglitz was Right: Suicide | China Injects Cash in Bid to Improve Liquidity

Technical Analysis: Bear Expanding Triangle | Bull Expanding Triangle | Bull Falling Wedge | Bear Rising Wedge | High & Tight Flag

‘…He’s nothing today but that actor, simply because the US has lost all notion of democracy.

Obama just acts for the shop-front window-dressing game that is played out on television and in the mainstream media. It’s the others that are running the country. They are the ones that are mightily more powerful than any president will ever manage to be in the future, unless a dictator pops out of the wings and runs on stage to pull the final curtain. The spy-agencies, the National Security Agency, the private interest groups and the lobbies run the United States of America today, not Obama, not anyone else. Throw in a little bit of Wall Street and the BanksterGangsters and hey presto we have a Republic. But, it’s a republic in which bananas have been replaced by other such commodities as gold, or steel or gas and petrol, but the government employees are no less  influenced to illegitimately exploit their positions to further their own personal gains, while the workers of the country actually pay back the sums that are siphoned off, embezzled and fraudulently obtained.

Media

The media no longer reports on what is going wrong in the puppet-show as they have already suffered the consequences of an embittered NSA that has wrapped them over the knuckles in a stance that would liken them to patriots turned bad. Edward Snowden has just made a statement that accuses the National Security Agency of drawing up a list of journalists that were critical of the US state in the wake of 9/11.

In an interview to the New York Times Magazine he declared: “After 9/11, many of the most important news outlets in American abdicated their role as a check to power – the journalistic responsibility to challenge the excesses of government – for fear of being seen as unpatriotic and punished in the market during a period of heightened nationalism”.

Heightened nationalism and extended patriotism in the USA is the order of the day. Fall into line, or the guys that pull the strings on the puppet will target you.

Paul Craig Roberts, economist and former Assistant secretary of the Treasury under the Reagan Administration, believes that the US is a ‘lawless’ state in which ‘humanity is drowning in Washington’s criminality’.

James Risen, the New York Times national security reporter risks being jailed for refusing to provide the name of a source. A court of appeal in Virginia has just ordered that a journalist must provide a source upon request from the state and that puts journalism on a bad footing for the future. Risen says he’ll stand by his convictions and go to prison if it comes down to that. The US administration has turned into a ministry of propaganda and a mouthpiece for the organs that stand behind the President.

Security

The US administration has closed down embassies around the world and shipped the diplomats out, packing up and fleeing. The attack on the United States is so imminent that for the first time in history the US has fled? Really?

But, hang on, Al-Qaeda was done and dusted ages ago we were told when the government of the United States andPresident Obama announced that Bin Laden was dead, back in 2011. But, now the National Security Agency is justified in listening in on us. Without them, millions of Americans might have suffered around the world. I’m with you, now! The imminently ‘strategically-significant’ attacks caused 21 embassies to be closed. Then 9 reopened the following day.

NIA NSA

James Clapper NIA - USA

James R. Clapper, the Director of the National Intelligence Agency itself, apologized not so long ago for lying to Congress about the activities of the NSA. When asked if the NSA collected data on millions of Americans he replied that “no, Sir” it did not. Clapper is still in his position at the head of the National Intelligence Agency, but it’s hardly likely to change. Who would boot him out? It’s one of the agencies running the show.

Finance

Ben Bernanke : USA - Federal Reserve Governor

We should have realized long ago when Ben Bernanke said to Senator (when asked to whom $2.2 trillion had been lent in the bail-out program) just one short, sharp word: “No”. Back then in2009, it was Congress that had lost the battle and the Federal Reserve that had thrown down the gauntlet at the feet of the American people.

The Federal Reserve was no longer accountable to anybody, let alone those that had been elected by the people, for the people. But the Gettysburg Address is only history, isn’t it? Impotency comes with old age, so we are told and Congress was getting on a bit, wasn’t it?

Conclusion?

The Americans are immensely proud of their country. Their nation was constructed on an idea of unity in diversity. Being diverse meant that they had to hold on to one thing. That one thing was incarnated in the body of the imaginary Presidential ideal. But, that’s long gone. Although the pride exists and lingers on still today, but the only unity is that of repaying the national debt of close to $17 trillion. Although, Professor Lawrence Kotlikoff of the University of Boston has estimated that this figure too is pure wool-over-our-eyes fantasy. The real national debt, when we have included the full cost of unfunded liabilities such as Medicare and the Social Security programs, then we reach about $222 trillion in national debt.

USA: President Obama

Obama the worst President? Probably not in the light of the fact that he isn’t President and nobody will be unless the system is modified. But, we love a scapegoat. We defend the underdog. How many of us have stood our ground and defended the banksters that were sent down for billions, the guys that have brought down the banks? How many of us have said that it was unfairly contemptible to condemn one single man as the lone wolf, the agitator of the banks’ crimes? How many of us have seen the Kerviel-ing of bankers brought to justice for what they were told to do by the guys at the top lapping up the cream? Yet, we criticize one sole man that stands as a window-dressed statue in the shop front of the Oval Office in some big White House that stood for something once and bring him down like a crashing monument after the revolution has long moved on?

It’s not Obama that is the worst President of the USA, it’s the USA that is itself the worst for letting the Wall Street guys, the banksters, the lobbies, the private enterprises, the security agencies, the others, the unknown run the country for them in the name of the President.

Is Obama the worst President of the United States of all time? Who would you put forward as your worst candidate?

Originally posted Obama NOT Worst President in reply to Obama: Worst President in US History?

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You might also enjoy: New Revelations: NSA and XKeyscore Program | Obama's Corporate Grand Bargain Death of the Dollar | Joseph Stiglitz was Right: Suicide | China Injects Cash in Bid to Improve Liquidity

Technical Analysis: Bear Expanding Triangle | Bull Expanding Triangle | Bull Falling Wedge | Bear Rising Wedge | High & Tight Flag

Santelli Slams Liesman: "There's A Difference Between Real-Life Inflation And The Government's"

Submitted by Tyler Durden on 08/14/2013 - 16:06

We have not been shy of sharing our opinion on the hedonics-adjusted, constantly recalibrated-basket-based idiocy that is the government's measures of inflation. However, this morning's Liesman-led cognitive dissonance at the PPI was smashed from the government's Matrix by Rick Santelli's frustration spilling over... Santelli barks, "Listen, I don't believe the government's calculations. There, I said it... I don't have better numbers; I have common sense;" adding that (just as we noted here with energy and real expenses) that "there's a difference between real life and the government."

Citi's Silver (Lining) Playbook

Submitted by Tyler Durden on 08/14/2013 - 17:58

With Silver's strong recent run, Citi FX Technicals suggest the present technical set up is now starting to look very constructive. At the same time, they add, Gold is also starting to move higher; and trending moves in the precious metals (up or down) tend to be led by the Silver price and the Gold/Silver ratio remains supportive of that view again. Given that they remain cautious near term about the fortunes of the US Dollar, all of the above would suggest, Citi concludes, that the "playbook" is to be long Silver against the USD.

CSCO Crashes 10% After-Hours, Laying Off 4000 Staff, Sees Weak Q4

Submitted by Tyler Durden on 08/14/2013 - 17:32

It seems like it was just yesterday when CSCO announced it would fire 10,000 people. And then another 1,300. And then another 500. Fast forward to today when the "one-time, non-recurring" termination charges are back, as the "recovery", now in its 5th year, progresses a little differently than expected, this time with another 4,000 FTE told to pack their bags.

CISCO TO CUT 4,000 JOBS OR 5% OF WORKFORCE
CISCO SAYS IT REMAINS 'VERY MUCH A COMPANY ON THE OFFENSIVE'

Nobody can blame the company, however: why keep full-time workers, when switching over to part-timers will do just as fine, and generate significant benefits to the bottom line and shareholders.

US Consumer Bankruptcies Jump By Most In Three Years; Third-Party Collections At All Time High

Submitted by Tyler Durden on 08/14/2013 - 16:36

Something funny happened on the road to the epic consumer balance sheet cleansing and subsequent releveraging (without which there can be no actual non-Fed sugar high fueled recovery): the second quarter. And specifically, as the Fed just disclosed in its quarterly Household Debt and Credit Report, the number of consumer bankruptcies during the second quarter, just jumped by 71K, to 380K from 309K in Q1, the biggest quarterly jump in precisely three years - on both an absolute and relative basis - and the most since the 158K jump recorded in Q2 2010. It appears that when the "releveraging" US consumer isn't busy buying stuff on credit, they are just as busy filing for bankruptcy. Healthy consumer-led recovery and all that.

Stocks Slump Most In 7 Weeks As Silver Surges

Submitted by Tyler Durden on 08/14/2013 - 16:13

The cluster of Hindenburgs is indicating a very worried market (for example 99 New Highs and 231 New Lows) and for a change a Fed speaker was unable to provide the headline-reading BTFD ammo to save us from the drop in stocks. The 6th down day in the last 8 in stocks and red on the month-to-date screens is not something we are used to seeing. The USD was flat to slightly lower on the day (even as AUD surged and JPY leaked higher) as were Treasury yields (which took a pause after 2 days of being smashed higher). While bonds were flatish, homebuilders and utilities stocks were jammed lower once again (as AAPL pulled Tech and the Nasdaq to outperform again). Copper and oil were also flat on the day but gold saw some improvement (over $1330) and Silver surged 2% (up over 6% on the week now - biggest week since Oct 2011). Yesterday's near-record steepness in VIX's term structure that we warned about seems to have been followed by the usual short-end rip as VIX broke back above 13%.

Guest Post: How Bad Can Things Get?

Submitted by Tyler Durden on 08/14/2013 - 15:39

How Bad Can Things Get? Nobody knows the answer, so we have to consider our responses to a spectrum of possibilities. President Calvin Coolidge famously remarked, "If you see ten troubles coming down the road, you can be sure that nine will run into the ditch before they reach you." While there is certainly much wisdom in this reassurance, that still leaves us the task of preparing for the one that doesn't run harmlessly into the ditch.

Record Student Loan Debt Crushes American Enterpreneurial Spirit

Submitted by Tyler Durden on 08/14/2013 - 15:12

Freshly-minuted MBAs "are willing to sleep on a couch for a year or two, but they can't do it with the burden of student loans," is how on senior lecturer describes the entrepreneurial-spirit-sucking debt loads that college-leavers face in the new normal. Faced with mounting monthly payments, the WSJ reports that would-be-Bezos have little choice but to look for the steady paychecks that accompany a regular job. Recent surveys find that "the single largest inhibitor to entrepreneurship is the student loan" burden and it seems states are beginning to realize this growth-inhibiting reality. In order to tamp down ambition-busters such as "I would be a serial entrepreneur if it weren't for my student loans," California (and Rhode Island) are enacting legislation to reduce college costs and looking at the feasibility of temporary forbearance. While some see their student-loans as a motivator, it seems many more are forced down a different path due to the "real responsibilities."

John Kerry Chimes In, Calls Egypt Situation "Deplorable"

Submitted by Tyler Durden on 08/14/2013 - 14:47

It appears John Kerry has once more disembarked from the "Isabel" and was kind enough to share his latest incisive thoughts on the borderline civil war in non-coup'y, democratic Egypt.

When Inflation Doves Cry

Submitted by Tyler Durden on 08/14/2013 - 14:33

The Wall Street Journal recently ran a front-page article reporting that the monetary-policy “doves,” who had forecast low inflation in the United States, have gotten the better of the “hawks,” who argued that the Fed’s monthly purchases of long-term securities, or so-called quantitative easing (QE), would unleash faster price growth. The report was correct but misleading, for it failed to mention why there is so little inflation in the US today. Those who believe that inflation will remain low should look more thoroughly and think more clearly. There are plenty of good textbooks that explain what too many policymakers and financial-market participants would rather forget.

JPM Scapewhaling Conference: Live Webcast

Submitted by Tyler Durden on 08/14/2013 - 14:07

Nothing like kicking a beached scapewhale when it's down.

Binary Bulls Betting On Bullard Brief, Bounced

Submitted by Tyler Durden on 08/14/2013 - 13:54

It seems the headline-reading algos are in charge once again... as Fed's Bullard held an informal discussion this lunchtime, Bloomberg headlines sent the S&P 500 (the index that represents 500 major US corporations economic viability) up and down rapidly...

*BULLARD SAYS FED DOING 'WHAT IT CAN DO' TO AID U.S. RECOVERY (not so hopeful)
*BULLARD SEES 'A LOT OF RISK GOING FORWARD' OF HIGHER INFLATION (uh oh, Sell!)
*BULLARD: FED NEEDS TO MAINTAIN CRED. ON 2% INFLATION GOAL (oh wait, Buy!)
*BULLARD SAYS U.S. SHOULD MAKE BIGGEST BANKS SMALLER (umm, Sell!)

And so the game goes on...

Time To Rotate Into This Best YTD Performing Stock Market

Submitted by Tyler Durden on 08/14/2013 - 13:25

Taper worries got you down? Then forget Europe, don't mess with China, and run from Emerging markets and instead do what all other professional traders do and chase the momentum in this best performing in 2013 stock market.

Janet Yellen On The Financial Crisis: "I Didn’t See Any Of That Coming Until It Happened"

Submitted by Tyler Durden on 08/14/2013 - 12:49

“For my own part I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.” - Janet Yellen, 2010

This Video Clip From Egypt Is Likely Not Produced

Submitted by Tyler Durden on 08/14/2013 - 12:34

Unlike the previously 'staged' Muslim Brotherhood demonstrations, we suspect this 'real' clip of the escalating and deadly situation in Egypt will open a few eyes to how close the nation is to civil war.

NYTimes Website Offline Following Cyberattack

Submitted by Tyler Durden on 08/14/2013 - 12:15

Http/1.1 Service Unavailable

SH*T You WoN'T See IN NYC... Posted by: williambanzai7 Post date: 08/13/2013 - Frisk and Sink...

.

This Is The Biggest Cluster Of Hindenburg Omens Since The Last Stock Market Crash

Are we heading for a major stock market decline?  Warnings about a crash of the financial markets are quite common these days, and usually they don't materialize.  But this time may be different.  A number of top analysts are pointing out the fact that the biggest cluster of "Hindenburg Omens" has appeared since the last stock market crash.  And those that have studied this insist that the more "Hindenburg Omens" there are in a cluster, the stronger the signal is.  Meanwhile, another very disturbing sign is the fact that the yield on 10 year U.S. Treasuries is starting to soar again.  On Tuesday it shot up from 2.62% to 2.727%.  As I have written about previously, the yield on 10 year U.S. Treasuries is the most important number in the U.S. economy right now.  If that number continues to rise, it is going to be very, very bad news for the financial system. (Read More....)

US Treasury Finally Admits The Truth: It's All POMO (And "No One Dares Fight The Fed")

Submitted by Tyler Durden on 08/13/2013 - 18:15

Back in 2010, when few still dared to question that the entire move in the market is predicated on the Fed's daily POMO (then still on QE2), we laid out, in a way so easy even a caveman could grasp it, how every tiny move in the stock market is nothing but a function of the Fed's daily POMO on those days in which Bernanke would be directly injecting liquidity into the capital markets using his Primary Dealer frontmen. Since then nearly three years have passed, and thousands of POMO days. All of which brings us to this quarter's Treasury refunding presentation, and specifically the section "Effects of policy and market structure" from the Presentation to the Treasury Borrowing Advisory Committee, in which we learn that we had in fact been right all along, and that perhaps for the first time ever, the Treasury admitted that not only "no one dares fight the Fed" but that, as expected, it is "all POMO."

Deutsche Bank Hopes "Not All Margin Calls Come At Once In Case Of A Sell-Off"

Submitted by Tyler Durden on 08/13/2013 - 20:01

A recent survey of asset managers globally, managing USD 27.4 trillion between them, found that 78% of defined-benefit plans would need annual returns of at least 5% per year to meet their commitments, while 19% required more than 8%, "a target of 5% per year can be reached but only by using leverage, shorting, and derivavtives." And sure enough, as Deutsche Bank (DB) reports, in short, investors have rarely been more levered than today! According to DB, a MoM change in NYSE margin debt >10% has to be taken as a critical warning signal as there are astonishing similarities in the sequence of events among all crises. As the S&P 500 just hit a new all-time high, investors might want to ask themselves when it is a good time to become more cautious – yesterday, in our view. Simply put, the higher margin debt levels rise, the more fragile the underlying basis on which prices trade; with even a less severe sell-off in equities capable of triggering a collapse.

21 Facts About America's Surging Government Dependence

Submitted by Tyler Durden on 08/13/2013 - 19:30

The percentage of Americans that are economically independent has dropped to a stunningly low level. What we have in America today is a situation where economic independence is being systematically eradicated and the government is increasingly being expected to provide our daily bread and to take care of all of us from the cradle to the grave. And once you become a serf of the state, it is very hard to resist anything the government is doing in a meaningful way.  After all, the money that you are getting from the government is enabling you to survive.  In essence, your allegiance has been at least partially purchased and you may not even realize it. At this point, the number of Americans that are financially dependent on the government is absolutely staggering, and it gets worse with each passing year.  Just consider the following statistics...

The Other Chinese Interest Rate Nobody Is Talking About

Submitted by Tyler Durden on 08/13/2013 - 18:54

While all the attention of the world's investing public - focused on the short-term repo markets in China - has been ameliorated by the PBOC's 'fold' thanks to ~CNY600bn in liquidity provision (or an equivalent 65bp RRR cut), liquidity concerns remain high (and not so hidden if one knows where to look). Not only has there been a surge in copper imports - based on the cash-for-copper deals replacing short-term funding but concerns raised by investors and the PBOC over duration mismatches (exposed by the recent crisis) has forced Chinese banks to seek longer-term funding. Banks are now raising longer-term deposit rates in order to attract stickier term-deposits and this is causing medium-term Chinese bond yields to surge.

A Golden Opportunity Perhaps

Submitted by Tyler Durden on 08/13/2013 - 17:54

"Preservation of Capital" is much more important than any other strategy in the marketplace and this has been demonstrated time and time again over the centuries. Gold, since ancient times, has served four functions. The first is for jewelry and this is a subject for lunch at the Four Seasons. This is not where we are dining today. The three other functions of gold are a replacement for a currency, an asset that rises in value in times of inflation and an asset that becomes more valuable when Fear is hard upon the market place. It is then a matter of viewpoint where you think we are now but given the sell-off in gold, the possibility of a dark horse or two beginning to trot after the German elections or the fantasy numbers pumped out of China becoming unmasked; gold is an interesting option these days. But there is potentially another 'trade'...

Guest Post: British PM Calls On Communities To Support Fracking

Submitted by Tyler Durden on 08/13/2013 - 17:31

British Prime Minister David Cameron has written an article in the Daily Telegraph in which he has called for all UK communities to show support for the fracking industry, and welcome the coming shale gas boom, stating that such a boom will lower energy bills and create jobs. Despite his demand for Brits to do the patriotic thing, "experts from Ofgem to Deutsche Bank to drilling company Cuadrilla itself argue that UK shale will not bring down bills, because, unlike the US, the UK is part of a huge European gas market.”

Ignore These Six 'Events' At Your Own Risk

Submitted by Tyler Durden on 08/13/2013 - 16:50

With European stocks at multi-month highs, European bond risk at multi-year lows, US equities near all-time highs, US equity volatility expectations near post-crisis lows, and credit risk volatility fading, one could be forgiven for believing it's all gonna be ok. Of course, that assumes we get through the next six weeks unscathed...

Corn-Holed, Bonds Sold, Equity Bears Fold

Submitted by Tyler Durden on 08/13/2013 - 16:12

Intraday volatility remains extreme in almost every asset class. Today it was bonds and corn's turn as the former saw 7Y yields jump over 10bps (for the worst 2 days in 6 weeks on moar Taper talk) and the latter dropped 4% on the day to 3-year lows (on record crop expectations). Equity markets performed the now-ubiquitous intraday reversal as early shorting was squeezed back quickly to a green close. short-term VIX was smashed lower soon after the US open but faded back higher into the close to end around 12.5% (but the VIX term structure is now at 4 months steeps). FX markets were very active (JPY -2% and AUD -1% on the week) pulling the USD +0.75% but Treasuries have been battered (10Y near 2 year high yields) with 7Y adding 15bps this week (and Utility and homebuilder stocks have suffered the most). Gold dropped a little on the USD strength, silver stayed green and copper and oil were flat. Oh and Carl Icahn tweeted and pulled Tech and the Nasdaq to outperform.

Hindenburg Omen Strikes Again - Biggest Cluster On Record

Submitted by Tyler Durden on 08/13/2013 - 15:55

For the 5th time in the last 7 days, equity market internals have triggered an anxiety-implying Hindenburg Omen. Based on our data, this is the most concentrated cluster of new highs, new lows, advancing/declining based confusion on record. The last few occurrences have not ended well (though obviously not disastrously) but as the creator of the 'Omen' notes, the more occurrences that cluster, the stronger the signal.

China's $1 Trillion GDP Lie

Submitted by Tyler Durden on 08/13/2013 - 15:37

From goal-seeked GDP, manipulated inflation, liquidity-flow-exaggerated trade data, and hidden (and divergent) PMI details, the question of the unreliability of Chinese data is not a new one. However, anecdotes aside, a new study from Peking University finds, conservatively, correcting for housing price inflation in the Chinese CPI data adds approximately 1% to annual consumer price inflation in China, reducing real GDP by 8-12% or more than $1 trillion.

About iCahn's AAPL Activism, And Those AAPL Bonds

Submitted by Tyler Durden on 08/13/2013 - 15:09

While we congratulate Carl Icahn (or is that iCahn) for once again taking over the spotlight in what has otherwise been a newsflow empty summer doldrum week, and like everyone else, are surprised by his most recent activist target, the country's on-again, off-again most valuable by market cap company, Apple, we do, as we did before when David Einhorn proposed virtually the same activist play, have some questions. Chief among them: how will AAPL fund any proposed expanded buyback or increased dividend using domestic cash?

Guest Post: That Which Is Incapable Of Reforming Itself Disappears

Submitted by Tyler Durden on 08/13/2013 - 15:00

Every failing organization, from empires to school districts, responds to its embarrassingly visible failure by proclaiming one reform after another. To take but a few from a long list, China is "reforming" its hopelessly corrupt, debt-based central-planning economy, President Obama is "reforming" the Global Surveillance State (into a presumably kinder, gentler machine gun hand?), The European Union is "reforming" its banking sector and the overly complex U.S. Sickcare system is being reformed with 2,300 pages of additional complexity under the Orwellian title of Affordable Care Act (ACA), a.k.a. ObamaCare. The one dynamic that matters is of course left unsaid: the inability of the Status Quo to reform itself, i.e. undertake fundamental, systemic reforms. This inability has many facets but only one root: political sclerosis caused by entrenched, vested interests seeking to protect their perquisites and power. This is as true of local school districts as it is of entire states.

OBAMA CLOWN BANNED FROM FAIR

BANNED FOR LIFE!

Clowns ordered to 'sensitivity training'...
Announcer, Rodeo President Resign...
'I know I'm a clown, Obama just running around acting like one, doesn't know he is one'...
MO CONTROVERSY SPIRALING OUT OF CONTROL...
'It's entertainment'...
NAACP: DOJ, Secret Service Should Investigate...

Obama Feasts on Fried Shrimp, Fried Oysters, Onion Rings...

Teen unemployment rate in CA: 33%...

Snowden: NSA targeted journalists critical of government after 9/11...

Secret Service monitored REDDIT co-founder before suicide...

Michael Hastings Was Investigating CIA Director John Brennan...

NC guv signs extensive voter ID law...

POLITICO: 'The coming war'...

Missouri Fair clown draws criticism for Obama mask...

'Shameful' and 'unacceptable'...

Hooting and hollering from the stands...

DEMS BLAST RODEO CLOWN...

DOG DAYS: BO AIRLIFTED TO OBAMA HOLIDAY HOME...

Quadruple amputee has wheelchair stolen while on vacation...

AMERICANS RENOUNCING CITIZENSHIP AT RECORD LEVELS...

WEINER OFFERS SUPPORTERS 'SNEAK PEEK'...

POLL: Sets new record with 80% disapproval...

Two-thirds of NYC say Weiner, Spitzer 'embarrassing'...

Why Are So Many People Choosing To Leave The United States Permanently?

Have things gotten so bad that it is time to leave the United States for good?  That is a question that a lot of Americans are dealing with these days, and an increasing number of them are choosing to leave the country of their birth permanently.  Some are doing it for tax reasons, some are doing it because they believe the future is brighter elsewhere, and others are doing it because they are very distressed about the direction that America is heading and they don't see any hope for a turnaround any time soon.  Personally, I have several friends and contacts that regard themselves as "preppers" that have decided that the United States is too far gone to recover.  They have moved their families out of the country and they never plan to return.  As this nation continues to head down the very troubled road that it is currently on, this trend is probably only going to accelerate even more. (Read More....)

They Are Systematically Destroying Our Independence And Making Us All Serfs Of The State

The percentage of Americans that are economically independent has dropped to a stunningly low level.  In order to be economically independent, you have got to be able to take care of yourself without any assistance from anyone else.  Unless you are independently wealthy, that means that you either have your own business or you have a full-time job.  Unfortunately, as you will see below, the percentage of Americans that are self-employed is at an all-time record low and the percentage of Americans with a full-time job has declined to a level not seen in about 30 years.  As a result, more Americans than ever find themselves forced to turn to the government for assistance.  When you add it all up, about half of all Americans get money from the government each month these days.  And yes, there will always be poor people that cannot take care of themselves that need help, but when you have more than half of the population dependent on the government that is a major problem.  You see, the truth is that our independence is systematically being taken away from us and we are steadily being made serfs of the state.  And once you become a serf of the state, it is very hard to resist anything the government is doing in a meaningful way.  After all, the money that you are getting from the government is enabling you to survive.  In essence, your allegiance has been at least partially purchased and you may not even realize it. (Read More....)

Are These The Last Days Of The U.S. Marine Corps?

Are the current personnel cuts the beginning of the end for the U.S. Marines?  Could these actually be the last days of the U.S. Marine Corps?  A decade ago, such a notion would have been absolutely unthinkable, but times have changed.  The Marine Corps was already in the process of drawing down from a peak of 202,100 Marines to 182,100, and now Defense Secretary Chuck Hagel is warning that the sequester cuts may force the Army to be cut down to a size of 380,000 and the Marine Corps to be cut down to a size of 150,000.  Unfortunately for the Marines, even larger cuts may eventually be coming.  Many in the Obama administration and in the Pentagon are now openly questioning whether there will be an important role for the Marines to play in the future.  After all, the U.S. military has not conducted a major amphibious landing since the Korean War.  As our politicians look for even more ways to cut military expenses in the years ahead, the Marines may end up being very tempting "low hanging fruit" that the bureaucrats can't resist.  And unless another major conflict erupts, it seems clear that more cuts are probably coming.  In fact, even the New York Times admits that "deep reductions" to the U.S. military have long been an important goal for Barack Obama. (Read More....)

A Quadrillion Yen And Counting – The Japanese Debt Bomb Could Set Off Global Panic At Any Moment

How much is 1,000,000,000,000,000 yen worth?  Well, a quadrillion yen is worth approximately 10.5 trillion dollars.  It is an amount of money that is larger than the "the economies of Germany, France and the U.K. combined".  It is such an astounding amount of debt that it is hard to even get your mind around it.  The government debt to GDP ratio in Japan will reach 247 percent this year, and the Japanese currently spend about 50 percent of all central government tax revenue on debt service.  Realistically, there are only two ways out of this overwhelming debt trap for the Japanese.  Either they default or they try to inflate the debt away.  At this point, the Japanese have chosen to try to inflate the debt away.  They have initiated the greatest quantitative easing experiment that a major industrialized nation has attempted since the days of the Weimar Republic.  Over the next two years, the Bank of Japan plans to zap 60 trillion yen into existence out of thin air and use it to buy government bonds.  By the time this program is over, the monetary base in Japan will have approximately doubled.  But authorities in Japan are desperate.  They know that the Japanese debt bomb could set off global panic at any time, and they are trying to find a way out that will not cause too much pain. (Read More....)

Newly Discovered Eighth Grade Exam From 1912 Shows How Dumbed Down America Has Become

Have you ever seen the movie “Idiocracy”?  It is a movie about an “average American” that wakes up 500 years in the future only to discover that he is the most intelligent person by far in the “dumbed down” society that is surrounding him.  Unfortunately, that film is a very accurate metaphor for what has happened to American society today.  We have become so “dumbed down” that we don’t even realize what has happened to us.  But once in a while something comes along that reminds us of how far we have fallen.  In Kentucky, an eighth grade exam from 1912 was recently donated to the Bullitt County History Museum.  When I read this exam over, I was shocked at how difficult it was.  Could most eighth grade students pass such an exam today?  Of course not.  In fact, I don’t even think that I could pass it.  Sadly, this is even more evidence of “the deliberate dumbing down of America” that former Department of Education official Charlotte Iserbyt is constantly warning us about.  The American people are not nearly as mentally sharp as they once were, and with each passing generation it gets even worse. (Read More.....)

Just check out some of the questions from the eighth grade exam that was discovered.  Do you think that you could correctly answer these?…

-Through which waters would a vessel pass in going from England through the Suez Canal to Manila?

-How does the liver compare in size with other glands in the human body?

-How long of a rope is required to reach from the top of a building 40 feet high to the ground 30 feet from the base of a building?

-Compare arteries and veins as to function. Where is the blood carried to be purified?

-During which wars were the following battles fought: Brandywine, Great Meadows, Lundy’s Lane, Antietam, Buena Vista?

A copy of the exam is posted below.  Today, it would be a real challenge for many college students to correctly answer most of these questions correctly…

If you would like to know what the correct answers to these questions are, you can find them right here.

One of the areas that Americans are horribly deficient in today is geography.  If you give them a blank world map, most Americans can only identify a very limited number of countries.  In fact, according to a survey that was conducted by the National Geographic Society several years ago, only 37 percent of all Americans between the ages of 18 and 24 could find the nation of Iraq on a map of the world even though the United States was actively fighting a war there at the time.

Our young people are also horribly deficient when it comes to math and science.  At this point, 15-year-olds in the United States do not even rank in the top half of all industrialized nations when it comes to math and science literacy.

How do we expect to thrive as a nation with these kinds of results?

In a previous article entitled “Dumb As A Rock: You Will Be Absolutely Amazed At The Things That U.S. High School Students Do Not Know“, I discussed some more survey results that show how dumb our high school students have become…

*Only 43 percent of all U.S. high school students knew that the Civil War was fought some time between 1850 and 1900.

*More than a quarter of all U.S. high school students thought that Christopher Columbus made his famous voyage across the Atlantic Ocean after the year 1750.

*Approximately a third of all U.S. high school students did not know that the Bill of Rights guarantees freedom of speech and freedom of religion.

*Only 60 percent of all U.S. students knew that World War I was fought some time between 1900 and 1950.

Even more shocking were the results of a survey of Oklahoma high school students conducted back in 2009.  The following is a list of the questions that were asked and the percentage of students that answered correctly….

What is the supreme law of the land? 28 percent

What do we call the first ten amendments to the Constitution? 26 percent

What are the two parts of the U.S. Congress? 27 percent

How many justices are there on the Supreme Court? 10 percent

Who wrote the Declaration of Independence? 14 percent

What ocean is on the east coast of the United States? 61 percent

What are the two major political parties in the United States? 43 percent

We elect a U.S. senator for how many years? 11 percent

Who was the first President of the United States? 23 percent

Who is in charge of the executive branch? 29 percent

So why is this happening?

Well, for one thing, our system of public education is a complete and total joke.  We have millions of kids “graduating from high school” that can barely read, that have almost no ability to speak in public, that cannot write a decent essay and that cannot balance a checkbook.

It also doesn’t help that Americans (especially young Americans) are absolutely addicted to entertainment.  Americans spend an average of 153 hours watching television each month, and when we aren’t watching television we are watching movies, playing video games, surfing the Internet, etc.

When is the last time that you saw a young person actually reading a book that was not required for school?  Yes, it does happen once in a while, but it is so rare that it is kind of startling when you spot it happening.

But it is not just our young people that have been “dumbed down”.  Even our presidents have been “dumbed down”.  If you doubt this, just check out this amazing graphic which shows how the reading level of State of the Union addresses has steadily declined since the beginning of our nation.

Personally, I have an awareness that I should be able to think much more clearly than I am able to right now.  I can feel the effect that our society has had on my own mental abilities, and it frustrates me.

A lot has been written about the decline of our health here in America, but very little gets written about our mental decline.  That is a shame, because our ability to think clearly and rationally is so very critical to our future.

So what do you think about all of this?

Do you agree that America has been “dumbed down”?

Please feel free to share your opinion by posting a comment below…

The state of our union is … dumber:

How the linguistic standard of the presidential address has declined

Using the Flesch-Kincaid readability test the Guardian has tracked the reading level of every state of the union

Year of address18001820184018601880190019201940196019802000Flesch–Kincaid Reading Level8101214161820222426Number of words3000030,00030003,000

Presidents in order of reading level

2 December 1823
James Monroe delivers an address that would later become
known as the Monroe Doctrine, a key tenet of US foreign
policy for almost two centuries

2 December 1913
Woodrow Wilson’s speech follows more than
100 years of the address being delivered to
Congress as a written submission. His precedent
is (mostly) followed to this day

3 January 1934
Franklin D Roosevelt changes
the name of the address from
the President’s Annual Message
to Congress to State of the Union

16 January 1981
Jimmy Carter's final address, delivered as a written message, is the longest ever state of the union

1. George H.W. Bush

Avg. reading level

8.6

1989199019911992

Average sentence

Education is the one investment that means more for our future, because it means the most for our children.

2. Barack Obama

Avg. reading level

9.2

20092010201120122013

Average sentence

And if there's one thing that has unified Democrats and Republicans, it's that we all hated the bank bailout.

3. William J. Clinton

Avg. reading level

9.8

19931994199519961997199819992000

Average sentence

I noticed the announcement of the leadership today that Congress is taking similar steps to cut its costs.

4. Lyndon B. Johnson

Avg. reading level

10

196419651966196719681969

Average sentence

We have built a strong economy that has put almost 3 million more Americans on the payrolls in the last year alone.

5. George W. Bush

Avg. reading level

10

200120012002200320042005200620072008

Average sentence

And we will address the concerns of those who have health coverage yet worry their insurance company does not care and will not pay.

6. Ronald Reagan

Avg. reading level

10.4

1982198319841985198619871988

Average sentence

But from this podium, Winston Churchill asked the free world to stand together against the onslaught of aggression.

7. Harry S. Truman

Avg. reading level

10.9

19461947194819491950195119521953

Average sentence

In this connection, the Congress will wish to consider legislation to take the place of the 1937 Sugar Act which expires at the end of this year.

8. Gerald R. Ford

Avg. reading level

11.2

197519761977

Average sentence

We must strike a reasonable compromise on environmental concerns with coal.

9. Jimmy Carter

Avg. reading level

11.6

1978197919801981

Average sentence

While the budget deficits during my term are higher than I would have liked, their size is determined for the most part by economic conditions.

10. Richard Nixon

Avg. reading level

11.8

19701971197219731974

Average sentence

Ours has become--as it continues to be, and should remain--a society of large expectations.

11. Calvin Coolidge

Avg. reading level

12.1

192319241925192619271928

Average sentence

It is exceedingly gratifying to observe this progress, both in its method and in its result promises so much that is beneficial to the world.

12. John F. Kennedy

Avg. reading level

12.3

196119621963

Average sentence

Concessions, in this bargaining, must of course be reciprocal, not unilateral.

13. Franklin D. Roosevelt

Avg. reading level

12.4

193419351936193719381939194019411942194319441945

Average sentence

We know what might happen to us of the United States if the new philosophies of force were to encompass the other continents and invade our own.

14. Dwight D. Eisenhower

Avg. reading level

12.6

195319541955195619571958195919601961

Average sentence

So dedicated, and with faith in the Almighty, humanity shall one day achieve the unity in freedom to which all men have aspired from the dawn of time.

15. Herbert Hoover

Avg. reading level

13.2

1929193019311932

Average sentence

In a large sense these undertakings have been adhered to and we have not witnessed the usual reductions of wages which have always heretofore marked depressions.

16. Chester A. Arthur

Avg. reading level

13.8

1881188218831884

Average sentence

The organization and conduct of this relief expedition reflects great credit upon all who contributed to its success.

17. Warren Harding

Avg. reading level

14.5

19211922

Average sentence

In the three decades ending in 1920 the country's freight by rail increased from 631,000,000 tons to 2,234,000,000 tons; that is to say, while our population was increasing, less than 70 per cent, the freight movement increased over 250 per cent.

18. Abraham Lincoln

Avg. reading level

14.6

1861186218631864

Average sentence

In the exercise of my best discretion I have adhered to the blockade of the ports held by the insurgents, instead of putting in force by proclamation the law of Congress enacted .

19. Theodore Roosevelt

Avg. reading level

15.5

19011902190319041905190619071908

Average sentence

Not merely would this be wholly ineffective, but the diversion of our efforts in such a direction would mean the abandonment of all intelligent attempt to do away with these evils.

20. Woodrow Wilson

Avg. reading level

15.6

19131914191519161917191819191920

Average sentence

It makes little difference what minority it is; whether capital or labor, or any other class; no sort of privilege will ever be permitted to dominate this country.

21. James Buchanan

Avg. reading level

15.9

1857185818591860

Average sentence

They accordingly inserted an article in the constitution for this purpose similar in form to those which had been adopted by other Territorial conventions.

22. Benjamin Harrison

Avg. reading level

15.9

1889189018911892

Average sentence

This has not, however, been done, and the Federal officers and courts have no power in such cases to intervene, either for the protection of a foreign citizen or for the punishment of his slayers.

23. Ulysses S. Grant

Avg. reading level

16.6

18691870187118721873187418751876

Average sentence

From my own experience upon the frontiers and in Indian countries, I do not hold either legislation or the conduct of the whites who come most in contact with the Indian blameless for these hostilities.

24. Andrew Johnson

Avg. reading level

16.9

1865186618671868

Average sentence

These questions are of such moment that they must have commanded the attention of the great powers, and are so interwoven with the peace and interests of every one of them as to have insured an impartial decision.

25. William McKinley

Avg. reading level

16.9

1897189818991900

Average sentence

Frear, of Hawaii, as commissioners to confer and recommend to Congress such legislation concerning the Hawaiian Islands as they should deem necessary or proper.

26. William H. Taft

Avg. reading level

17.3

1909191019111912

Average sentence

The treaty annexing Korea to the Empire of Japan, promulgated August 29, 1910, marks the final step in a process of control of the ancient empire by her powerful neighbor that has been in progress for several years past.

27. James Polk

Avg. reading level

17.7

1845184618471848

Average sentence

Until that result is known I forbear to recommend to Congress such ulterior measures of redress for the wrongs and injuries we have so long borne as it would have been proper to make had no such negotiation been instituted.

28. Millard Fillmore

Avg. reading level

17.7

185018511852

Average sentence

Our commerce spreads over every sea and visits every clime, and our ministers and consuls are appointed to protect the interests of that commerce as well as to guard the peace of the country and maintain the honor of its flag.

29. Rutherford B. Hayes

Avg. reading level

17.8

1877187818791880

Average sentence

My purpose in this respect has been to return to the system established by the fundamental law, and to do this with the heartiest cooperation and most cordial understanding with the Senate and House of Representatives.

30. George Washington

Avg. reading level

17.9

17901790179117921793179417951796

Average sentence

In pursuing this course, however, I can not forget what is due to the character of our Government and nation, or to a full and entire confidence in the good sense, patriotism, self-respect, and fortitude of my country-men.

31. James Monroe

Avg. reading level

17.9

18171818181918201821182218231824

Average sentence

Several new States have been admitted into our Union to the west and south, and Territorial governments, happily organized, established over every other portion in which there is vacant land for sale.

32. John Adams

Avg. reading level

18.2

1797179817991800

Average sentence

It is with you, gentlemen, to consider whether the local powers over the District of Columbia vested by the Constitution in the Congress of the United States shall be immediately exercised.

33. Zachary Taylor

Avg. reading level

18.3

1849

Average sentence

The United States did not at any time interfere in the contest, but the feelings of the nation were strongly enlisted in the cause, and by the sufferings of a brave people, who had made a gallant, though unsuccessful, effort to be free.

34. Grover Cleveland

Avg. reading level

18.3

18851886188718881893189418951896

Average sentence

This important field of control and regulation having been thus left entirely unoccupied, the expediency of Federal action upon the subject is worthy of consideration.

35. Thomas Jefferson

Avg. reading level

18.5

18011802180318041805180618071808

Average sentence

The love of peace so much cherished in the bosoms of our citizens, which has so long guided the proceedings of their public councils and induced forbearance under so many wrongs, may not insure our continuance in the quiet pursuits of industry.

36. John Tyler

Avg. reading level

19.1

1841184218431844

Average sentence

While just confidence is felt in the judiciary of the States, yet this Government ought to be competent in itself for the fulfillment of the high duties which have been devolved upon it under the organic law by the States themselves.

37. Andrew Jackson

Avg. reading level

19.7

18291830183118321833183418351836

Average sentence

With the nation that was our earliest friend and ally in the infancy of our political existence the most friendly relations have subsisted through the late revolutions of its Government, and, from the events of the last, promise a permanent duration.

38. John Quincy Adams

Avg. reading level

19.9

1825182618271828

Average sentence

The public faith no less than the just rights of individuals and the interest of the community itself appears to require further provision for the speedy settlement of those claims, which I therefore recommend to the care and attention of the Legislature.

39. Franklin Pierce

Avg. reading level

20

1853185418551856

Average sentence

The aggregate amount of public land sold during the last fiscal year, located with military scrip or land warrants, taken up under grants for roads, and selected as swamp lands by States is 24,557,409 acres, of which the portion sold was 15,729,524 acres, yielding in receipts the sum of $11,485,380.

40. Martin van Buren

Avg. reading level

20.7

1837183818391840

Average sentence

The erection of a national foundry and gunpowder manufactory, and one for making small arms, the latter to be situated at some point west of the Allegany Mountains, all appear to be of sufficient importance to be again urged upon your attention.

41. James Madison

Avg. reading level

21.6

18091810181118121813181418151816

Average sentence

In reviewing the scenes through which it has been attained we can rejoice in the proofs given that our political institutions, founded in human rights and framed for their preservation, are equal to the severest trials of war, as well adapted to the ordinary periods of repose.

Presidents James A. Garfield (1881) and William Henry Harrison (1841) did not deliver a State of the Union address.

Sources: Gerhard Peters and Brad Borevitz

Dumb As A Rock: You Will Be Absolutely Amazed At The Things That U.S. High School Students Do Not Know

By Michael Snyder, on January 10th, 2012

Are we raising the stupidest generation in American history?  The statistics that you are about to read below are incredibly shocking.  They indicate that U.S. high school students are basically as dumb as a rock.  As you read the rest of this article, you will be absolutely amazed at the things that U.S. high school students do not know.  At this point, it is really hard to argue that the U.S. education system is a success.  Our children are spoiled and lazy, our schools do not challenge them and students in Europe and in Asia routinely outperform our students very badly on standardized tests.  In particular, schools in America do an incredibly poor job of teaching our students subjects such as history, economics and geography that are necessary for understanding the things that are taking place in our world today.  For example, according to a survey conducted by the National Geographic Society, only 37 percent of Americans between the ages of 18 and 24 can find Iraq on a map of the world.  According to that same survey, 50 percent of Americans between the ages of 18 and 24 can’t even find the state of New York on a map.  If our students cannot even find Iraq and New York on a map, what hope is there that they will be able to think critically about the important world events of our day?

Sadly, almost every survey or study about high school students that gets done shows that most of our students are not even receiving a basic education.

For example, the following comes from an article posted on MSNBC….

Just 13 percent of high school seniors who took the 2010 National Assessment of Educational Progress — called the Nation’s Report Card — showed solid academic performance in American history.

So only 13 percent of our high school seniors are proficient in history?

That doesn’t sound good.

So what does that mean exactly?

Well, there have been some other surveys and studies that have quizzed U.S. high school students about specific historical facts.

The following are some of the absolutely amazing results of a study conducted a few years ago by Common Core….

*Only 43 percent of all U.S. high school students knew that the Civil War was fought some time between 1850 and 1900.

*More than a quarter of all U.S. high school students thought that Christopher Columbus made his famous voyage across the Atlantic Ocean after the year 1750.

*Approximately a third of all U.S. high school students did not know that the Bill of Rights guarantees freedom of speech and freedom of religion.  (This is a topic that I touched on yesterday).

*Only 60 percent of all U.S. students knew that World War I was fought some time between 1900 and 1950.

Even more shocking were the results of a survey of Oklahoma high school students conducted back in 2009.  The following is a list of the questions that were asked and the percentage of students that answered correctly….

What is the supreme law of the land? 28 percent

What do we call the first ten amendments to the Constitution? 26 percent

What are the two parts of the U.S. Congress? 27 percent

How many justices are there on the Supreme Court? 10 percent

Who wrote the Declaration of Independence? 14 percent

What ocean is on the east coast of the United States? 61 percent

What are the two major political parties in the United States? 43 percent

We elect a U.S. senator for how many years? 11 percent

Who was the first President of the United States? 23 percent

Who is in charge of the executive branch? 29 percent

Some have criticized the survey results above because they came from a telephone survey, but the truth is that they are not some sort of an anomaly.  Many other surveys have produced similar results.  It doesn’t take a genius to realize that a large percentage of our high school students are as dumb as a rock.

The following is from an article written by reporter Mark Morford in which he described his conversations with a longtime Oakland high school teacher that was nearing retirement….

It’s gotten so bad that, as my friend nears retirement, he says he is very seriously considering moving out of the country so as to escape what he sees will be the surefire collapse of functioning American society in the next handful of years due to the absolutely irrefutable destruction, the shocking — and nearly hopeless — dumb-ification of the American brain. It is just that bad.

Now, you may think he’s merely a curmudgeon, a tired old teacher who stopped caring long ago. Not true. Teaching is his life. He says he loves his students, loves education and learning and watching young minds awaken. Problem is, he is seeing much less of it.

Later on in that same article, Morford tells us that the high school teacher even admitted that very few of his students even know how to put a sentence together….

It gets worse. My friend cites the fact that, of the 6,000 high school students he estimates he’s taught over the span of his career, only a small fraction now make it to his grade with a functioning understanding of written English. They do not know how to form a sentence. They cannot write an intelligible paragraph. Recently, after giving an assignment that required drawing lines, he realized that not a single student actually knew how to use a ruler.

It is not that our students do not have the capacity to be great.

It is just that they have learned to be incredibly lazy and our schools do not challenge them at all.

One study found that 55 percent of all U.S. high school students spend 3 hours or less per week preparing for class.

Other nations require their students to work far longer and far harder.

And they get much better results.

Today, American 15-year-olds do not even rank in the top half of all advanced nations when it comes to math or science literacy.

So how do we expect to compete if this continues?

If we would just challenge our students and require more out of them we could do so much better.  What most public schools are doing right now simply does not work.  The following is from a report that John Stossel did a few years ago entitled “Stupid In America“….

I talked with 18-year-old Dorian Cain in South Carolina, who was still struggling to read a single sentence in a first-grade level book when I met him. Although his public schools had spent nearly $100,000 on him over 12 years, he still couldn’t read.

So “20/20″ sent Dorian to a private learning center, Sylvan, to see if teachers there could teach Dorian to read when the South Carolina public schools failed to.

Using computers and workbooks, Dorian’s reading went up two grade levels — after just 72 hours of instruction.

His mother, Gena Cain, is thrilled with Dorian’s progress but disappointed with his public schools. “With Sylvan, it’s a huge improvement. And they’re doing what they’re supposed to do. They’re on point. But I can’t say the same for the public schools,” she said.

It absolutely amazes me how millions upon millions of our students can get all the way through high school without ever learning how to read, write or speak at a functional level.

Instead of producing the leaders of tomorrow, our education system is producing a bunch of sheep that are trained to take orders and that are pretty good at taking multiple choice tests.

If you want to get really depressed about the future of America, just watch some of the Jaywalking segments that Jay Leno does.  Yes, it is funny to watch as he demonstrates how little Americans actually know about world events.  But it is also a sign of how far our education system has fallen.

If Americans cannot even answer basic factual questions about our own government, then how in the world will anyone ever be able to persuade them to think critically about the Federal Reserve, the economic crisis or about our corrupt political system?

Our children are the future of this nation, and right now that future is looking quite bleak.

So what do all of you think about the U.S. education system?  Do any of you have any education horror stories to share?  Do you believe that our schools have rapidly gone downhill?  Feel free to leave a comment with your thoughts below….

REVEALED: NSA'S SECRET ORG CHART...

More Fast and Furious guns surface at crime scenes in Mexico...

MYSTERY: Nation's Debt Unchanged - for 87th Straight Day?!

9 red flags to be aware of in this market

By John Nyaradi

Multiple fundamental and technical red flags warn investors of potentially stormy seas as we travel through the dog days of summer.

1. Price/earnings ratios for the S&P 500 range from just above fair value to seriously overpriced.

A key indicator as to whether stocks are overvalued is the price/earnings ratio for the S&P 500. On a forward-earnings-estimate basis, the S&P 500 P/E is just over 15, slightly higher than its long-term medium of 14.5.

Many analysts prefer Yale Professor Robert Shiller's system of comparing earnings per share (EPS) with price performance. Using Shiller's formula of averaging earnings over a 10-year time frame, the CAPE (also known as the "P/E 10") is currently 24, roughly 45% above its long-term median of approximately 16, which tells us that stocks are about as expensive as a reasonable investor should be willing to pay.

2. Retail investors, who are traditionally wrong, have been pouring money into the stock market.

As major U.S. indexes stall just below recent all-time highs, retail investors seem convinced that the party will continue forever. They have invested more than $90 billion into the stock market in 2013, which is comparable to levels seen in 2007, just before the last financial crash. This action is a contrarian indicator, as retail investors have historically demonstrated a penchant for buying high and selling low.

3. Margin debt is at near-record levels

Record levels of margin debt often times precede market meltdowns, and today's situation again finds near-record levels of margin debt. High levels of margin debt also preceded previous stock-market crashes in 2000 and 2008.

4. Hindenburg Omens everywhere

Last week saw Hindenburg Omen sightings on four out of five days, and clusters like this tend to add credence to the indicator's reliability. The most recent cluster follows a previous group of sightings that occurred on April 15, May 29, June 4 and June 10.

Hindenburg Omens are wildly controversial; however, confirmed Hindenburg Omen clusters also occurred in July 2007 and October 2007. Those sightings were followed by a greater than 10% decline on the S&P 500 following the July event, and the big waterfall descent in the S&P 500 of more than 55% that began in October 2007.

Going further back in history, we see a Hindenburg Omen preceding the tech-wreck crash in October 2000 when the October Hindenburg Omen came just in front of the 50% S&P 500 and Dow Jones Industrial Average declines that started that same month. A Hindenburg Omen also preceded a 30-percent-plus drop in the S&P 500 in 1987. Furthermore, every stock-market crash going back to 1985 was preceded by a Hindenburg Omen. Only 8% of Hindenburg Omens have not resulted in at least mild declines in the Dow Jones Industrial Average and S&P 500.

5. "Dr. Doom," Marc Faber, adds his warning

Well-known bear Marc Faber added to the warnings last week when he went on CNBC to predict the potential for a 1987-style crash in coming months. Like the Hindenburg Omen, Dr. Faber says that even though the S&P 500 is near all-time highs, there are also a growing number of stocks hitting 52-week lows and fewer stocks reaching 52-week highs which indicates a lack of underlying strength in the market. His overall bottom line is a downturn on the order of 20% in the stock market between now and the end of the year.

6. Tobin's Q, a measurement of long-term value, indicates that the S&P 500 is 53% overvalued

While not a market-timing indicator since markets can stay overvalued for a long time, Tobin's Q indicates that stocks are overpriced on a long-term historical basis

7. Stocks appear to be overbought and overextended on a technical basis

Eighty-eight percent of S&P 500 stocks are currently above their 200-day moving average. Similar levels in the 75%-85% range were also seen in 2007 (85%) before the plunge that took the percentage of stocks above their 200-day moving average down into the one-percet range.

The S&P 500 is currently nearly 10% above its 200-day moving average. This is a level comparable to those preceding previous significant corrections, and many analysts point out that the farther the rubber band is stretched, the more violently it snaps back to mean.

9. The dreaded taper and uncertainty at the Federal Reserve

Stock prices have been riding the wave of quantitative easing for nearly half a decade. With the Fed apparently about to taper its bond-buying program, fundamentals will likely again be the determining measure of stock prices, rather than market mania. Just "taper talk" makes markets nervous and so when/if it actually happens, we can expect significant turbulence in global financial markets.

Furthermore, a public battle between hawks and doves at the Federal Reserve is breaking out, and this ambiguity can only add further insecurity to global markets. The "Fed Chairman Guessing Game" is also now well underway, with Larry Summers and Janet Yellen apparently the two top contenders. As the entertainment unfolds, we can expect markets to handicap which candidate will win as they have significantly divergent views regarding the effectiveness of quantitative easing and whether or not it should be continued.

Red flags fly everywhere as global financial markets travel through the dog days of summer. As always, danger arrives hand in hand with opportunity, and the current environment will generate both peril and the potential for profits. Wall Street Sector Selector stands in “red-flag status,”expecting rough water ahead.

BiG TRouBLe, LiTTLe TaPeR... Posted by : williambanzai7 Post date: 08/13/2013 - BANZAI7 BEVERAGE WARNING!

BiG TRouBLe, LiTTLe TaPeR...

Submitted by williambanzai7 on 08/13/2013 10:18 -0400

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The Incredible Shrinking COMEX Gold Warehouse Inventories Posted by: smartknowledgeu Post date: 08/13/2013 - Since the end of last April, registered gold held at the COMEX depositories has collapsed from a total of 2,147,398 ounces to just 852,930 ounces. That is a collapse of 60% of the registered gold...

Demise of the USA Posted by: Pivotfarm Post date: 08/13/2013 - For the first time in 2016 according to estimates, the US will not be the most economically-powerful country in the world, but the second since World War II.

Michelle Obama releasing rap album...

OBAMA CLOWN BANNED FROM FAIR...

'Shameful' and 'unacceptable'...

Hooting, hollering from stands...

DEMS AGHAST...

Benghazi Whistleblower Lawyer: “Stolen” Libyan Missiles Will Be Used to Shoot Down Aircraft

Kurt Nimmo | More evidence CIA is arming its al-Qaeda proxy in Syria with deadly munitions.

Snowden: After 9/11, Media Abdicated Its Role as a Check to Power

Paul Joseph Watson | Whistleblower slams establishment press.

Report: Michael Hastings Was Investigating CIA Director John Brennan

Paul Joseph Watson | Brennan named as being “behind the witch hunts of investigative journalists”.

U.S. Army Conducts Military Occupation Drill in Small Town Wisconsin

Kit Daniels | Operation Tiger emulates military control of local, elected officials.

Obama Appoints Fox to Investigate Spying In the Henhouse

Washington’s Blog | Spymaster Clapper to lead investigation into spying

Newly Discovered Eighth Grade Exam From 1912 Shows How Dumbed Down America Has Become

American Dream | We have become so “dumbed down” that we don’t even realize what has happened to us.

We Are Legion: Anonymous’ Presence in the U.S. Military

Liberty Blitzkrieg | Are we going to see more leaks?

They Are Systematically Destroying Our Independence And Making Us All Serfs Of The State

Economic Collapse | The percentage of Americans that are economically independent has dropped to a stunningly low level.

They Are Systematically Destroying Our Independence And Making Us All Serfs Of The State

Economic Collapse | The percentage of Americans that are economically independent has dropped to a stunningly low level.

How much data the NSA really gets

London Guardian | The NSA claims it ‘touches’ only 1.6% of internet traffic – doesn’t sound a lot. In fact, that’s practically everything that matters.

‘Run and hide’ is Obama administration’s clever plan for next school shooting

Daily Caller | The U.S. Department of Education’s “live-shooter” section doesn’t recommend that schools arm teachers or employ armed guards. It doesn’t even advise schools to add door locks for classrooms.

Al-Qaeda expands in Syria via Islamic State

Washington Post | A rebranded version of Iraq’s al-Qaeda affiliate is surging onto the front lines of the war in neighboring Syria.

Benghazi Whistleblower Lawyer: “Stolen” Libyan Missiles Will Be Used to Shoot Down Aircraft

Kurt Nimmo | More evidence CIA is arming its al-Qaeda proxy in Syria with deadly munitions.

Report: Michael Hastings Was Investigating CIA Director John Brennan

Paul Joseph Watson | Brennan named as being “behind the witch hunts of investigative journalists”.

U.S. Army Conducts Military Occupation Drill in Small Town Wisconsin

Kit Daniels | Operation Tiger emulates military control of local, elected officials.

They Are Systematically Destroying Our Independence And Making Us All Serfs Of The State

Economic Collapse | The percentage of Americans that are economically independent has dropped to a stunningly low level.

We Are Legion: Anonymous’ Presence in the U.S. Military

Liberty Blitzkrieg | Are we going to see more leaks?

Newly Discovered Eighth Grade Exam From 1912 Shows How Dumbed Down America Has Become

American Dream | We have become so “dumbed down” that we don’t even realize what has happened to us.

Republican: House has votes to impeach Obama, but not sure of charges

CNN | Rep. Blake Farenthold said the House could impeach the president. { Well, don’t just talk about it … Just do it! It’s the best thing to do for GOD and country! }

Bloomberg: ‘There’s a huge run on physical gold right now.’

Bloomberg | Co-founder of commodity trading firm Grafite Capital, remarks that his company bought physical gold eight weeks ago but still hasn’t gotten delivery yet.

Crypto-currency for NSA leaker: Snowden fund accepts Bitcoin

RT | US fugitive Edward Snowden’s defense fund, launched recently by WikiLeaks to raise money for the legal protection of the NSA leaker, has announced it now accepts donations in virtual currency Bitcoin.

University of California Study: National Debt Is Really $70 Trillion

New American | James Hamilton, an economics professor at the University of California, San Diego, just published his best estimate of the federal government’s “off-balance-sheet” liabilities.

Gold Shorts Cover At Fastest Pace In 13 Years

Zero Hedge | Gold shorts covered an enormous 23,518 futures contracts last week – the equivalent of 2,351,800 ounces of gold.

Goldman: "Without The Boost From Housing, Real GDP Growth Would Fall Below 1% This Year"

Submitted by Tyler Durden on 08/13/2013

Wonder why the Fed and the banks are so desperate to reflate the second housing bubble, to the delight of flippers and taxpayer consequences (deja vu) be damned? Simple: as Goldman points out in a note released last night, "without the boost from housing, real GDP growth would fall below 1% this year." That's the revised GDP by the way, the one that now includes iTunes song sales and underfunded pension plans in the sumtotal. Which in reality means that ex housing, GDP would almost certainly be negative. So the bigger question is what happens to housing which has already seen a shock to the system following the surge in interest rates in the past month and which hobbled both homebuilders and mortgage applications? This is what Goldman sees there: "On house prices, we have started to see the first signs of deceleration and expect a slowdown from the 10%+ pace observed over the past year. Our bottom-up house price model projects 4-5% annual growth rate in the next two years." Alas, since prices moves from top and bottom inflection point never happen in a straight line as everyone rushes to buy, or sell as the case may be, resulting in a skewed and pronounced move, once the reality seeps in that the artificial housing 'recovery' is over, watch what happens when everyone rushes for the door. That goes for GDP as well.

18 Little-Known Gun Facts That Prove That Guns Make Us Safer

The American people deserve to know the truth about gun control.  Passing strict gun control laws will not make us all safer.  In fact, as you will read about below, even a study conducted at Harvard found that the more guns a nation has the less crime it tends to have.  In other words, there is a very strong positive correlation between more guns and less crime.  This is the exact opposite of what the mainstream media would have us believe, but it makes sense.  You see, the reality is that criminals really, really, really don’t want to get shot.  When you pass strict gun control laws, you take the fear of getting shot away and criminals tend to flourish.  Just look at what is going on in America today.  The places with the highest crime rates are the major cities where strict gun control laws have been passed.  In some of those cities the police are so overwhelmed that they have announced that they simply won’t even bother responding to certain kinds of crime anymore.  The truth is that the government cannot protect us adequately, and that is one reason why millions of preppers are arming themselves and gun sales have been setting new records year after year.  Unfortunately, the mainstream media and many of our politicians seem absolutely obsessed with trying to restrict our constitutional right to own guns.  They are waging a relentless campaign to try to convince the American people that guns are bad.  But is that actually the case?  Of course not.  The following are 18 little-known gun facts that prove that guns make us safer… (Read More.....)

Why Are Millions Of Fish Suddenly Dying In Mass Death Events All Over The Planet?

Millions upon millions of fish are suddenly dying in mass death events all over the world, and nobody seems to know why it is happening.  In many of the news reports that are linked to below, locals are quoted as saying that they have never seen anything like this before.  So is there a connection between all of the fish deaths that are now occurring all over the planet?  If there is a connection, is there anything that we can do to stop the fish die-off?  Sadly, because the big mainstream news networks in the United States have been virtually silent about this phenomenon, most Americans have absolutely no idea that it is happening.  Millions of fish are dying in mass death events every single month and most of the public is totally clueless.

Please share the list posted below with as many people as you can.  This list was originally started by Frank DiMora, but I have edited it and expanded it.  If there were just three or four items on this list, you could dismiss these news stories as coincidences, but taken together this list really is quite startling…

-(Read More....)

Bernanke Just Felt a Chill Down His Spine Posted by: Phoenix Capital... Post date: 08/12/2013 - The “QE generates economic growth” story is officially dead. This will have severe repercussions throughout the financial system.

The Secret GOOD NEWS from Fukushima Posted by: George Washington Post date: 08/12/2013 - 1Nuclear Regulatory Commission Is Using Obviously Faulty Models to Pretend Crumbling Nuclear Reactors Are Safe

The Color-Coded Comex Crunch: Behind The JPMorgan Golden "Musical Chairs" Scramble

Submitted by Tyler Durden on 08/12/2013 - 17:16

First, it was JPM asking HSBC for assistance and getting a handout of over 6k ounces of gold.

The next day, following a shut out by HSBC, JPM had no choice but to go to the second largest vault, that of Scotia Mocatta and get more than triple times that, or just over 20k ounces.

Today, the Comex gold crunch has gotten so confusing, nothing short of a color-coded schematic can do it justice.

When It Comes To Internet Porn, The US Is Firmly Ahead Of Everyone

Submitted by Tyler Durden on 08/12/2013 - 18:21

While there are a fair-share of descriptive statistics that show the USA is no longer the "Number 1" that so many believe it to be; Pando Daily put together the following infographic that reveals the Top Ten nations and Top Twenty states that serve up the most illicit content... and the winner is U-S-A! 66% of the pron hosted in the US comes from California and interestingly only 0.62% of all porn sites use the ".xxx" domain name. Of course, hard numbers are tough to come by, but as ExtremeTech illustrates, Xvideos - the largest porn site on the web - gets a stunning 4.4 billion page-views per month - 3x the size of CNN or ESPN. Ironically, the biggest difference is 'duration' - typical news sites are visited for 3 to 6 minutes; while the average time spent on a porn site is between 15 and 20 minutes... Overall, porn websites are estimated to receive a whopping 30% of total internet traffic around the world.

Presenting Elon Musk's Latest Idea

Submitted by Tyler Durden on 08/12/2013 - 17:46

One of these things is an imaginary (but certainly money-losing) idea from a larger-than-life character who appears to live in an alternate fictional universe... the other is The Simpsons' take on 'The Monorail'.

Why Larry Summers' Ego Matters

Submitted by Tyler Durden on 08/12/2013 - 16:49

'Larry Summers for Fed Chair' proponents are working hard to reverse his generally poor reputation and seem to have gained some ground. They’ve tempted even Fed skeptics with reports that Summers doesn’t believe much in quantitative easing. But his supporters are also making claims that don’t stand up to the facts. Call us old-fashioned, but we think we should be wary of power-hungry egotists whose personal philosophy is to obscure the truth.

Silver Soars; Stock Bores; Bond Bulls Heading For The Doors

Submitted by Tyler Durden on 08/12/2013 - 16:17

Aside from an opening short-squeeze that saw 'most-shorted' stocks surge 0.8% in the first 15 minutes of the day, stocks did very little for the rest of the day. Ranges were extremely narrow with whatever lift stocks got based on small AUDJPY (carry) sparks but the Dow and S&P end the day red (Nasdaq and Russell 2000 green). Nasdaq was driven by AAPL exuberance (what no a new iPhone model??) which grabbed the Tech sector to the best peformance on the day. Utes were the biggest losers as rates reversed early gains and Treasury yields (especially 30Y) surged 6-7 bps from their per-open low yields. The big story was precious metals as Silver and Gold surged on the day. Silver is now up over 9% in the last 3 days - its best run in 22 months. Interestingly, VIX was pushed notably lower on the day (but it appears investors are moving hedges further out in time - to September). Credit notably underperformed. Today was all about pre- and post-Europe (as normal).

Mark Spitznagel Warns Of Investors' Grave Risk To Themselves

Submitted by Tyler Durden on 08/12/2013 - 15:53

The U.S. stock market’s return to nominal all-time highs amid artificial zero interest rates is sending yield-hungry investors down a dangerous path, one they hope will continue to lead to quick and easy returns. Such pursuits ignore a reality grounded in some of the oldest human wisdom, dating back 25 centuries to the Daoist sages of ancient China, who eschewed the direct in favor of the indirect - the roundabout that leads to better strategic advantage. No matter how appealing the direct path, it will likely not best take us where we want to go. Most often it leads only to loss - the hare ultimately loses to the accelerating, roundabout tortoise.

Phantom Markets Part 1: Why The TBAC Is Suddenly Very Worried About Market Liquidity

Submitted by Tyler Durden on 08/12/2013 - 15:26

Perhaps the best source of real, actionable financial information, at least as sourced by Wall Street itself, comes in the form of the appendix to the quarterly Treasury Borrowing Advisory Committee (TBAC, aka the Goldman-JPM chaired supercommittee that really runs the world) presentation published as part of the Treasury's refunding data dump. These have informed us in the past about Goldman's view on floaters, as well as Credit Suisse's view on the massive and deteriorating shortage across "high quality collateral." This quarter was no different, only this time the indirect author of  the TBAC's section on fixed-income market liquidity was none other than Citi's Matt King, whose style is well known to all who frequent these pages simply because we cover his reports consistently. The topic: liquidity. Or rather the absolute lack thereof, despite what the HFT lobby would like.

Cristina Fernandez Wants You To Have An Erection

Submitted by Tyler Durden on 08/12/2013 - 15:05

This one is too ridiculous to not pass along. I’ve long written that desperate governments try to ‘control’ everything as they slide into insolvency. They impose capital controls, exchange controls, wage and price controls, gun controls, border controls, and more. But the government of Argentina has really taken this to another level. Their latest stunt? Manufacturing Viagra at a state-owned pharmaceuticals company... and giving it out for free to the people.  It’s the ultimate reminder of how absurd government control can be when things get really desperate. They reach a certain point where, after capital controls, gun controls, wage and price controls, etc., the only controls left to implement are people controls.

Five Years Later, Fed Finds QE Has "At Best, Moderate Effects On Economic Growth"

Submitted by Tyler Durden on 08/12/2013 - 14:37

In a somewhat stunning revelation from the masters-of-money-printing, the SF Fed (whose former head is none other than alleged Fed chairwoman frontrunner Janet Yellen) has found that "asset purchase programs like QE appear to have, at best, moderate effects on economic growth and inflation." One has to wonder why this sudden change of heart? Perhaps to pave the way for the less-than-enamored-with-QE Larry Summers' arrival... as we noted previously his views that “QE is less efficacious for the real economy than most people suppose."  Or maybe this is a way for Ms. Yellen, to ingratiate herself with the president by indirecly toning down expectations she would go "feral hog" on the CTRL-P button? In any case, markets appear a little concerned at this rising Fed canon of removing the liquidity spigot despiet the all-time-highs in stocks.

Guest Post: The New, Improved 1984

Submitted by Tyler Durden on 08/12/2013 - 14:15

George Orwell's prescient book 1984 envisioned a technologically-enabled authoritarian state of ubiquitous surveillance, propaganda and fear that constantly rewrote history to suit the needs of the present regime. Welcome to the new, improved 1984, America 2013. Ubiquitous surveillance: check. Ubiquitous propaganda extolling the state and central bank: check. Perpetual fear-mongering: check. Perpetual war against an unseen enemy who can never be defeated: check. Police state with essentially unlimited powers to suppress "enemies of the state": check. Continual revision of history to support the current party line: check. However, Orwell underestimated the power of complicity; once you get a check from the state, you begin loving your servitude.

Breaking Ben

Submitted by Tyler Durden on 08/12/2013 - 13:42

Monday Humor: The Gappiest Place On Earth

Submitted by Tyler Durden on 08/12/2013 - 13:19

"Mommy, we're on vacation. We're here to have fun. This is not what we expected," was the comments from kids after luxury resort condos crumbled into a massive sinkhole a few miles from of Disney World. About 30% of the three-story structure collapsed into the sinkhole - which is about 50 feet in diameter and 15 feet deep. Luckily among the 24 units, only 20 people were present (perhaps an nsight into the real economy on its own), and with only 10 to 15 minutes to escape the cracking, collapsing building, it is good fortune that no one was injured.

Don't Tell Ackman, But Market Sees 13% Chance JCP Doesn't Make It Past Christmas

Submitted by Tyler Durden on 08/12/2013 - 13:05

The last few days have seen JCPenney's saga take a decided turn for the worse - if that's possible. With the stock price EKG-ing on every utterance from a CNBC mouthpiece, a desperate hedge fund manager, or a board looking to remain relevant; it seems - as usual - that credit markets not only saw through the news but remained stoic in their cash-flow-discounting reality check. Critically, the last few days have seen the short-end of the JCP CDS curve surge and the term structure has inverted. At current levels, the credit market assigns a 13% probability that JCP will default by March 2014. Not good... It is extremely unusual (though not unprecedented) for a credit to 'recover' from an inversion such as this.

Is The Bank Of England The Worst Central Bank In Europe?

Submitted by Tyler Durden on 08/12/2013 - 12:34

The Bank of England has missed its inflation target more than any other major European central banks in the past five years. As Bloomberg Brief notes, while BOE Governor Mark Carney linked monetary policy to unemployment last week, the BOE has failed to meet its CPI goal 90 percent of the time. Hungary is the second-worst performing, having missed its target 88 percent of the time. The best performers have been the Swiss and Norwegian central banks, which have a 5 percent and 20 percent miss rate, respectively. To rub further salt into the open wound of hope in the UK, it has also had the largest average deviation from its target inflation rate overall.

Zimbabwe's Mugabe Tells Critics To 'Go Hang'

Submitted by Tyler Durden on 08/12/2013 - 12:06

When it comes to political rhetoric, no one can top the un-filtered awesomeness of 89-year-old Robert "we are delivering democracy on a platter" Mugabe. Following his 61% of the vote winning election at the end of July, Sky News reports that Mugabe's first public speech was full of his typically defiant pith. He dismissed his defeated "western-sponsored stooge" rivals as "pathetic puppets" that can "go hang," adding a particularly downbeat assessment that "if they die, not even dogs will sniff them." Mr. Tsangviri - the dog-despised opposition - is challenging the poll vowing to expose "glaring evidence of the stolen vote," as the renewed leader celebrates Heroes Day - the end of white minority rule (pledging that Zimbabwe will never be a colony of Britain) and ironically for the hyperinflater, Mugabe stated that he will " Never give thieves the power to rule."

BlackBerry, Vical, Steinway, Alliance One, Zoltek

online.wsj.com | U.S. stocks traded mixed Monday as the Dow Jones Industrial Average recently lost 18 points to 15407.

University of California Study: National Debt Is Really $70 Trillion

Bob Adelmann | Enormous sacrifices from future taxpayers. ‘…According to the ITF, the real national debt is, at the moment, $74.3 trillion, and counting.

Even that number may be too small to reflect accurately the promises made versus the revenues expected to fund them. Boston University professor Laurence Kotlikoff was interviewed in February and was asked by his host:

You’re the one who stated that America is rogue and in even worse shape than Greece and Ireland. How so? What exactly do you mean by that?

Kotlikoff: We economists look at all the bills the government has to pay, and in the US case we have enormous bills that have been kept off the books….

Host: You said the amount of the fiscal gap in the United States is, in your estimation, $222 trillion. This is an astonishing number, which is like three times the world’s GDP. This is more than what the world makes!

Kotlikoff: If you add all the spending obligations into the distant future and you compare them with all the taxes, and you include in the spending all the interest payments … you have $222 trillion of present value….

This is why we are in worse shape that Greece….

Host: So are they intentionally hiding the enormity of it?

Kotlikoff: They’re intentionally hiding this. They’ve been spending in our country [for] six decades, running a massive Ponzi scheme, taking from young people, giving to old people, and then telling the young people, “Don’t worry, you’ll get yours when you’re old,” promising pensions, promising healthcare benefits.

The study by Professor Hamilton from the University of California, San Diego, serves as a reminder that, as the debt ceiling draws ever closer, the discussion bound to take place will have little do with the reality of what the federal government actually owes. That discussion, expected to begin when Congress reconvenes after Labor Day, will be a sideshow, distracting attention from the real issue: The U.S. government is broke and its promises won’t be kept.

A graduate of Cornell University and a former investment advisor, Bob is a regular contributor to The New American magazine and blogs frequently at www.LightFromTheRight.com, primarily on economics and politics. He can be reached at [email protected] …’

Teens Face Worst Labor Market

The Wall Street Journal | Teenagers have had the hardest time out of all age groups.

Amash: NSA Docs Were Withheld From Congress By Higher Ups

Steve Watson | Intelligence Committee has repeatedly failed to share key information; “oversight” justification for spy program legality is now laughable.

Obama Supporters Sign Petition Calling For Killing Newborn Babies Under Obamacare

Paul Joseph Watson | Infanticide is now being seriously proposed by some in medical establishment.

Official: Embassy Attack Threat “Had No Basis in Fact”

Paul Joseph Watson | Terror plot manufactured to dampen opposition to drone strikes.

Former NSA boss: Government will continue surveillance, so get used to it

Kurt Nimmo | Terror war supporters take Obama to the woodshed over his promise to “reform” pervasive NSA abuse.

‘Stop and frisk’ police tactic violated constitutional rights, federal judge says

NBC News | The NYPD’s “stop and frisk” tactic has violated constitutional rights, a federal judge ruled Monday.

Political leaders condemn state fair event featuring ‘Obama’ chased by a bull

STL Beacon | A clown wearing a mask of President Barack Obama was chased by a bull at the Missouri State Fair’s rodeo, prompting an apology Sunday by fair officials.

Worse than Bush: Obama fills key government positions in agriculture and trade with biotech execs

Natural News | Anyone who still supports the usurper-and-cheat Obama based on his agriculture “policies” has apparently not been paying any attention whatsoever to reality.

Forget Apology: Eric Holder Owes The American People A Resignation

Zero Hedge | What he really owes is at least a resignation, and frankly much more. { Aw … come on … he’s just a typical nigger … and as such, you can’t apply rational civilized standards of behavior, especially those that comport with law … after all, the niggers among other american criminals are all in it together, typical obama/nigger bull s***/rhetoric aside … shhhh…don’t say a word … everyone’s afraid to offend the archaic neanderthalic niggers … }

Zero Hedge
August 12, 2013

Bloomberg’s Jon Weil, who has compiled the following stunning array of lies regarding the DOJ’s enforcement activity disclosed by none other than its head, Eric Holder, is far too kind when he says that the “fast and furious” Holder owes the American people an apology. What he really owes is at least a resignation (and frankly much more, but it is too early on Monday to become too politically incorrect). And considering that the DOJ in its now former employee Lanny Brauer’s words refused to prosecute those banks which were deemed “too big to prosecute”, the lying here has now became a meta phenomenon, as the DOJ is effectively caught lying about lying. How many more meta levels of higher up fraud “inception” can Holder take this, before the American people finally demand his head, metaphorically-speaking of course? Sadly, judging by the response to unprecedented scandals coming out of this administration so far, the answer is… more.

From BBG’s Jonathan Weil:

Eric Holder Owes the American People an Apology

The Justice Department made a long-overdue disclosure late Friday: Last year when U.S. Attorney General Eric Holder boasted about the successes that a high-profile task force racked up pursuing mortgage fraud, the numbers he trumpeted were grossly overstated.

We’re not talking small differences here. Originally the Justice Department said 530 people were charged criminally as part of a year-long initiative by the multi-agency Mortgage Fraud Working Group. It now says the actual figure was 107 — or 80 percent less. Holder originally said the defendants had victimized more than 73,000 American homeowners. That number was revised to 17,185, while estimates of homeowner losses associated with the frauds dropped to $95 million from $1 billion.

The government restated the statistics because it got caught red-handed by a couple of nosy reporters. Last October, two days after Holder first publicized the numbers, Phil Mattingly and Tom Schoenberg of Bloomberg News broke the story that some of the cases included in the Justice Department’s tally occurred before the initiative began in October 2011. At least one was filed more than two years before President Barack Obama took office.

After their initial story, I asked a Justice Department spokeswoman, Adora Andy, several times over the course of a month for a list of the people charged and their case details so I could look them up myself. She promised repeatedly to provide one, until she finally stopped responding to my requests.

Her e-mails to me were priceless. On Oct. 19, Andy said: “We’ll have a list to you — it will take some time to pull it together.” On Oct. 26, she said: “You will get a list,” explaining that “this is a labor-intensive process.” On Nov. 5, she said: “It looks like we should have the list to you by the end of the week if not sooner.” On Nov. 13: “Hold tight. Finalizing things on this end. Should have something to you tonight.” Again, no list. “I assure you I’m working as hard as I can to get this to you along with the lead agency on this matter, FBI,” she said later that same day. “It’s just very laborious with so much going on and so little staff.”

My column about the Justice Department’s refusal to come clean ran a few days later last fall. And it seems obvious now why I wasn’t given the list. The government would have been handing me the proof that the numbers it was touting were wrong.

In an updated press release Friday, which corrected its initial release of last October, the Justice Department said a review of the cases found that the inflated figures included defendants who had been sentenced or convicted in fiscal year 2012 — not just people who had been criminally charged, as originally reported. Its original, lofty tally also included cases in which the victims weren’t distressed homeowners.

“As a result, the announcement overstated the number of defendants that should have been included as part of the Distressed Homeowner Initiative, as well as the corresponding estimated loss amount and number of victims,” the Justice Department said.

When Holder first trotted out these figures last October, he bragged during a press conference about the results of the government’s “Distressed Homeowner Initiative,” which he called “a groundbreaking, yearlong mortgage-fraud enforcement effort” and “the first ever to focus exclusively on crimes targeting homeowners.” Secretary of Housing and Urban Development Shaun Donovan joined him at the press conference.

What a charade. No wonder the government found it so difficult to bring a meaningful number of accounting-fraud cases against bank executives after the financial crisis. Its own books were cooked.

* * *

This was the second time, mind you, that Holder’s Justice Department had pulled a stunt like this. In December 2010, Holder held a press conference to tout a supposed sweep by the president’s Financial Fraud Enforcement Task Force called “Operation Broken Trust.” (The mortgage-fraud program was part of the same task force.) As with the mortgage-fraud initiative, Broken Trust wasn’t actually a sweep. All the Justice Department did was lump together a bunch of small-fry, penny-ante fraud cases that had nothing to do with one another. Then it held a press gathering.

Read on here

Related posts:

1. Eric Holder perjured himself in lie about AP – DOJ intimidation scheme
2. Eric Holder to testify on Fast and Furious
3. Rush Limbaugh: Eric Holder invested in George Zimmerman trial being seen as racism
4. Two more congressmen hit Holder for Fast and Furious, 120 now want resignation
5. Huffington Post: Time for Eric Holder to go

This article was posted: Monday, August 12, 2013 at 11:20 am

Gold Shorts Cover At Fastest Pace In 13 Years

Zero Hedge | Gold shorts covered an enormous 23,518 futures contracts last week – the equivalent of 2,351,800 ounces of gold.

First dog Bo is airlifted to Obama holiday home

London Telegraph | When President Barack Obama goes on holiday to the seaside things can get complicated.

NSA Spying Costing US Companies Billions and American Job Loss

Daniel G. J. | The massive surveillance efforts being conducted by agencies like the NSA are not just illegal, immoral, and unconstitutional; they could be seriously damaging our economy.

With all the extreme government corruption these days, why are people still supporting the system with money?

Natural News | Will Americans ever wake up and actually resist the powers that are enslaving them?

IRS Refuses to Answer Congressman on AR-15s for ‘Standoff Capability’

Paul Joseph Watson | “Do they need a SWAT team to make sure you’ve paid your taxes?”

Official: Embassy Attack Threat “Had No Basis in Fact”

Paul Joseph Watson | Terror plot manufactured to dampen opposition to drone strikes.

Amash: NSA Docs Were Withheld From Congress By Higher Ups

Steve Watson | Intelligence Committee has repeatedly failed to share key information; “oversight” justification for spy program legality is now laughable.

Obama Supporters Sign Petition Calling For Killing Newborn Babies Under Obamacare

Paul Joseph Watson | Infanticide is now being seriously proposed by some in medical establishment.

DPS Trooper Who Performed Roadside Cavity Search Gets Her Job Back

Julie Wilson | DPS director plans to “re-familiarize” his officers with the department’s policy on roadside cavity and strip searches.

Former NSA boss: Government will continue surveillance, so get used to it

Kurt Nimmo | Terror war supporters take Obama to the woodshed over his promise to “reform” pervasive NSA abuse.

Man says off-duty cops beat him up, left him for dead

Adan Salazar | Man says he was “on the verge of death.”

IRS Refuses to Answer Congressman on AR-15s for ‘Standoff Capability’

Paul Joseph Watson | “Do they need a SWAT team to make sure you’ve paid your taxes?”

Why Are So Many People Choosing To Leave The United States Permanently?

Economic Collapse | Have things gotten so bad that it is time to leave the United States for good?

Billionaire Issues Chilling Warning About Interest Rate Derivatives

Will rapidly rising interest rates rip through the U.S. financial system like a giant lawnmower blade?  Yes, the U.S. economy survived much higher interest rates in the past, but at that time there were not hundreds of trillions of dollars worth of interest rate derivatives hanging over our financial system like a Sword of Damocles.  This is something that I have been talking about for quite some time, and now a Mexican billionaire has come forward with a similar warning.  Hugo Salinas Price was the founder of the Elektra retail chain down in Mexico, and he is extremely concerned that rising interest rates could burst the derivatives bubble and cause "massive bankruptcies around the globe".  Of course there are a whole lot of people out there that would be quite glad to see the "too big to fail" banks go bankrupt, but the truth is that if they go down our entire economy will go down with them.  Our situation is similar to a patient with a very advanced stage of cancer.  You can try to kill the cancer with drugs, but you will almost certainly kill the patient at the same time.  Well, that is essentially what our relationship with the big banks is like.  Our entire economic system is based on credit, and just like we saw back in 2008, if the big banks start failing credit freezes up and suddenly nobody can get any money for anything.  When the next great credit crunch comes, every important number in our economy will rapidly start getting much worse.
(Read More....)

The big banks are going to play a starring role in the next financial crash just like they did in the last one.  Only this next crash may be quite a bit worse.  Just check out what billionaire Hugo Salinas Price told King World News recently...

I think we are going to see a series of bankruptcies. I think the rise in interest rates is the fatal sign which is going to ignite a derivatives crisis. This is going to bring down the derivatives system (and the financial system).

There are (over) one quadrillion dollars of derivatives and most of them are related to interest rates. The spiking of interest rates in the United States may set that off. What is going to happen in the world is eventually we are going to come to a moment where there is going to be massive bankruptcies around the globe.

What is going to be left after the dust settles is gold, and some people are going to have it and some people are not. Then the problem is going to be to hold on to what you’ve got because it’s not going to be a very pleasant world.

Right now, there are about 441 trillion dollars of interest rate derivatives sitting out there.  If interest rates stay about where they are right now and they don't go much higher, we will be fine.  But if they start going much higher, all bets will be off and we could see financial carnage on a scale that we have never seen before.

And at the moment the big banks have got to behave themselves because the government is investigating allegations that they have been cheating pension funds and other investors out of millions of dollars by manipulating the trading of interest rate derivatives.  The following is from an article that the Telegraph posted on Friday...

The Commodity Futures Trading Commission (CFTC) is probing 15 banks over allegations that they instructed brokers to carry out trades that would move ISDAfix, the leading benchmark rate for interest rate swaps.

Pension funds and companies who invest in interest rate derivatives often deal with banks to insure against big movements in the ISDAfix rate or to speculate on changes to interest rate swaps

ISDAfix is published each morning after banks submit bids for swaps via Icap, the inter-dealer broker, in a number of currencies. The CFTC has been investigating suggestions that the banks deliberately moved the rate in order to profit on these deals.

Given the hundreds of trillions of dollars worth of interest rate derivatives trades that occur annually, even the slightest manipulation can have a substantial effect. The CFTC, which started to investigate ISDAfix after last summer’s Libor scandal has now been handed emails and phone call recordings that show the rate was deliberately moved, according to Bloomberg.

Essentially they got their hands caught in the cookie jar and so they have got to play it straight (at least for now).

Meanwhile, it looks like the Fed may not be able to keep long-term interest rates down for much longer.

The Federal Reserve has been using quantitative easing to try to keep long-term interest rates low, but now some officials over at the Fed are becoming extremely alarmed about how bloated the Fed balance sheet has become.  For example, the following was recently written by the head of the Dallas Fed, Richard Fisher...

This later program is referred to as quantitative easing, or QE, by the public and as large-scale asset purchases, or LSAPs, internally at the Fed. As a result of LSAPs conducted over three stages of QE, the Fed’s System Open Market Account now holds $2 trillion of Treasury securities and $1.3 trillion of agency and mortgage-backed securities (MBS). Since last fall, when we initiated the third stage of QE, we have regularly been purchasing $45 billion a month of Treasuries and $40 billion a month in MBS, meanwhile reinvesting the proceeds from the paydowns of our mortgage-based investments. The result is that our balance sheet has ballooned to more than $3.5 trillion. That’s $3.5 trillion, or $11,300 for every man, woman and child residing in the United States.

Fisher has compared the current Fed balance sheet to a "Gordian Knot", and he hopes that the Fed will be able to unwind this knot without creating "market havoc"...

The point is: We own a significant slice of these critical markets. This is, indeed, something of a Gordian Knot.

Those of you familiar with the Gordian legend know there were two versions to it: One holds that Alexander the Great simply dispatched with the problem by slicing the intractable knot in half with his sword; the other posits that Alexander pulled the knot out of its pole pin, exposed the two ends of the cord and proceeded to untie it. According to the myth, the oracles then divined that he would go on to conquer the world.

There is no Alexander to simply slice the complex knot that we have created with our rounds of QE. Instead, when the right time comes, we must carefully remove the program's pole pin and gingerly unwind it so as not to prompt market havoc. For starters though, we need to stop building upon the knot. For this reason, I have advocated that we socialize the idea of the inevitability of our dialing back and eventually ending our LSAPs. In June, I argued for the Chairman to signal this possibility at his last press conference and at last week’s meeting suggested that we should gird our loins to make our first move this fall. We shall see if that recommendation obtains with the majority of the Committee.

But of course it should be obvious to everyone that the Fed is not going to be able to reduce the size of its balance sheet without causing huge distress in the financial markets.  A few weeks ago, just the suggestion that the Fed may eventually begin to slow down the pace of quantitative easing caused the markets to throw an epic temper tantrum.

Unfortunately, the Fed may not be able to keep control of long-term interest rates even if they continue quantitative easing indefinitely.  Over the past several weeks long-term interest rates have been rising steadily, and the yield on 10 year U.S. Treasuries crept a bit higher on Monday.

At this point, many on Wall Street are convinced that the bull market for bonds is over and that rates will eventually go much, much higher than they are right now no matter what the Fed does.  The following is an excerpt from a recent CNBC article...

The Federal Reserve will lose control of interest rates as the "great rotation" out of bonds into equities takes off in full force, according to one market watcher, who sees U.S. 10-year Treasury yields hitting 5-6 percent in the next 18-24 months.

"It is our opinion that interest rates have begun their assent, that the Fed will eventually lose control of interest rates. The yield curve will first steepen and then will shift, moving rates significantly higher," said Mike Crofton, President and CEO, Philadelphia Trust Company told CNBC on Wednesday.

If the yield on 10 year U.S. Treasuries does hit 6 percent, we are going to have a major disaster on our hands.

Hugo Salinas Price is exactly right - the derivatives bubble is the number one threat that our financial system is facing, and it could potentially bring down a whole bunch of our big banks.

But for the moment, Wall Street is still in a euphoric mood.  The Dow is near a record high and many investors are hoping that this rally will last for the rest of the year.

Unfortunately, I wouldn't count on that happening.  The truth is that the stock market has become completely divorced from economic reality.

Since March 2009, the size of the U.S. economy has grown by approximately $1.3 trillion, but stock market wealth has grown by an astounding $12 trillion.

And the stock market has just kept on rising even though GDP growth forecasts have been steadily falling.

It doesn't make any sense.

But Obama, Bernanke and the wizards on Wall Street assure us that there is no end to the party in sight.

Believe them at your own peril.

The people at the controls are completely and totally clueless and we are rapidly careening toward disaster.

Perhaps we should do what one little town in Minnesota did and put a 4-year-old kid in charge.

That kid certainly could not be much worse than our current leadership, don't you think?

During The Best Period Of Economic Growth In U.S. History There Was No Income Tax And No Federal Reserve

How would America ever survive without the central planners in the Obama administration and at the Federal Reserve?  What in the world would we do if there was no income tax and no IRS?  Could the U.S. economy possibly keep from collapsing under such circumstances?  The mainstream media would have us believe that unless we have someone "to pull the levers" our economy would descend into utter chaos, but the truth is that the best period of economic growth in U.S. history occurred during a time when there was no income tax and no Federal Reserve.  Between the Civil War and 1913, the U.S. economy experienced absolutely explosive growth.  The free market system thrived and the rest of the world looked at us with envy.  The federal government was very limited in size, there was no income tax for most of that time and there was no central bank.  To many Americans, it would be absolutely unthinkable to have such a society today, but it actually worked very, very well.  Without the inventions and innovations that came out of that period, the world would be a far different place today. (Read More....)

STARED DOWN BY SNOWDEN

Number of Americans Renouncing Citizenship Surges...
EXIT TAX...

Food-Stamp Use Rises...

DEM: WE'VE GOT VOTES IN HOUSE TO PASS AMNESTY!
OBAMA: 'Absolutely certain'...
Majority of House support 'DREAM Act'...
ZUCKERBERG GROUP DEFENDS PAUL RYAN...
Illegals target GOP in town halls...
Reid: 'If we go to conference, we will win'...
Americans Sign Petition To Let Illegals Out Of Prison, No Matter What Crimes They Committed...

Russian minister tells US to behave 'like grown-ups'...

Indiana School Offers Free School Supplies in Exchange for Vaccinations

Julie Wilson | Children that get immunized receive crayons, pencils and jump drives.

Seattle Journalist Threatened with Arrest, Workplace Harassment for Filming Police

Adan Salazar | Cops under investigation for violating reporter’s rights.

Police Are Now Entering and Inspecting Homes to “Prevent Crimes”

Kit Daniels | Landlords in Texas are allegedly allowing police inside homes for “inspections.”

Politicians Given Invisible License Plates to Avoid Fines

Infowars.com | There are rules for the common people and rules for their “leaders.”

Tulsa Police Department: “No Thin Blue Line Here”

Julie Wilson | Former Tulsa cop sentenced to 35 years for robbing Hispanic motorists on duty.

Americans Sign Petition To Let Illegals Out Of Prison, No Matter What Crimes They Committed

Steve Watson | Public supports letting murderers, rapists and thieves back on the streets.

Feinstein: You’re Not a Real Journalist Unless You Draw a Salary

Kurt Nimmo | Democrat wants to exclude bloggers and alternative media from constitutional protection.

CIA Sued Over Whether Top Secret Info Helped Hollywood Directors Make “Pro-Obama” Film

Paul Joseph Watson | Did White House jeopardize national security while prosecuting whistleblowers?

"Hello HSBC, This Is JPMorgan - We Urgently Need Some Of Your Gold"

Submitted by Tyler Durden on 08/07/2013 - 18:21

What happens when 63.5K ounces of registered gold in your warehouse (16% of total) just has their warrants detached and the vault is about to finds itself 63.5k ounces of gold emptier? If you are JPM you call the gold vault with most inventory in town, that of HSBC, and politely request that they transfer as much eligible gold as they can on short notice - in this case a tiny 6,444.936 oz to be exact. None of which changes the fact that in a few days, the inventory in JPM's gold vault will drop to another record low of only 380K ounces and the JPM "rescue" pleas from HSBC and other Comex members will become ever louder and more desperate until one day they may just go straight to voicemail.

Obama Says He’ll “Reform” NSA Spying … Should We Believe Him? Posted by : George Washington Post date: 08/09/2013 - “Who You Are Speaks So Loudly I Can’t Hear What You’re Saying”

Europe's Crisis Will Be Back Soon Posted by: Phoenix Capital... Post date: 08/09/2013 - Could it be coincidence that the worst Crisis in years suddenly went away right as the women with her finger on the “bailout” button needed to convince German voters that she’s doing a great...

TiLT: THe CHiLLiNG DeFeCT... Posted by: williambanzai7 Post date: 08/09/2013 - The constitutional legacy of Barrack Moebama (Der FUBAR).

TiLT: THe CHiLLiNG DeFeCT...

Submitted by williambanzai7 on 08/09/2013 13:33 -0400

First Amendment

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Full Article:  http://www.jstor.org/discover/10.2307/1121147?uid=3738176&uid=2129&uid=2...

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Professor Moebama and his Neo-Fascist Zombie Corpse, in the finest tradition of Goebbels-speak, aspire to twist this constitutional term of art by asserting that the Manning case will have a chilling effect, not on the unfettered exercise of the First Amendment (for example in the form of secure email communications between journalists and whistle blowers), but on Der FUBAR's ability to conduct foreign relations.

This kind of twisted constitutional terrorism will be remembered as a cornerstone of the fascist legacy of Barrack Moebama (Heil FUBAR!)
.

I wonder what Justice Brennan would think about this...

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And in case you are wondering what kind of delusive thinking is driving the Zombie Corpse.

Look at this...

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And speaking of delusive thinking...

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So here it is...the Banzai7

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On the Nature of Creeping Fascism

“And one day, too late, your principles, if you were ever sensible of them, all rush in upon you. The burden of self-deception has grown too heavy, and some minor incident, in my case my little boy, hardly more than a baby, saying ‘Jew swine,’ collapses it all at once, and you see that everything, everything, has changed and changed completely under your nose. The world you live in – your nation, your people – is not the world you were born in at all. The forms are all there, all untouched, all reassuring, the houses, the shops, the jobs, the mealtimes, the visits, the concerts, the cinema, the holidays. But the spirit, which you never noticed because you made the lifelong mistake of identifying it with the forms, is changed. Now you live in a world of hate and fear, and the people who hate and fear do not even know it themselves; when everyone is transformed, no one is transformed.”

Excerpt from: They Thought They Were Free, Milton Mayer

Gold Collateral Situation: "It's Very Complicated"

Submitted by Tyler Durden on 08/09/2013 - 11:34

... what has been different about the current negative GOFO episode is that while in the past GOFO spiked negative and promptly reverted to normal, short-end GOFO rates (1-3 Month) have been negative now for the longest period on record: 25 consecutive work days. And it's only getting worse: after the 6 Month GOFO rate also slid below 0% in mid-July, only to recover positive for the next two weeks, as of today it has again turned negative for the second day in a row while the short-end procurement situation has gone from bad to worse.

The Great Rotation... Into Poland?

Submitted by Tyler Durden on 08/09/2013 - 19:31

Inflows into equity funds around the world have been presented as the driver of the next leg higher in this 'secular' bull market. As liquidity slooshes around the world (as David Stockman so eloquently described) there is nothing but hot money chasing what 'worked' not what will work... or, as investors have now been conditioned to do, BTFD. US asset gatherers' dissonance is high as they know the pillars of their 'just keep buying' thesis remain wobbly at best (and broken in all honesty) but flows (aside from the fact that retail appears to have just folded) are holding hope ransom for now (oh and the money-on-the-sidelines idiocy meme - buyer meet seller). So what nation saw the largest relative equity fund inflows in the world?

Video Of The Day: "Operation Everyone Talk Like A Terrorist"

Submitted by Tyler Durden on 08/09/2013 - 18:58

The folks at Funny or Die have come up with an ingenious solution to render the NSA’s spy program useless. Operation: Everyone Talk Like a Terrorist All the Time. It makes a lot of sense, especially since the government already clearly considers everyone with the ability to think critically a potential “domestic terrorist.” Short video and really funny. Enjoy!

Visualizing The Collapse In US Job Security

Submitted by Tyler Durden on 08/09/2013 - 18:22

Day after day we are blessed with media prognostications on the employment data. We are incessantly fed 'facts' and data that shows how great this recovery is but more still needs to be done (so please don't taper quite yet). We have been vociferous in the exposure of facts about the 'quality' versus 'quantity' of jobs in the 'recovery' but there is another sentiment-sapping angle to the employment environment in the US. As Bloomberg's Rich Yamarone notes, the number of people with a job that were not at work in June or July because they were on vacation fell to 11.2 million this year from 11.59 million a year ago, a far cry from the 13.5 million vacationers in 2008 just prior to the Great Recession. Workers may be too uneasy with their situations to take off and enjoy the summer. Perhaps the need for a living real disposable personal income has kept them at their desks longer this year.

The Week That Was: August 5th - 9th 2013

Submitted by Tyler Durden on 08/09/2013 - 17:54

Succinctly summarizing the positive and negative news, data, and market events of the week...

Peter Schiff On The Half Full Economy

Submitted by Tyler Durden on 08/09/2013 - 17:11

The marginal economic strength that was described in the most recent GDP release from Washington has caused many to double down on their belief that the Federal Reserve will begin tapering Quantitative Easing sometime later this year. While some believe that is a fantasy given our economy's extreme dependence on QE, market observers should have learned long ago that the Bureau of Economic Analysis (BEA) initial GDP estimates can't be trusted. A perusal of their subsequent GDP revisions in the last five years reveals a clear trend: They are almost twice as likely to revise initial estimates down rather than up, and the downward adjustments have been much larger on average. As a result of this phenomenon, an overall optimism has pervaded the economic discussion that has consistently been unfulfilled by actual performance. The government is continuously over promising and under delivering. Unfortunately, no one seems to care.

Trickle Down Hunger

Submitted by Tyler Durden on 08/09/2013 - 16:38

Presented with no comment...

Fourth Hindenburg In Five Days Closes Dow Near Worst Week Of The Year

Submitted by Tyler Durden on 08/09/2013 - 16:18

For the 4th day this week new highs, new lows, advancers and decliners flashed an angst-prone market and triggered a Hindenburg Omen. A glimpse at Treasuries close-to-close from Friday and one might think it was a quiet week (though 30Y rallied 5bps the rest of the curve ended only modestly lower in yield) but in every other asset-class, the 'Taper' talk sent levered momo running for the exits... with JPY's 2nd strongest week in 4 years the main carry-unwind driver.

Presenting The Latest In Government Oppression...

Submitted by Tyler Durden on 08/09/2013 - 16:01

It just never stops...

Is This The Time To BTFATH?

Submitted by Tyler Durden on 08/09/2013 - 15:49

At 4.4 years old, the post-March 2009 rally is already older than both the post-World War II and post-1900 bull market averages of 4.2 years and 3.5 years, respectively. In addition, the Dow's 136% rally off of the March 2009 low close now exceeds the post-World War II average of +128%, and falls just shy of the post-1900 average of +141%. As is clear from the chart below, the US equity market's post-March 2009 rally is close to being on the verge of becoming an outlier... so BTFATH?

Friday Humor: "Pastafarianism" And The Church Of The Flying Spaghetti Monster

Submitted by Tyler Durden on 08/09/2013 - 15:29

In what some would call a victory for free speech, Lukas Novy, a follower of the Church of the Flying Spaghetti Monster, has been granted permission to wear a sieve on his head in his official ID card. As Prague Daily reports, Novy explains that the plastic kitchenware is a crucial part of his "Pastafarianism" faith. Officials, who initially denied his request, were swayed by his commitment to "His Noodliness," agreeing that this fits in with laws that allows Czech citizens to wear headgear for religious or medical reasons. Think that is 'humorous', look at a chart of TSLA... or listen to any recent 'Abe' speech...

Better Bargains, Hocking Homes, And Rancored At Russians - Obama Press Conference Live Webcast

Submitted by Tyler Durden on 08/09/2013 - 14:58

President Obama is due to answer some supposedly unprepared questions from a press-corps not 'specifically' benefiting from his questions at 1500ET. From 'pissed-off about Putin' to flogging the American Dream once again and the wide-spread closure of US embassies... we are sure there'll be some interesting off-teleprompter comments for all...

Larry Summers' Chairman Odds Soar To 66.6%, Double Yellen's

Submitted by Tyler Durden on 08/09/2013 - 14:44

Do you see what happens Larry when you float a strategic trial balloon or two? Your odds literally surge, at least according to Irish bookmaker Paddy Power, which in the absence of InTrade has become the only market polling venue where pundits put money where their mouth is (as opposed to countless clueless Op-Eds written by every self-proclaimed Fed expert in existence). Where two weeks ago, on July 24, Larry "the hawk" Summers was a long 20% odds challenger to Janet Yellen, who was a solid 75% favorite to become the next Fed chair, since then Yellen's odds have crumbled to just 33% currently, while Summers has exploded higher and after peaking at 60% two days ago has climbed even higher, and is a 66.6% (appropriately enough) favorite currently. Time for the perma-Doves to panic yet?

"The Rich Get Richer" Million-Dollar McMansion Sales Rise 37% YoY

Submitted by Tyler Durden on 08/09/2013 - 14:36

"The rich are feeling better about their prospects and starting to rediscover real estate as a place to park money," notes one analyst who was seemingly not alive 7 years ago, adding, "the stock market has created a tremendous amount of wealth, and that's being put into homes." It seems we are destined to 'never' learn that too much of a good thing might just not be... a good thing. Following President Obama's homeownership is patriotic roadshow this week and his almost too ironic to be real comments that the U.S. has "got to turn the page on this kind of bubble-and-bust mentality that helped to create this mess in the first place," it appears we have gone perfectly 360 as once again home prices for the wealthiest are soaring. Homes priced at more than $1 million lost about 46% of their value during the housing crash; since then, based on Bloomberg's survey of Zillow data, their value has more than doubled.

Guest Post: Credit Outbids Cash = Resource Wars

Submitted by Tyler Durden on 08/09/2013 - 14:05

There are real-world consequences to over-issuing credit and currency. Eventually this leads to a bidding war for trust: Whose credit/cash will be trusted to retain its purchasing power? There is a grand irony here, of course; as issuers of credit/cash attempt to debase their currency to boost their exports, their debased currency buys fewer real-world resources.

THe TaPeR EFFeCT DeMoNSTRaTeD... Posted by : williambanzai7 Post date: 08/07/2013 - By well known PhDs...

Submitted by williambanzai7 on 08/07/2013 15:26 -0400

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Official: Tepco Plan Could Cause Fukushima Reactor Buildings to “Topple” Posted by: George Washington Post date: 08/07/2013 - Japan’s Nuclear Accident Response Director Warns that Tepco’s Actions Might Cause Reactor BuIldings to Collapse

NSA Pricked The “Cloud” Bubble For US Tech Companies Posted by: testosteronepit Post date: 08/07/2013 - Foreign companies react; at the expense of already revenue-challenged US tech companies

Counter-Terror Experts: Government's Mass Surveillance Program - And Justifications - Are So Dumb They're "Crazy Pants" Posted by : George Washington Post date: 08/08/2013 - D'Oh!

FiSHiN WiTH VLaD... Posted by: williambanzai7 Post date: 08/08/2013 - Catch of the day...

FiSHiN WiTH VLaD...

Submitted by williambanzai7 on 08/08/2013 12:33 -0400

Average:

The Fed Will Bankrupt the US Trying to "Create" Jobs Posted by: Phoenix Capital... Post date: 08/08/2013 - There is literally no evidence that printing money creates jobs. Look at Japan, they have and continue to maintain QE efforts equal to 40+% of their GDP and unemployment hasn’t budged in...

"Hello Scotia Mocatta, This Is JPMorgan - We Urgently Need Some Of Your Gold"

Submitted by Tyler Durden on 08/08/2013 - 16:27

Yesterday, it was HSBC. Today, the lucky respondent to JPM's polite gold 'procurement' request, is the second "fullest" New York commercial gold vault: Scotia Mocatta.

GALLUP LOWEST: OBAMA FALLS TO 41%

REID: OBAMACARE JUST STEP TOWARDS SINGLE-PAYER...
FLASHBACK: 'Rigged to Fail'...
Insurance Co's Flee Exchanges...

Number of Americans Renouncing Citizenship Surges...
EXIT TAX...

V A C A T I O N !
Inside Obama's $7.6 million Martha's Vineyard rental...

STARED DOWN BY SNOWDEN...
Assange: Changes vindicate release of information...

In Misstep, President Discusses Sealed Indictment...

Russian minister tells US to behave 'like grown-ups'...

A Quadrillion Yen And Counting – The Japanese Debt Bomb Could Set Off Global Panic At Any Moment

How much is 1,000,000,000,000,000 yen worth?  Well, a quadrillion yen is worth approximately 10.5 trillion dollars.  It is an amount of money that is larger than the "the economies of Germany, France and the U.K. combined".  It is such an astounding amount of debt that it is hard to even get your mind around it.  The government debt to GDP ratio in Japan will reach 247 percent this year, and the Japanese currently spend about 50 percent of all central government tax revenue on debt service.  Realistically, there are only two ways out of this overwhelming debt trap for the Japanese.  Either they default or they try to inflate the debt away.  At this point, the Japanese have chosen to try to inflate the debt away.  They have initiated the greatest quantitative easing experiment that a major industrialized nation has attempted since the days of the Weimar Republic.  Over the next two years, the Bank of Japan plans to zap 60 trillion yen into existence out of thin air and use it to buy government bonds.  By the time this program is over, the monetary base in Japan will have approximately doubled.  But authorities in Japan are desperate.  They know that the Japanese debt bomb could set off global panic at any time, and they are trying to find a way out that will not cause too much pain. (Read More....)

STiLL NiGHT, AuGuST MooN... Posted by : williambanzai7 Post date: 08/10/2013 - 15:05 Zen and the art of contamination...

STiLL NiGHT, AuGuST MooN...

Submitted by williambanzai7 on 08/10/2013 15:05 -0400

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Still night, August moon

Water, water, pump, pump, pump

What strange fish to fry!

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19 Very Disturbing Facts About Illegal Immigration That Every American Should Know

Should we roll out the red carpet and allow millions upon millions of thieves, rapists, gang members and drug dealers to come waltzing into this country any time they would like?  Should we broadcast a message to the rest of the world that anyone that can find a way to enter this country and somehow get to a “sanctuary city” can sign up for a plethora of welfare benefits and live a life of leisure at the expense of hard working American citizens?  Yes, those questions sound absurd, but what I have just described will essentially be official U.S. government policy if the immigration bill going through Congress becomes law.  And unfortunately, Democrats now say that they have the Republican votes that they need to get “immigration reform” through the House of Representatives.  If this amnesty bill becomes law, it will encourage even more illegal immigration and it will be one more step toward making the U.S. border essentially meaningless. (Read More.....)

Front Page Wash Post Story Hides Fact That Alleged Murderer Was Illegal Alien

Paul Joseph Watson | Amidst national debate about amnesty for undocumented immigrants.

SEAL Team Six Murdered: Family Speaks Out

Infowars.com | Charlie Strange, father of late SEAL Team Six member Michael Strange, joins the show.

Which Shall It Be, Freedom of Speech or Not?

Michael S. Rozeff | There is no stability of law as the government now operates. Any freedom can be attacked.

Rand Paul: National Security Run Amok

Rand Paul | Feds eager to defend astounding level of surveillance.

Obama’s Response To NSA Was To Appease The Public, Not Reduce The Spying

Techdirt | His comments represent a fundamental misunderstanding of why the public doesn’t trust the government.

19 Very Disturbing Facts About Illegal Immigration That Every American Should Know

American Dream | Should we roll out the red carpet and allow millions upon millions of thieves, rapists, gang members and drug dealers to come waltzing into this country any time they would like?

Americans Sign Petition To Let Illegals Out Of Prison, No Matter What Crimes They Committed

Steve Watson | Public supports letting murderers, rapists and thieves back on the streets.

Americans Abroad Renouncing Citizenship As Tax Hikes Loom

Bloomberg | Americans renouncing U.S. citizenship surged sixfold in the second quarter from a year earlier as the government prepares to introduce tougher asset-disclosure rules.

Teens Face Worst Labor Market

The Wall Street Journal | Teenagers have had the hardest time out of all age groups.

Release of August Jobs Report is D-Day for Tapering

Fox Business | It’s becoming increasingly clear that Friday Sept. 6 is D-Day for tapering.

Agent: IRS Still Targeting Tea Party Groups

NewsMax | “… the IRS is still targeting tea party cases,” Rep. Dave Camp, chairman of the House Ways and Means Committee, said.

Front Page Wash Post Story Hides Fact That Alleged Murderer Was Illegal Alien

Paul Joseph Watson | Amidst national debate about amnesty for undocumented immigrants.

19 Very Disturbing Facts About Illegal Immigration That Every American Should Know

American Dream | Should we roll out the red carpet and allow millions upon millions of thieves, rapists, gang members and drug dealers to come waltzing into this country any time they would like?

Americans Giving Up Passports Jump Sixfold as Tougher Rules Loom

Bloomberg | Americans renouncing U.S. citizenship surged sixfold in the second quarter from a year earlier as the government prepares to introduce tougher asset-disclosure rules.

Seal Team 6 Revisited with Larry Klayman and Charlie Strange

Prison Planet.com | Charlie Strange, father of late SEAL Team Six member Michael Strange, joins the show.

Teen Killed by Taser, Cops Laugh & High-Five Each Other

We Are Change | We Are Change headed to Miami Beach — the site where Israel Hernandez was killed after being tased by Miami Beach Police.

Obama administration asserts broad surveillance powers

Washington Post | The Obama administration on Friday asserted a bold and broad power to collect the phone records of millions of Americans.

Obama: We Have ‘Sealed Indictment’ of Benghazi Terrorists

Snowden revelations force Obama’s hand on surveillance program

NBC News | Obama announces new reforms of the government’s classified surveillance programs.

Seattle Journalist Threatened with Arrest, Workplace Harassment for Filming Police

Adan Salazar | Cops under investigation for violating reporter’s rights.

Americans Sign Petition To Let Illegals Out Of Prison, No Matter What Crimes They Committed

Steve Watson | Public supports letting murderers, rapists and thieves back on the streets.

A Quadrillion Yen And Counting – The Japanese Debt Bomb Could Set Off Global Panic At Any Moment

Economic Collapse | How much is 1,000,000,000,000,000 yen worth? Well, a quadrillion yen is worth approximately 10.5 trillion dollars.

Obama set to begin vacation at $7.6M estate after meeting press

The Hill | President Obama begins an eight-day vacation in Martha’s Vineyard, Mass., on Saturday, hoping to recharge his battery before tough fights over the budget and debt ceiling this fall.

Marc Faber On Today’s 1987 Redux “Market May Drop 20% Or More”

Zero Hedge | With the 3rd Hindenburg Omen in 4 days suggesting anxiety is high, maybe he is on to something.

Shortages Are Going to Drive People Out of Their Minds: “That’s When the Riots Will Start”

Mac Slavo | When will the breakdown of the system begin?

MONEY WATCH ARCHIVE

GATA's Chris Powell on 1200 Tonnes of Missing Gold at the Bank of England Posted by: EBPost date: 08/10/2013 - You're not going to believe this: gold is manipulated.  Also, Paul Craig Roberts debunks GDP and lifts the veil off our disinformational gov't

A Japanese Crisis Nears Posted by: Asia Confidential Post date: 08/10/2013 - Two upcoming events could prove catalysts for a Japanese sovereign debt crisis.

Radioactive Water Spills Over Fukushima Barrier, Flooding Surroundings

Submitted by Tyler Durden on 08/10/2013 - 14:37

It was only last week that yet another conspiracy theory became fact when we learned, for the first time after nearly three years of lies, that Tepco had been deceitful and wrong with its "all clear" message about Fukushima, and that instead some 300 tons of contaminated, irradiated water had been flowing into the Pacific ocean every day. So now that the opportunity cost of telling more lies is zero, and the radioactive cat is out of the bag, so to say, the news about the absolute, unmitigated disaster that Fukushima is, and will be for decades, are coming fast and furious. Sure enough, moments ago Tepco reported, and Kyodo confirmed, that radioactive water has risen above the protective barrier and is freely leaking into the surrounding environment.

Bill Black On The DoJ's Seven Biggest 'Fails' In The BofA Lawsuit

Submitted by Tyler Durden on 08/10/2013 - 18:41

The Department of Justice’s (DOJ) latest civil suit against Bank of America (B of A) is an embarrassment of tragic proportions on multiple dimensions. We're "only" going to explore seven of its epic fails here.  The two most obvious fails (except to most of the media, which failed to mention either) are that the DOJ has once again refused to prosecute either the elite bankers or bank that committed what the DOJ describes as massive frauds and that the DOJ has refused to bring even a civil suit against the senior officers of the banks despite filing a complaint that alleges facts showing that those officers committed multiple felonies that made them wealthy by causing massive harm to others.  Those two fails should have been the lead in every article about the civil suit. There are many more...

Gold, China, And The Austrian Business Cycle

Submitted by Tyler Durden on 08/10/2013 - 17:28

The Chinese demand for gold essentially comes from three segments: (1) the People’s Bank of China; (2); the banking sector; and (3) Chinese citizens. We can count on the Chinese central bank to pursue the same steady course they have been pursuing for a while: buying additional gunpowder by increasing their gold reserves. More importantly, it is very likely that the current forced deleveraging will be accompanied by, for instance, a significant cut in interest rates or a lowering of the reserve requirements to offer the banking sector a helping hand (as the PBOC appears to be folding a little on its hard stance). This could have a major impact on gold. We’ll see why by observing that the bulk of Chinese gold demand comes from its third source: Chinese citizens. China has one of the world's highest saving rates, and the public faces few investment options. With negative real interest rates, in case the PBoC does lower rates to support the banking system, gold seems to be an opportune alternative.

BitCoin Is Now Officially A (Schrodinger) Currency

Submitted by Tyler Durden on 08/10/2013 - 13:58

Whether or not BitCoin actually wants to be regarded as an accepted currency, and thus subject to US government regulation, remains to be seen. However, one thing is certain: a currency is not a currency, until it gets its own Bloomberg ticker. Just recall the confusion that followed the appearance of XGD, or the GREEK DRACHMA (POST EURO), BBG currency ticker in June 2012 caused a panic tsunami across Europe when everyone started asking what does Bloomberg know that nobody else does.

Enter XBT Curncy <GO>

Two Former JPMorgan "London Whale" Traders To Be Arrested

Submitted by Tyler Durden on 08/10/2013 - 12:12

"Mr. Martin-Artajo thought that the market was irrational."

-  Permanent Subcommittee on Investigations, US Senate, Report on JPM Whale Trades: A Case History of Derivatives Risks and Abuses, p. 104

Just like Breaking Bad, the most exciting trading drama of 2012 is coming to an end.

More Zen Advice From Dan Loeb's Bloomberg Message Header

Submitted by Tyler Durden on 08/10/2013 - 10:47

The Ghost Of Inflation Future

Submitted by Tyler Durden on 08/10/2013 - 09:53

With all of the problems afflicting the world economy nowadays, inflation seems to be the least of our worries. In addressing the post-2008 economic malaise, which stems from over-indebtedness, policymakers are correct to focus on the threat of debt deflation, which can lead to depression. But dismissing inflation as “yesterday’s problem” could undermine central banks’ efforts to address today’s most pressing issues – and, ultimately, facilitate inflation’s resurgence. Understanding how the Great Inflation from the late 1960’s to the early 1980’s was tamed offers important lessons for addressing far-reaching economic problems, however different ours may be, and provides insight into the dangers that may lie ahead.

Guest Post: Tyranny Rules

Submitted by Tyler Durden on 08/09/2013 - 22:07

Tyranny, even when discussing villains like Hitler, Mao and Stalin, does not have a single pedigree. Tyranny is a process, rarely gained via force until the defense mechanism of the host is destroyed.  Hitler took seed in the ideas of Otto von Bismarck which preceded him by more than half a century. The process is well underway in America.

Picturing The Plunge In Gun Crimes (As Gun Sales Surge)

Submitted by Tyler Durden on 08/09/2013 - 21:31

A majority of Americans say they think gun crime has increased over the past 20 years, even though it has actually fallen dramatically, a recent Pew Research Center survey shows. The infographic below provides a closer look at some recent numbers.

The US Economy Grew Fastest With No Fed And No Income Tax

Submitted by Tyler Durden on 08/09/2013 - 21:00

How would America ever survive without the central planners in the Obama administration and at the Federal Reserve?  What in the world would we do if there was no income tax and no IRS?  Could the U.S. economy possibly keep from collapsing under such circumstances?  The mainstream media would have us believe that unless we have someone "to pull the levers" our economy would descend into utter chaos, but the truth is that the best period of economic growth in U.S. history occurred during a time when there was no income tax and no Federal Reserve. We never needed a central bank, we never needed the IRS and we never needed an income tax.  America would be doing just fine without any of them. But instead, America chose to go down the path of collectivization and central planning, and now we are heading toward the biggest economic disaster in the history of mankind.

The Ultimate Guide To Detroit's Chapter 9 Bankruptcy

Submitted by Tyler Durden on 08/09/2013 - 20:45

Since Detroit’s Chapter 9 filing in late July, it has slipped off the front-pages to some extent. The Chapter 9 process is underway and Barclays provides a deep-dive look at the various liabilities involved in the bankruptcy. From the pension obligation certificates (POC), which they believe could be subject to the most volatility over the course of the bankruptcy process and will likely recover no more than 30 cents on the dollar, Barclays' muni team expands on the various aspects of the eligibility process, historical precedents (such as Stockton, CA), and the tough decisions that investors face in deciding between short-term goal of certainty of payment or a long-term goal of maximizing returns. The judge has set a mid-March 2014 deadline for the city to file its plan of adjustment.

The Great Rotation... Into Poland?

Submitted by Tyler Durden on 08/09/2013 - 19:31

Inflows into equity funds around the world have been presented as the driver of the next leg higher in this 'secular' bull market. As liquidity slooshes around the world (as David Stockman so eloquently described) there is nothing but hot money chasing what 'worked' not what will work... or, as investors have now been conditioned to do, BTFD. US asset gatherers' dissonance is high as they know the pillars of their 'just keep buying' thesis remain wobbly at best (and broken in all honesty) but flows (aside from the fact that retail appears to have just folded) are holding hope ransom for now (oh and the money-on-the-sidelines idiocy meme - buyer meet seller). So what nation saw the largest relative equity fund inflows in the world?

Video Of The Day: "Operation Everyone Talk Like A Terrorist"

Submitted by Tyler Durden on 08/09/2013 - 18:58

The folks at Funny or Die have come up with an ingenious solution to render the NSA’s spy program useless. Operation: Everyone Talk Like a Terrorist All the Time. It makes a lot of sense, especially since the government already clearly considers everyone with the ability to think critically a potential “domestic terrorist.” Short video and really funny. Enjoy!

Visualizing The Collapse In US Job Security

Submitted by Tyler Durden on 08/09/2013 - 18:22

Day after day we are blessed with media prognostications on the employment data. We are incessantly fed 'facts' and data that shows how great this recovery is but more still needs to be done (so please don't taper quite yet). We have been vociferous in the exposure of facts about the 'quality' versus 'quantity' of jobs in the 'recovery' but there is another sentiment-sapping angle to the employment environment in the US. As Bloomberg's Rich Yamarone notes, the number of people with a job that were not at work in June or July because they were on vacation fell to 11.2 million this year from 11.59 million a year ago, a far cry from the 13.5 million vacationers in 2008 just prior to the Great Recession. Workers may be too uneasy with their situations to take off and enjoy the summer. Perhaps the need for a living real disposable personal income has kept them at their desks longer this year.

BNP Warns Japanese Bonds Have Lost Their Ability To Price Risk

Submitted by Tyler Durden on 08/08/2013 - 18:35

The JGB market was completely unfazed by the news that the prime minister’s office was reconsidering the planned consumption tax hike. While the tax hike is unlikely to be changed; in BNP's view, the market’s lack of response to tail risk looks like proof that its function has been impaired by the BoJ’s massive buying. Even if the Abe regime is opting for financial repression to reduce the public debt, however, BNP warns that some degree of fiscal reform is needed to control the long-term interest rate. If the unfazed market is deemed to mean that fiscal reforms can be shelved without fear of a bond-yield spike as long as massive BoJ buying continues, serious problems could ensue.

Snowden's Email Service Provider Shuts Down Following Government Pressure

Submitted by Tyler Durden on 08/08/2013 - 18:04

Secure and free web-based email service provider Lavabit shut down today. What makes Lavabit different from countless other email providers who have shuttered over the years is that according to BoingBoing, Lavabit is the email service supposedly used by Edward Snowden. Which would explain the nebulous tone in the farewell letter posted on the company's front page by owner Ladar Levison. It also explains why Lavabit was shut down by the US government, although that was mostly inferred from the letter which due to legal limitations does not expound on the official reasons for the shut down - one can imagine. It certainly explains the following punchline in Levison's letter: "This experience has taught me one very important lesson: without congressional action or a strong judicial precedent, I would _strongly_ recommend against anyone trusting their private data to a company with physical ties to the United States."

We wholeheartedly agree.

Guest Post: Why the Shrinking Trade Deficit Will Choke U.S. Corporate Profits

Submitted by Tyler Durden on 08/08/2013 - 17:53

That the U.S. trade deficit shrank to $34 billion in June is being presented as good news all around (no surprise there, as all news is presented as good news). The petroleum boom in the U.S. has pushed oil imports down by over $2 billion a month to $10 billion/month, and non-petroleum trade generated a deficit of $37 billion/month, down $5 billion. Slowing imports and modestly higher exports are being presented as reasons for stronger GDP growth going forward. Nice, except nobody is talking about the negative consequences of a shrinking trade deficit on U.S. corporate profits. The financial media doesn't talk about this because it doesn't understand the connection, which is based on Triffin's Paradox... All those counting on a weaker dollar and rising U.S. corporate profits will be doubly surprised.

Multiple Expansion Is Not Sustainable; Guggenheim Warns "Take Profits"

Submitted by Tyler Durden on 08/08/2013 - 17:04

While remaining unapologetically bullish US equities long-term, Guggenheim's Scott Minerd warns that historically, markets that have rallied as aggressively as U.S. equities since November 2012 (an increase of 25 percent), pause or correct to digest their advances. Also, earnings among U.S. companies have flattened and could turn negative within two to three quarters, meaning further upside can only come from multiple expansion. Of the 19 percent rise in stocks year-to-date, 16 percent has already come from multiple expansion. Finally, it appears GDP growth could be entering a soft patch as we work through a number of short-term issues such as the headwinds in housing, reduced growth in China, the full impact of the sequester, and the budget and debt ceiling debates that will take place in Washington in the third quarter – all of which will put downward pressure on stock prices. The near-term outlook for equities makes now a good time to consider the old Wall Street adage, "Nobody ever lost money by taking a profit."

JPY Stick Saves Stocks From Worst Streak Of 2013 Following Hindenburg Cluster

Submitted by Tyler Durden on 08/08/2013 - 16:19

Equity markets gapped up at the cash open and the S&P regained 1,700 briefly, then dumped along with JPY strength on decent volume only to be rescued almost as fast after the European close (on JPY weakness) dragging the S&P back up to test 1,700 once again. Once 1,700 was regained, volume departed and until the last few minutes, stocks did nothing (ignoring JPY post-30Y Auction) with a drop at the close in the futures (but a green close to break the worst streak of 2013) The 3rd Hindenburg Omen in 4 days shows the level of anxiety in this volumeless levitation as highs/lows/advancers/decliners signal all is not well amid the major JPY-carry-unwind. Treasuries managed small gains on the day (and week) and while credit markets rallied modestly they remain notably underperforming in this afternoon's equity spike. As JPY weakened and dragged stocks higher, VIX also collapsed but going into the close, it was clear hedgers were active. Gold, Silver, and Copper all surged on the day, WTI dropped (helped by RINs dump to only 67c).

Marc Faber On Today's 1987 Redux "Market May Drop 20% Or More"

Submitted by Tyler Durden on 08/08/2013 - 16:02

In a little under 90 seconds, the venerable "Gloom, Boom, and Doom"er draws a number of eery similarities between the fundamental and technical backdrop before 1987's equity market collapse and the current environment. With the 3rd Hindenburg Omen in 4 days suggesting anxiety is high, maybe he is on to something.

Americans Renouncing Citizenship Surge 66%

Submitted by Tyler Durden on 08/08/2013 - 15:40

Submitted by Simon Black via Sovereign Man blog,

A massive 1,131 individuals renounced their US citizenship last quarter, according to data that has yet to be officially released (though I was able to procure an advanced copy).

This is a HUGE jump.

Compared to the same quarter last year in which 188 people renounced their US citizenship, this year’s number is over SIX TIMES higher.

Not to mention, it's 66.5% higher than last quarter's 679 renunciations.

This brings the total number of renunciations so far this year to 1,810.

While still embryonic, it's difficult to ignore this trend– more and more people are starting to renounce their US citizenship.

After all, the number of people who renounced citizenship this past quarter is roughly the same as the number of people who renounced for the previous four quarters COMBINED.

This movement shouldn't be that surprising for a species that began as nomadic hunter gatherers, or for a society that was founded by foreigner settlers in search of a better life.

Yet, in a rather anomalous twist, the emotional ties we have for our passports are incredibly strong.

It doesn’t matter where you’re from - the United States, Sweden, New Zealand, or Venezuela... many people all over the world are inculcated from birth with a sense that their country is ‘better’ than all the others.

We grow up with the songs, the flag waving, and the parades until the concept of motherland becomes deeply rooted in our emotional cores.

Not to mention, when so many of our friends and neighbors unquestionably fall in line, it’s a powerful social reinforcement that only strengthens the bond.

We come to view our nationalities rather ironically as a big piece of our core individuality. I am an American. I am a Canadian. I am an Austrian. Instead of - I am a human being.

It has taken decades... centuries even... to reach this point. So the fact that more and more people are making the gut-wrenching decision to ditch their US passports is truly a powerful trend.

So what’s driving it? Taxes... and the search for liberty.

For many, their tax bills constitute a financial breaking point. Particularly for people who spend most of their time outside of the United States and are constantly hamstrung by worldwide taxation and information disclosures, the burden for many of them has just become too much to bear.

The US government figured this out some years ago and began charging an exit tax to certain high income / high net worth expatriates seeking to renounce.

This applies to anyone whose average US tax liability over the last five years was about $150,000 (the equivalent of roughly $500,000 in taxable income in 2012 dollars), and/or has a net worth of at least $2 million on the date of expatriation. Curiously this net worth figure does not adjust with inflation.

The ironic thing is that in the "Act of July 27, 1868", the United States Congress declared that "the right of expatriation is a natural and inherent right of all people, indispensable to the enjoyment of the rights of life, liberty, and the pursuit of happiness."

Yet I would expect that as the number of expatriates continue to grow, this exit tax will become more and more onerous as the government tries to trap people, and their wealth, in the country.

40 Years Of 'The Unbearable Heaviness Of Being' An American Taxpayer

Submitted by Tyler Durden on 08/08/2013 - 15:19

When federal spending grows faster than American's paychecks, the burden of government on taxpayers becomes greater. Over the past four decades, Americans' earnings have risen only 24%; while spending by the government has risen 288%, which begs the question - where did it all go?

MAD Magazine's Take On Agent Double O-Bama

Submitted by Tyler Durden on 08/08/2013 - 14:58

Presented with no comment...

Guest Post: The Federal Reserve Relies On A Flawed Economic Model

Submitted by Tyler Durden on 08/08/2013 - 13:28

In May 22 testimony to the Joint Economic Committee of Congress, Fed Chairman Ben Bernanke issued another of many similar positive interpretations of central bank policy. Yet again, he continued to argue that quantitative easing has decreased long-term interest rates and produced other benefits. The Fed's polices have not produced the much-promised re-acceleration in economic growth. The standard of living - defined as median household income - has fallen back to the level of 1995. The best approach would be for the Fed to recognize the failure of QE and end the program immediately, thereby allowing price distortions in the markets to correct themselves. By ending the illusion that the Fed can take constructive actions, this might even serve to force federal government leaders to deal with the growing fiscal policy imbalances. Otherwise, debt levels will continue to build and serve to further limit the potential for economic growth.

Ugly, Tailing 30 Year Auction Prices With Lowest Bid-To-Cover Since August 2011 US Rating Downgrade

Submitted by Tyler Durden on 08/08/2013 - 13:15

On the surface today's last of the week sale of $16 billion in 30 Year paper was not very different from last month's: at a high yield of 3.652%, it was virtually unchanged from July's 3.66% pricing yield. However, when one looks at the When Issued which was trading notably inside at 3.645%, it becomes clear that this was the first 30Y auction to tail in a while. The real dirt, however, is revealed when looking at the Bid To Cover. Confirming the trend we discussed during yesterday's 10 Year auction of plunging BTCs, today was no difference, and there was just 2.11 dollars in bids for every dollar offered. This was well below the 2.26 BTC from July, far below the 2.56 TTM average, and would have been the lowest going back all the way to February 2009 except for the 2.05 BTC seen during the August 11, 2011 30 Year auction when as a result of the debt ceiling fiasco and the S&P downgrade of the US, there was sheer chaos when it came to bonds which ironically saw a paradoxical collapse in yields even as end demand also plunged. Overall this was a very weak auction, but that's precisely what the Fed wants: after all, soon the US may will fund itself by selling equity directly into the biggest Fed bubble ever created, and no longer bother with something as trivial as debt.

The Muslim Brotherhood: The Best Straight-To-YouTube Actors Money Can Buy?

Submitted by Tyler Durden on 08/08/2013 - 14:24

Curious where all that dramatic stock footage of one (or the other) side in the ongoing Egyptian (non-)coup comes from? Apparently quite a bit of it is from repeated takes of the best staged (counter) revolution that Straight-To-YouTube money can buy. The following clip released by LiveLeak shows a Muslim Brotherhood "demonstration" in Egypt that was specifically staged to get the most dramatic poses, as the actors freeze their poses for the photographers. Injuries and even bloodstains are faked. Which is not to say only the MB is responsible for such drama: what is shown below is a prevalent tactic used across various ideologies and factions around the world to generate sympathy with the naive, gullible and easily influenced "western" audiences who are always willing to accept "reality" at face value. The take home, if there is one? Never trust anything you are told or shown, especially when national interests or intelligence agencies are involved and/or providing the funding. And always verify independently: after all the video below may well be a counterprovocation to discredit the MB, or not. Nobody knows for sure.

8 ways ‘creative destruction’ will shake stocks

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The Rise Of The Bear: 18 Signs That Russia Is Rapidly Catching Up To The United States

The Russian Bear is stronger and more powerful than it has ever been before.  Sadly, most Americans don't understand this.  They still think of Russia as an "ex-superpower" that was rendered almost irrelevant when the Cold War ended.  And yes, when the Cold War ended Russia was in rough shape.  I got the chance to go over there in the early nineties, and at the time Russia was an economic disaster zone.  Russian currency was so worthless that I joked that I could go exchange a 20 dollar bill and buy the Kremlin.  But since that time Russia has roared back to life.  Once Vladimir Putin became president, the Russian economy started to grow very rapidly.  Today, Russia is an economic powerhouse that is blessed with an abundance of natural resources.  Their debt to GDP ratio is extremely small, they actually run a trade surplus every year, and they have the second most powerful military on the entire planet.  Anyone that underestimates Russia at this point is making a huge mistake.  The Russian Bear is back, and today it is a more formidable adversary than it ever was at any point during the Cold War. (Read More....)

Pre-Crime And Mind Control Technologies Are Already Here

Should the government be trying to figure out if we are going to commit a crime in advance?  That sounds like something out of a Tom Cruise movie, but the truth is that “pre-crime” technologies such as were portrayed in Minority Report are being aggressively developed, and some have actually already been deployed.  We live at a time when technology is advancing at an exponential rate, and it can be really hard to keep up with how rapidly our world is changing.  In the future, authorities may not only be able to use pre-crime technology to read our minds, they might also be able to use technology to directly control our minds as well.  Yes, I know that sounds science fiction, but after I tell you about some cutting edge research that has been taking place at Harvard Medical School you might not think that such a notion seems so bizarre.

But first I want to discuss some of the very disturbing pre-crime technologies that the government is working on.  One of the most prominent programs is known as FAST (Future Attribute Screening Technology).  According to Wikipedia, this pre-crime system is already so advanced that developers claim that it has about an 80% success (Read More....)

Chart Of The Day: United States Of Soaring Heroin Use

Submitted by Tyler Durden on 08/08/2013 - 13:48

A month ago we reported that cocaine production out of Latin America had dropped to a new 21st century low. Whether that move was supply or demand-driven was unclear, just as it is unclear if it was due to the "scarcity" of cocaine and other more expensive drugs that forced drug-addicts to shift to other narcotics, but what is clear is that WSJ reports, "Heroin use in the U.S. is soaring, especially in rural areas, amid ample supply and a shift away from costlier prescription narcotics that are becoming tougher to acquire. The number of people who say they have used heroin in the past year jumped 53.5% to 620,000 between 2002 to 2011, according to the Substance Abuse and Mental Health Services Administration. There were 3,094 overdose deaths in 2010, a 55% increase from 2000, according to the federal Centers for Disease Control and Prevention."

ANTI-SMOKING BATTLE MOVES OUTDOORS; BANS INCREASE { Ridiculous! Particularly in light of america’s pervasive serious crime problems … and, there’s the decriminalization of marijuana, etc., for a dose of reality … these smoking bans are absolutely ridiculous and should be lumped in the category of unconstitutionally regulating soda sizes … beaches? … I can buy that! }

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MIKE STOBBE 8 hours ago HealthPassive smoking

ATLANTA (AP) — First it was bars, restaurants and office buildings. Now the front lines of the "No Smoking" battle have moved outdoors.

City parks, public beaches, college campuses and other outdoor venues across the country are putting up signs telling smokers they can't light up. Outdoor smoking bans have nearly doubled in the last five years, with the tally now at nearly 2,600 and more are in the works.

But some experts question the main rationale for the bans, saying there's not good medical evidence that cigarette smoke outdoors can harm the health of children and other passers-by.

Whether it is a long-term health issue for a lot of people "is still up in the air," said Neil Klepeis, a Stanford University researcher whose work is cited by advocates of outdoor bans.

Ronald Bayer, a Columbia University professor, put it in even starker terms.

"The evidence of a risk to people in open-air settings is flimsy," he said.

There are hundreds of studies linking indoor secondhand smoke to health problems like heart disease. That research has bolstered city laws and workplace rules that now impose smoking bans in nearly half of the nation's bars, restaurants and workplaces.

In contrast, there's been little study of the potential dangers of whiffing secondhand smoke while in the open air. But that hasn't stopped outdoor bans from taking off in the last five years. The rules can apply to playgrounds, zoos, beaches and ball fields, as well as outdoor dining patios, bus stops and building doorways.

Growing Push for Outdoor Smoking BansPlay video."

"Secondhand smoke is harmful. It's particularly harmful to children," said Councilwoman Mary Cheh of the District of Columbia, one of more than 90 U.S. municipalities or counties considering an outdoor smoking law.

But is it really dangerous outdoors?

Federal health officials say yes. Studies have clearly established that even a brief exposure indoors to cigarette smoke can cause blood to become sticky and more prone to clotting. How long that lasts after just one dose isn't clear, officials say. The best-known studies so far have measured only up to about a day afterward.

Repeated exposures are more dangerous, and can worsen your cholesterol, increase the odds of plaque building in arteries, and raise the risk of chest pain, weakness, or heart attack.

Health officials say there's no reason to think that can't happen from breathing in smoke outdoors.

"There's no risk-free level of secondhand smoke," said Brian King, an expert on secondhand smoke with the Centers for Disease Control and Prevention.

However, it's hard to pin down the health effects of outdoor smoke. There have been some studies — fewer than a dozen — that tried to measure how much secondhand smoke can be found outdoors. Some have found levels that rival what people may breathe indoors, depending on which way the wind is blowing or whether there's an overhang or sheltered area that can trap smoke. One study detected significant fumes as far as 44 feet away from a smoker.

"If you can smell it, it's obviously there," said James Repace, a Maryland-based scientist-consultant who's done some of the outdoor studies.

View gallery."

Ariayanna Stinson, 6, of Atlanta, walks around the playground next to a "smoking prohibited" sign in …

Two small studies tested about two dozen nonsmokers at a smoky outdoor dining area in Athens, Ga. The saliva tests detected significant jumps in cotinine, a substance produced when the body metabolizes nicotine.

That doesn't mean it's causing chronic illness, though. Repace thinks only two kinds of people may face a serious health risk outdoors — those with severe asthma and staff at outdoor cafes where smoking is allowed.

Indeed, health advocates in some places have focused on sites like sidewalk cafes, feeling they can't make the case for beaches or open-air parks.

"We only get involved where there's a real health risk," said Flory Doucas, co-director of Canada's Quebec Coalition for Tobacco Control.

Still, cigarette smoke in a place like a park can be a nuisance to some, just like loud music or dog waste.

That's how Roger Montiel of Atlanta views it.

"I don't really like the smell and I don't like it blowing in my face. If I'm enjoying a day at the park, I'd rather it not be part of that experience," he said while walking through a downtown park recently.

That's good enough reason for outdoor bans, Repace said. "People don't have to be dropping dead for you to regulate something," he said.

View gallery."

Brianna Mills, 26, a nursing student from Marietta, Ga., smokes next to Woodruff Park as a park amba …

Well, not so fast, said Simon Chapman, an Australian researcher. He once won a prestigious American Cancer Society award for his anti-smoking efforts and formerly was editor of a medical journal focused on smoking's dangers. But in recent years he's become a vocal opponent to wide-ranging outdoor smoking bans.

He and Bayer worry such bans are really motivated by desires to make smoking seem like an unusual, socially unacceptable behavior. Ban proponents see that as a worthy goal; Chapman thinks it's a bad precedent.

"Next you might say 'Let's not just stop there. Let's not have people smoke anywhere they might be seen'" he said. "And then is it legitimate to say that any behavior that people don't like should be disapproved of because people might see it."

In Atlanta, a city council member decided to act after an encounter with a smoker in a park. A ban on smoking in the city's parks went into effect last summer. Technically, a violation could result in a fine of as much as $1,000. But — as in other cities — Atlanta officials have not arrested anyone.

"Enforcement generally has been someone says 'put that out,' and they put it out," said George Dusenbury, Atlanta's parks and recreation commissioner.

At Woodruff Park, a 6-acre downtown hangout, nearly a dozen smokers could be spotted in the park on a recent, sunny Friday morning. The regulars said they knew about the rules, but found ways to get around them.

"Smoke rises. I don't see a reason why it should bother other people out here," said Tommy Jackson, 55, lighting up with a friend at the edge of a paved footpath through the park.

Park worker Rufus Copeland said he's seen only a small drop in smoking since the green and white "Smoking Prohibited" signs went up last year. He steers smokers to the sidewalk rimming the park. But people still smoke. "It's hard," he said.

Brianna Mills, a 26-year-old nursing student from suburban Marietta, sat down for a quiet moment in the park with her Newports, unaware of the ban.

"It's supposed to be a free country," said Mills, who developed her habit 10 years ago. "It's like: 'Where can you smoke?'"

Critics bash Obama's plans for vacay...

POLL: 82% say Congress doesn't deserve August recess...

59% of Docs Wouldn't Encourage Kids To Enter Medicine...

FBI to Conduct “Homeland Security” Drills in Austin, Texas

Prison Planet.com | Joint operation between feds and local law enforcement.

Mayor says Bloomberg’s Gun Control Group Tricked Him into Joining

Adan Salazar | Walden mayor says he was offered “political donations” to stay in the group.

N.S.A. Said to Search Content of Messages to and From U.S.

New York Times | The NSA is searching the contents of vast amounts of Americans’ e-mail and text communications into and out of the country.

Chris Matthews declares Rand Paul will be the 2016 GOP presidential nominee

Daily Caller | On his Wednesday program, “Hardball” host Chris Matthews forecasted that the GOP would go “hard right” and nominate Kentucky Republican Sen. Rand Paul as its 2016 presidential nominee.

Rand Paul: Hold Obama Accountable for Benghazi Cover-up

Sen. Rand Paul | We deserve real, honest answers from our president and his administration, not a cowardly misdirection campaign.

The Edward Snowden ‘Solar Flare Killshot’ Hoax

Paul Joseph Watson | Yet another ludicrous conspiracy theory overshadows issues of real significance.

Fed Belongs to Everybody as Public Says It’s Our Money in Crisis

Bloomberg | The unprecedented frenzy surrounding Federal Reserve Chairman Ben S. Bernanke’s potential successor shows that Americans won’t let the central bank go back to its opaque and secretive ways.

“Hello HSBC, This Is JPMorgan – We Urgently Need Some Of Your Gold”

Zero Hedge | What happens when 63.5K ounces of registered gold in your warehouse (16% of total) just has their warrants detached and the vault is about to finds itself 63.5k ounces of gold emptier?

Gold Markets Get Strange – Is Economic Danger Near?

Brandon Smith | Traditionally, metals markets are supposed to be a solid fundamental signal of the physical and psychological health of our overall economy.

The Rise Of The Bear: 18 Signs That Russia Is Rapidly Catching Up To The United States

Economic Collapse | The Russian Bear is stronger and more powerful than it has ever been before.

Ron Paul Calls NSA’s Alexander and Clapper Liars

Kit Daniels | “Their claimed successes are all built on lies,” Paul said.

Police State: Austin SWAT Confines Resident To His Own Home

Infowars.com | SWAT team demands Infowars reporter get back inside his apartment.

Elysium: Propaganda for Illegal Immigration “Reform”

Infowars.com | Producer admits film is about “immigration, health care, and class issues.”

Austin Votes to Extend $60 Million Smart Meter Program

Julie Wilson | “They’re going to be able to query exactly how I’m using my energy by minute by minute basis.”

3D Printed Rifle 2.0 Successfully Fires 14 Shots

Steve Watson | Maker vows to share blueprints while authorities continue with crackdown.

Russian Military Joins Race to Engineer Killer Robots

Infowars.com | General explains new tech will be used to fight the war on terrorism.

FBI to Conduct “Homeland Security” Drills in Austin, Texas

Infowars.com | Joint operation between feds and local law enforcement.

JP Morgan faces criminal probe for defrauding investors

RT | Bank faces a slew of lawsuits.

Shares, dollar drop on Fed tapering uncertainty

Reuters | Stocks on Wall Street ended lower.

Clinton Labor Secretary: GOP Wants to Keep Unemployment High

Daily Finance | GOP has shot down every major Democratic job-creation proposal of the past few years.

Employers Show "Strong Distaste" For The 3 Million Long-Term Unemployed

Submitted by Tyler Durden on 08/07/2013 - 17:48

There are still more than 3 million Americans who have been unemployed for more than 52 weeks and, as WSJ reports, economists (via recent studies) worry they will never work again. Of course, with benefits at such heights (and work punished), it is not surprising but on the demand side, for the long-term unemployed, interview "callback rates decrease dramatically at 9 months of unemployment." Worst still, for those applying for medium-to-low skilled jobs (so the majority), being long-term unemployed reduced interview requests by 20% - the equivalent of shaving four years of work experience off their resumes. Critically, one study found employers showed "a strong distaste for applicants with long spells of non-employment."

If You Have An IRA, You Need To Know This...

Submitted by Tyler Durden on 08/07/2013 - 17:19

It’s long been a common approach for government sliding into insolvency to confiscate wealth from their own citizens. Charles I of England infamously commandeered 200,000 pounds of his own citizens’ gold right before the English Civil War in 1638. Roosevelt confiscated his entire nation’s gold holdings roughly three centuries later. And of course, Cyprus raided domestic bank accounts earlier this year in a desperate attempt to bail-in the national banking system. It’s foolish to think that these things cannot happen, especially when you look at the numbers. This is why we are concerned that the IRS is refusing to issue tax ID numbers for single-member LLCs that are owned by an IRA... which is the specific structure that US taxpayers need to create in order to ship their retirement savings overseas.

The Number Of Days In Which JPMorgan Lost Money Trading In The First Half Is....

Submitted by Tyler Durden on 08/07/2013 - 16:53

(a/k/a the shortest post in Zero Hedge history)

Tesla "Earnings" Word Cloud

Submitted by Tyler Durden on 08/07/2013 - 16:22

Because who really needs Generally Accepted Accounting Principles anyway...

Markets In Turmoil; 3rd Red Day In A Row For Stocks

Submitted by Tyler Durden on 08/07/2013 - 16:13

"You can't go up forever," noted Bob Pisani before piling on a series of excuses for the recent 'weakness' that quite frankly could have been used at any 1.1% drop in stocks of the last 3 years... While stocks bounced off lows today and are making the headlines for a third down day for the first time in 2 months, the real story that most are ignoring is the surge in the JPY. The USD is legging lower confusing the 'Taper' chatter but it is the JPY strength that is dominating (up 3.6% against the USD in the last 4 days (and the Nikkei futures -800 from Friday's highs). Treasuries rallied 3-4bps (and the curve flattened) as it seems the modest weakness in stocks is being met with some safe-haven demand. Despite bonds' bid, Homebuilders were battered (-4.5% on the week). Gold and silver strengthened off pre-open lows as WTI fell back to around $104. VIX spiked to 13.9% at the open but ended around 13% at the close. Back to CNBC for the close: "off the lows," but not in credit Maria...

US-Supported Free Syrian Army Downs Iranian Cargo Plane At Damascus Airport

Submitted by Tyler Durden on 08/07/2013 - 16:04

Has the long-awaited "kinetic strike" catalyst finally arrived?

Guest Post: Real Personal Income Points To Recession

Submitted by Tyler Durden on 08/07/2013 - 15:55

Every time real personal income goes negative, a recession occurs. Now that personal income is falling, a recession is baked in. The Big Lie of the "recovery" is that it is self-sustaining. Minus government transfers, the reality that the Fed and Federal government are simply enriching the top 1/10th of 1% with access to unlimited credit at zero interest is revealed.

IRS manual detailed DEA's use of hidden intel evidence on citizens...

CONGRESS GETS WAIVER

REPORT: President personally negotiated Obamacare exemption for Congressional staffers...
REUTERS: Fix is in...

Schmidt Financing Cory Start-up...
CNN president Jeff Zucker's 15-year-old son on company's advisory board, given stock options...

REPORT: Terry McAuliffe's company linked to SOLYNDRA...

Law Enforcement issues Nationwide Alert On 'Sliders'...

Fast--Moving Thieves Rob Cars While Owners Pump Gas...

11 Examples Of The Escalating Crime And Violence That Are Plaguing Communities Across America

Even though the United States has the highest incarceration rate and the largest total prison population in the world by a very wide margin, hundreds of communities all over America are being overwhelmed by crime and violence.  For many years, violent crime had actually decreased in the United States, but now the trend is going the other way.  Violent crime in the U.S. increased in both 2011 and 2012, and it is being projected that it will increase in 2013 as well.  The frightening thing is that crime statistics are going up even though police departments in some major cities have publicly announced that they will not even respond to certain crimes anymore.  This has the effect of making crime statistics look lower than they actually should be.  For example, in the city of Chicago police will no longer respond in person "to 911 calls reporting vehicle theft, garage burglary or simple assault".  So if someone steals your car or breaks into your garage, you can file a report over the phone if you want, but it probably won't do much good. (Read More....)

Someone Just Bet Big On A Spike In September "Taper" Volatility

Submitted by Tyler Durden on 08/07/2013 - 15:33

In early May, when the first of the Hilsenrath "taper" leaks hit, we made a prediction that the correct time frame for the actual taper announcement by the Fed would be September. As a reminder back then this was a heretical suggestion with prevailing consensus expecting a 2014 taper or a December 2013 move at the earliest. Fast forward to today, when the September FOMC is the consensus date for a taper announcement. However, what is still debated is whether or not the taper is actually "priced in" to risk assets: some say this is what the bond swoon of June was for, even though equities have largely digested the bond move 100 bps wider,  and are just a fraction off their all time highs. Well, a few hours ago someone just decided that not only is the taper not priced in, but that there will be a substantial shock surrounding the September VIX bucket. And they put their money where their mouth is.

June Consumer Credit Rises Less Than Expected; Entire Increase Driven By Car And Studen Loans

Submitted by Tyler Durden on 08/07/2013 - 15:16

So much for hopes that US consumers were loosening the purse strings and starting to "charge it." Moments ago we got the latest, June, consumer credit which was expected to increase $15 billion following the May revised $17.6 billion. More importantly, there was an expectation that following the surge in May revolving credit which rose by $6.4 billion or the second most in the past three years (only matched by the comparable pre-summer surge in 2012). Sadly, neither expectation was met: total consumer credit rose by "only" $13.8 billion, but more importantly, the revolving component posted a $2.7 billion decline. This also matched last year's pattern when June saw a major reduction of $2.8 billion. In other words, the only credit creation in the month of June was, once again, entirely for student and car loans, which rose by a whopping $16.5 billion - the most since February and the second highest increase since July 2011. So much for US consumers seeking to relever for discretionary purchases.

Wednesday Humor: Bob Woodward Gets A New Job

Submitted by Tyler Durden on 08/07/2013 - 14:59

Following yesterday’s announcement that Amazon.com founder Jeffrey Bezos would be purchasing daily newspaper The Washington Post, sources confirmed today that Post associate editor and legendary investigative journalist Bob Woodward had already been repositioned at a new staff position in one of Amazon’s main warehouses just outside of Seattle... “The one thing I’ll give him is that he does seem very curious,” Griffin added. “I mean, he’s always asking questions and he has a little notepad and a tape recorder out at all times, so hopefully he picks something up from all that.”

On Economic Illiteracy, And Bulls' "Stopped-Clock" Fallacies

Submitted by Tyler Durden on 08/07/2013 - 14:25

For many years before 2007-9 a few analysts have warned that rising consumer credit in the US and peripheral Europe was unsustainable. They warned that rising debt to support misallocated investment in China was also unsustainable. They warned that soaring US mortgages backed by little more than the hope that land prices could only rise would lead to a real estate crisis. They warned that commodity-exporting countries that did not hedge their bets would find themselves in serious trouble when commodity prices collapsed. Of course you could not have had a bubble unless the majority of analysts disagreed with these warnings, and most analysts did indeed disagree. So what happened when the warnings turned out to be right? The former bulls immediately trotted out the stopped-clock analogy. The reason the worriers turned out to be right, they earnestly explained, is that they are perma-bears, and as everyone knows a stopped clock will always be right twice a day... As China’s growth continues to slow and as its debt problems become obvious to even the most bullish, the stopped clock analogy is working overtime.

US Boasts About "Eliminating Al-Qaeda" Threat While It Evacuates Half The Muslim World

Submitted by Tyler Durden on 08/07/2013 - 13:54

Just when you thought it was safe to travel the world and spend time in a consulate overseas...

U.S. HAS ELIMINATED 'ALMOST ALL' AL-QAEDA LEADERS IN PAKISTAN

... the State Department spokesperson Jen Psaki reminds us:

'WE DO THINK A THREAT STILL REMAINS' FROM AL-QAEDA: PSAKI

So be afraid, maybe slightly less afraid, "but keep funding us too"...

U.S. STILL CONCERNED ABOUT AL-QAEDA AFFILIATES

because, after all there are many other countries in the world where Al-Qaeda brass is hiding and where US drones haven't murdered thousands of women and children in their quest to "eliminate" whatever threat du jour the US makes up.

Guest Post: Is Water The New Oil?

Submitted by Tyler Durden on 08/07/2013 - 13:36

The sharpening international geopolitical competition over natural resources has turned some strategic resources into engines of power struggle. Transnational water resources have become an especially active source of competition and conflict, triggering a dam-building race and prompting growing calls for the United Nations to recognize water as a key security concern. With the era of cheap, bountiful water having been replaced by increasing supply and quality constraints, many investors are beginning to view water as the new oil. Political and economic water wars are already being waged in several regions, reflected in dam construction on international rivers and coercive diplomacy or other means to prevent such works. The World Bank estimates that such constraints are costing China 2.3% of GDP. In short, we must focus on addressing our water-supply problems as if our lives depended on it. In fact, they do.

10 Year Treasurys Sold At Lowest Bid-To-Cover Since March 2009

Submitted by Tyler Durden on 08/07/2013 - 13:28

If it was the Treasury's intent to make auctioning of Treasury paper increasingly more fraught with risk, it has succeeded. Moments ago, in the second auction of the week and month, another $24 billion were added to the gross US debt, when the Treasury sold 10 year paper at a yield of 2.620%, pricing through the When Issued yield of 2.623% So far so good. However, as was shown last week, the trouble is in the internals. Recall that as Zero hedge first demonstrated in January and as the TBAC reconfirmed in their refunding presentation, the Bid to Covers have been declining across the curve. It should perhaps come as no surprise then that the just completed 10 Year auction was completed at the lowest Bid To Cover, or 2.44, going all the way back to March 2009.

Only 40% Of Federal Student Loan Borrowers Are Currently Making A Payment

Submitted by Tyler Durden on 08/06/2013 - 20:04

Of the 28 million Americans with federal student loans, 60%, or 17 million, don't pay the US government a single cent!

Detroit - An "Austrian Moment" In The Making

Submitted by Tyler Durden on 08/06/2013 - 19:36

As Detroit begins to sort through the ill-begotten public liabilities that have driven it to bankruptcy, an important opportunity is at hand to revitalize the city that was once the epicenter of American entrepreneurship and manufacturing, while setting an example for other municipal governments that appear to be headed toward a similar fate. Here is an “Austrian moment” in the making, a potential libertarian awakening guided by the market-oriented, non-interventionist principles of the Austrian school of economics. For years, Detroit’s expenditures vastly exceeded its revenues. But, as long as investors were willing to purchase risky bonds, neither politicians nor unions would admit how unsustainable Detroit’s situation was. Detroit’s bankruptcy is thus exactly what the financial system needs.

Peter Schiff Asks "What's In The Vault?"

Submitted by Tyler Durden on 08/06/2013 - 19:05

Given that the demand for physical gold among private investors has remained strong throughout 2013, the significant price declines in recent months took many investors by surprise. Attempting to make sense out of this situation, speculation has arisen that the so-called 'bullion banks' (the mostly "Too Big to Fail" institutions that are known to work closely with the central banks) have lent out, or even sold, gold on a fractional basis, far in excess of what is supposedly held in their vaults. The result would have been to multiply greatly the amount of 'apparent' gold in the market and thereby depress prices. Such an action would provide needed cover for the embarrassment of currency depreciating central banks' policies.

The Unlucky 13 Charts Of This Economic "Recovery"

Submitted by Tyler Durden on 08/06/2013 - 18:35

Recent data releases have contained mixed messages. Bulls cling to anecdotal data points to support their 'recovery around the corner' green-shoots justification for equity valuations while bears remain mired in the reality of a slow and dismal recovery-less recovery. The following 13 charts (with 1 bright shining point of government sponsored exuberance) paint a different picture than the all-time high stock prices suggest.

Busting The Three Biggest Bullish "Beliefs"

Submitted by Tyler Durden on 08/06/2013 - 18:05

A bearish take on U.S. stocks is about as fashionable as a beehive hairdo at the moment, which makes it a decent time to think like a contrarian.  Sell-side strategists with a sense of reality are few and far-between but as ConvergEx's Nick Colas warns, the most important reason for caution currently is, obviously, valuation and complacency.  U.S. stocks currently reflect, both in price level (16x current year earnings) and implied volatility (an 11 handle VIX), an economic acceleration which has yet to fully flower.  In addition, Colas adds, domestic equities look good in part simply because everything else – Europe, Japan, emerging markets, etc... - look so bad.  Wouldn't an accelerating U.S. economy spill over to other regions?  So what is lurking around the corner for the next lucky Fed head? And what about the three main memes for why the 'bull' can keep running?

US Files Criminal Charges In Benghazi Attack

Submitted by Tyler Durden on 08/06/2013 - 17:25

Nearly a year after the Benghazi embassy attack that left four Americans dead including ambassador Chris Stevens, it seems that the deaths of US citizens have "made a difference" after all in the eyes of the amusingly named US Department of Justice, which moments ago filed criminal charges related to the Libyan attack. Alas, that's all we know because as the WSJ reports, the charges were filed under seal. It probably means that is all that shall be known until one day, several years from now long after Eric Holder has left the building, the DOJ will unseal the charges and disclose it never had a case to begin with.

Obama Tells The Middle Class Where Home Prices Are Headed

Submitted by Tyler Durden on 08/06/2013 - 16:47

We're going to need a bigger camera...

Stocks Biggest 2-Day Plunge (0.7%) In 7 Weeks On Hindenburg Cluster

Submitted by Tyler Durden on 08/06/2013 - 16:14

Another day, another Hindenburg Omen sighting as Fed speeches did little to provide moar exuberance as better-than-expected data keeps hinting at an early Taper and removal of the punchbowl. Stocks have seen two days in a row of 'redness' with a mind-numbing loss of around 0.7% for the S&P 500 (and more for the Trannies) that sparked a litany of 'off-the-lows' and 'moral victory for the bulls' comments as volume remained lack-luster at best (all compressed into the sell-off phase into the European close). The Taper picture remains a little unclear across asset-classes though; as gold, silver, and oil dropped (Taper on), Bonds unch (Taper hhmm), stocks down led by builders (Taper on), USD weakness (Taper not on) but JPY strength was the driver (carry unwind on Taper on). VIX pressed up towards 13% (its biggest rise in 7 weeks) and credit is underperforming.

Spot The Next Credit Crisis

Submitted by Tyler Durden on 08/06/2013 - 14:44

Information overload and cognitive dissonance often hide the facts from right under one's nose. Sometimes, as in the case of the following image, a picture paints a thousand words; and in this case, any doubt about where the world's 'most-bust-prone' nations are in the post-crisis new normal should be instantly (and visually) dismissed (as we noted here, here, and here).

July Records Biggest Inflows... Into Cash?

Submitted by Tyler Durden on 08/06/2013 - 14:18

With the Federal Reserve's bond-buying, liquidity-injecting, market-inflating, volatility-suppressing, confidence-inspiring, economic-supporting, media-headline-generating, program currently in full swing; one would assume that the daily pushes to new market highs are driven by massive inflows of cash into the equity markets.   Well, that assumption is only partially correct.

Time Magazine Promotes A Childless Lifestyle As The Path To The Good Life For U.S. Couples

There is a relentless assault on the family in America today unlike anything that we have ever seen before.  For decades, the entertainment industry and the mainstream media have been portraying marriage as the time “when your fun is over” and they have been encouraging young adults to put off marriage for as long as possible.  So now the marriage rate in the United States is at a record low and the average age for a first marriage is at a record high.  Meanwhile, the entertainment industry and the mainstream media have been heavily promoting the philosophy that having fewer children is better, and they have been teaching our young people that abortion is a really good option if an unwanted pregnancy comes along.  The whole idea is that children are going to keep you from enjoying the kind of life that you really deserve to have. (Read More.....)

40 Percent Of U.S. Workers Make Less Than What A Full-Time Minimum Wage Worker Made In 1968

Are American workers paid enough?  That is a topic that is endlessly debated all across this great land of ours.  Unfortunately, what pretty much everyone can agree on is that American workers are not making as much as they used to after you account for inflation.  Back in 1968, the minimum wage in the United States was $1.60 an hour.  That sounds very small, but after you account for inflation a very different picture emerges.  Using the inflation calculator that the Bureau of Labor Statistics provides, $1.60 in 1968 is equivalent to $10.74 today.  And of course the official government inflation numbers have been heavily manipulated to make inflation look much lower than it actually is, so the number for today should actually be substantially higher than $10.74, but for purposes of this article we will use $10.74.  If you were to work a full-time job at $10.74 an hour for a full year (with two weeks off for vacation), you would make about $21,480 for the year.  That isn't a lot of money, but according to the Social Security Administration, 40.28% of all workers make less than $20,000 a year in America today.  So that means that more than 40 percent of all U.S. workers actually make less than what a full-time minimum wage worker made back in 1968.  That is how far we have fallen. (Read More....)

America: Where Hard Working, Productive Members Of Society Pay For The Health Care Of Everyone Else

Everybody in America wants health care - but most Americans seem to want someone else to pay for it.  In the United States today, the way that our system works is that the hard working, productive members of society pay for the health care of everyone else.  At least under socialism everyone gets the same benefits.  Our system of health care is a very twisted version of socialism where millions upon millions of very hard working people are forced to pay for the health care of others, but often can't afford to purchase decent health insurance for themselves.  Personally, I don't have a big employer paying for my health care so I have to buy it myself, and I just got a letter from my health insurance company telling me that I have another massive rate increase coming up.  Have you gotten a similar letter?  Health insurance premiums are going up all over America, and this is just the beginning.  In fact, the CEO of Aetna says that health insurance rates for many Americans will double when the major provisions of Obamacare kick in next year. (Read More....)

Radioactive Water From Fukushima Is Systematically Poisoning The Entire Pacific Ocean

Right now, a massive amount of highly radioactive water is escaping into the Pacific Ocean from the ruins of the destroyed Fukushima nuclear facility in Japan.  This has been going on all day, every day for more than two years.  The enormous amounts of tritium, cesium and strontium that are being released are being carried by wind, rain and ocean currents all over the northern Hemisphere.  And of course the west coast of the United States is being hit particularly hard.  When you drink water or eat seafood that has been contaminated with these radioactive particles, they can stick around for a very long time.  Over the coming years, this ongoing disaster could potentially affect the health of millions upon millions of people living in the northern hemisphere, and the sad thing is that a lot of those people will never even know the true cause of their health problems.

For a long time, the Japanese government has been trusting Tepco to handle this crisis, but now it has become abundantly clear that Tepco has no idea what they are doing.  In fact, the flow of radioactive water has gotten so bad that authorities in Japan are now calling it (Read More....)

31 Percent Of U.S. Honey Bees Were Wiped Out This Year – Who Will Pollinate Our Crops?

If bees keep dying off at this rate, we are going to be facing a horrific agricultural crisis very rapidly in the United States.  Last winter, 31 percent of all U.S. bee colonies were wiped out.  The year before that it was 21 percent.  These colony losses are being described as “catastrophic” by those in the industry, and nobody is quite sure how to fix the problem.  Some are blaming the bee deaths on pesticides, others are blaming parasites and others are blaming cell phones.  But no matter what is causing these deaths, if it doesn’t stop we will all soon notice the effects at the supermarket.  Bees pollinate about a hundred different crops in the United States, and if the bees disappear nobody is quite sure how we will be able to continue to grow many of those crops.  This emerging crisis does not get a lot of attention from the mainstream media, but if we continue to lose 30 percent of our bees every year it is going to have a cataclysmic effect on our food supply.

The frightening thing is that the bee deaths appear to be accelerating and they appear to be even worse in the UK and Canada…

This past winter was one of the worst on record for bees. (Read More....)

WASHPOST SOLD

Nearly 90 percent of new jobs since 2009 are part-time...

'87 rape hoaxer Tawana Brawley begins paying defamation...

STUDY: U.S. DEBT OBLIGATIONS $70 TRILLION...

ONE PERSON SHOWS FOR OBAMACARE EVENT!

PUBLIC UNIONS BALK AT NEW TAX...

States wage war of words...

Pandemic of Pension Woes Plagues Nation...
Chicago Faces $1 Billion Shortfall by 2015...

BLOOMBERG: NYC's Good Times May Sour Like Detroit's...
'We are only a short distance from relapsing'...
Young gang members terrorize neighborhood...

Florianopolis, Brazil voted world's friendliest city...
Newark is Unfriendliest...

DEPARTMENT OF HEALTH -- INFESTED WITH BED BUGS...

Greenwald: NSA Supporters Exploiting “Terror Threats” to Kill Fourth Amendment

Kit Daniels | Journalist says Obama suddenly declared massive “terrorism threat” after downplaying al-Qaeda for years.

Dead of Night AMBER Alert Scares Californians

Julie Wilson | Government mandated alerts shake Californians out of their sleep.

Documents Reveal Holder’s Travel Expenses Exceeded $4 Million in Four Years

Steve Watson | Attorney General Charges taxpayers for luxury trips, including 2009 US/Mexico gun running “meeting”.

Feds Visited Michael Hastings’ House Day Before His Death

Paul Joseph Watson | Agents were pursuing Rolling Stone journalist prior to suspicious crash.

Tsarnaev Narrative Change: Instead of a Radical Muslim, Tamerlan a Rightwing Extremist

Kurt Nimmo | Establishment media adjusts Boston bombing narrative to fit government’s domestic terror choreography.

Michael Hastings’ Wife Says Suspicious Crash Was “Tragic Accident”

Paul Joseph Watson | Elise Jordan tells CNN that Rolling Stone journalist was on trail of hot story.

FEMA Demanding 24 Hour Delivery of Emergency Food Reserves

Paul Joseph Watson | Feds preparing for calamity?

Clinton Labor Secretary: GOP Wants to Keep Unemployment High

dailyfinance.com | GOP has shot down every major Democratic job-creation proposal of the past few years.

What Difference Does It Make Who Runs The Fed?

foxbusiness.com | American economy is puttering along in the slow lane.

40 Percent Of U.S. Workers Make Less Than What A Full-Time Minimum Wage Worker Made In 1968

Michael Snyder | Are American workers paid enough?

Documents Reveal Holder’s Travel Expenses Exceeded $4 Million in Four Years

Steve Watson | Attorney General Charges taxpayers for luxury trips, including 2009 US/Mexico gun running “meeting”.

Feds Visited Michael Hastings’ House Day Before His Death

Paul Joseph Watson | Agents were pursuing Rolling Stone journalist prior to suspicious crash.

Tsarnaev Narrative Change: Instead of a Radical Muslim, Tamerlan a Rightwing Extremist

Kurt Nimmo | Establishment media adjusts Boston bombing narrative to fit government’s domestic terror choreography.

Michael Hastings’ Wife Says Suspicious Crash Was “Tragic Accident”

Paul Joseph Watson | Elise Jordan tells CNN that Rolling Stone journalist was on trail of hot story.

US Evacuates Personnel From Yemen Following Droning Of Four Al Qaeda Militants

Zero Hedge | Embassy evacuations are so last week.

45%: Obama’s Gallup Weekly Job Approval Drops to Second-Term Low

CNSNews.com | President Barack Obama’s job approval dropped to the lowest level of his second term.

The “New Economy” Is The No Jobs Economy

Paul Craig Roberts | One of my most popular columns was about escaping from the Matrix existence in which Americans live.

Japan’s biggest warship since WW2 stirs China tensions

RT | Amid increasing tensions with China over some disputed islands, Japan unveils a warship that could double as an aircraft carrier.

FEMA Demanding 24 Hour Delivery of Emergency Food Reserves

Paul Joseph Watson | Feds preparing for calamity?

Another Looming Credit Crunch?

Zero Hedge | Cheap financing was too good to ignore.

Billionaire Issues Chilling Warning About Interest Rate Derivatives

Economic Collapse | Will rapidly rising interest rates rip through the U.S. financial system like a giant lawnmower blade?

Did China Just Fire The First Salvo Towards A New Gold Standard?

Zero Hedge | Yao Yudong has called for a new Bretton Woods system.

Fed Head: Sitting in the Hot Seat Posted by : Pivotfarm Post date: 08/05/2013 - Just a few days ago on July 27th President Barack Obama said that the next Fed head had to consider average Americans when setting monetary policy. If only that were true.

If the Economy is Recovering… Why Is Nominal GDP in a Recession? Posted by: Phoenix Capital... Post date: 08/05/2013 - So, somehow the US economy is roaring back in a big way? Hard to see. Over 70% of the economy is consumer spending. And spending is driven by incomes. And incomes are… falling.

MYSTeRiouS OBJeCTS FouND... Posted by: williambanzai7 Post date: 08/05/2013 - Please do not worry...

MYSTeRiouS OBJeCTS FouND...

Submitted by williambanzai7 on 08/05/2013

BANZAI7 NEWS--In a coastal area long silent due to the Fukushima nuclear accident, the only sounds of human activity on June 18 were from workers removing rubble and continuing their decontamination efforts. But soon, their supervisor discovered something that broke up the monotony of the work and added to the eeriness of the atmosphere.

After a call to the Environment Ministry, Yoji Sakapoopoo, 55, a ministry specialist, immediately headed to the location about 15 kilometers south of the crippled Fukushima No. 1 nuclear power plant.

As he slowly walked around with a dosimeter, he reached a hot spot where radiation levels nearly doubled those of the surrounding areas.

Using a fallen branch to clear away dirt, Sakapoopoo uncovered a grayish pile about 3 centimeters long, about 1.5 cm wide and about 0.5 cm thick.

The surface of the pile, which looked like soil, had gamma ray readings of about 85 microsieverts per hour. The total reading, including beta rays, came to 1 millisievert per hour.

It was the first of four mysterious objects with high radiation levels found near the mouth of the Idegawa river in Naraha, Fukushima Prefecture.

Officials at the government and Tokyo Electric Power Co., the plant’s operator, have no fucking sashimi where these objects came from or why they have high radiation levels. In fact, they are not sure what these objects actually are or were used for.

40% Of US Workers Now Earn Less Than 1968 Minimum Wage

Submitted by Tyler Durden on 08/05/2013 - 15:45

Are American workers paid enough?  That is a topic that is endlessly debated all across this great land of ours.  Unfortunately, what pretty much everyone can agree on is that American workers are not making as much as they used to after you account for inflation.  Back in 1968, the minimum wage in the United States was $1.60 an hour.  That sounds very small, but after you account for inflation a very different picture emerges.  Using the inflation calculator that the BLS provides, $1.60 in 1968 is equivalent to $10.74 today. According to the Social Security Administration, 40.28% of all workers make less than $20,000 a year in America today.  So that means that more than 40 percent of all U.S. workers actually make less than what a full-time minimum wage worker made back in 1968.  That is how far we have fallen.

Guest Post: Trying To Stay Sane In An Insane World - Part 2

Submitted by Tyler Durden on 08/05/2013 - 19:35

This insane world was created through decades of bad decisions, believing in false prophets, choosing current consumption over sustainable long-term savings based growth, electing corruptible men who promised voters entitlements that were mathematically impossible to deliver, the disintegration of a sense of civic and community obligation and a gradual degradation of the national intelligence and character. There is a common denominator in all the bubbles created over the last century – Wall Street bankers and their puppets at the Federal Reserve. Fractional reserve banking, control of a fiat currency by a privately owned central bank, and an economy dependent upon ever increasing levels of debt are nothing more than ingredients of a Ponzi scheme that will ultimately implode and destroy the worldwide financial system. Since 1913 we have been enduring the largest fraud and embezzlement scheme in world history, but the law of diminishing returns is revealing the plot and illuminating the culprits. Bernanke and his cronies have proven themselves to be highly educated one trick pony protectors of the status quo. Bernanke will eventually roll craps. When he does, the collapse will be epic and 2008 will seem like a walk in the park.

Beware The Rise In International Monetary Policy Tensions

Submitted by Tyler Durden on 08/05/2013 - 19:00

As the Fed gets ready to taper ‘QE’, UBS' Larry Hatheway warns investors to brace for a period of increased international policy tension. Previously harmonized - but not coordinated - monetary policy stances will give way to conflicting objectives and new strains as adverse ‘spillovers’ occur. As Hatheway notes, we are about to rediscover several inconvenient truths. First, the Fed is the US, not the world’s, central bank. Second, international policy coordination is desirable in an interdependent world but, third, it is no more likely to materialize now than in the past. The world, it seems, is destined for a less comfortable policy co-existence in the coming few years.

Santelli Rants "All Roads Lead To The Fed"

Submitted by Tyler Durden on 08/05/2013 - 18:26

Day after day, CNBC's Rick Santelli hears analysts arguing how the economy is doing pretty well and that there is always some anecdotal fact that backs up their cognitively dissonant view with fundamentals. However, as Santelli asks (rhetorically), it always comes back to the same question, "if things are really that good, why do we still need the [Fed] training wheels on?" The answer is presumably obvious as actions ($85bn per month of POMO-provided liquidity to the 21 primary dealers) speak louder than analysts words (we promise recovery is just around the next corner.) While careful not to explicitly rebuff the exuberance of his channel's clients revenue-base, Santelli notes the oddly correlated relationship (that has time and again appeared in pixelated format on these very pages) between the Federal Reserve balance sheet and the ebbs and flows of the US equity market. As he concludes, the only (causal) transmission mechanism for the Fed's actions is via the primary dealers and implicitly the Fed is the entity that is goosing the stock market.

Guest Post: Still Waiting

Submitted by Tyler Durden on 08/05/2013 - 17:47

We do not inhabit a “normal” economy. We live in a financialised world in which our banks cannot be trusted, our politicians cannot be trusted, our money cannot be trusted, and – not least thanks to ongoing spasms of QE and expectations of much more of the same – our markets cannot be trusted. At some point (though the timing is impossible to predict), asset markets that cannot be pumped artificially any higher will start moving, under the forces of inevitable gravitation, lower.

US Retail Investors (Alone) 'Rotate' All-In

Submitted by Tyler Durden on 08/05/2013 - 17:16

With revenues fading, profit margins collapsing, and only financial institutions' entire lack of transparency providing any lift in EPS, the 'great rotation' continues to provide enough cognitive dissonance to sink a boat for the asset-gatherers. The trouble, as we showed previously, is this 'rotation' is dominated by US retail investors (more specifically non-US domiciled and non-retail investors are rotating away from US equities). The US retail investor has shifted in a great-rotationary manner by the greatest amount since Feb 2000 - just as the last great bubble burst. US equities are the 3rd most over-crowded speculative long asset in the world after Crude Oil and the Brazilian Real. It seems the Fed is getting just what it wants but, just as Kyle Bass warned, "investors should be really careful doing what the central bankers want them to do."

Jeff Bezos To Buy Washington Post Newspaper And Its Publishing Assets For $250 Million

Submitted by Tyler Durden on 08/05/2013 - 16:46

HFT Quote Churn "Spam" Soars To Record As Volume Plummets

Submitted by Tyler Durden on 08/05/2013 - 16:36

Simply put, these four charts have to be seen to be believed. Presented with little comment, via Nanex, this is the 'market' we are supposed to trust...?

Lowest Volume Day Of Year Ends With Hindenburg Omen

Submitted by Tyler Durden on 08/05/2013 - 16:18

S&P futures volume was the lowest of 2013 for a non-holiday-related day (35% below last year's volume and 40% below recent average volume). NYSE volume the second lowest of the year. Tech and Staples managed small gains on the day but homebuilders and utilities underperformed as bond yields rose 3 to 5bps on the day. The 'anxiety' in stocks showed itself with another appearance of the Hindenburg Omen (which has signaled short-term weakness in the last six months). The Russell closed green and thanks to AAPL, the Nasdaq eked out a small gain. Trannies were down 0.8% in their now-ubiquitous schizophrenic manner as 'most-shorted' names outperformed significantly. The USD slid lower from the US open ending -0.1% (with JPY strength dominant) but commodities were worse down 0.5% (WTI) to 1% (silver and gold) on the day. VIX was clubbed lower (to 11.8% - its lowest close in 5 months) right at the close to ramp stocks into the cash close.

Uncollected Greek Taxes Rise To Record €60 Billion, One Third Of Greek GDP

Submitted by Tyler Durden on 08/05/2013 - 15:18

While Europe, and especially Germany has been understandably "displeased" with having to provide billions in bailout upon bailout funding to Greece every year starting in 2010, all the more so following recent news that Greece has already spent some 75% of its bank bailout cash with no discernible improvement in its economy to show for it, Europes' taxpayers will unlikely be any more pleased to learn that as of the end of June, a whopping €60 billion in past due taxes (an all time record) was owed by Greek businesses and individuals to the state. This is an amount that is 20% greater than the entire external cash handed over by the Troika to keep Greek banks afloat, and represents nearly 30% of imploding Greek GDP.

How Much Is Oil Supporting U.S. Employment Gains?

Submitted by Tyler Durden on 08/05/2013 - 14:47

The American Petroleum Institute said last week the U.S. oil and natural gas sector was an engine driving job growth. Eight percent of the U.S. economy is supported by the energy sector, the industry's lobbying group said, up from the 7.7 percent recorded the last time the API examined the issue. The employment assessment came as the Energy Department said oil and gas production continued to make gains across the board. With the right energy policies in place, API said the economy could grow even more. But with oil and gas production already at record levels, the narrative over the jobs prospects may be failing on its own accord.

Cyprus Unemployment Surges 32% Year-Over-Year

Submitted by Tyler Durden on 08/05/2013 - 14:22

With PMIs picking up across Europe, the nations' 'leaders' are spreading the good word that the worst is over (again) and its all sunshine and unicorns from here. But it's not. As Cyprus' Anastasiades glibly comments on small improvements in their capital controls - amid collapsing deposits, bluntly ignoring the reality of a record implosion in the nation's home prices, the facts for the man on the street are dismal. The number of jobless people in the smallest EU nation jumped 32% year-over-year to its highest in the 19 years data has been collected.

Ron Paul Asks "Why Won't They Tell Us the Truth About NSA Spying?"

Submitted by Tyler Durden on 08/05/2013 - 13:56

In 2001, the Patriot Act opened the door to US government monitoring of Americans without a warrant. It was unconstitutional, but most in Congress over my strong objection were so determined to do something after the attacks of 9/11 that they did not seem to give it too much thought. Civil liberties groups were concerned, and some of us in Congress warned about giving up our liberties even in the post-9/11 panic. But at the time most Americans did not seem too worried about the intrusion. This complacency has suddenly shifted given recent revelations of the extent of government spying on Americans. What is even more important, though, is for more and more and more Americans to educate themselves about our precious liberties and to demand that their government abide by the Constitution. We do not have to accept being lied to – or spied on -- by our government.

Guest Post: Which Cities Will Survive/Thrive?

Submitted by Tyler Durden on 08/05/2013 - 13:25

The bankruptcy of Detroit, though long-anticipated, has unleashed a wave of speculation about the health of other cities in the U.S., and indeed, in the world - for example, China. Despite the visible importance of urban centers and cities for thousands of years, it seems our understanding of their dynamics is still incomplete. Nonetheless, the dramatic decline of Detroit and other industrial cities makes us wonder if there are dynamics that we can identify that could enable us to predict which cities will thrive and which will decay.

Greek Thieves Drive Van Into Exposition Center, Make Off With ATM Machine

Submitted by Tyler Durden on 08/05/2013 - 13:04

Remember the "Greekovery"? For those who may have forgotten, it is a scene straight out of Breaking Bad.

Billionaire Foreigner Profits Off Obama Phone Socialism

Julie Wilson | World’s wealthiest man is entrepreneurial mastermind behind Obama phone program.

Ron Paul: Why Won’t They Tell Us the Truth About NSA Spying?

Ron Paul | Supporters of the NSA spy gate are now on the defensive.

Conscientious Objection by a Former Soldier and Defense Contractor

Infowars.com | Brandon Toy refuses to take part in war crimes.

Toddler Dies In CPS Captivity After Being Taken from Marijuana-smoking Parents

Adan Salazar | Parents needed just four more months before they could get their daughter back.

Boston Bomber Linked With Right-Wing, ‘Conspiracy Theories’

Paul Joseph Watson | BBC ties Second Amendment concerns to Tamerlan Tsarnaev.

Al-Nusra Mercenaries in Syria Slaughter Kurdish Women and Children

Kurt Nimmo | Terrorists have killed and abducted residents of towns and forced others to flee.

Fourth Amendment Dead in Los Angeles

Kurt Nimmo | America’s founding principles now extinct.

Pat Caddell: John Boehner Aiding Obama Cover-Up of Benghazi

Paul Joseph Watson | Speaker of the House suppressing information on weapons transfers to Syrian rebels.

What Difference Does It Make Who Runs The Fed?

foxbusiness.com | American economy is puttering along in the slow lane.

40 Percent Of U.S. Workers Make Less Than What A Full-Time Minimum Wage Worker Made In 1968

Michael Snyder | Are American workers paid enough?

Colorado foreclosure firm on hot seat

Denver Post | Whistle-blower alleges law group padded expenses, kept refunds due clients.

Billionaire Foreigner Profits Off Obama Phone Socialism

Julie Wilson | World’s wealthiest man is entrepreneurial mastermind behind Obama phone program.

Conscientious Objection by a Former Soldier and Defense Contractor

Prison Planet.com | Brandon Toy refuses to take part in war crimes.

Boston Bomber Linked With Right-Wing, ‘Conspiracy Theories’

Paul Joseph Watson | BBC ties Second Amendment concerns to Tamerlan Tsarnaev.

Japan Finally Admits The Truth: “Right Now, We Have An Emergency At Fukushima”

Zero Hedge | Tepco is struggling to contain the highly radioactive water that is seeping into the ocean near Fukushima.

Why Won’t They Tell Us the Truth About NSA Spying?

Ron Paul Institute | Why is truth About NSA Spying hidden from us?

DEA’s “Cover Up Program” Revealed: More Troubling Than Pervasive NSA Surveillance?

Zero Hedge | Federal agents are trained to “recreate” the investigative trail to effectively cover up where the information originated.

Al-Nusra Mercenaries in Syria Slaughter Kurdish Women and Children

Kurt Nimmo | Terrorists have killed and abducted residents of towns and forced others to flee.

Fourth Amendment Dead in Los Angeles

Kurt Nimmo | America’s founding principles now extinct.

Eyewitness To Hastings Crash Reported “Giant Explosion”

Paul Joseph Watson | Federal agency now investigating death of Rolling Stone journalist.

Did China Just Fire The First Salvo Towards A New Gold Standard?

Zero Hedge | Yao Yudong has called for a new Bretton Woods system.

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40 Percent Of U.S. Workers Make Less Than What A Full-Time Minimum Wage Worker Made In 1968

Michael Snyder | Are American workers paid enough?

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Regulators Confirm The Mega Banks ARE Robbing Your Pension Funds

Anthony Gucciardi | Once again, the media is acting as if this revelation is truly inconceivable and unexpected.

\

A ‘Perfect Storm’ Could Cause A Collapse In Oil Prices That Hits The Stock Market Too

Business Insider | A “perfect storm” of structural, demand, and supply-driven factors could conspire to cause a “major pullback” in oil prices.

If You Think The Employment Numbers Are Good, Then You Really Need To Read This Article By Michael Snyder, on August 3, 2013

Do you actually believe that the employment numbers are getting better?  Do you actually believe that there is a bright future ahead for American workers?  If so, then you really need to read this article.  The truth is that we are in the midst of the worst employment crisis since the Great Depression, and there has been absolutely no employment recovery.  In fact, the percentage of working age Americans that are employed is just about exactly where it was during the darkest days of the last recession.  But the mainstream media is not telling you this.  The mainstream media is instead focusing on the fact that the official "unemployment rate" declined from 7.6% in June to 7.4% in July.  That sounds like great news, but when you take a deeper look at the employment numbers some very disturbing trends emerge. (Read More....)

Over the past several years, almost the entire decline in the unemployment rate can be accounted for by people "leaving the workforce".  The "unemployment rate" has not been going down because people are actually getting jobs.  Rather, the "unemployment rate" has been going down because the government has been pretending that millions upon millions of American workers simply do not want jobs anymore.  This is extremely misleading.

We are being told that 162,000 jobs were created in July.  Okay, so that is just barely enough to keep up with population growth, and most of the jobs that were created last month were part-time jobs.

Meanwhile, the jobs numbers for the two previous months were both revised down...

The change in total nonfarm payroll employment for May was revised from +195,000 to +176,000, and the change for June was revised from +195,000 to +188,000. With these revisions, employment gains in May and June combined were 26,000 less than previously reported.

Will this month eventually be revised down too?

When it comes to measuring employment in the United States, I believe that a much more accurate measurement than the highly manipulated "unemployment rate" is the civilian employment-population ratio.  This ratio tells us what percentage of working age Americans actually have a job.

Just prior to the last recession, about 63 percent of all working age Americans had a job.  During the recession, that number plunged dramatically and ultimately fell below 59 percent, and it has stayed below 59 percent for 47 months in a row...

This is the first time in the post-World War II era that the employment-population ratio has not bounced back after a recession.

So there has not been an employment recovery.  Anyone that tells you that there has been an employment recovery is lying to you.

Since the end of 2009, we have been treading water at best.  But during that time, another disturbing trend has emerged.  Good paying full-time jobs are rapidly being replaced by low paying part-time jobs.

And this trend has definitely accelerated this year.  If you can believe it, an astounding 76.7 percent of the jobs that have been "created" in 2013 have been part-time jobs.

As I wrote about last month, the employment landscape in this country is fundamentally changing.  At this point, the number one employer in this country is Wal-Mart, and the number two employer in this country is a temp agency (Kelly Services).

This is a huge reason why the middle class is dying.  You simply can't raise a family on a part-time income.

Our young adults are being hit particularly hard.  According to Gallup, the percentage of working age Americans under the age of 30 with a job fell from 47.0% in June 2012 to 43.6% in June 2013...

Fewer Americans aged 18 to 29 worked full time for an employer in June 2013 (43.6%) than did so in June 2012 (47.0%), according to Gallup's Payroll to Population employment rate. The P2P rate for young adults is also down from 45.8% in June 2011 and 46.3% in June 2010.

When our young people get out of school and enter the real world, they are finding that "good jobs" are few and far between.  But unless our young people can find "breadwinner jobs", they are not going to be able to get married, buy homes and raise families.

A lot of young people are doing their best, but things are really tough out there right now.  The lack of good jobs is the primary reason why families that have a head of household under the age of 30 have a poverty rate of 37 percent.

A lot of young adults are coping with this employment crisis by moving back in with their parents.  According to one recent study, 36 percent of all young adults in the 18 to 31 age bracket are currently living with their folks.

Are you starting to understand that our system is broken?

The quality of jobs in this country continues to steadily decline.  Just consider the following numbers from one of my previous articles...

-The number of part-time workers in the United States has just hit a brand new all-time high, but the number of full-time workers is still nearly 6 million below the old record that was set back in 2007.

-In America today, only 47 percent of adults have a full-time job.

-At this point, one out of every four American workers has a job that pays $10 an hour or less.

-An astounding 53 percent of all American workers make less than $30,000 a year.

And as I mentioned yesterday, until we have a jobs recovery there will be no housing recovery no matter how much the Federal Reserve tries to manipulate the system.

The mainstream media continues to insist that "things are looking up" for the housing market, and yet the home ownership rate in the United States is the lowest that it has been in 18 years.

In order for the middle class to thrive, people have got to be able to get good jobs and people have got to be able to buy homes.

Instead, the percentage of good jobs in our economy continues to shrink, the level of home ownership continues to decline, and less than half of all Americans now consider themselves to be middle class.

The next wave of the economic crisis has not even hit us yet, but we continue to see poverty rates soar all over the nation.  In fact, just this week there was an article about the tent cities that are starting to pop up all over New Jersey...

Tent cities have popped up across New Jersey including the state's poorest city.

Meg Baker chased the story of Camden's tent city.  Residing off Route 38 at Wilson Boulevard under an overpass, through woods and down a path of trash lays a community of people living in tents.  This particular community was relocated from Federal Street and it's inhabited by an array of people: addicts, people who have fallen on hard times and some with mental illness.

Baker took a tour of this run down community and the pictures show just how heart-wrenching this situation really is.  Among the homes are decomposing food, broken furniture, and feral cats.

This is supposed to be "the economic recovery".

If things were going to get "better" it should have happened by now.

But things didn't get better, and now the next wave of the economic crisis is rapidly approaching.

As I tried to explain the other day, the most important number in our economy is the yield on 10 year U.S. Treasuries.  As that number goes up, interest rates all over our economic system go up.  And much higher interest rates would be absolutely devastating for our economy.

Unfortunately, many analysts now believe that interest rates are going to go much, much higher than they are right now.  Just check out this excerpt from a recent CNBC article...

The Federal Reserve will lose control of interest rates as the "great rotation" out of bonds into equities takes off in full force, according to one market watcher, who sees U.S. 10-year Treasury yields hitting 5-6 percent in the next 18-24 months.

"It is our opinion that interest rates have begun their assent, that the Fed will eventually lose control of interest rates. The yield curve will first steepen and then will shift, moving rates significantly higher," said Mike Crofton, President and CEO, Philadelphia Trust Company told CNBC on Wednesday.

If interest rates do go that high, our economy simply will not be able to handle that.  It would cripple the finances of state and local governments all over the nation, it would absolutely crush the housing market, and it would cause a derivatives crisis unlike anything that we have ever seen before.

The smart money knows that rising interest rates spell big trouble and they are already pulling their money out of the market as a Bloomberg article recently detailed...

Private-equity managers from Fortress Investment Group LLC (FIG) to Blackstone Group LP (BX), which made billions by buying low and selling high, say now is the time to exit investments as stocks rally and interest rates start to rise.

And Apollo Global Management LLC Chief Executive Officer Leon Black said the following back in April...

"It’s almost biblical: there is a time to reap and there’s a time to sow," Apollo (APO)’s Black said at a conference in April. "We think it’s a fabulous environment to be selling. We’re selling everything that’s not nailed down in our portfolio."

The smart money is getting out while the getting is good.

They know that a storm is coming.

They know what higher interest rates will do to the economy.

As bad as the employment picture is right now, this is NOTHING compared to what is coming.

This is about as good as things are going to get.  It is all downhill from here.

So enjoy this false bubble of pseudo-prosperity while you still can.

When the next great wave of the economic crisis strikes, millions upon millions of Americans are going to lose their jobs and the official unemployment rate is going to soar well up into the double digits.

Why Another Great Real Estate Crash Is Coming By Michael Snyder, on August 1st, 2013

There are very few segments of the U.S. economy that are more heavily affected by interest rates than the real estate market is.  When mortgage rates reached all-time low levels late last year, it fueled a little "mini-bubble" in housing which was greatly celebrated by the mainstream media.  Unfortunately, the tide is now turning.  Interest rates are starting to move up steadily, even though the Federal Reserve has been trying very hard to keep that from happening.  A few weeks ago, when Federal Reserve Chairman Ben Bernanke suggested that the Fed may start to "taper" the rate of quantitative easing eventually, the bond market had a conniption and the yield on 10 year U.S. Treasuries shot up dramatically.  In an attempt to calm the market, the Fed stopped all talk of a "taper" and that helped settle things down for a brief period of time.  But now the yield on 10 year U.S. Treasuries is starting to rise aggressively again.  Today it closed at 2.71 percent, and many analysts believe that it will go much higher.  This is important for the housing market, because mortgage rates tend to follow the yield on 10 year U.S. Treasuries.  And if mortgage rates keep rising like this, another great real estate crash is inevitable. (Read More....) This wasn't supposed to happen.  Federal Reserve Chairman Ben Bernanke said that he could use quantitative easing to control long-term interest rates.  He assured us that he could force mortgage rates down for an extended period of time and that this would lead to a housing recovery.

But now the Fed is losing control of long-term interest rates.  If this continues, either the Federal Reserve will have to substantially increase the rate of quantitative easing or else watch mortgage rates rise to absolutely crippling levels.

Three months ago, the average rate on a 30 year mortgage was 3.35 percent.  It has shot up more than a full point since then...

Mortgage buyer Freddie Mac said Thursday that the average on the 30-year loan rose to 4.39% from 4.31% last week. Rates are a full percentage point higher than in early May.

And as the chart below shows, mortgage rates have a lot more room to go up...

As mortgage rates go up, so do monthly payments.

And monthly payments are already beginning to soar.  Just check out this chart.

So what happens if mortgage rates eventually return to "normal" levels?

Well, it would be absolutely devastating to the housing market.  As mortgage rates rise, less people will be able to afford to buy homes at current prices.  This will force home prices down.

To a large degree, whether or not someone can afford to buy a particular home is determined by interest rates.  The following numbers come from one of my previous articles...

A year ago, the 30 year rate was sitting at 3.66 percent.  The monthly payment on a 30 year, $300,000 mortgage at that rate would be $1374.07.

If the 30 year rate rises to 8 percent, the monthly payment on a 30 year, $300,000 mortgage at that rate would be $2201.29.

Does 8 percent sound crazy to you?

It shouldn't.  8 percent was considered to be normal back in the year 2000.

And we are already seeing rising rates impact the market.  The number of mortgage applications has fallen for 11 of the past 12 weeks, and this has been the biggest 3 month decline in mortgage applications that we have witnessed since 2009.

Rising interest rates will also have a dramatic impact on other areas of the real estate industry as well.  For example, public construction spending is now the lowest that it has been since 2006.

And I find the chart posted below particularly interesting.  As a Christian, I am saddened that construction spending by religious institutions has dropped to a stunningly low level...

So what does all of this mean?

Well, unless interest rates reverse course it appears that we are in the very early stages of another great real estate crash.

Only this time, it might not be so easy for the big banks to swoop in and foreclose on everyone.  Just check out the radical step that one city in California is taking to stop bank foreclosures...

Richmond is the first city in the country to take the controversial step of threatening to use eminent domain, the power to take private property for public use. But other cities have also explored the idea.

Banks, the real estate industry and Wall Street are vehemently opposed to the idea, calling it “unconstitutional” and a violation or property rights, and something that will likely cause a flurry of lawsuits.

Richmond has partnered with San Francisco-based Mortgage Resolution Partners on the plan. Letters have been sent to 32 servicers and trustees who hold the underwater loans. If they refuse the city’s offer, officials will condemn and seize the mortgages, then help homeowners to refinance.

If more communities around the nation start using eminent domain to stop foreclosures, that is going to change the cost of doing business for mortgage lenders and it is likely going to mean more expensive mortgages for all the rest of us.

In any event, all of this talk about a "bright future" for real estate is just a bunch of nonsense.

You can't buy a home if you don't have a good job.  And as I wrote about the other day, there are about 6 million less full-time jobs in America today than there was back in 2007.

You can't get blood out of a stone, and you can't buy a house on a part-time income.  The lack of breadwinner jobs is one of the primary reasons why the homeownership rate in the United States is now at its lowest level in nearly 18 years.

And we aren't going to produce good jobs if our economy is not growing.  And economic growth in the U.S. has been anemic at best, even if you believe the official numbers.

We were originally told that the GDP growth number for the first quarter of 2013 was 2.4 percent.  Then it was revised down to 1.8 percent.  Now it has been revised down to 1.1 percent.

So precisely what are we supposed to believe?

Overall, since Barack Obama has been president the average yearly rate of growth for the U.S. economy has been just over 1 percent.

That isn't very good at all.

But remember, the government numbers have been heavily manipulated to look good.

The reality is even worse.

According to the alternate GDP numbers compiled by John Williams of shadowstats.com, the U.S. economy has continually been in a recession since 2005.

And now interest rates are rising rapidly, and that is very bad news for the U.S. economy.

I hope that you have your seatbelts buckled up tight, because it is going to be a bumpy ride.

Barack Obama: Anti Patent Troll-In-Chief

Submitted by Tyler Durden on 08/03/2013 - 17:51

The man who in the first months of his reign took over the bankruptcy process turning it over on its head to benefit the state over centuries of established creditor rights (with GM, Chrysler and a whole lot of union votes), and who defined his entire first term by nationalizing the US healthcare system, who personally determined the cutoff for "wealth" at $250,000 per year (with the corresponding tax hike "benefits" to go with it), not to mention inheriting the George W. Bush personal surveillance apparatus and taking the nationalization of individual rights and liberties to a whole new level, has just decided to branch out and subordinate yet another two birds of distributed, efficient, global decision-making to his will: trade and patent law.

America’s Urban Distress: Which States And Regions Set Up Their Cities To Fail?

Submitted by Tyler Durden on 08/03/2013 - 15:56

In a nutshell:

Relatively low unemployment rates for the “Western Leaders” aren’t just an artifact of recent strength in, say, energy production and commodities. These states have consistently outperformed the rest of the country.

Abysmally high unemployment rates for the “Eastern Super-laggards” have also persisted for over two decades, exceeding all other parts of the country.

The “Northern Coastal and Great Lakes Laggards” and “Western Laggards and Southeast” fall somewhere between the other two regions, but always favoring the southern states over the northern states.

Not surprisingly, California, Nevada and Florida are more volatile than the other regions, cycling well above and then back toward the Western Leaders in each of the past two decades. Also, the unemployment problems in California and Nevada have been consistently worse than Florida’s unemployment. These trends may or may not persist in coming years. But if your goal is to anticipate the next Stockton, San Bernardino or Detroit, watch the unemployment data closely and pay particular attention to the cities listed here.

Interactive Global Valuation Heatmaps

Submitted by Tyler Durden on 08/03/2013 - 15:08

Yesterday, we reported about private equity's laments that even with ZIRP there are no longer any bargains available in the US (which is why, naturally, the PE industry is now actively selling) with EV/EBITDA multiples north of the traditional 8x borderline benchmark level. Sure enough, as can be seen below, this is indeed the case as the US is now overpriced even for those who have direct access to the Fed's near zero-cost debt funding. So where are PE firms looking next (if anywhere, assuming they aren't spending their time selling "anything that isn't nailed down" which as we know from Leon Black's presentation from April is precisely what they are doing)? The following heatmap of global aggregate Enterprise Value/EBITDA will hopefully put things in their proper, highly overvalued, perspective.

Which Companies (And Cities) Are Spooking Credit Investors The Most?

Submitted by Tyler Durden on 08/03/2013 - 14:07

The Race For The (Fed) Throne - An Update On The Nominees

Submitted by Tyler Durden on 08/03/2013 - 13:45

Confused by all the trial balloons, meandering daily Op-Eds (most of which written by novice journalists with even more bizarre agendas), and "paddy power" market updates? Then here is Scotiabank's Guy Hasselman with his latest rundown on just where we stand in the race for the next Fed chairman.

S&P 500 Profit Margins Plunge To Three Year Lows

Submitted by Tyler Durden on 08/03/2013 - 12:46

That S&P500 revenues are contracting for the second quarter in a row (i.e. a revenue recession) is by now well-known even to CNBC. This is just as we predicted in June of last year, because in a world devoid of growth capital expenditures (and judging by the amount of train, plane and other crashes lately, maintenance capex as well), there can be no organic growth.What, however, may come as a surprise to the market cheerleaders (who unknowingly, or knowingly, are merely cheering Ben Bernanke's magic bubble blowing machine, see final chart) is that that other key component of bottom line improvement, profit margins, are not only not at record highs contrary to what conventional wisdom may incorrectly believe, but have been consistently sliding for three years now, and while earnings margins are 'only' back to June 2011 levels at 8.7%, it is the far more critical Operating Margin which has tumbled in the past two years after peaking in Q3 2011 and is now back down to 8.4%, a level not seen since mid-2010.

Guest Post: Drones And The Right To Privacy

Submitted by Tyler Durden on 08/03/2013 - 10:45

On August 6th, the small town of Deer Trail, Colorado is set to vote on an ordinance that will permit the hunting of unmanned surveillance drones. The author of the ordinance, Phillip Steel, claims the gesture is “symbolic.” A handful of other American states are pursuing measures to limit the spying operations of Uncle Sam’s unmanned aerial vehicles. One has to be either lying or painfully ignorant to believe government will not abuse surveillance drones. State officials have rarely failed to use their capacity to terrify the populace. The prospect of around-the-clock surveillance is a chilling thought and one that should not be taken lightly. Unfortunately the only means to achieve some semblance of privacy requires a luddite approach to technology and a hermit’s approach to community. Otherwise, you avail yourself to the terror of visibility in what should otherwise be, in Thomas Paine’s words, the blessing of society.

Moderate To Modest - The Fed "Word Change" Heard Around The World

Submitted by Tyler Durden on 08/03/2013 - 10:04

It started moments after the release of the Federal Reserve’s latest decision on interest rates. Even though officially they announced maintaining the same policies of low rates and Quantitative Easing, it was a single word change in the official text of their press release from the prior month that sent shockwaves around the world and changed everything forever...

Marc Faber On The Sino-American "Manipulative And Protectionist" Standoff

Submitted by Tyler Durden on 08/02/2013 - 20:48

In an important diversion from a pure markets focus, Marc Faber outlines his concerns and hopes for the "economic battle between the US and China," noting that as the gap between the Western world and the US narrows so "through trading links, [China] has more and more influence," especially (he adds) in Africa. His biggest fear, and one stoked every day, is that if the Chinese economy slows down meaningfully, they will depreciate their currency, leaving the world's largest economies "in a mode of protectionism - not just through import quotas - but through currency manipulation." And for now Russia is happy just tp upset the US via diplomatic means, but, Faber warns, should we see commodity prices slide further, low growth in Russia may prompt further actions - especially given US interference in markets and politics.

Eric Sprott On The Detroit Template

Submitted by Tyler Durden on 08/02/2013 - 20:08

The problem is clear; every level of government has promised too much and is now faced with the politically unappealing prospect of either drastically increasing taxes for the working age population or significantly reducing benefits for the retired (or future retired). As evidenced by the Detroit bankruptcy, the longer we wait, the worse it will get. The greater the delay, the more pain and suffering citizens will face when the benefits and safety nets they have come to expect from the government suddenly disappear. Over time, politicians from all stripes have proven adept at cognitive dissonance, but these increases in taxes and cuts to benefits will have to happen, one way or another; it is just a matter of time.

Record 21 Million 'Young Adults' Now Live With Their Parents

Submitted by Tyler Durden on 08/02/2013 - 19:30

Just about a year ago we questioned the "demographic demand" thesis for why the US housing 'recovery' would become self-sustaining and lead to yet another fiscal and monetary 'nirvana'. However, while the 'household formation' meme remains front-and-center among bloviating Fed apologists; the sad facts are that not only is household formation actually still falling but, as a recent Pew Research study finds, a record 21 million young adults are now living at home with their parents.

Guest Post: Enron Redux – Have We Learned Anything?

Submitted by Tyler Durden on 08/02/2013 - 18:48

Greed; corporate arrogance; lobbying influence; excessive leverage; accounting tricks to hide debt; lack of transparency; off balance sheet obligations; mark to market accounting; short-term focus on profit to drive compensation; failure of corporate governance; as well as auditors, analysts, rating agencies and regulators who were either lax, ignorant or complicit. This laundry list of causes has often been used to describe what went wrong in the credit crunch crisis of 2008-2010. Actually these terms were equally used to describe what went wrong with Enron more than twenty years ago. Both crises resulted in what at the time was the biggest bankruptcy in U.S. history — Enron in December 2001 and Lehman Brothers in September 2008. Naturally, this leads to the question that despite all the righteous indignation in the wake of Enron's failure did we really learn or change anything?

Citi: "Be Careful Of The Big Con"

Submitted by Tyler Durden on 08/02/2013 - 18:08

Despite rising gas prices, rising mortgage rates, slowing income growth and the rise of 'low-quality' part-time jobs, 'con'sumer 'con'fidence 'con'tinues to rise to post-recession highs. However, as Citi's FX Technicals group notes, for the 3rd time in the last 17 year period we may be looking at a 4-year-4-month rise in consumer confidence before a turn lower again; and in spite of the Fed's rosy forecasts (and the market's expectations), we should be careful being too quick to believe that the sluggish economic dynamic that has 'dogged us' for the last 6 years is yet fully behind us.

Guest Post: Why Another Great Real Estate Crash Is Coming

Submitted by Tyler Durden on 08/02/2013 - 17:39

There are very few segments of the U.S. economy that are more heavily affected by interest rates than the real estate market is.  When mortgage rates reached all-time low levels late last year, it fueled a little "mini-bubble" in housing which was greatly celebrated by the mainstream media.  Unfortunately, the tide is now turning.

Taxpayers to foot bill for congressional employees' health care...

Will pay 75% of premiums...

DEAL: 'Exempt from Obamacare'...

Oregon Sheriff’s Dept. Allows Public Insight Through Citizen Training Courses

Infowars.com | Oregon sheriff’s department opens its doors and offers citizens opportunity to observe department’s inner workings.

U.S. Issues Global Terror Threat Alert

Julie Wilson | “We know about it, and we may know about you.”

Backpacks, Pressure Cookers, and the Truth

Bob Adelmann | It was a confluence of magnificent proportions.

One Day After Russian Asylum for Snowden: Obama Administration Launches Terror Scare

Thomas Gaist | None of the government’s claims should be taken for good coin.

XKeyscore: Instrument of Mass Surveillance

Stephen Lendman | Police states operate this way.

John McCain Wants a New Cold War With Russia Over Snowden

Kurt Nimmo | Also exploits former NSA analyst in bid to rescue Rothschild collaborator Mikhail Khodorkovsky.

Bradley Manning Verdict Convicts Washington

Paul Craig Roberts | Americans do not understand that the “justice system” is corrupted.

Should Hitler Dog Be Destroyed?

Prison Planet.com | JC Penny recently pulled a kettle off it’s shelves because of some perceived likeness to Adolf Hitler.

Watchdog Group Sues For Details Of Obama Luxury Holidays

Steve Watson | Wants cost breakdown of “weekend with the boys, presidential style”.

Designing the mind: a fable

Jon Rappoport | It’s easy to believe the mind is little more than a series of programs that can switched and replaced with no damage done.

Apple proposes new terms in e-books battle

cnet.com | Company offers own set of measures for complying with fallout from loss against Justice Department.

NSA Spying Directly Harms Internet Companies, Silicon Valley, California … And the Entire U.S. Economy

Washington’s Blog | Mass Surveillance Is “Killing Our Most Productive Golden Goose”.

Obama defends Larry Summers against charges he is unfit to be Fed chairman

The Hill | President Obama on Wednesday defended Larry Summers from liberal charges that the former Treasury secretary is unfit to head the Federal Reserve.

Colorado foreclosure firm on hot seat

Denver Post | Whistle-blower alleges law group padded expenses, kept refunds due clients.

Paul Ryan’s claim that $15 trillion has been spent on the war on poverty

Glen Kessler | “It seems government’s approach to poverty — including how it measures poverty — is in need of serious rethinking.”

Study: Record Number 21 Million Young Adults Living With Parents

CBS D.C. | New study from Pew Research finds that 36 percent of Millennials – young adults ages 18 to 31 – are living at their parents’ homes.

Type The Wrong Thing Into A Search Engine And The Secret Police Will Come Knocking On Your Door

The control freaks are out of control.  Once upon a time America was “the land of the free”, but now it has become “the land of the bureaucrats”, and these bureaucrats are absolutely obsessed with watching, tracking, monitoring and controlling virtually everything that you do.  Last month, I wrote about how the Obama administration forced a small-time magician out in Missouri to submit a 32 page disaster plan for the little rabbit that he uses in his magic shows for kids.  A lot of people thought that story was quite humorous, but the examples in this article are not so funny.  In recent days we have learned that the government is monitoring just about everything that we do on the Internet, and we have also learned that a couple of innocent Google searches can result in armed government agents pounding on your front door.  If you do not believe this, read on… (Read More.....)

DEMS: BAIL OUT DETROIT

QAEDA RISES AGAIN...
STATE DEPT ISSUES WORLDWIDE TRAVEL ALERT...
U.S. EMBASSIES ACROSS MIDDLE EAST TO SHUT DOWN SUNDAY...
Obama's birthday...
'Precautionary'...
UPDATE: Dozens of CIA ops on ground during Benghazi hit...
'Running arms-smuggling team when consulate was attacked'...
Rep: Obama admin hiding survivors, changing their names...

NJ TENT CITY FOR POOR...

SEC investigates company co-founded by Terry McAuliffe...
McAuliffe's multiple meetings with Obama nominee raise red flags...

953,000 Jobs Created In '13 -- 731,000 Part-Time!
Study: Record Number 21 Million Young Adults Living With Parents...
BLACK TEEN UNEMPLOYMENT RATE 41.6%...

LAWYER: Snowden finds 'safe place' to live...
Asylum threatens U.S.-Russia talks...
COLD: Russia gave USA no heads up on release...
'No plans to leave': Has job offer, awaits reunion with family, girlfriend...
Putin Shows Global Mojo...

Teen With Muscular Dystrophy Beaten, Stabbed, Robbed, Dumped Over Hillside... { Yet another typical nigger soiree! }

Rangel: Tea Party Is Bunch Of 'White Crackers'... { Riiiiight! No uncivilized niggers allowed! }

Watchdog Group Sues For Details Of Obama Luxury Holidays

Steve Watson | Wants cost breakdown of “weekend with the boys, presidential style”.

News Editor Fired for Headline Critical of Obama

Julie Wilson | “I just became the first person in the history of newspapers to be fired for writing a paper’s most-read article,” he tweeted.

Small Town Police Are Tooling Up With Elite Military Hardware

Steve Watson | Line between police and troops is now a blur.

Foster Care System Traps Children into Vicious Cycle of Sex Abuse

Lee Ann McAdoo | Children rescued from sex abuse are placed right back into it.

War, Murder, Rape: Blame Climate Change

Kurt Nimmo | Even domestic violence in India is related to weather, according to warmist scientists.

Arkansas Arms Teachers In Schools; Hiding and Locking Doors “Is Not a Plan”

Steve Watson | School officials to undergo elite training.

Celebrities as symbols

Jon Rappoport | A museum show of celebrity photographs would be meaningless if you hadn’t been “prepped.”

How the NSA Manipulates Language To Mislead The Public

Michael Krieger | It’s no wonder Big Brother emphasized language in order to exert mind control on the population.

Paul Ryan’s claim that $15 trillion has been spent on the war on poverty

Glen Kessler | “It seems government’s approach to poverty — including how it measures poverty — is in need of serious rethinking.”

Study: Record Number 21 Million Young Adults Living With Parents

CBS D.C. | New study from Pew Research finds that 36 percent of Millennials – young adults ages 18 to 31 – are living at their parents’ homes.

New Rudd Government tax on bank deposits will hit you

The Advertiser | The “savings tax” would mean a customer with a $100,000 deposit could lose $4 a month in interest.

MiNiPaX ORDeR OF THe DaY...

Submitted by williambanzai7 on 08/02/2013 15:46 -0400

.

The Trader Games Are Ending Posted by: Phoenix Capital... Post date: 08/02/2013 - Traders shot for and managed to hit 1,700 on the S&P 500. At this point, there is no real reason for this other than trader games (start of the month buying).

NFP Shakedown! Posted by: Pivotfarm Post date: 08/02/2013 - A discussion post NFP of markets, economics and tapering!

Obamacare Full Frontal: Of 953,000 Jobs Created In 2013, 77%, Or 731,000 Are Part-Time

Submitted by Tyler Durden on 08/02/2013 - 09:04

When the payroll report was released last month, the world finally noticed what we had been saying for nearly three years: that the US was slowly being converted to a part-time worker society. This slow conversion accelerated drastically in the last few months, and especially in June, when part time jobs exploded higher by 360K while full time jobs dropped by 240K. In July we are sad to report that America's conversation to a part-time worker society is not "tapering": according to the Household Survey, of the 266K jobs created (note this number differs from the establishment survey), only 35% of jobs, or 92K, were full time. The rest were... not.

Citi: "Be Careful Of The Big Con"

Submitted by Tyler Durden on 08/02/2013 - 18:08

Despite rising gas prices, rising mortgage rates, slowing income growth and the rise of 'low-quality' part-time jobs, 'con'sumer 'con'fidence 'con'tinues to rise to post-recession highs. However, as Citi's FX Technicals group notes, for the 3rd time in the last 17 year period we may be looking at a 4-year-4-month rise in consumer confidence before a turn lower again; and in spite of the Fed's rosy forecasts (and the market's expectations), we should be careful being too quick to believe that the sluggish economic dynamic that has 'dogged us' for the last 6 years is yet fully behind us.

Guest Post: Why Another Great Real Estate Crash Is Coming

Submitted by Tyler Durden on 08/02/2013 - 17:39

There are very few segments of the U.S. economy that are more heavily affected by interest rates than the real estate market is.  When mortgage rates reached all-time low levels late last year, it fueled a little "mini-bubble" in housing which was greatly celebrated by the mainstream media.  Unfortunately, the tide is now turning.

The Week That Was: July 29th - Auguest 2nd 2013

Submitted by Tyler Durden on 08/02/2013 - 17:18

Succinctly summarizing the positive and negative news, data, and market events of the week...

Friday Humor: US Citizens 'Just' Want To Be Safe, Happy, Rich, Comfortable, & Entertained At All Times

Submitted by Tyler Durden on 08/02/2013 - 16:42

Fact or Fiction: In a new report released Wednesday, Americans indicated that when it comes to what they expect from their country, all they really want is to be safe, happy, rich, comfortable, and entertained at absolutely all times.

S&P Closes At Record High Thanks To "BTFATH Mentality"

Submitted by Tyler Durden on 08/02/2013 - 16:07

Well that's that - Bad is definitely good. While an initial dip was seen in US equities (as the rest of the asset-classes shifted in Taper-off mode after the dismal jobs/factory orders data), it didn't take long (and took no volume) to wriggle us back up to green and a new all-time high for stocks. But while stocks ended unch for all intent and purpose, the moves were violent elsewhere. 10Y yields collapsed the most in over 5 months today (continuing its ECG-like performance recently); the USD dropped over 0.5% on the day; and while gold ended the day unch, silver (and gold) gapped higher on the NFP release (ending the week lower though). High-yield credit markets are not amused - following long-dated bonds' 7bps yield increase on the week (confirming unwind fears as opposed to growth-driven hopes). Homebuilders gained over 4% on the week (just because). On the week, 'most-shorted' stocks tripled the market's performance. VIX closed at 12.00% - lowest in almost 4 months. BTFATH

Geithner To Advise Obama On Next Fed Chairman

Submitted by Tyler Durden on 08/02/2013 - 15:39

While assuring the world that he will not give advantage to Larry Summers, we wonder if the meeting with the President will sound a little like this?

Presenting Today's Blatant Bond Market Manipulation (Or BLS Leak)

Submitted by Tyler Durden on 08/02/2013 - 15:32

Today is the second time in three months that someone, or something, either leaked the Non-farm payroll data just ahead of its official release, or if not leaked then a trading algorithm manipulated the bond market ahead of the official data release by launching a "momentum ignition" (see here, here and here for much more on how HFT uses this strategy over and over to set trading bands) launch higher just ahead of the official data release at 8:30:00:0000 am that desperately needed to push 10 Year yields, already on the verge of a 2 year breakout, lower.

When The "Market" Thinks The Taper Will Begin?

Submitted by Tyler Durden on 08/02/2013 - 14:56

With the return of Federal Reserve Chair(wo)man odds at PaddyPower (leaving Summers a dreary 28% likelihood of winning) comes the Irish bettors' latest gamble... when will the US Fed initiate Tapering of QE? Based on the month during which the first reduction of QE bond-buying from the current $85bn per month, it seems (unlike the majority of prognosticators and standing blithely in the face of technical, political, and deficit reasons) that tapering will not begin until December at earliest with most believing 2014-or-later...

Guest Post: Amazon.com Creates 5,000 Jobs, Destroys 25,000 In The Process?

Submitted by Tyler Durden on 08/02/2013 - 14:25

The past few weeks have seen the tech and business media abuzz about a not-so-little warehouse in Tennessee. That's because this distribution center, opening its doors with a burst of fanfare and even a few visits from nearby politicians, isn't a jumping-off point for Macy's or Target. Instead, the warehouse is the latest in a series of new locations being opened by retail technology giant Amazon.com. The jobs this new mega-warehouse is purported to create: 5,000. However, as we discuss below, for every job Amazon "creates," four other jobs go away at a company like TJX.

Chart Of The "Recovery": GDP vs Market Capitalization Since "The Lows"

Submitted by Tyler Durden on 08/02/2013 - 13:55

In short:

Since the March 2009 lows, US GDP has increased by $2.3 trillion.
Since the March 2009 lows, the capitalization of the US stock market has increased by $12.3 trillion.
Delta between the two: 436% in favor of stocks.

Guest Post: The Snowden Time-Bomb

Submitted by Tyler Durden on 08/02/2013 - 13:18

In the aftermath of the global financial crisis, world leaders repeated a soothing mantra. There could be no repeat of the Great Depression, not only because monetary policy was much better (it was), but also because international cooperation was better institutionalized. And yet one man, the American former intelligence contractor Edward Snowden, has shown how far removed from reality that claim remains. Prolonged periods of strain tend to weaken the fabric of institutional cooperation. The two institutions that seemed most dynamic and effective in 2008-2009 were the International Monetary Fund and the G-20; the credibility of both has been steadily eroded over the long course of the crisis. The Snowden affair has blown up any illusion about trust between leaders – and also about leaders’ competence.

Spain To Suffer At Least 25% Unemployment Until 2018, IMF Forecasts

Submitted by Tyler Durden on 08/02/2013 - 12:43

With the mean-reverting extrapolators all calling the bottom in Europe and scandal-plagued PM Rajoy desperate for distraction repeatedly arguing that the country's depressed economy is finally emerging from a two-tear slump, the FT reports that IMF has just popped that balloon of hope. "Spain has historically never generated net employment when the economy grew less that 1.5-2%,” the IMF notes, pointing out "yet growth is not projected to reach these rates even in the medium-term." In fact, echoing recent warnings from independent economists at exuberance over the most recent data (driven by seasonally-enhanced tourism) as the start of a new trend, the IMF warns, "the weak recovery will constrain employment gains, with unemployment remaining above 25 per cent in 2018." So, for Rajoy, its back to the grift.

Pakistan Bans Gold Imports for 30 Days

Submitted by Tyler Durden on 08/02/2013 - 12:19

The latest buzz circulating around the gold market relates to news that Pakistan’s Economic Coordination Committee of the Cabinet (ECC) has decided to ban duty free gold imports for thirty days. Why you ask? Because those pesky Indians are using Pakistan as a conduit to get around the country’s recent 8% duty imposed on gold imports. All of this of course begs the question: With the price of gold “plunging” over the past several months, why did Pakistan and India both feel the need to take such draconian measures against a barbarous relic that everyone is supposedly panic selling? If there is so much gold to be had and no one wants it, what’s the problem? Strange indeed...

US Escalates: Issues Worldwide Travel Alert Following Embassy Closures

Submitted by Tyler Durden on 08/02/2013 - 11:49

With US leaks about Israeli air strike on Syria, John Kerry stirring the civil war pot in Egypt, and the closure of US embassies across the Muslim world (Iraq, Afghanistan, Qatar, Bahrain, Oman, Kuwait, Bangladesh, Saudi Arabia, Libya, Yemen, UAE, Algeria, Mauritania, Sudan, Israel (Tel Aviv) and Jordan), it appears something is afoot. To add to the intrigue, the US State Department just issued a worldwide travel alert for US citizens.

*STATE DEPARTMENT WORLDWIDE TRAVEL ALERT EXPIRES AUGUST 31, 2013
*STATE DEPT ISSUES WORLDWIDE TRAVEL ALERT FOR U.S. CITIZENS

An Al-Qaeda threat has been posited but with no follow-up but we can't help but fear what we wondered about previously - the need for deficits to re-awaken (via some external event that no-one can 'un-patriotically' demur) providing more room for Bernanke to avoid his need for Taper.

Guest Post: 10 Reasons Why Obamacare Is Going To Ruin Your Medical Care... And Your Life

Submitted by Tyler Durden on 08/01/2013 - 20:32

The bottom line is that Americans are losing more and more of their medical freedom.  By 2015, so many workers will be trapped in the government-run health insurance exchanges that there will be no going back to the private plans we have today. At this rate, single-payer proponents will drive private insurance companies out of business, which has been their intention all along. Obamacare is a hodgepodge of new regulations, requirements, and penalties. Here are the ten most important points that doctors should tell their patients.

A Perfect Symmetry?

Submitted by Tyler Durden on 08/01/2013 - 19:59

With rates rising amid the glorious faith that recovery is upon us, tapering is a storm in a teacup, and nothing can stop us now, we present the dreadful symmetry of the US leverage situation (Federal Debt-to-GDP) relative to rates. We suggest investors be careful what they wish for on 'rotational' fantasies as GDP growth won't save us this time and the deleveraging effect of any serious retrenchment in debt will feedback into the 'credit-is-growth' drain-circling that has been evident for the last 30 years... So, if we do indeed have perfect historic symmetry, what will be the 'event' that takes total US debt from well over 100% of GDP to less than half of that?

Correlation Collapse Cause For Corrective Concern

Submitted by Tyler Durden on 08/01/2013 - 19:23

Intra-stock correlation of the top 50 market cap names has plunged in the past month. As Citi's Tobias Levkocich warns that suggests that investors might be overly focused on stock picking and have begun to ignore broader influences such as Fed policy, market valuation, European growth trends, economic surprise indices and the like. As performance issues have forced some investors into higher beta areas in order to boost outcomes, one would think that a more precarious correlative environment such as this would imply taking down more aggressive portfolio risk. Given today's ramp in builders and transports, that appears a far flung idea for now...

Court sides with retailers, goes against Fed rule on debit card fees

The Washington Post | A judge overturned a Federal Reserve rule capping debit card fees that banks collect from merchants.

Fed keeps stimulus going, leaves rates unchanged

Jeff Cox | Federal Reserve will keep interest rates unchanged and keep buying $85 billion in bonds every month.

10 Reasons the U.S. Economy Is Stuck

Moira Herbst | The reality is that we’re hollowing out the middle class.

Footage of Nancy Pelosi In Secret Obama-care Meeting

Infowars.com | This satirical reenactment is not 1% as bad as the truth.

Pentagon Has Awarded Contracts To Al-Qaeda In Afghanistan

Steve Watson | Obama is the global head of terrorist network.

Vermont Man Handcuffed, Detained by Police for Legal Open Carry

Adan Salazar | National Guard veteran detained for doing nothing illegal.

Chris Matthews: Ted Cruz is a Terrorist

Kurt Nimmo | The teleprompter reader Chris Matthews is at it again.

Security Consultant Heckles NSA Head: Shouts “Freedom!”; “Read The Constitution!”

Steve Watson | Gen. Alexander claims “We stand for freedom”.

Snowden’s Father Calls Out Obama On Nuremberg Crimes

Kurt Nimmo | U.S. national security state media refused to run open letter sent to Obama.

Your Tax Dollars at Work in Afghanistan Supporting al-Qaeda

Kurt Nimmo | Supposed enemies on the government payroll — again.

Rand Paul Strongly Hints At 2016 Presidential Run

Steve Watson | Senator offers to take Christie for a beer, but maintains attacks are “stupid”.

The Most Important Number In The Entire U.S. Economy

Submitted by Tyler Durden on 08/01/2013 - 16:56

There is one vitally important number that everyone needs to be watching right now, and it doesn't have anything to do with unemployment, inflation or housing.  If this number gets too high, it will collapse the entire U.S. financial system.

Those Hard(ly) Working French

Submitted by Tyler Durden on 08/01/2013 - 18:21

Just four months ago, the CEO of Titan International laid down some ugly truthiness on the dismal realities in the united socialist states of France. It was not well-received by the French. But it seems we have been too hasty with our prognostications on the hard-working (or hardly working) French. As Reuters reports, despite France's move to a 35-hour week (a flagship of the socialist government) a decade ago, French workers put in an 'astounding' 39.5 hours a week in 2011. While management complain that these policies have bloated labor costs and hurt their ability to compete globally (as Taylor argued), "this is the problem of France. It's cut in half. Half the French are working like madmen to make up for the other half who stick to their hours." But just for some context, this rise in French (average) working hours, leaves them ranked 21st in terms of hours worked per week out of the 27 states that comprised European Union in 2011.

Spot The Odd One Out

Submitted by Tyler Durden on 08/01/2013 - 17:52

Sustainable?

Bank Of America Reveals Pending DOJ Civil Charges Against It, Merrill Lynch

Submitted by Tyler Durden on 08/01/2013 - 17:36

Lurking deep in the just filed Bank of America 10-Q (alongside data on its quarterly trading acumen which as usual made a mockery of random statistical probability distribution with just 7 days of losses and profits on 57) is this nugget which shows BAC's litigation expenses may be set to surge once more.

Quote Of The Day From An "Accountable, Transparent" Goldman Sachs

Submitted by Tyler Durden on 08/01/2013 - 16:27

Today's quote of the day from Goldman Sachs spokesman Michael DuVally, who in the aftermath of the Fab Tourre verdict, had this to say.

"As a firm, we remain focused on being more transparent, more accountable, and more responsive to the needs of our clients."

That pretty much sums up everything one needs to know about the new normal.

Trannies Top; Bonds Bottom; Credit Crumbling

Submitted by Tyler Durden on 08/01/2013 - 16:07

Trannies 3.3% gain today is the best in 20 months - which makes perfect sense given that WTI crude prices are also spiking 2.7% breaking back above $108 (and XOM biggest miss on earnings in forever). Treasuries continue to suffer with 7Y worst - up an stunning 14bps on the day (its biggest jump in a month) as 30Y breaks above 2013 high yields. Credit markets disconnected from equity markets new reality and ended the day wider (as once again credit tracked rates - which does not bode well for stock valuations since it is clearly not a move based on growth). Considerable USD strength across all the majors, gold/silver modestly lower, Oil and copper surging. All-time record highs for the S&P and Dow. BTFATH

Domestic Car Sales Miss, Biggest Drop In 9 Months

Submitted by Tyler Durden on 08/01/2013 - 15:51

Another example of the unintended consequence of a taper-growth-rotation rise in interest rates? Who knows, but yet another pillar of the 'recovery' just started to crack... Where's Phil LeBeau, when we need him the most, to tell us how great this?

Unfabulous Fab: Tourre Found "Liable" In Defrauding Investors

Submitted by Tyler Durden on 08/01/2013 - 15:36

Someone is going to face the music after all. It seems the SEC has its mid-level (non-executive) crisis scapegoat:

*TOURRE LOSES SEC CASE CLAIMING FRAUD IN $1 BILLION CDO

Tourre has been found guilty on 6 of the 7 cases - we await news on the financial penalties. Perhaps more critically, this finding (in favor of the SEC) may open the door for more lawsuits against Goldman with regard similar transactions.

Long Dated Bonds Surge To 3.77% - 2 Year Highs

Submitted by Tyler Durden on 08/01/2013 - 15:21

Equities appear to be celebrating the bond market's rapid collapse today but there are already unintended consequences. With the entire complex seeing yields spike the most in a month (cracking back above yesterday's post-FOMC spike highs), 30Y yields have broken to new two-year high levels at 3.77%. As rates rise, issuers are struggling. Whether it is because of Detroit concerns or the sell-off in bonds, Michigan's Genesee County just pulled its $53mm muni offering  as "investors wanted a much higher interest rate than the county wanted to pay." The offering didn't attract buyers for a 29-year bond, the longest maturity in the deal, at an interest rate or 5.34%. Perhaps they should have issued stock?

Guest Post: Why Oil Could Move Higher... Much Higher

Submitted by Tyler Durden on 08/01/2013 - 14:52

The conventional wisdom of the moment is that a weakening global economy will push the cost of commodities such as oil down as demand stagnates. This makes perfect sense in terms of physical supply and demand, but this ignores the consequences of financial demand and capital flows. The total financial wealth sloshing around the world is approximately $160 trillion. If some relatively modest percentage of this money enters the commodity sector (and more specifically, oil) as a low-risk opportunity, this flow would drive the price of oil higher on its own, regardless of end-user demand and deflationary forces. If we grasp that financial demand is equivalent to end-user demand, we understand why oil could climb to $125/barrel or even higher despite a physical surplus.

The J.C.Petanic: Why Are All These Executives Bailing The Sinking Retailer?

Submitted by Tyler Durden on 08/01/2013 - 14:27

There have been 10 senior-level management departures since Ron Johnson left the company in April. As Citi notes, the current state of the business is making it difficult for JCP to attract management talent and without a turnaround team, there is no turnaround. Key positions that remain vacant include Chief Marketing Officer, Chief Technology Officer, GMM of Home, and EVP, Real Estate. But apart from that, JCP is great...

Furious White House Blasts Russian Asylum For Snowden

Submitted by Tyler Durden on 08/01/2013 - 13:52

The U.S. is "extremely disappointed" in the move by Russia to grant 'temporary asylum' to Edward Snowden, White House spokesman Jay Carney told reporters this morning. Carney appeared to add a threat, as the WSJ reports, he added that the Russian decision undermines law-enforcement cooperation between Moscow and Washington. Russia's decision also threatens to derail a planned September summit in Moscow between Obama and Putin (oh to be a fly on that wall), as Carney advised "we are evaluating the utility of a summit in light of this." Snowden's earlier comments that "over the past eight weeks we have seen the Obama administration show no respect for international or domestic law, but in the end the law is winning," did not help, adding that he thanks "the Russian Federation for granting  asylum in accordance with its laws and international obligations." US politicians see it a little differently, U.S. Sen. John McCain (R-A.Z.) called the move "a disgrace and a deliberate effort to embarrass the United States." Seems they are managing that all on their own.

Court Kicks Berlusconi Trial Can: Confirms Conviction, Orders Review Of Political Ban

Submitted by Tyler Durden on 08/01/2013 - 13:51

In what is a relatively surprising headline, the Italian court has decided to uphold Berlusconi's Mediaset Tax fraud conviction... but appears to have left the door open for some more fun and games...

*COURT CONFIRMS BERLUSCONI CONVICTION

Court confirms Berlusconi prison sentence (Reuters)

But, it would seem, we may just see him make a run at the PM spot once again (once he gets out of clink)...

*ITALY COURT ORDERS REVIEW OF PUBLIC-OFFICE BAN FOR BERLUSCONI

Of course, his 'sex with an under-age person' trial remains...(along with its potential life-time ban)

Guest Post: How America’s Working Stiffs Got Stiffed

Submitted by Tyler Durden on 08/01/2013 - 13:17

The real wages of the typical working man in the US have gone down for the last 60 years. In terms of his time, his most important purchases are more expensive today than they were in 1950. How did American workers survive with lower real wages and higher living costs? First, they began to work longer hours. Wives went to work. Husbands worked a second job. Now Americans work more hours than any other group. Second, and most importantly from our point of view, they began to borrow. Aided, induced and bamboozled by the feds’ EZ credit policies... they went deep into debt to keep up with their own standards of living.

Boehner Prepares To Kick The Can Again: "It's In The Nation's Interest"

Submitted by Tyler Durden on 08/01/2013 - 12:54

While vainly attempting to look like he is still in the driver's seat, it would appear that John Boehner has once again folded on fiscal conservancy. "It’s clear that we're not going to have the appropriations bills finished by Sept. 30," Boehner noted this morning, adding "I believe a continuing resolution for some short period of time would probably be in the nation’s interest." So it's for our own good - especially as the Fed is set to Taper - that we keep borrowing and spending. But, Boehner adds after seemingly kicking the can, "the idea of operating for an entire year under a CR is not a good way to do business. And I’ve been working try to find a way to actually do all of these appropriations bills." Indeed, get back to work, Mr. Boehner.

Bonds 'Cheapest' To Stocks In Two Years

Submitted by Tyler Durden on 08/01/2013 - 12:29

Presented with little comment aside to note that 'reaching for yield' may soon having an entirely different meaning...

Car Sales Miss Expectations Across The Board

Submitted by Tyler Durden on 08/01/2013 - 12:01

While much is being made of the ISM smash this morning and China's 'official' PMI overnight, it seems cognitive dissonance is on the rise as China's 'other' PMI collapsed and US Construction Spending dropped precipitously. It was only a month ago that ISM was sub-50 and that housing (and construction spending) was set to lift us out of the growth-scare. Apparently not. But there is another pillar of this recovery that has been stalwart during the equity market rally - that of US auto sales... until now...

*FORD U.S. VEHICLE SALES UP 11%, EST. UP 17%
*GM JULY U.S. VEHICLE SALES RISE 16%, EST. UP 20%
*CHRYSLER JULY U.S. VEHICLE SALES UP 11%, EST. UP 16%

It seems that all that channel-stuffing, subprime-lending, term-extending has hit its peak as, despite smiles and being 'pleased', US auto companies are underperforming expectations (as Ferrari exceeds).

Snowden Has Left The Airport - Photographic Proof

Submitted by Tyler Durden on 08/01/2013 - 11:37

Edward Snowden's first taste of fresh Russian air in weeks...

Guest Post: The Fed Matters Much Less Than You Think

Submitted by Tyler Durden on 08/01/2013 - 11:31

Those who follow the mainstream media’s “all Federal Reserve, all the time” coverage of financial news naturally conclude that Senator Chuck Schumer neatly summarized reality last year when he declared that the Federal Reserve “is the only game in town.” This lemming-like belief in the power of the Federal Reserve generates its own psychological force field, of course; the actual power of the Fed is superseded by the belief in its power.  The widespread belief in the Fed’s omnipotence is the source of the Fed’s power to move markets. We can thus anticipate widespread disbelief at the discovery that the Fed is either irrelevant or an impediment to the non-asset-bubble parts of the economy. There is much we, as individuals, can do to ignore the Emperor's clothes (or lack thereof) and focus on how to pursue our own prosperity and happiness irrespective of the meddling of central planners. The real power is in our hands, should we choose to believe it.

Images From A Cave-Hiding, Cloud-Seeding Chinese Heat-Wave

Submitted by Tyler Durden on 08/01/2013 - 11:05

Record-breaking temperatures have been searing large swaths of China, resulting in dozens of heat-related deaths and prompting authorities to issue a national alert. As CNN reports, people are packing into swimming pools or taking refuge in caves in their attempts to escape the fierce temperatures. Local governments are resorting to cloud-seeding technology to try to bring rain to millions of acres of parched farmland. The worst of the smoldering heat wave has been concentrated in the south and east of the country, with Shanghai experiencing its hottest July in at least 140 years. In Shanghai, the heat was being blamed for mounting numbers of dead fish in ponds and rivers and is likely to continue into the middle of August.

"Recovery" Data Point Of The Day

Submitted by Tyler Durden on 08/01/2013 - 10:39

*FERRARI SAYS 1H NET INCOME RISES 20%

*PORSCHE JULY U.S. SALES UP 36%

Manufacturing ISM Smashes Expectations, Surging To 2011 Levels As Construction Spending Plunges

Submitted by Tyler Durden on 08/01/2013 - 10:16

Readers may recall that in our commentary to yesterday's Chicago PMI disappointment we had a simple prediction "What this means for the ISM is not exactly clear due to the long-running tradition of baffle with BS, but on the surface it is hardly optimistic... which likely means ISM will explode higher." Sure enough, to no surprise at all, it just did with the headline ISM manufacturing print for July exploding from 50.9, trouncing expectations of 52.0 with the biggest beat in two years, and hitting 55.4, driven mostly by a surge in production which rose from 53.4 to a ridiculous 65.0, the highest since 2004. And while virtually all of the key subindices in yesterday's Chicago PMI dipped, today it is the opposite, with New Orders (+6.4), Employment (+5.7) and Deliveries (+2.1) all posting increases. Humorously, while Chicago PMI said Prices Paid exploded, today the ISM refuted that and indicated Prices Paid dropped to lowest in a year. One just has to laugh at the Chinazation of US economic data.

Scramble To Exit Housing Market Peaks With "American Homes 4 Rent" IPO Pricing At 44% Discount

Submitted by Tyler Durden on 08/01/2013 - 09:51

Two months ago we first observed the scramble by various hedge funds, in this case Blue Mountain, to take advantage of the peak sentiment in housing, and specifically rental housing (which just hit an all time high as reported previously) by rushing to capitalize on recent investments and dump exposure to the witless public. Specifically, we envisioned the then just announced IPO of the aptly named American Homes 4 Rent (yes, with a "4" not "for"), also known as AMH, which however came at precisely the wrong time for the market: just as mortgage rates were soaring and Colony American Homes postponed its own parallel IPO. Two months later, with the market about to pass 1700 and fears about the housing market put back in the shelf despite a glaringly obvious collapse in mortgage demand, these IPOs are back and with a vengeance, although now reflecting a far more subdued, tapered if you will, view about the house leasing sector. Not surprisingly, AMH priced overnight, selling 44.1 million shares at a price at the bottom of the $16-18 range to raise a total of $706 million: a 44% discount to the $1.25 billion suggested in the prospectus filed back in June.

S&P 500 Hits 1,700 (Rising At A 140% Annualized Rate)

Submitted by Tyler Durden on 08/01/2013 - 09:35

After spending the last two weeks in a 20 point range, the S&P 500 has finally passed the all-important 1,700 level after the Fed's directionless statement was trumped by Hilsenrath's confirmation that the Taper 'may' be delayed and the late-day collapse in stocks was trumped by a 'miracle' from China and this morning's promises from Draghi. After its initial spurt off the 6/24 un-taper lows, the S&P surged at a wonderful 200% annualized pace but the sideways oscillation of the last few days has dragged that extrapolated performance exuberance down to a mere 140% annualized. As a reminder, there is a buyer (retail) for every seller (professional); what could possibly go wrong? It seems 'on hold' is the new BTFATH (and sell bonds).

Guest Post: Canada Threatens U.S. With Oil Trains If Keystone XL Not Built

Submitted by Tyler Durden on 08/01/2013 - 09:11

On 6 July, a Montreal, Maine & Atlantic train carrying 72 tank cars filled with oil exploded after its brakes apparently failed, sending it rolling into the small Quebec town of Lac-Megantic, where it derailed and then exploded. In the conflagration that followed, an estimated 47 people were killed. Whether Canadians like it or not, the use of such trains has soared in recent years. Now, in a breathtaking display of chutzpah, the Canadian ambassador to the U.S. is warning President Obama if he does not approve the controversial Keystone XL pipeline, then he can expect similar oil trains and even trucks to enter the U.S..

Initial Claims Beat, Lowest Since Jan 2008

Submitted by Tyler Durden on 08/01/2013 - 08:41

Good news appaears (for now) to not be bad news for stocks but it is bad news for bonds as they sell-off modestly on the best beat in initial claims in 3 months and the lowest absolute (pre-revision next week) level since January 2008. The highest insured unemployment rates in the week ending July 20 were in Puerto Rico (4.9), New Jersey (3.6), Connecticut (3.5), Alaska (3.4), California (3.4), Pennsylvania (3.4), New Mexico (3.2), Nevada (2.9), Virgin Islands (2.9), Illinois (2.8), New York (2.8), Oregon (2.8), and Rhode Island (2.8). So these are pre-recessionary levels of jobless claims and extended claims continue to slide (and Challenger this morning was positive) - but how does this exuberant job situation fit with the dismal economic data? Perhaps this?

Mario Draghi's ECB Press Conference - Live Webcast

Submitted by Tyler Durden on 08/01/2013 - 08:30

Following his decision to leave rates unchanged, the investing public can only buy-first and hold their breath for some hint at more fragmentation-beating, collateral-easing, negative-rate hinting 'promises' from the most important man in the world for today.

*DRAGHI SAYS ECB EXPECTS RATES TO STAY LOW FOR EXTENDED PERIOD
*DRAGHI SAYS EURO AREA GROWTH RISKS REMAIN 'ON THE DOWNSIDE'
*DRAGHI SAYS WEAK LOAN DYNAMICS REFLECT STAGE OF BUSINESS CYCLE
*DRAGHI SAYS ESSENTIAL FOR FRAGMENTATION TO DECLINE FURTHER
*DRAGHI SAYS COUNTRIES SHOULD STEP UP STRUCTURAL REFORM PROCESS

July's Best And Worst Performers

Submitted by Tyler Durden on 08/01/2013 - 08:26

Edward Snowden Leaves Moscow Airport, Gets 1 Year Russian Asylum

Submitted by Tyler Durden on 08/01/2013 - 07:55

Snowden gets job offer from Russia's Facebook

MOSCOW (Reuters) - American fugitive Edward Snowden was offered a job by Russia's top social networking site on Thursday, hours after the former intelligence contractor received a year-long asylum in Russia.

"We invite Edward Snowden to Petersburg and will be happy if he decides to join the star team of programmers at VKontakte," Pavel Durov, one of the founders of the St. Petersburg-based VKontakte, Russia's answer to Facebook, said on his profile.

Snowden's temporary asylum papers allow him to work in Russia, according to Anatoly Kucherena, a lawyer close to the Russian authorities, who has been assisting the American.

Moscow has refused Washington's repeated requests to hand over the 30-year-old to face trial on espionage charges after he leaked details of secret U.S. surveillance programs involving phone and Internet data.

Seeking to avoid U.S. prosecution, Snowden arrived to Moscow from Hong Kong on June 23 has been stuck in the transit zone of the Sheremetyevo airport for more than a month before slipping out on Thursday with new refugee documents.

Edward Snowden Granted AsylumPlay video."

The spat over Snowden's fate has added to tensions between Russia and the United States, already at loggerheads over the conflict in Syria as well as other defense and human rights issues.

But Snowden is also a useful propaganda tool for Moscow, which often accuses Washington of preaching on human rights abroad what it does not practice at home.

Durov of VKontakte, or "InTouch", which says it has more than 210 million registered profiles and up to 47 million daily users, said he took pride in Russia's decision to harbor Snowden.

"Today Edward Snowden - the man who denounced U.S. security services' crimes against citizens of the whole world - received temporary asylum in Russia," Durov said.

"In such moments one feels pride with our country and regret over the course taken by United States - a country betraying the principles it was once built on," he added.

WikiLeaks' Assange condemns Manning verdict, Obama Reuters By Andrew Osborn. LONDON | Tue Jul 30, 2013 8:17pm EDT. LONDON (Reuters) - WikiLeaks founder Julian Assange accused President Barack Obama of "national security extremism" on Tuesday after an American military judge convicted Bradley Manning ...

Related Bradley Manning » WikiLeaks »

Manning's ConvictionsWall Street Journal

WikiLeaks founder condemns Manning verdict, ObamaTribune-Review

Featured:Julian Assange, on Eve of Verdict: 'Bradley Manning Is a Hero'National Journal - by Matt Berman

Opinion:A double-edged verdict on Bradley ManningLos Angeles Times

In Depth:Bradley Manning acquitted of aiding the enemyCBS News

Homeownership at 18-Year Low...
Rents Hit Record Highs...
Detroit home priced at $1 sits on the market for 519 days...

TePCO 2020 Posted by : williambanzai7 Post date: 07/31/2013 - And we don't mean vision...

TePCO 2020

Submitted by williambanzai7 on 07/31/2013 13:48 -0400

.

BANZAI7 NEWS--Tokyo Electric Power Co. acknowledged for the first time this week that its Fukushima Dai-ichi plant was leaking contaminated underground water into the ocean, a problem many experts had suspected since shortly after the crisis unfolded more than two years ago.

The operator of Japan's crippled nuclear plant said that it delayed acknowledging that the plant was leaking contaminated water into the sea because it did not want to worry the public until it was certain there was a problem.

As Tokyo enters its final lap in the race to host the 2020 Summer Olympic Games, some investors are already betting on who they think will grab the gold: the wide swath of Japanese corporations who will score lucrative contracts if the metropolis’s bid succeeds: radiation bathing studios, wearable geiger counters, hot buns, nuclear waste mismanagement consultants, cesium rice crackers and strontium green tea ice cream are key industries to watch.

NSA Spying Directly Harms Internet Companies, Silicon Valley, California … And the Entire U.S. Economy Posted by: George Washington Post date: 07/31/2013 - Mass Surveillance Is “Killing Our Most Productive Golden Goose”

Obama’s Corporate Tax ‘Grand Bargain’ Posted by: Pivotfarm Post date: 07/31/2013 - Obama wants to give middle-class Americans a ‘grand bargain’. Roll up! Roll up! You won’t believe your eyes.

44 Facts About The Death Of The Middle Class That Obama Should Know

Submitted by Tyler Durden on 07/31/2013 - 20:03

As Obama parades around middle-America, promoting hope-and-change amid a "Better-Bargain for the middle-class," it seemed only appropriate to lay out a few 'facts' before his next pronouncement. Once upon a time, the United States has the largest and most vibrant middle class in the history of the world. Sadly, things have dramatically changed in America since that time.  There just aren't as many "middle class jobs" as there used to be.  In fact, just six years ago there were about six million more full-time jobs in our economy than there are right now.  Those jobs are being replaced by part-time jobs and temp jobs. We live at a time when incomes are going down but the cost of living just keeps going up. As a result, the middle class in America is being absolutely shredded and the ranks of the poor are steadily growing. The following are 44 facts about the death of the middle class that every American - especially President Obama - should know...

China Bucks AsiaPac Trend With 'Miraculous' Rise In Its PMI

Submitted by Tyler Durden on 07/31/2013 - 21:09

Following Japan's disappointing PMI last night, and after some 'hope' in June,  Aussie PMI collapsed from an almost 'recovering' 49.6 to 42.0 with only 1 in 12 industries expanding and production, employment, and new orders all falling further into contraction. Then came a formerly consistent bellwether of the global recovery (until of course it started to fall when it became irrelevant) - South Korea's PMI tumbled to 47.2 (from 49.4) - its lowest since Sept 2012 (and falling for the 3rd month in a row) and employment down the fastest in 17 months. Then after the early Flash HSBC PMI printed at 11-month lows (final HSBC PMI shortly) and firmly in contraction, China's official PMI just arrived at a perfectly 'reasonable' 50.3 (highest in 2 months) and well ahead of a contractionary 49.8 expectation. Remember this is the same data whose subsets were temporarily (and then permanently) removed last month. This is the widest disparity from HSBC's measure in 15 months.

NSA Admits: 'We Do Store All Your Data But We Don't Look At It All'

Submitted by Tyler Durden on 07/31/2013 - 20:35

The Director of National Intelligence released three declassified "in the interests of transparency" documents this morning that authorized and explained the bulk collection of phone data - one of the secret surveillance programs that Snowden revealed. As Reuters reports, much of what is contained in the documents has already been divulged in public hearings by intelligence officials but the National Security Agency's "Bulk Collection Program," carried out under the U.S. Patriot Act, is now in the open. Have no fear though, "Although the programs collect a large amount of information, the vast majority of that information is never reviewed by anyone in the government," the report said. As Senator Patrick Leahy commented, "what has to be of more concern in a democracy is whether the trust of the American people is beginning to wear thin."

Dylan Grice On The Intrinsic Value Of Gold, And How Not To Be A Turkey

Submitted by Tyler Durden on 07/31/2013 - 19:23

Today’s bizarre confluence of negative real interest rates, money printing, eurozone sovereign default, aberrant asset prices, high unemployment, political polarization, growing distrust… none of it was supposed to happen. It is the unintended consequence of past crisis-fighting campaigns, like a troupe of comedy firemen leaving behind them a bigger fire than the one they came to extinguish. What will be the unintended consequences of today’s firefighting? We shudder to think.

Presenting The Location Of The NSA's Secret FISA Court

Submitted by Tyler Durden on 07/31/2013 - 18:25

The nation's spy court has begun operations in a new, secure space on the third floor of the E. Barrett Prettyman Courthouse in downtown Washington, ending its 30-year run of issuing secret warrants from within the Justice Department, according to three sources connected to the Foreign Intelligence Surveillance Court who spoke on the condition of anonymity, citing the strict secrecy surrounding it.

Count Yourself Among The Poor!

Submitted by Tyler Durden on 07/31/2013 - 17:47

Go ahead, be a fool, tell yourself that you are still part of that once proud American “middle-class,” then dare look in the mirror and see yourself as nothing but a zombie. Or, rather, the new identifiable species in the US: the Amerizombie, a reanimated economic corpse, undead but politically clueless to the new global realities.

Financial Sense And Nonsense

Submitted by Tyler Durden on 07/31/2013 - 17:07

“…the best way to get interest rates up is to have low interest rates" —Fed Chairman Bernanke responding to a Congressional testimony question

“We all know it’s going to end badly, but in the meantime we can make some money.” —Jim Cramer, CNBC

“Thank God for the Fed.” —Australian Treasurer Wayne Swan

“Let’s be clear. We’ve intentionally blown the biggest government bond bubble in history.” —Andy Haldane, Bank of England director of financial stability

The Financial System Doesn't Just Enable Theft, It Is Theft

Submitted by Tyler Durden on 07/31/2013 - 16:49

It is painfully self-evident that our financial system doesn't just enable theft, it is theft by nature and design. If you doubt this, please follow along...

"The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists."

Ernest Hemingway, The Next War

Fed Humiliated With Red Close Despite Dovish FOMC And GDP Revision

Submitted by Tyler Durden on 07/31/2013 - 16:17

A very volatile day in stocks ended with a violent high volume dump from post-FOMC highs on heavy MoC selling pressure that left the S&P and Dow with red closes. S&P futures still managed their best month since Oct 2011 - though unable yet again to capture the 1,700 flag. The size and scale of the 'rotation' into the close (and strength in bonds) leaves us wondering who is buying and who is selling. For some context, post-FOMC, S&P -4pts, 10Y -8bps, Gold +$10, USD -0.15%; so it seems bonds benefited the most and stocks seem to be crying out for moar. The Dow has now closed red for 3 days-in-a-row - the worst streak in seven weeks.

It Really Isn't Ackman's Day As CIT Pulls JCPenney Credit

Submitted by Tyler Durden on 07/31/2013 - 15:38

While we have heard this rumor before, the NY Post is reporting that CIT - the largest commercial lender/factor in the US apparel industry - has abruptly stopped supporting deliveries from smaller manufacturers to JCPenney stores. Insiders speculated that CIT got skittish after meeting with JCP officials yesterday and getting a glimpse of financials. It really is not Bill Ackman's day - HLF +10%, JCP -6.7%.

Chart Of The Day: Foreigners Are Quietly Getting Out Of Dodge

Submitted by Tyler Durden on 07/31/2013 - 15:26

While the Fed is posturing daily whether it will or it won't monetize an ever greater portion of gross US issuance (and considering the drop in US funding needs, unless the Fed tapers it will soon very soon buy more than 100% of all 10 Year equivalent issuance going forward), foreigners have made their position vis-a-vis US paper loud and clear. What is their position? The following chart from today's TBAC presentation to the Treasury makes it very clear. With an ever declining, and recently the smallest on file, notional amount of Treasurys at auction going to foreigners since 2009 (and certainly much further back), they are not sticking around to see what happens.

Shorting Stocks On These POMO Days Will Be Frowned Upon By The Fed

Submitted by Tyler Durden on 07/31/2013 - 15:09

While 'tentative', the Fed's POMO schedule for August signals no Taper anytime soon. But, the Fed has generously 'allowed' 4 days for the shorting of stocks in August (Friday 2nd, Friday 9th, Wednesday 21st, and Friday 30th). Away from those days - BTFATH...

Forget The FOMC, Here Is Hilsenrath

Submitted by Tyler Durden on 07/31/2013 - 14:41

Anyone, or rather any vacuum tube algo, hoping that Fed mouthpiece Jon Hilsenrath's traditional post mortem would be kind enough and summarize the FOMC with a simple one or at most two-word phrase ("Buy" or "Superstrong Buy") will be disappointed. At best, the following summary can be summarized as "Neutral", or "Cautiously Non-committal", although as he correctly points out "Modest" is worse than "Moderate" as most recall from elementary school - it is unclear if this news is horrible enough to send the S&P to record highs.

Algorithmic Knee Jerk To FOMC Signals Vacuum Tube Confusion

Submitted by Tyler Durden on 07/31/2013 - 14:37

The usual schizophrenic reactions across asset classes are progressing but with 30 minutes down, it appears bonds are benefitting most (10Y -5bps), gold is up modestly (+$10 at $1320), and the USD down small after swinging both ways already. Stocks are the most 'confused' but just as they tumbled on the realization that the taper is not only still on the table but coming, a rumor spread like wildfire that Hilsenrath was about to provide the much needed "Strong Buy" interpretation of the virtually unchanged from June FOMC statement.

Fed Releases Broken Record: "Prepared To Increase Or Reduce QE", No Taper Mention - Full Redline Comparison

Submitted by Tyler Durden on 07/31/2013 - 14:04

The FOMC appears to have 'tweaked' its message to fit with Bernanke's confusing commentary and confirms that 'tapering is not tightening'.

FED SAYS INFLATION 'PERSISTENTLY' BELOW 2% GOAL COULD POSE RISK

FED SAYS ECONOMIC GROWTH WILL PICK UP FROM RECENT PACE

FED REPEATS RATES 'EXCEPTIONALLY LOW' UNTIL JOBLESS AT 6.5%

FED SAYS UNEMPLOYMENT WILL GRADUALLY DECLINE

FED SAYS 'DOWNSIDE RISKS' DIMINISHED 'SINCE THE FALL'

FED NOTES THAT MORTGAGE RATES HAVE RISEN SOMEWHAT

FED SAYS IT IS PREPARED TO INCREASE OR REDUCE THE PACE OF PURCHASES

Bullard no longer dissenting, George is sole dissenter. And don't forget, of course, that this is all pretense in the face of the inevitability of the taper due to refunding, political, and technical reasons. As we noted earlier, it seems preferable to pretend the economy is strong enough to withstand less-easing (tightening) than admit the Fed is cornered.

Pre: S&P Futs 1685, 10Y 2.65%, USD Index 81.80, WTI $104.65, Gold $1311

Redline to follow

The Most Important Number In The Entire U.S. Economy

There is one vitally important number that everyone needs to be watching right now, and it doesn't have anything to do with unemployment, inflation or housing.  If this number gets too high, it will collapse the entire U.S. financial system.  The number that I am talking about is the yield on 10 year U.S. Treasuries.  When that number goes up, long-term interest rates all across the financial system start increasing.  When long-term interest rates rise, it becomes more expensive for the federal government to borrow money, it becomes more expensive for state and local governments to borrow money, existing bonds lose value and bond investors lose a lot of money, mortgage rates go up and monthly payments on new mortgages rise, and interest rates throughout the entire economy go up and this causes economic activity to slow down.  On top of everything else, there are more than 440 trillion dollars worth of interest rate derivatives sitting out there, and rapidly rising interest rates could cause that gigantic time bomb to go off and implode our entire financial system.  We are living in the midst of the greatest debt bubble in the history of the world, and the only way that the game can continue is for interest rates to stay super low.  Unfortunately, the yield on 10 year U.S. Treasuries has started to rise, and many experts are projecting that it is going to continue to rise. (Read More....) On August 2nd of last year, the yield on 10 year U.S. Treasuries was just 1.48%, and our entire debt-based economy was basking in the glow of ultra-low interest rates.  But now things are rapidly changing.  On Wednesday, the yield on 10 year U.S. Treasuries hit 2.70% before falling back to 2.58% on "good news" from the Federal Reserve.

Historically speaking, rates are still super low, but what is alarming is that it looks like we hit a "bottom" last year and that interest rates are only going to go up from here.  In fact, according to CNBC many experts believe that we will soon be pushing up toward the 3 percent mark...

Round numbers like 1,700 on the S&P 500 are well and good, but savvy traders have their minds on another integer: 2.75 percent

That was the high for the 10-year yield this year, and traders say yields are bound to go back to that level. The one overhanging question is how stocks will react when they see that number.

"If we start to push up to new highs on the 10-year yield so that's the 2.75 level—I think you'd probably see a bit of anxiety creep back into the marketplace," Bank of America Merrill Lynch's head of global technical strategy, MacNeil Curry, told "Futures Now" on Tuesday.

And Curry sees yields getting back to that level in the short term, and then some. "In the next couple of weeks to two months or so I think we've got a push coming up to the 2.85, 2.95 zone," he said.

This rise in interest rates has been expected for a very long time - it is just that nobody knew exactly when it would happen.  Now that it has begun, nobody is quite sure how high interest rates will eventually go.  For some very interesting technical analysis, I encourage everyone to check out an article by Peter Brandt that you can find right here.

And all of this is very bad news for stocks.  The chart below was created by Chartist Friend from Pittsburgh, and it shows that stock prices have generally risen as the yield on 10 year U.S. Treasuries has steadily declined over the past 30 years...

When interest rates go down, that spurs economic activity, and that is good for stock prices.

So when interest rates start going up rapidly, that is not a good thing for the stock market at all.

The Federal Reserve has tried to keep long-term interest rates down by wildly printing money and buying bonds, and even the suggestion that the Fed may eventually "taper" quantitative easing caused the yield on 10 year U.S. Treasuries to absolutely soar a few weeks ago.

So the Fed has backed off on the "taper" talk for now, but what happens if the yield on 10 year U.S. Treasuries continues to rise even with the wild money printing that the Fed has been doing?

At that point, the Fed would begin to totally lose control over the situation.  And if that happens, Bill Fleckenstein told King World News the other day that he believes that we could see the stock market suddenly plunge by 25 percent...

Let’s say Ben (Bernanke) comes out tomorrow and says, ‘We are not going to taper.’ But let’s just say the bond market trades down anyway, and the next thing you know we go through the recent highs and a month from now the 10-Year is at 3%. And people start to realize they are not even tapering and the bond market is backed up....

They will say, ‘Why is this happening?’ Then they may realize the bond market is discounting the inflation we already have.

At some point the bond markets are going to say, ‘We are not comfortable with these policies.’ Obviously you can’t print money forever or no emerging country would ever have gone broke. So the bond market starts to back up and the economy gets worse than it is now because rates are rising. So the Fed says, ‘We can’t have this,’ and they decide to print more (money) and the bond market backs up (even more).

All of the sudden it becomes clear that money printing not only isn’t the solution, but it’s the problem. Well, with rates going from where they are to 3%+ on the 10-Year, one of these days the S&P futures are going to get destroyed. And if the computers ever get loose on the downside the market could break 25% in three days.

And as I have written about previously, we have seen a huge spike in margin debt in recent months, and this could make it even easier for a stock market collapse to happen.  A recent note from Deutsche Bank explained precisely why margin debt is so dangerous...

Margin debt can be described as a tool used by stock speculators to borrow money from brokerages to buy more stock than they could otherwise afford on their own. These loans are collateralized by stock holdings, so when the market goes south, investors are either required to inject more cash/assets or become forced to sell immediately to pay off their loans – sometimes leading to mass pullouts or crashes.

But of much greater concern than a stock market crash is the 441 trillion dollar interest rate derivatives bubble that could implode if interest rates continue to rise rapidly.

Deutsche Bank is the largest bank in Europe, and at this point they have 55.6 trillion euros of total exposure to derivatives.

But the GDP of the entire nation of Germany is only about 2.7 trillion euros for a whole year.

We are facing a similar situation in the United States.  Our GDP for 2013 will be somewhere between 15 and 16 trillion dollars, but many of our big banks have exposure to derivatives that absolutely dwarfs our GDP.  The following numbers come from one of my previous articles entitled "The Coming Derivatives Panic That Will Destroy Global Financial Markets"...

JPMorgan Chase

Total Assets: $1,812,837,000,000 (just over 1.8 trillion dollars)

Total Exposure To Derivatives: $69,238,349,000,000 (more than 69 trillion dollars)

Citibank

Total Assets: $1,347,841,000,000 (a bit more than 1.3 trillion dollars)

Total Exposure To Derivatives: $52,150,970,000,000 (more than 52 trillion dollars)

Bank Of America

Total Assets: $1,445,093,000,000 (a bit more than 1.4 trillion dollars)

Total Exposure To Derivatives: $44,405,372,000,000 (more than 44 trillion dollars)

Goldman Sachs

Total Assets: $114,693,000,000 (a bit more than 114 billion dollars - yes, you read that correctly)

Total Exposure To Derivatives: $41,580,395,000,000 (more than 41 trillion dollars)

That means that the total exposure that Goldman Sachs has to derivatives contracts is more than 362 times greater than their total assets.

And remember, the biggest chunk of those derivatives contracts is made up of interest rate derivatives.

Just imagine what would happen if a life insurance company wrote millions upon millions of life insurance contracts and then everyone suddenly died.

What would happen to that life insurance company?

It would go completely broke of course.

Well, that is what our major banks are facing today.

They have written trillions upon trillions of dollars worth of interest rate derivatives contracts, and they are betting that interest rates will not go up rapidly.

But what if they do?

And the truth is that interest rates have a whole lot of room to go up.  The chart below shows how the yield on 10 year U.S. Treasuries has moved over the past couple of decades...

As you can see, the yield on 10 year U.S. Treasuries was hovering around the 6 percent mark back in the year 2000.

Back in 1990, the yield on 10 year U.S. Treasuries hovered between 8 and 9 percent.

If we return to "normal" levels, our financial system will implode.  There is no way that our debt-addicted system would be able to handle it.

So watch the yield on 10 year U.S. Treasuries very carefully.  It is the most important number in the entire U.S. economy.

If that number gets too high, the game is over.

Why Are The Chinese Gobbling Up Real Estate And Businesses In Detroit?

Something very strange is happening to Detroit.  Once upon a time, it was the center of American manufacturing and it had the highest per capita income in the United States.  But now the city is dying and the Chinese are moving in to pick up the pieces.  Lured by news stories that proclaim that you can buy homes in Detroit for as little as one dollar, Chinese investors are eagerly gobbling up properties.  In some cases, this is happening dozens of properties at a time.  Not only that, according to the New York Times “dozes of companies from China” are investing in businesses and establishing a presence in the Detroit area.  If this continues, will Detroit eventually become a city that is heavily dominated by China? (Read More.....)

Has An Ancient Giant Handprint Been Found In A Cave In Nevada?

Something really weird has been found on the wall of a cave in Nevada, and it is shaking a lot of people up.  Two paranormal investigators named MK Davis and Don Monroe claim to have stumbled upon the handprint of an ancient giant in Lovelock Cave, and the pictures that have been released to the public are absolutely startling.  If this handprint is real, it is estimated that it would have belonged to someone 18 feet all.  And what makes all of this even more compelling is that there is a very old Native American tradition that says that a tribe of red-haired giants was burned inside that cave a very long time ago.  So could we actually be looking at solid evidence that the old Native American tradition about the red-haired giants is actually real?

There has been a tremendous amount of interest in this particular cave going all the way back to 1911.  At that time, two guano miners claimed that they discovered several sets of giant bones inside the cave…

In 1911 David Pugh and James Hart, two guano miners (yes, mining bat poo is really a thing) (Read More....)

July 30th, 2013 | Tags: Ancient Giant, Giant Finger, Giant Footprint, Giants, Michael T. Snyder, Paranormal Discoveries, Red-Haired Giants, Weird | Category: Nephilim | 5 comments

Is Our Sun In The Very Early Stages Of Shutting Down?

Something is up with the sun.  It has begun to behave very erratically, and scientists don’t know quite what to make of it.  Sunspot activity appears to be slowing down with each new cycle and absolutely gigantic holes have started to appear in the sun.  At the moment, the sun is approaching the peak of its 11 year cycle, and an increasing number of scientists are becoming concerned about what the next cycle will bring.  If sunspot activity continues to diminish, could the sunspot cycle eventually die altogether?  Is it possible that we could be approaching another ice age?  Even worse, could the increasingly erratic behavior of the sun be an indication that the sun is dying?  Traditionally, scientists have taught that the sun won’t die until billions of years from now, but in recent years astronomers have observed stars similar to our own sun suddenly begin to behave very erratically and then rapidly die.  Is it possible that the same thing could happen to our sun?

It is a fact that the current solar cycle has been the weakest in 100 years.  This has many scientists searching for answers…

The Sun is acting weird. It typically puts on a pageant of magnetic activity every 11 years for (Read More....)

July 29th, 2013 | Tags: Another Ice Age, Astronomy, Holes In The Sun, Michael T. Snyder, Scientists, Sunspot Activity, Sunspot Cycle, The Sun, The Sun Is Dying | Category: Earth Changes | 23 comments

20 Controversial Questions The Mainstream Media Won’t Touch With A Ten Foot Pole

Why are so many incredibly important news stories completely ignored by the mainstream media in the United States?  Why do they seem to want to avoid many “controversial questions” as if they were the plague?  Why does the media tend to label those that are willing to ask the hard questions and seek the truth as “conspiracy theorists”?  Sadly, the truth is that the mainstream media in America does not do much real journalism anymore.  At this point, approximately 90 percent of what you see on television is controlled by just 6 giant media corporations.  That is why “the news” seems to be so similar no matter what channel you watch.  Well, it turns out that a lot of Americans are getting tired of the safe, censored, pre-packaged news that they get from the corporate-controlled media.  One recent poll found that 77 percent of all Americans do not trust television news at this point.  This distrust has helped fuel the rise of the alternative media, which has absolutely exploded in (Read More....)

FOURNIER: What If Obama Can't Lead?

'Remarkable combination of arrogance, impotence'...

STILL PUMPING...

Inflation 'persistently' below target...

Commerce Dept revises economy numbers -- back to 1929...

NSA database tracks FACEBOOK chats...

TWITTER: Gov't Info Requests on the Rise...

Dog Chews Off Paralyzed Man's Testicle While He Sleeps...

VIDEO: Man Offers to Help Disabled Woman -- Then Chokes, Robs Her... { Yup…nigger kindness in action! }

Infowars Announces the Grand Prize Winner of Operation Paul Revere

Infowars.com | The Grand Prize winner of $100,000 is…

Top 20 Jokes of Weinergate

Adan Salazar | Weiner stands up despite criticism.

Court Rules Cops Don’t Need Warrant to Track Cell Phones

Kurt Nimmo | Supreme Court reluctant to rule on Fourth Amendment and new technologies.

Government Report: TSA Corruption, Misconduct Soaring

Steve Watson | Up 26% in three years; no consistency in disciplining thieves, molesters, and those neglecting security.

San Diego Mayor Sued by His Own City

Julie Wilson | San Diego Mayor asks City Council to pay his legal fees.

Social Security Administration Now Hiring for Counterintelligence Operations

Kit Daniels | SSA joining Dept. of Defense in efforts to downplay negative news and influence the public’s behavior.

Consumer alert: Most common vitamins, including children’s vitamins, found to contain GMOs

Mike Adams | Large number of multivitamins and nutrient vitamins formulated with ingredients derived from genetically modified corn.

Bank Of England Helped Reichsbank Sell Its Nazi Gold

Zero Hedge | Bank of England facilitated sale of gold looted by Nazis after invasion of Czechoslovakia in 1938.

Fed keeps stimulus going, leaves rates unchanged

Jeff Cox | Federal Reserve will keep interest rates unchanged and keep buying $85 billion in bonds every month.

10 Reasons the U.S. Economy Is Stuck

Moira Herbst | The reality is that we’re hollowing out the middle class.

Hawaii sets aside $100,000 to offer homeless people a one-way ticket home

The Daily Mail | Supporters hope to take some weight off an overburdened shelter system.

Dozens of CIA operatives on the ground during Benghazi attack...

ZDRAVSTVUJ!

Who Is Responsible For The Bizarre Cattle Mutilations That Are Happening All Over America?

All over the United States, cattle are being brutally mutilated and nobody seems to know who is doing it.  Hearts, udders, teets, ears, tongues and reproductive organs are being removed, and in most of these cases the cuts are made with surgical precision and no trace of blood is left behind at the scene.  Sometimes the mutilated cattle are left in the mud or in deep snow, but there are no footprints or any other signs that anyone had ever been there.  This phenomenon has been going on for many years, especially in the western half of the U.S., and yet authorities have no leads and absolutely no explanation for why this is happening.  Could it be possible that there is not a natural explanation for this unexplained mystery?

That is what one rancher out in Missouri thinks.  She has had several cattle mutilated over the past few years, and the latest incident that happened on her ranch got so much national attention that it even made the Drudge Report.

The mutilation of her cows fits the same pattern that we have seen all over America, and she is convinced that it could be the work of aliens.  The following is how (Read More....)

July 31st, 2013 | Tags: Aliens, Cattle Mutilation, Cattle Mutilations, Cow Mutilation, Michael T. Snyder, No Explanation | Category: Unexplained Mysteries | 4 comments

Has An Ancient Giant Handprint Been Found In A Cave In Nevada?

Something really weird has been found on the wall of a cave in Nevada, and it is shaking a lot of people up.  Two paranormal investigators named MK Davis and Don Monroe claim to have stumbled upon the handprint of an ancient giant in Lovelock Cave, and the pictures that have been released to the public are absolutely startling.  If this handprint is real, it is estimated that it would have belonged to someone 18 feet all.  And what makes all of this even more compelling is that there is a very old Native American tradition that says that a tribe of red-haired giants was burned inside that cave a very long time ago.  So could we actually be looking at solid evidence that the old Native American tradition about the red-haired giants is actually real?

There has been a tremendous amount of interest in this particular cave going all the way back to 1911.  At that time, two guano miners claimed that they discovered several sets of giant bones inside the cave…

In 1911 David Pugh and James Hart, two guano miners (yes, mining bat poo is really a thing) (Read More....)

July 30th, 2013 | Tags: Ancient Giant, Giant Finger, Giant Footprint, Giants, Michael T. Snyder, Paranormal Discoveries, Red-Haired Giants, Weird | Category: Nephilim | 9 comments

Is Our Sun In The Very Early Stages Of Shutting Down?

Something is up with the sun.  It has begun to behave very erratically, and scientists don’t know quite what to make of it.  Sunspot activity appears to be slowing down with each new cycle and absolutely gigantic holes have started to appear in the sun.  At the moment, the sun is approaching the peak of its 11 year cycle, and an increasing number of scientists are becoming concerned about what the next cycle will bring.  If sunspot activity continues to diminish, could the sunspot cycle eventually die altogether?  Is it possible that we could be approaching another ice age?  Even worse, could the increasingly erratic behavior of the sun be an indication that the sun is dying?  Traditionally, scientists have taught that the sun won’t die until billions of years from now, but in recent years astronomers have observed stars similar to our own sun suddenly begin to behave very erratically and then rapidly die.  Is it possible that the same thing could happen to our sun?

It is a fact that the current solar cycle has been the weakest in 100 years.  This has many scientists searching for answers…

NSA PAYS BRIT SPIES

The End of Barack Obama?

A wealthy Maryland journalist (who's neither a Democrat or Republican) has exposed a scandal brewing within the current Administration.

He says it could ruin Obama's entire Presidency... and would also result in some of the most dramatic changes to ordinary American life in more than 50 years.

Dear Fellow American,

Hello. My name is Porter Stansberry.

Fourteen years ago, I founded Stansberry & Associates Investment Research. It has since become the largest firm of its kind in the world. We specialize in financial research, and serve hundreds of thousands of paid subscribers in more than 120 countries.

You may know of our firm because of the work we did over the last several years – helping investors avoid the big disasters associated with Wall Street's collapse.

We warned people to avoid Fannie Mae and Freddie Mac, Lehman Brothers, General Motors and dozens of other companies that have since collapsed.

We even helped our subscribers find opportunities to profit from these moves by shorting stocks and buying put options. To my knowledge, no other research firm in the world can match our record of correctly predicting the catastrophe that occurred in 2008, and the rebound that has occurred since then.

The video presentation we created three years ago, to explain the financial crisis, and our thoughts on what would happen next, has become the most-watched on-line financial video in history, as far as we can tell.

But that's not why I created this follow-up presentation.

I reference our success and experience with Wall Street's latest crisis because we believe there is an even bigger crisis lurking –something that will shake the very foundation of America.

I know that to most people, the situation seems to be getting better. Stocks have recovered nearly all their losses. Real estate has rebounded. Unemployment and bankruptcies have dropped. But here's the thing:

The unfortunate reality is that we are actually in a much more dangerous and precarious place today than we were five years ago.

And that is why I've spent a significant amount of time and money in the past few months preparing this presentation.

In short, I want to talk about a specific event that will take place in America's very near future... which could actually bring our country and our way of life to a grinding halt.

This looming crisis is related to the financial crisis of 2008... but it is infinitely more dangerous, as I'll explain in this letter.

As this problem comes to a head, I expect there will be a near-complete shut-down of the American economy. Life as we have known it for more than 40 years will essentially cease to exist. Our governments on both the Federal and State level will shut down. Banks will not open. Businesses will at least temporarily shutter their doors. I expect we'll see martial law, enforced by the U.S. military.

Believe me, I don't make this prediction lightly and I have no interest in trying to scare you.

I'm simply following my research to its logical conclusion.

I did the same when I tracked Fannie Mae and Freddie Mac's accounting. Also with General Motors, Lehman Brothers and the rest. And when I began giving this warning in 2006 no one took me very seriously... not at first. Back then, most mainstream commentators just ignored me.

And when I presented my case and exposed the facts at economic conferences, they got angry. They couldn't refute my research... but they weren't ready to accept the enormity of its conclusions either.

That's why, before I go any further, I have to warn you...

What I am going to say is controversial. It will offend many people... Democrats, Republicans, and Tea Partiers, alike. In fact, I've already received dozens of pieces of hate mail.

And... the ideas and solutions I'm going to present might seem somewhat radical to you at first... perhaps even "un-American."

My guess is that, as you read this letter... you'll say: "There's no way this could really happen... not here."

But just remember:

No one believed me four years ago when I said the world's largest mortgage bankers - Fannie Mae and Freddie Mac - would soon go bankrupt.

And no one believed me when I said GM would soon be bankrupt as well... or that the same would happen to General Growth Properties (the biggest owner of mall property in America).

But again, that's exactly what happened.

No one believed me in 2011 when I said the crisis would cause "riots in the streets." Then came the protests in Wisconsin, and the Occupy Wall Street movement all over the country.

And that brings us to today...

The same financial problems I've been tracking from bank to bank and from company to company for the last six years have now found their way into the U.S. Treasury. I'll explain how this came to be. What it means is critically important to you and every American...

The next phase in this crisis will threaten our very way of life.

The savings of millions will be wiped out. This disaster will change your business and your work. It will dramatically affect your savings accounts, investments, and retirement.

It will change everything about your normal way of life: where you vacation... where you send your kids or grandkids to school... how and where you shop... the way you protect your family and home.

I'll explain how I know these events are about to happen. You can decide for yourself if I'm full of hot air.

As for me, I'm more certain about this looming crisis than I've been about anything else in my life.

I am literally afraid for my family's future, and I have taken drastic steps to prepare for what I know must inevitably happen next.

I know that debts don't just disappear. I know that bailouts have big consequences. And, unlike most of the pundits on TV, I know a lot about finance and accounting.

And this is all coming to a head much, much sooner than most Americans think.

Of course, the most important part of this situation is not what is happening... but rather what you can do about it.

In other words... Will you be prepared when the biggest financial crisis in America in more than 50 years, hits?

Don't worry, I'm not organizing a rally or demonstration. And I've turned down every request to run for political office.

Instead, I want to show you exactly what I'm doing personally, to protect my family, and to protect and perhaps even grow my money, and how you can prepare as well.

You see, I can tell you with near 100% certainty that most Americans will not know what to do when commodity prices – things like milk, bread and gasoline – soar. They won't know what to do when banks close... and their credit cards stop working. Or when they're not allowed to buy gold or foreign currencies. Or when food stamps fail... or their Social Security checks come to a halt.

In short, our way of life in America is about to change – I promise you. In this letter I'll show you exactly what is happening, and why it is inevitable.

Again, you can challenge every single one of my facts and you'll find that I'm right about each allegation I make.

Then, I hope you'll take action for yourself.

Will you act now to protect yourself and your family from the catastrophe that's brewing right now in Washington D.C.?

I hope so. And that's why I wrote this letter.

I'm going to walk you through exactly what I am doing personally, and what you can do as well. I can't promise you'll emerge from this crisis completely unharmed – but I guarantee you'll be a lot better off than people who don't follow these simple steps.

But I'm getting ahead of myself just a bit.

Let me back up and show you in the simplest terms possible what is going on, why I am so concerned, and what I believe will happen in the next 12 months...

The Greatest Danger
America Has Ever Faced?

I believe that we as Americans are about to see a major, major collapse in our national monetary system, and our normal way of life.

Basically, for many years now, our government has been borrowing so much money (very often using short-term loans), that very soon, we will no longer be able to afford even the interest on these loans.

Again... I say these things as an expert in accounting and financial research.

You may not think things are THAT BAD in the U.S. economy, or that our government spending is not "that bad," and I don't want to overwhelm you with numbers, but consider just one simple fact...

Every single hour, of every single day, the U.S. government spends about $200 million that it doesn't have.

Yes, that's every hour of every single day... 24 hours a day, seven days a week, including Sundays, Christmas, Thanksgiving, Easter, and every other holiday.

For a point of reference, consider that in just two months, the government borrows more money than the combined annual profits of the 100 biggest publicly traded companies in America.

That's absolutely incredible, isn't it?

Again, every hour of every single day, we are spending $200 million we don't have.

Does that sound sustainable to you?

Yet, you'll rarely see this fact reported anywhere else.

Normally, I study these kinds of numbers when I'm looking at a business to invest in or to recommend to my readers. But lately I've spent most of my time looking into our national balance sheet, because as the banking system collapsed in 2008... all of the bad debts were absorbed by the world's governments. And it continues to this day.

We began the year 2013 with a net public debt that has more than doubled since the year BEFORE Barack Obama took office. These overwhelming public financial obligations are completely unprecedented in the history of our country, outside of the two major global wars we fought in the 20th century.

But even these incredible figures don't tell the real story. Or even half of it.

Various other government agencies and private companies taken over by the government also have obligations of nearly another $5 trillion. We've already booked complete losses on $140 billion worth of these obligations. Yet they remain completely off the federal balance sheet.

When you add these other, genuine, federal obligations that exist right now, today, you come up with a total debt figure that's much more than $20 trillion. Far more than half of these debts were assumed under President Obama.

We don't know what the full burden of these new and existing debts will be in total, over time.

That's because the Federal Reserves power to manipulate interest rates is unlimited—at least for now that's the case.

We don't know how much of Fannie's and Freddie's bad debts will eventually be covered by the U.S. Treasury. (We do know they have an unlimited line of credit... so it's a safe bet that we haven't seen the last of these charges.) Finally, we have no idea what the eventual costs of the Federal Reserve's ongoing expansion of the monetary base will be over the long term.

There is one thing that's certain, however: these debts will not be free. They will carry a burden.

Today, we have more government debt than any country in the history of the world. We have more debt than every country in the European Union... combined.

With each additional commitment we sink further and further into debt... closing in upon the moment that we can simply no longer afford even the interest payments on our obligations.

And here is the part that really matters... the costs of maintaining our debts are about to skyrocket.

Right now the Federal Reserve is manipulating interest rates down to almost zero. As a result, the interest rate at which our government can borrow money is at a record low level. In fact, the Federal Reserve has lowered its benchmark interest rate ten times since August 2007, from 5.25% to a zone between zero and 0.25%. Obviously, the current rate won't last forever.

But what will happen if the average real interest rate ends up being just 4% annually, and we pay it off over 30 years like a mortgage?

Incredibly, we'll spend $34.3 trillion to simply repay what we owe right now. If the rate ends up being 6%, we'll spend $43.1 trillion.

Now, of course, our politicians believe that through policy and currency manipulation, they can simply avoid paying any of these costs. They can order the Federal Reserve to prevent interest rates from ever rising to a level that would cost the American people anything. They believe they can manage the economy, so the debts of Fannie and Freddie won't go bad. They believe (without any proof whatsoever) that they can stimulate the economy by even more deficit spending, so that it grows faster, allowing tax revenues to produce a surplus. Repaying these debts, they say, will be easy and painless.

But you know better, my friend. You must know better. The wages of sin must be paid. And they will be paid.

Just consider the plans of those who argue otherwise...

Paul Krugman, one of the most widely read and respected "economists" in the country wrote about this incredibly naïve and ridiculous solution in a January 7th, 2013 New York Times column. He said:

"There's a legal loophole allowing the Treasury to mint platinum coins in any denomination the secretary chooses. Yes, it was intended to allow commemorative collector's items – but that's not what the letter of the law says. And by minting a $1 trillion coin, then depositing it at the Fed, the Treasury could acquire enough cash to sidestep the debt ceiling – while doing no economic harm at all."

Very few people, even our most influential economists, seem to remember that the utility of money and credit are based upon their soundness.

Money allows people to exchange goods and services widely, greatly increasing the specialization of labor and facilitating the economic magic of competitive advantage. Money also plays the critical function of facilitating communications between and among many disparate actors. Price changes guide producers and consumers.

But... when the money can't be trusted... this entire system breaks down. The price signals can't be relied upon. And it becomes harder and harder for people to exchange labor and capital.

Likewise, credit enables an economy to grow by facilitating the growth of savings and capital investment through real interest rates. But very few people are willing to delay consumption and trust their savings in an economy that refuses to pay savers any return above inflation for their savings.

And that's exactly where we are today.

Although to most Americans everything seems calm... and that we are enjoying an economic recovery, I can promise you this:

We are trapped. There is no way out.

And nobody in Washington – not Republicans, not Democrats, and not even Tea Partiers – want you to realize how precarious our government's finances really are. They can't afford for you to understand this dilemma... or what it means.

Because here's the thing...

And this is the big secret the government hopes you never understand...

According to even my most conservative calculations (again, using numbers provided by the Congressional Budget Office) a debt default by the U.S. government would be inevitable – were it not for one simple anomaly...the one thing that has saved the United States so far.

I'm talking about our country's unique ability to simply print more money.

You see, the U.S. government has one very important weapon to use in this crisis so far: We are the only debtor in the world who can legally print U.S. dollars. And the U.S. dollar is what's known as "the world's reserve currency."

The dollar forms the basis of the world's financial system. It is what banks around the world hold in reserve against their loans.

Again, that's a secret most politicians don't understand:

As things stand now, the U.S. government can't go broke in any ordinary sense of the word because it can simply print dollars to pay for its bad debts. (It's been doing so since March of 2009.)

That might sound pretty good at first. Since we can always just print more money, what is there to worry about...?

Well, let me show you...

Why Our Biggest Advantage
is About to Disappear

You see, as things stand today, America is the only country in the world that doesn't have to pay for its imports in a foreign currency.

Here's what I mean...

Let's say you're a German and you want to buy oil from Saudi Arabia. You can't just pay for your oil in German marks (or the new euro currency), because the oil is priced in dollars.

So you have to buy dollars first, then buy your oil.

And that means the value of the German currency is of great importance to the German government. To maintain the value of its currency, Germans must produce at least as much as they consume from around the world...otherwise the value of its currency will begin to fall, causing prices to rise and its standard of living to decline.

But in America...?

We've been able to consume as much as we want without worrying about acquiring the money to pay for it, because our dollars are accepted everywhere around the world. In short, for decades now, we haven't had to produce anything or export anything to get all the dollars we needed to buy all the oil (and other goods) our country required.

All we had to do was borrow and print more money.

And boy did we. Take a look at this chart...

Even as late as the 1970s, America was the world's largest creditor. But by the mid-1980s we'd become a debtor to the world. And since the late 1990s we've been the world's LARGEST debtor.

Today, our government owes more money to more people than anyone else in the world.

With all of these bad debts piling up, we've had to begin repaying our debts by printing trillions of new dollars.

With QE3, the latest round of "quantitative easing," the Fed is now promising to print $85 billion a month. That's over a trillion dollars a year.

And now, finally, the impact of this is being felt in a big way.

As our creditors figure out what's happening, we are beginning to have very, very big problems.

I believe our creditors (which include foreign countries and other investors here and abroad) will either completely stop accepting dollars in repayment... or greatly discount the value of these new dollars. I'm sure you think that sounds crazy, but as I'll show you, it is already happening.

In fact, Zha Xiaogang, a researcher at the Shanghai Institutes for International Studies, recently said:

The shortcomings of the current international monetary system pose a big threat to China's economy."

That's why China is now actively taking steps to phase out the U.S. dollar because of its frustration with the U.S. government's mismanagement of our currency. And how does our government respond? We have the audacity to label China a "currency manipulator!"

Do you see the irony here?

As a result of what our government is doing today, I'm confident we will soon see an end of the U.S. dollar standard.

In fact, I'm 100% sure of it. It's not a matter of "if," but "when." And I think it's going to happen much, much sooner than most people think.

Of course, I'm not the only one saying this. Even some mainstream publications like the New York Post are recognizing the inevitability of this event. The Post recently reported that, "The US dollar is getting perilously close to losing its status as the world's reserve currency. Should it cross the line, the 2008 financial crisis could look like a summer storm."

And billionaire Ray Dalio of Bridgewater Associates, the largest and best-performing hedge fund in the world, told CNBC that it is "inevitable that the dollar's role as the world's currency will diminish from the dominant world currency to one of a few."

"It will fade probably fairly quickly, so the United States, which accounts for almost two-thirds of the reserves will probably go down to 50 percent of the world's reserves."

Keep in mind, the U.S. dollar has been the world's reserve currency for decades now... so most Americans don't have a clue about what the repercussions are of losing this status.

And maybe you think it could never happen... but the truth is, this is exactly what happens when countries get too far in debt or when they consume too much or produce too little.

In fact, the same thing happened to Great Britain in the 1970s.

First Britain… Now America

Most people don't know this, but Britain's sterling was the reserve currency for most of the world for nearly 200 years... for most of the 18th and 19th centuries.

It continued to play this role until after World War II, when America was forced to prop up Britain's economy with foreign aid –remember the famous Marshall Plan, when we gave billions to help European countries rebuild?

Unfortunately though, Britain pursued a socialist national agenda. The government took over all of the major industries. Like Barack Obama, Britain's leaders wanted to "spread the wealth around." Pretty soon the country was flat broke.

The final straw for Britain came in 1967, when things got so bad the Labour Party (the socialists) decided to "devalue" the British currency by 14%, overnight. They believed this would make it easier for people to afford their debts.

In reality, what it did was make anyone holding British sterling 14% poorer, overnight, and it made everything in Britain, much, much more expensive in the coming years.

And for the country as a whole, it ushered in one of the worst decades in modern British history.

Most Americans don't know about Britain's "Winter of Discontent" in the late 1970s, when the government put a freeze on wages. There were continuous strikes in nearly every sector... grave diggers, trash collectors... even hospital workers. Things got so bad at one point that many hospitals were reduced to accepting emergency patients. And mothers giving birth had to bring their own linens.

In 1975, inflation in Britain skyrocketed 26.9%... in a single year!

The government also imposed what was known as the "Three Day Week" in 1974. In short, businesses were limited to using electricity for only three specified consecutive days' each week and they were prohibited from working longer hours on those days.

Television companies were required to cease broadcasting at 10:30pm... to save electricity.

Just how bad were things, exactly?

Well, here's a photo of the garbage that piled up because they didn't have enough money to pay trash collectors a fair wage...

Imagine... Britain was a global superpower for 150 years. But when they started intentionally devaluing their currency, things went straight downhill.

It's now obviously clear that the same thing that happened to Britain's sterling when it was the world's reserve currency, is now happening to the U.S. dollar. In fact, the exchange value of the U.S. dollar has fallen nearly 10% since June 2010. And its rate of decline is accelerating.

As the U.S. dollar continues to lose its position as the world's currency, gas, oil, and other commodities will continue to skyrocket. Almost EVERYTHING we consume will get dramatically more expensive. All the clothing, furniture, and household goods we import from China.

All the food we get from Central and South America... all the electronics, televisions, computers, and cars we get from Asia and Europe. And when you look back over the past few years, the numbers are startling...

The chart below shows how much a few key commodities have skyrocketed in price, just since the beginning of 2009...

And the point here is simple... As we print more money, the price of the world's most essential commodities have soared. This is NOT a coincidence.

Around the world, as we print, prices soar... citizens protest... governments get overthrown. And it's only going to get worse...

Because here's the important fact you simply must understand about the United States right now:

Our government can NOT stop printing money because there is no possible way for us to actually afford our existing debts. No one wants you to know this. No one.

That's why, despite the obvious inflation going on all around the world, the Fed continues to say there's no inflation at all.

And that's the scary part, to me.

Just like in a Third World country, the government is radically devaluing the dollar and simply lying to everyone about what is really happening.

Whether you realize it or not, there is already a "run" on the dollar. Many of our creditors, like the Chinese, are getting out of the dollar as fast as they can via strategic commodities, like copper, gold, and oil. That's partly why commodity prices are soaring.

Unfortunately, skyrocketing commodity prices are just the beginning.

There are other disastrous consequences to the U.S. dollar losing status as the world's currency...

For example, as demand for U.S. dollars around the globe decreases, interest rates will skyrocket. Instead of getting a mortgage at today's incredibly low rates of around 3%, it might cost you 8%... or even 10%... or 15%.

Imagine what that would do to housing prices!

Stock prices will likely plummet by at least 40% in a matter of weeks as a result of this event in the currency markets. We had a small taste of this in 2011.

But believe me, it's going to get much, much worse from here.

As investment banker and best-selling author James Rickards writes in his new book Currency Wars:

"If the currency collapses, everything else goes with it... stocks, bonds, commodities, derivatives and other investments are all priced in a nation's currency. If you destroy the currency, you destroy all markets and the nation."

That's the harsh reality we are facing. And it's what no politician will ever tell you.

What's happened over the past few years is that investors are finally wising up to the mess that we are in.

This is why countries like Germany are taking nearly all their gold stored around the world, and bringing it back home. They are worried. And they have every right to be.

In the financial world, they refer to this as "capital flight." And what it means is, when people figure out that their savings in U.S. dollars are in jeopardy, they look for better and safer alternatives.

This is why gold prices have gone up for 12 straight years. As far as we are aware, no other asset has ever gone up for 12 straight years, in the history of our nation.

But remember, we are not the first to go through this...

When Germans realized their currency was being destroyed in the 1920s, they got their money into Swiss Francs and gold as quickly as possible.

When Argentineans realized their currency was being destroyed in recent years, they did the same—by moving money as quickly and as quietly as possible into a safer currency and into "hard assets" like land and precious metals.

And it's the same with the U.S. dollar right now. As it continues to lose its position as the world's reserve currency, it will cause a brutal downturn in our economy, which will be about 10-times worse than the mortgage crisis of 2008. Remember, we bailed ourselves out of the last crisis by simply printing trillions and trillions of new dollars.

In a currency crisis, that's not possible. Printing money only makes the situation worse.

Again, I'm not the only one saying this...

As Barron's reported...

"The demand for dollars from the rest of the world has been of inestimable benefit to the U.S. economy. It quite simply allows Americans to consume more than they produce and save less than they invest; in other words, to live beyond our means."

And listen to what Sam Zell, the 60th richest man in America according to Forbes Magazine, said on a rare interview with CNBC.

Zell said:

"My single biggest financial concern is the loss of the dollar as the reserve currency. I can't imagine anything more disastrous to our country. I'm hoping against hope that ain't gonna happen, but you're already seeing things in the markets that are suggesting that confidence in the dollar is waning. I think you could see a 25% reduction in the standard of living in this country if the U.S. dollar was no longer the world's reserve currency. That's how valuable it is."

You see, what will also happen as a result of this looming currency crisis, and the end of the U.S. dollar as the world's reserve currency, is a massive inflation in America, the likes of which we have never seen before.

When everyone is trying to get rid of their U.S. dollars and our federal government just continues printing more, this crisis will reach epic proportions.

Remember, we as Americans are not immune to the basic laws of economics and finance.

Over the past 100 years, many other governments have tried to do what our government is doing today... that is, printing money to pay for insurmountable debts. And in the past 100 years, this type of inflation and debt crisis has reared its ugly head in Germany, Russia, Austria, Argentina, Brazil, Chile, Poland, the Ukraine, Japan, and China, just to name a few. Greece is falling apart. Italy, Ireland, Portugal and Spain are all in trouble.

And now the same process is well underway in the United States.

As Bill Gross, founder, managing director and co-CIO of PIMCO wrote recently:

"The future price tag of printing six trillion dollars worth of checks comes in the form of inflation and devaluation of currencies..."

And George Melloan of the Wall Street Journal echoed these sentiments when he said:

"Indeed, it is unlikely that Americans themselves will escape the inflationary consequences of current Fed policy.... The Fed is financing a vast and rising federal deficit, following a practice that has been a surefire prescription for domestic inflation from time immemorial."

It's painfully clear that we have a major, major problem on our hands.

Perhaps we could right the ship if we could drastically reduce costs and cut spending.

But that's the EXACT OPPOSITE of what our politicians are doing today.

But our political leaders are now on a runaway, suicide course. They've come to believe that narrowing the tax base and printing billions and billions of dollars is the formula for prosperity.

It has never worked, EVER, in human history, and it will never work now.

Like I said, these theories have all been tried in many other places around the world – Zimbabwe, Argentina, Germany after World War I... and they never work. No nation in history ever became wealthier by going deeply into debt and then printing the money required to repay the loans.

And despite what nearly all politicians seem to think... and what many pop-culture "economists" appear to believe, I 100% GUARANTEE it will not work here, either.

Unfortunately, the success the Fed has enjoyed (so far) in expanding the monetary base and manipulating the Treasury bond market has greatly emboldened our politicians.

But when you take a closer look, you realize that everything on the Federal and State level is a complete and absolute mess, because our government has been living way beyond its means for so long...

Is Your State as Broke as these Places?

Did you know that according to the Center on Budget and Policy Priorities, a Washington, D.C.-based think-tank, some 31 states are working to close $55 billion in shortfalls for the 2013 fiscal year?

As the Center recently reported:

"These gaps are all the more daunting because states' options for addressing them are fewer and more difficult than in recent years."

And the Federal Reserve Bank of New York recently found that municipal bond defaults are in fact much greater than rating agencies have reported. Standard & Poor's reported 47 defaults between 1986 and 2011, but according to the New York Fed, there were in fact 2,366 -- FIFTY times more.

Remember, unlike the federal government, states can't typically run a deficit, so they are taking drastic steps to cut back. For instance...

** A town in Ohio turned off 766 of the town's 5,200 streetlights – which will remain turned off for two years. They hope to save $185,000.

** Philadelphia announced it is closing 37 schools, because the district is "out of time and out of options," according to Superintendent William Hite.

** Budget crises have prompted states to explore early release options for prisoners. California is scrambling to comply with a Supreme Court order to reduce its inmate population by 30,000 people by mid-2013.

New Jersey Governor Chris Christie, confirmed that this problem is going on all over the country...

He told 60 Minutes...

"It's not like you can avoid it forever, 'cause it's here now. And we all know it's here. And the federal government doesn't have the money to paper over it anymore, either, for the states. The day of reckoning has arrived. That's it. And it's gonna arrive everywhere. Timing will vary a little bit, depending upon which state you're in, but it's comin'.

"We spent too much on everything. We spent too much. We spent money we didn't have. We borrowed money just crazily. The credit cards maxed out, and it's over. It's over."

That's why Christie and other governors around the country are now introducing bills to slash pension benefits to government employees. As laughable as these steps are, at least they are taking steps in the right direction—making drastic and dramatic changes to save money.

And although it's gone almost completely unreported in the mainstream press, six U.S. communities were actually forced to declare bankruptcy in 2010... and there were a slew of new municipal bankruptcies in 2011 as well, including Jefferson County, Alabama, which at the time was the largest municipal bankruptcy in U.S. history.

Of course, that was topped in 2012, when three California municipalities declared bankruptcy in a matter of weeks, including the new "largest municipal bankruptcy in U.S. history"... Stockton, a city of 290,000 people east of San Francisco.

And keep this in mind: Only about half the states in the country (27 in all) allow municipalities to declare bankruptcy. If it were allowed everywhere, I'm sure we'd see twice as many bankruptcies as we're seeing today.

But for most places where bankruptcy is not allowed... they just keep kicking the can down the road, rather than address the real problems.

In Baltimore, for example, where my firm's offices are headquartered, the city can't legally declare bankruptcy. But that doesn't mean they aren't essentially bankrupt.

An independent audit solicited by the mayor recently shows the city will be $2 billion short of the money they need over the next decade. In other words, as one of local news station reported: the "City of Baltimore is on a path to financial ruin."

And the truly amazing thing is that the U.S. Federal government is in even worse shape than the local governments!

The only reason we haven't seen the full brunt of this crisis yet on the federal level is because we've just continued to pile on more and more debt.

The states can't print money... but the Federal government can (at least for now). And for the moment, this is all that is preventing a currency collapse of unprecedented proportions.

** And this is the important point to remember: What most people don't realize is that the U.S. government can only continue printing dollars... as long as the U.S. dollar remains the world's reserve currency.

I can't stress this enough: You need to act now in order to protect your assets, and grow your savings in the next few years. In the next few minutes, I'm going to show you exactly how I'm protecting my own money, and what I recommend you do.

But first, let me show you what exactly is going on right now...

Americans Don't Realize
What is Already Happening

Like I said, most Americans not only don't believe the U.S. dollar could ever lose its spot as the world's reserve currency, they don't even really understand what that means either.

But I am here to tell you... this is the biggest problem our country now faces, and it is clearly underway.

With the rising level of U.S. debt, many countries around the world are questioning the position of the U.S. dollar as the reserve currency. They want to diversify out of the U.S. dollar, as quickly as possible.

The latest sign of a move away from the dollar as a reserve currency is that China and South Korea recently came to an agreement that allows firms to settle deals in either the Chinese yuan or the South Korea won instead of the U.S. dollar. "The agreement is part of a push among emerging countries to internationalize local currencies after the global financial crisis," reports Bloomberg.

Alan Wheatley, a global economics correspondent for Reuters recently wrote:

"Fed up with what it sees as Washington's malign neglect of the dollar, China is busily promoting the cross-border use of its own currency, the yuan.

"Displacing the dollar, Beijing says, will reduce volatility in oil and commodity prices and belatedly erode the ‘exorbitant privilege' the United States enjoys as the issuer of the reserve currency at the heart of a post-war international financial architecture it now sees as hopelessly outmoded."In fact, in the past couple years, China has signed international currency agreements with Germany, Brazil, Russia, Australia, Japan, Chile, the United Arab Emirates, India and South Africa.

Japan and India also recently signed a currency deal linking their currencies closer together, and lessening their dependency on U.S. dollars.

These agreements are part of a trend that started a few years ago, when a group of the world's most powerful countries, including China, Japan, Russia, and France, got together for a secret meeting – WITHOUT the United States being present or even knowing about the meeting.

Veteran Middle East reporter Robert Fisk reported on this event in Britain's newspaper, The Independent. Here's what he wrote:

"In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealing for oil, moving instead to a basket of currencies including the Japanese Yen, Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar."

Fisk also interviewed a Chinese banker who said:

"These plans will change the face of international financial transactions. America... must be very worried. You will know how worried by the thunder of denials this news will generate."

And sure enough, after Fisk published the details of this secret meeting, U.S. officials and central bankers from around the globe denied these plans.

But as the old central banking adage goes... how do you know exactly when a currency will be devalued?

The answer is: Right AFTER the head of the central bank goes on television to adamantly deny that any such transaction will occur. (And guess who subsequently released a public statement about how the U.S. will "not devalue its currency"? Yes, you guessed it... U.S. Treasury Secretary Tim Geithner.)

You see, the last thing a central banker wants to do in the midst of a devaluation is to give people a warning BEFORE he can devalue. So they have to deny, deny, deny. After the announcement is made, it's too late for citizens and investors to get out.

Then, not too long after this secret meeting was held, the International Monetary Fund (IMF) issued a report on a possible replacement for the dollar as the world's reserve currency.

I'm sure you recognize the significance of this event. The IMF, which is headquartered in Washington, D.C., is the intergovernmental organization that oversees the global financial system. They are THE most influential financial organization in the world economy.

The IMF has proposed replacing the U.S. dollar with something called "Special Drawing Rights," or SDRs. SDRs represent potential claims on the currencies of IMF members.

SDRs were created by the IMF in 1969 and can be converted into any currency, based on a weighted basket of international currencies. When the IMF lends money, it typically does so via SDRs.

The IMF also proposed creating SDR-denominated bonds, which could reduce central banks' dependence on U.S. Treasury Bonds.

The Fund also suggested that certain assets, such as oil and gold, which are traded in U.S. dollars, could be priced using SDRs.

This is a HUGE and important step to replace the U.S. dollar as the world's reserve currency. I'm telling you... it's coming... and it's coming much sooner than most Americans expect.

Most Americans simply aren't aware of what's being done and said around the world. For example, regarding the world's reserve currency, China issued a report through their state news agency, Xinhua, stating:

"International supervision over the issue of U.S. dollars should be introduced and a new, stable and secured global reserve currency may also be an option to avert a catastrophe caused by any single country."

It's just another sign of this inevitable event—the end of the U.S. dollar as the world's reserve currency.

Any government or investor with any sense is looking to get out of the U.S. dollar as quickly and safely as possible...

China and Russia, for example, took one of their first big steps to replace the U.S. dollar back in 2010...

China Daily reported...

"The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities."

To settle their ordinary trading of about $50 billion per year, they no longer first convert to U.S. dollars.

Since then, China has reached agreements with many other countries, as I mentioned earlier. Remember, they've already signed international currency agreements with Germany, Brazil, Russia, Australia, Japan, Chile, the United Arab Emirates, India and South Africa.

What does this mean?

Well, it used to be that China had to obtain dollars to buy gas supplies from, say, Russia. But not anymore. And Russia no longer needs U.S. dollars to buy stuff from the Chinese.

And this brings us to one of the biggest and most important facts regarding the U.S. dollar.

As the dollar loses its place as the world's reserve currency, foreign countries will no longer need to maintain large holdings of dollars. This means we will no longer be able to print as much money as we want — because there will be fewer and fewer people willing to loan us large amounts of money.

This move between China and other countries around the world would have been unthinkable 10 years ago, but today it is the new reality.

As I am sure you are aware, for years the U.S. dollar has been accepted almost universally around the globe.

Heck, many times when I've traveled, I never even bothered to convert to the local currency, because I knew everyone would take my dollars.

Well, that's simply not the case anymore...

Many Places No Longer Accept the Dollar

For example, the Seattle Times reports that in Mexico, Americans are no longer allowed to exchange more than $1,500 dollars per month.

In India, the country's tourism minister said U.S. dollars will no longer be accepted at the country's heritage tourist sites, like the Taj Mahal. And the U.S. dollar is no longer good anywhere in Cuba.

China is moving in the same direction. The New York Times reports...

"Now, many shops in China no longer accept dollar-based credit cards issued by foreign banks... and foreigners cannot convert American dollars into renminbi beyond a given quota."

Iran, of course, has already moved all of its reserves out of U.S. dollars, and Kuwait de-pegged it's currency from the dollar a few years ago.

And the Chicago Mercantile Exchange (the world's largest futures and commodities exchange board), now accepts gold to settle futures contracts. Until recently, the exchange typically accepted only U.S. treasuries and bonds as payment.

The guys at the Mercantile Exchange obviously see the writing on the wall.

Again, this would have all been completely unthinkable 10 years ago, but today it's a reality. And this trend is going to keep moving incredibly fast.

Just look at the actions taken by smart investors...

Bill Gross, who probably knows as much about currencies and debt as anyone in the world, runs the world's biggest bond fund. He was quoted by Bloomberg not too long ago, saying:

"We've told all of our clients that if you only had one idea, one investment, it would be to buy an investment in a non-dollar currency. That should be on top of the list."

Jim Rogers, one of the world's most successful multi-millionaire investors writes:

"The dollar is not just in decline; it's a mess. If something isn't done soon, I believe the dollar could lose its status as the world's reserve currency and medium of exchange, something that would lead to a huge decline in the standard of living for U.S. citizens like nothing we've seen in nearly a century."

I know... you probably still don't believe we can have a complete currency collapse here in the United States. But think about it...

Are we as Americans really immune to the laws of economics and finance?

I don't think so. And I'm not the only one saying this...

The dollar's days as reserve currency are numbered," reports the Financial Times.

And the Wall Street Journal recently ran a headline saying: "Dollar's Reign as World's Main Reserve Currency is Near an End."

I'm sure I don't have to tell you that the Financial Times and the Wall Street Journal are probably the two most respected financial newspapers in the world.

They too see the writing on the wall.

It's obvious to anyone who has studied any economic history.

In every instance, throughout history, where a government has tried to inflate its debts away, it has ended in disaster.

Believe me... it will happen here too.

As Jim Rogers says:

"History teaches us that such imprudent monetary and fiscal behavior has always led to economic disaster."

This is why World Bank president, Robert B. Zoellick, in a speech at the School for Advanced International Studies at Johns Hopkins University, recently said:

"The United States would be mistaken to take for granted the dollar's place as the world's predominant reserve currency. Looking forward, there will increasingly be other options to the dollar."

And this is why the International Monetary Fund (IMF) recently published a paper calling for a new global world currency.

This is why big U.S. companies like McDonald's and Caterpillar have begun introducing what are called "dim-sum bonds." These are securities denominated in the Chinese currency (the renminbi) by non-Chinese borrowers.

In other words, two of the biggest and most successful corporations in America realize they would have an easier time raising money by offering their bonds in a currency other than the U.S. dollar!

Do you see where this is all heading?

It's no mystery why gold and silver prices have soared since the year 2000.

Yes, gold and silver have both fallen significantly in 2013, but remember... until this year, gold went up for 12 straight years. Even after the recent pull back, gold is still up 356% since the end of the year 2000.

Again, remember... this is all a result of "capital flight." When people no longer trust a particular currency, they look for better and safer alternatives. Over the past twelve years, gold and silver have been much safer and far more profitable then holding U.S. dollars in the bank.

Think about this...

Gold prices have gone up for 12 straight years. No other asset in the world, as far as I know, has had a run like this in recent history. And why, exactly is gold going up?

The #1 reason is because savvy investors around the globe realize the U.S. dollar is no longer a safe store of value.

The point is, it's not a matter of "if" the U.S. dollar will lose its status as the world's reserve currency... it's a process that is already underway. And if, over the next few years, you ignore these basic facts, these basic laws of finance and economics, it will simply destroy you.

Investors, foreign governments, and large corporations know there are serious, serious problems with the U.S. dollar, so they are fleeing to precious metals, which have historically been very reliable when a country has major currency problems.

The good news (at least for those of us who take the time to prepare), is that no matter what happens, I've found several ways for you to protect your savings – and you could even make three to five times your money over the next few years.

I'll show you exactly what to do in a moment. But first let me explain why the collapse of the dollar as the world's reserve currency could happen much sooner than most people expect...

Let me show you The REAL
State of the U.S. Economy

I know many of my friends, colleagues, and family members are still in serious denial about a major currency crisis in the United States. But this is natural...

In the world of psychology, they call this the "normalcy bias."

You see, the normalcy bias actually refers to our natural reactions when facing a crisis.

The normalcy bias causes smart people to underestimate the possibility of a disaster and its effects.

In short, people believe that since something has never happened before... it never will. We are all guilty of it... it's just human nature.

The normalcy bias also makes people unable to deal with a disaster, once it has occurred. Basically... people have a really hard time preparing for and dealing with something they have never experienced before.

What's scary is the normalcy bias often results in unnecessary deaths in disaster situations. For example, think about the Jewish populations of World War II...

As Barton Biggs reports in his book, "Wealth, War, and Wisdom": "By the end of 1935, 100,000 Jews had left Germany, but 450,000 still [remained]. Wealthy Jewish families... kept thinking and hoping that the worst was over...

"Many of the German Jews, brilliant, cultured, and cosmopolitan as they were, were too complacent. They had been in Germany so long and were so well established, they simply couldn't believe there was going to be a crisis that would endanger them. They were too comfortable. They believed the Nazi's anti-Semitism was an episodic event and that Hitler's bark was worse than his bite. [They] reacted sluggishly to the rise of Hitler for completely understandable but tragically erroneous reasons. Events moved much faster than they could imagine."

This is one of the most tragic examples of the devastating effects of the "normalcy bias" the world has ever seen.

Just think about what was going on at the time. Jews were arrested, beaten, taxed, robbed, and jailed for no reason other than the fact they practiced a particular religion. As a result, they were shipped off to concentration camps. Their houses and businesses were seized.

Yet most Jews STILL didn't leave Nazi Germany, because they simply couldn't believe that things would get as bad as they did. That's the normalcy bias... with devastating results.

We saw the same thing happen during Hurricane Katrina...

Even as it became clear that the levee system was not going to work, tens of thousands of people stayed in their homes, directly in the line of the oncoming waves of water.

People had never seen things get this bad before... so they simply didn't believe it could happen. As a result, nearly 2,000 residents died.

Again... it's the "normalcy bias."

We simply refuse to see the evidence that's right in front of our face, because it is unlike anything we have experienced before.

The normalcy bias kicks in... And we continue to go about our lives as if nothing is unusual or out of the ordinary.

Well, we're seeing the same thing happen in the United States right now during this currency crisis.

We have been the world's most powerful country for nearly 100 years. The U.S. dollar has reigned supreme as the world's reserve currency for more than 50 years.

Most of us in America simply cannot fathom these things changing. But I promise you this, things are changing... and faster than most people realize.

For a moment, just look at a tiny fraction of the evidence around us...

** 15% OF POPULATION ON FOODSTAMPS

Did you know that there are now more than 46 million Americans on food stamps? That's nearly 15% of the entire population. Those numbers are up 65% since 2008 and that translates to roughly 1 in 7 Americans!

Can a country really be in good shape when 15% of the population can't even afford to buy food?

Or how about this...

** 43% OF AMERICAN FAMILIES ARE ESSENTIALLY BROKE

According to a recent article on MSN Money, about 43% of American families spend more than they earn each year.

Look at this chart... it's unbelievable:

Americans hold $12.8 TRILLION in household debt. And of those households carrying debt, the average credit card balance is a whopping $15,422.

It's no wonder... The U.S. Census Bureau says the median household income in America is actually 8.9% LOWER today than it was in 1999.

So how in the world can we possibly "spend" our way out of the current crisis?

We certainly can't do it with savings... or increased earnings... the only answer is to print more money, which will hasten the fall of the U.S. dollar as the world's reserve currency. And that brings me to...

THE MYSTERY OF DISAPPEARING JOBS

There's simply no one better at bending statistics than the U.S. government. Take the unemployment rate, for example. Back in the 1930s, anyone without a job but not retired was considered "unemployed."

Today, however, the government calculates unemployment mainly by counting the number of people receiving unemployment benefits. So when unemployment benefits expire, people are no longer counted... and the unemployment rate actually falls! Ridiculous... I know.

And how about this...

Every month, 14 million Americans get a "disability" check from the government. In some states, like West Virginia, nearly 10% of the entire working age population is on disability.

In some rural counties, like Hale County, Alabama, 25% of the working age population gets a disability check. Of course, because these folks aren't officially in the job market, they don't count in the government's "official" unemployment numbers.

In other words, reality is, the true unemployment rate is much, much higher than what the government is reporting.

In fact, an article in Forbes in mid-2013 suggested that the true unemployment rate in America is about 14.3%, meaning 1 in 7 of all potential full-time employees are not able to earn a living wage to support themselves.

If you don't believe me, look at two job postings I read about recently...

In November of 2012, 3,000 people in Chicago stood in line for as long as four hours to apply for one of the 55 city jobs on offer.

And American Airlines recently announced it was hiring 1,500 new flight attendants – jobs that pay an average $23,000 per year. Twenty thousand applicants responded -- so many that American stopped taking resumes after eight days.

The point is, our country is not growing jobs, because the government is making it harder and harder for businesses to thrive. And with current regulations in place, our country will never experience the type of growth necessary to dig our government out of the hole they've put themselves in.

I'm sure you think I'm exaggerating, but just look at what the CEO of one of America's most important companies said recently:

Intel CEO Paul Otellini said in a speech:

"I can tell you definitively that it costs $1 billion more per factory for me to build, equip, and operate a semiconductor manufacturing facility in the United States."

He said that 90% of the additional costs are not from higher labor rates... but from higher taxes and regulatory charges, which other nations simply don't impose.

Cypress Semiconductor CEO T.J. Rodgers agreed that the problem is not higher U.S. wages, but anti-business laws.

He was quoted in an interview with CNET News saying:

"The killer factor in California for a manufacturer to create, say, a thousand blue-collar jobs is a hostile government that doesn't want you there and demonstrates it in thousands of ways."

Few Americans today realize that the United States has overtaken Japan and now has THE highest corporate tax rate in the developed world.

Why would anyone want to start a business here, when they can do it for less money... and keep more of the money they make... by locating elsewhere?

It's just another good reason to avoid the U.S. dollar...

So is this...

DEBT-RIDDEN U.S. COMPANIES

Did you know that in 1979, there were 61 American companies that earned a top-level AAA credit rating from Moody's?

Today, there are only four: Automatic Data Processing, ExxonMobil, Johnson & Johnson, and Microsoft.

Does this sound like an economic recovery to you... when only four companies in the entire country are stable enough to earn a triple-A credit rating?

Me neither. And think about this... can you really have any AAA- rated companies in a country where the government is not AAA-rated?

I don't have the answer for that, and so far, these companies have not been downgraded along with the U.S. government.

But remember, most of their assets are in U.S. dollars, so it could soon mean big problems for these companies as well, even though they've been as conservative and responsible as possible with their finances. That's the thing you need to remember.

It doesn't matter if you personally have a good credit rating, or very little debt. When the U.S. dollar goes down as the world's reserve currency, it's going to have disastrous effects for EVERY American and for nearly every asset in America. You simply must take some simple steps to protect yourself as much as possible.

This currency crisis is going to get much, much worse. It's going to make the mortgage crisis of 2008 look like a walk in the park.

Almost every state in the country is on the verge of bankruptcy. The federal government has borrowed an impossible amount of money, which we'll never be able to pay back.

Our economy is an absolute mess. Taxes are sky high already... and now Obama in his 2nd term has already raised taxes beginning this year. I'm sure we'll see tax hike proposals in the years to come too. 

Plus nearly all of the world's major financial players are preparing for an alternative to the U.S. dollar as the world's reserve currency.

To me, it is so obvious that we are about to experience a serious currency crisis, I can't believe people can deny this reality with a straight face.

And I think that's part of the problem...

Today it's not uncommon to find editorials in some of the most respected publications, like the New York Times, stating that it's impossible for the U.S. to have a debt crisis.

But I promise you, the people making such idiotic claims today are going to be humiliated when this all unfolds. They'll be just like the guys pumping internet stocks in 1999... or the guys saying "real estate could never go down" in 2005.

In hindsight, it will all appear to be so obvious—yet today for most people the idea of the U.S. dollar collapsing is still an unfathomable event.

And if you still have your own doubts that this could really occur, just take another look at the price of gold and silver compared to the U.S. dollar over the past decade.

And think about this...

The only reason people buy precious metals like gold and silver is because they realize there are major problems with saving money in ordinary currencies. And since 2000, gold is up more than 300%... while silver is up around 250%.

Yes, gold and silver have fallen back significantly in 2013. But this is natural, normal correction after such astonishing moves over the past dozen years.

And I promise you this, both gold and silver are going much, much higher than their highs of recent years, and much, much higher than their current prices today.

Anyone with any sense or basic understanding of economics can tell the U.S. dollar is doomed. And as it continues to collapse, it's going to have major repercussions. Yet most Americans are completely clueless about what this all means.

In fact, do this at the next party you attend...

Ask a group of people their thoughts on the U.S. dollar losing its position as the world's reserve currency. I know for a fact people will look at you like you're speaking complete gibberish.

But the dollar will lose its position as the world's reserve currency—I guarantee it.

And like I said, it's all going to happen much sooner than most people think. In fact, it's already underway.

So, what can you do?

Well, I've done a lot of research on this development, and have found a surprising number of simple things you can do to not only protect what you've currently got, but to also potentially make quite a bit of money as this currency crisis unfolds.

Here's what I recommend...

Please At Least Consider These Simple Steps

In order to protect and possibly even grow your wealth in the next few years, there's a series of pretty simple financial moves I believe you should begin making, immediately.

And here's something I want you to keep in mind: Right now, all of these moves are easy and fairly straightforward to implement. But if you wait to do these things, I believe they will almost certainly get very expensive, difficult, and even impossible to do.

If you do these things now, not only will you be better prepared to weather the coming storm, I believe you could also make quite a bit of money over the next few years.

And if I'm wrong about this whole thing... if we don't have a currency crisis at all in the next few years... well... that's the best part... I think you'll still make very good gains.

Even if all we get out of this crisis is mild inflation, you will still be set up to do very, very well.

So here are the specific steps you should take...

STEP #1. GET SOME OF YOUR MONEY BEYOND THE REACH OF THE U.S. GOVERNMENT (it's perfectly legal, and a lot easier than you think).

I know you probably don't believe me when I tell you that the U.S. government is going to implement policies to save itself, which are unimaginable right now.

But remember, desperate governments will do very desperate things. That's why they outlawed the ownership of gold 80 years ago.

That's why they are already talking about "nationalizing" automatic 401(k)s and retirement plans... and it's why it might soon be against the law to open a foreign bank account, or to move your money overseas without paying outrageous taxes.

The good news is, I recently met with a man who is considered one of the top "asset protection" attorneys in America.

In short, I learned that there are four simple investments you can make right now, which you DO NOT have to report to the U.S. government.

Don't get me wrong...

When and if you ever sell these things, years down the road, you are still required to pay taxes on your gains. But the great thing is, while you are holding these investments, so long as you play by the rules, neither you nor anyone else is required to report them to the government.

And this benefit should be obvious...

The less the government knows about where you have your money, the better. They will simply have a very hard time taking what they don't know you have.

I am personally putting a fairly significant portion of my portfolio into one of these assets. And I plan to hold it for a long time. No matter what happens, I know I'll have a significant amount of money that is beyond the government's grasp.

I'm not going to tell you exactly what I'm doing here in this letter, but I will explain everything in full detail in my new report, called: The 4 Investment Assets You Do NOT Have to Report to the U.S. Government. And I will gladly give you access to a copy, free of charge.

In addition to explaining how I'm protecting my own money, I'll show you three other places you can put your money, which you legally do not have to report to the U.S. government.

Of course, normally it would cost you thousands of dollars to meet with my asset protection attorney, and to take advantage of his best strategies. But I'll reveal everything you need to know to get started in this report. Plus, I'd like to send you information on...

STEP #2: HOW TO ACQUIRE THE WORLD'S SAFEST ASSETS, WHICH ARE LIKELY TO PERFORM BEST DURING THIS PERIOD.

What I'm talking about here is buying as much gold and silver as you can reasonably afford. I know... gold has had a huge run, jumping more than 300% in the past decade.

And after 12 years of going straight up, gold is finally having a correction. This is completely normal. And it's going to give you a great opportunity to buy gold at prices not seen in years.

Believe me, when the U.S. dollar loses its status as the world's reserve currency, this early run and the current correction are going to be mere afterthoughts.

I will be surprised if gold does not reach $5,000 an ounce or $6,000 an ounce in the next few years.

The smartest money managers in the world, people like George Soros, David Einhorn, and John Paulson, have all recently taken huge positions in gold.

Even Bill Gross, the "bond king," who is one of the richest men in the world and over the past 20 years has become one of the world's top bond experts, is now recommending buying gold.

And I think you are crazy to not do the same.

How should you do it?

There are many, many options. And that's why my research firm has recently published a great report, called The Gold Investor's Manual, which details all of the best ways to own and hold gold bullion.

In this report, we reveal dozens of secrets about the gold industry... specifically the best ways to buy, sell, and store your gold. It explains why some gold coins are better than others. How to buy gold with ZERO dealer markup. How to easily and safely store some of your gold overseas, very cheaply... where to hide it... and so much more.

Not regularly available for sale, this book is valued at $24. I'd like to give you instant access to a copy, totally free of charge.

And what about silver?

Well, I believe silver will serve a unique role during this currency crisis.

Let me explain...

For most of recorded history, the price of gold has been around 16 times the price of silver. This ratio – the so-called "silver ratio" – has fluctuated from time to time based on silver discoveries and attempts by governments to regulate the silver-to-gold ratio.

But... in a free market, where demand for silver as money exists, I'd expect the natural supply and demand balance to lead to a silver price around 1/16 times the price of gold.

It's not, of course. Today, silver is selling for more than 50-times the price of gold.

What explains the difference between hundreds of years of history and today? Why is silver still so cheap relative to gold?

When silver is "demonetized," as it is now (meaning it's not being used for money, but just for industrial purposes), supplies soar as people sell silver for gold and other currencies.

On the other hand, during periods of monetary crisis, demand for silver as money pushes the silver ratio heavily in silver's favor.

For example, the ratio returned to its historic range of (16to 1) during World War I. It happened again in the early 1970s, when Nixon abandoned the gold standard. It also happened most famously in 1979-1980, when it seemed as if America was really entering a serious money crisis.

I believe the gold to silver ratio will get much closer to 16 to 1 in the next few years. As a result, silver owners will make a heck of a lot of money.

As the dollar fails, silver will once again be in demand as money.

And as this demand materializes, the free market price of silver will likely return to around 1/16 the price of gold. When gold hits $2,000 an ounce, and assuming the price of gold is 16 times the price of silver, silver should be worth about $125. My multimillionaire friend and currency expert, Chris Weber, believes silver will likely hit $187 an ounce.

If that happens, you could make gains of over 800% if you invest at today's prices.

Plus, most people don't know this, but silver has soared higher than gold over the past decade... from the middle of 2003 to today. While gold is up more than 250% during this time, silver is up nearly 330% during the same period.

In short, silver is the best hedge against a money crisis. And you want to own as much as possible, as cheaply as possible.

So what are the best ways to buy silver?

Well, my firm has done a ton of research on this precious metal. We have found great ways to hold the metal personally... to have it stored in a secure location in the United States or overseas... and more.

We've put everything we know into a valuable guide called: Secrets of the Silver Market.

I'd like to give you access to this valuable resource, also free of charge. I'll show you how to get it in a second.

But first let me get to the third financial step I recommend you take right now:

STEP #3: LEARN THE 100% SECRET

If you want the opportunity to make a lot of money during the coming crisis, one sure way to do it is to learn the intricacies of an unusual investment strategy that is now making some investors an absolute fortune.

At my research firm, we have been teaching readers this method for several years.

And get this: You don't have to buy a single stock to begin using this strategy... and it has nothing to do with "shorting."

In a nutshell, this is an approach that could enable you to safely extract gains of exactly 100% from the market... without ever owning or touching a stock.

Keep in mind: this strategy can play out in two very different ways.

Though you'll always be able to keep the initial cash you extract from the market, there is a chance you will be required to purchase the underlying stock, at a price less favorable than its current market value.

So please understand, there is risk involved with this strategy, and it probably won't be right for everyone.

But this can be such a sound market strategy, especially in times of financial uncertainty, that once you learn how it works, you might decide to never invest the old-fashioned way again.

That's why I call this the 100% Secret.

For example, look at how it has worked for a few of the folks I taught this secret to in recent years...

Peter K. of Boise, ID began using this strategy. He says he now makes an average of $10,000 per month.

And Randy B. of Annapolis, MD told me he's made over $87,500 with this technique.

Bernard H. of Carmel, IN, now collects an average of $100 a day.

Another, Harold W. of New Brunswick, NJ, has made over $20,000.

Tim H. from Sacramento probably put it best when he wrote me and said: "This has saved my portfolio."

That's why financial author Lee Lowell writes: "I've been a professional trader for 17 years... but many people have never heard of a [this investment], let alone used this strategy. This is a great way to get your hands on instant cash."

Pulitzer Prize winning author James Stewart learned this technique recently and said: "[These payouts] are so rich I consulted a colleague to make sure they were real."

This seldom-understood strategy is how we've helped dozens of people make incredible gains, even in a terrible stock market. And in all likelihood, when the stock market gets really bad, as I expect it soon will, this will be incredibly lucrative and a safe strategy.

Everything you need to know is in my new report called: The 100% Secret – The Easiest Way to Make Money When Stocks are Risky.

I'll explain exactly how this investment strategy works so you can decide if it's something that might be right for you. And I'll show you how you could begin to take advantage of it, starting immediately.

Believe me, this is something you want to learn about now. Because as the stock market begins to unravel, this incredible technique will likely get more and more lucrative.

And that brings me to:

STEP #4: MAKE SURE YOU OWN THE ONE ASSET THAT CAN HELP SAVE YOU AND YOUR FAMILY, NO MATTER HOW BAD THINGS GET.

There's no telling exactly how bad things are going to get as this crisis unfolds.

I firmly believe there could be riots, marches in the streets, bank runs, massive arrests, and periods of uncontrollable mayhem... at least for several months as things begin to unravel.

But the good news is, there is one asset you can own (now widely available in America), which should help protect you and your family from this chaos... and could also likely make you a fortune in the years to come.

I'm not talking about guns or bonds or gold or other precious metals... or anything like that. And of course this has absolutely nothing to do with the stock market.

What I'm talking about is a very powerful asset that wealthy families have used for centuries to protect themselves... and preserve and build their fortunes.

An index tracking this asset has absolutely crushed the stock market. Since 1992, it's returned well over 900% gains. 

Best of all, it provided these gains with almost no volatility. Just look at the chart below.

See how that blue line goes straight up, without any hiccups?

Multimillionaire investor Barton Biggs wrote that this type of asset, throughout history, "protected both your wealth and your life."

During World War II, for example, when millions of families lost their entire life savings through inflation or government seizure, this was the one asset that enabled some families to protect, preserve, and grow their money.

What the average American doesn't realize is that many of the richest people in the United States have a significant ownership stake in this asset: The Walton family (of Wal-Mart fame), Bill Gates, Ted Turner, the Hilton family, Charles Schwab, Microsoft billionaire Paul Allen, the Hunt family (of Texas oil fame), the Hearst family, the Ford family, and more.

As I mentioned, you can easily make this investment today, here in America. Probably less than 1% of the population owns it today... but it is readily available, and fairly inexpensive.

I've written up all the details on everything you need to know. My full report is called: The World's Most Valuable Asset in a Time of Crisis.

There are several ways to make this investment. I'll show you what they are.

Like I said, this has nothing to do with stocks, bonds, precious metals, guns, medicine, or anything like that. Yet it could save your family... and make you very wealthy in the coming years.

As my multi-millionaire friend Doug Casey says, it's the ONE THING you should own in the years to come.

I don't want to say any more about it than that, here in this letter. The truth is, the fewer people who know about this investment secret, the better.

So how can you begin taking these simple steps, right away?

Well, my company, Stansberry & Associates Investment Research, is a financial research firm.

We have a staff of about 100 people, and our main objective is to find safe and profitable investment ideas that you are not likely to hear about anywhere else.

Since we started this business a decade ago, we have helped a lot of people make a lot of money...

Harold T. from Montana wrote recently to say: "My IRA has gone from a low of $315,000.00 to the present high of $952,000.00. I can only thank [you] for changing my life so much."

Dan K., from San Diego, also contacted us recently to say: "Since joining, my portfolio has grown by several hundred thousand dollars. I look forward to a long and prosperous relationship."

We even got an interesting note recently from a reader named Ulysses Reuter, who says he has been making a "small killing" – enough to buy a nice-sized boat and a house in Mexico. Here's the photo he sent (below).

Mr. Reuter added:

"We took delivery of her 3 weeks ago and are cruising the Bahamas. In October we will take her through the Panama Canal over to the Pacific side since I just bought a home in Mexico..."

Then there was the nice note from Mitchell D., from Ithaca, New York. He said: "I was working long hours with overtime to make a living when I joined you. The excellent results have allowed me to retire early."

Believe me, nothing makes me feel better than receiving notes like these.

But I have to tell you, right now, I am really worried that a lot of our subscribers and many, many hard-working Americans are going to get caught totally by surprise when this crisis escalates.

People have watched the stock market rebound to the same levels it fell from in 2008 and 2009. They've watched real estate prices start to creep back up. And they mistakenly think the worst is behind us... when in reality all that's been done is to pile on more debt.

We've basically "papered over" our debt problems with more debt.

Can you imagine if your family was in debt and you decided to solve the problem by simply borrowing more and more money?

We all know that would be a disaster for a family—yet many supposedly smart people think it could actually work for a country.

The sad truth is, it can work only as long as the rest of the world is willing to accumulate more and more U.S. dollars... and only as long as the U.S. dollar remains the world's reserve currency.

As we've seen, on both counts, those days are very quickly coming to an end.

Even with all that has happened in recent times... the downgrade of the U.S. government by Standard & Poor's... the spike in gold and silver prices... the calls for a new world currency... many Americans STILL aren't taking the steps necessary to prepare themselves. These folks are going to be in for a very rude awakening.

I sincerely hope you are not one of them.

That's why I created this letter, and that's why I'd like to send you the full details on exactly how I believe this is all going to unfold... and exactly how to protect yourself and even prosper during these once-in-a-lifetime events.

Remember... The government is not going to save you:

Think about this: If the government couldn't rescue one small city after a natural disaster in New Orleans, how is it going to save all of us when the entire country is in a crisis?

You can either let things happen to you... or you can take a few simple steps and take charge of your family's fate.

You know, it's funny, when we began writing about the looming collapse of the bond market and the risks to the U.S. dollar, a lot of people called us "right-wing nut jobs" or "gold bugs."

But that was when silver was still trading for less than $20. And when gold was under $1,000. That was before food prices soared.

It was before the Fed began to print trillions of new dollars every year and before Standard & Poor's downgraded our country's credit rating. That was before folks realized most of the states are going bankrupt... before they saw that even doubling taxes wouldn't end our annual deficit... and before Barack Obama essentially DOUBLED our net public debt.

We knew all of these things were going to happen... even though it was hard to believe our own conclusions.

And, we know all of these problems are going to get worse. Much, much worse.

The fact is, we can't afford our debts. We can't stop printing money. And as a result, we're going to see a massive dollar crisis.

The only question is...

What will it take for you to
recognize the crisis for what it is?

How high will gold have to go? How many banks will have to be seized by the FDIC? How high will oil have to soar? Or food prices? Or foreign currencies? When will you finally realize there's a problem...?

I hope you will act now.

When the coming currency crisis hits a critical state, it will happen very, very quickly. If our government suddenly finds itself unable to sell bonds at a reasonable price, the U.S. dollar will collapse and become near worthless, overnight.

It's sad, but most people—even smart and successful people—will do nothing. They will continue to assume tomorrow is going to be pretty much the same as today. Mark my words: As this currency crisis snowballs, these people are going to get wiped out.

Please, don't let that happen to you and your family.

You can give my research a look, and receive everything I've mentioned here, at absolutely no risk or obligation.

Simply let me know you'd like to take a trial subscription to my monthly newsletter, Stansberry's Investment Advisory, and I will immediately give you access to:

Research Report #1: The 4 Investment Assets You Do NOT Have to Report to the U.S. Government

Research Report #2: The Gold Investor's Manual

Research Report #3: Secrets of the Silver Market

Research Report #4: The 100% Secret – The Easiest Way to Make Money in a Risky Stock Market

Research Report #5: The World's Most Valuable Asset in a Time of Crisis

Also, on the second Friday of each month, I'll send you my monthly newsletter, Stansberry's Investment Advisory. I'll keep you up to date on exactly what's going on regarding this financial crisis, and I'll show you some unusual and incredible ways to make money now and as the currency collapse continues to unfold.

We have found some great ways to make a fortune as the government continues to try to bail out one failing industry after another.

I'll also keep you up to date on what I am doing to protect myself. I'll make sure you stay abreast of changes to the laws and government interventions.

And... every day the markets are open, I'll send you my paid-subscribers-only email called the Stansberry & Associates Digest.

In short, I report on all the work my firm is doing... the most interesting investment ideas... what we're researching now... and what we expect to happen in the months to come.

So how much does my work cost... and how can you get started?

Well, a one-year subscription, including everything I mentioned here, normally costs $149 per year – that's what many others have paid.

But right now, you can try my research, for less than HALF the normal rate. You'll pay just $49.50 for an entire year. That's a 66% discount.

Why so cheap?

Well, to be honest, our business really only works if our subscribers stick with us for the long-term. But we realize you've got to try our work first, to see if it's right for you.

And that's why, through this letter, we're making it so cheap, and essentially risk-free to try. What I mean is, you'll have the next four months to take a look at the Research Reports I've just described, plus the next four issues of my newsletter... and the next four months of my daily Digest reports.

If you decide for any reason within the first 4 months that my work is not right for you, just let us know and you can receive a full refund... and keep everything you've received so far.

In other words, by taking me up on this offer, you are agreeing only to TRY my work to see if you like it.

Please take the simple steps necessary to protect yourself and your family.

** At the very least, start a subscription to my work, which gives you immediate access to all of the valuable reports you need to see. Print them out or save them to your computer so you have them forever.

Then, take four months to check out my research. If you decide it doesn't make sense for you for any reason, just call my customer service group located in my Baltimore office. We've got a toll-free telephone line, and you can request a full refund for the money you paid, in a matter of minutes.

And even if you decide AFTER four months that my work is not for you, no problem. You can still get a prorated refund for any time remaining on your subscription.

The point is: Maybe you want to read my work over the next year... and maybe not... but at the very least, take advantage of this free trial so you can understand what's going on and how to protect yourself.

I hope you'll take the simple next step and read the reports my team and I have spent an incredible amount of time and money preparing. I know in my heart it will be one of the best financial moves you ever make. And I want you to remember one more important point:

All of the steps I am recommending are simple, cheap, and easy... at least for now.

But as you certainly know from your own experience, "storm insurance" and provisions get much more expensive, and even impossible to buy, as a storm approaches.

Think about what happens every time there's a hurricane or snowstorm. As the storm nears, it becomes impossible to buy batteries, water, or a generator, anywhere within 150 miles of where the storm is likely to hit.

Well, it's the same with safeguarding your money today.

The same thing will happen with the steps I'm recommending you take now.

Few people are thinking about these financial moves today, so they are still simple and easy to execute. But as the coming financial storm nears, and more people clamor to save themselves, these moves will become extremely expensive, and even impossible, to make.

You want to take action now.

Because the thing to remember about a currency collapse is that it happens gradually... gradually... gradually... and then very suddenly.

Americans and foreign investors are clearly losing faith in the U.S. dollar. Over the past few years, it has been a progressive and steady decline. But when the final collapse occurs, there will be no announcement. There will be no warning. It will be devastating and swift.

Whether you decide to read my research or not, please do the smart and prudent thing: take the necessary actions now to protect yourself and your family.

To get started, simply click on the SUBSCRIBE NOW link below, which will take you to a secure order form. Your order will be processed immediately, and you'll have access to all of my work in a matter of minutes.

One more thing you might want to know: As I mentioned earlier, we have hundreds of thousands of customers all across the globe.

We have grown to be the biggest research organization of our kind in the world... and we have an A+ rating with the leading online reputation management website. You can't reach an A+ status without lots and lots of happy customers.

Plus, we also have earned something else no rating agency can ever bestow...

To date, we have had more than 35,000 subscribers from around the globe tell us they like our work so much, they want to receive it for "Life"... the rest of their lives. In my mind this is the absolute strongest endorsement we can ever receive, because it comes directly from the people who know us best, our customers.

Of course, I'm not asking you to make any big commitment. All I want you to do is take a few minutes to sign up for a no-risk trial subscription. Take an immediate look at all the Research Reports I've described.

All this information is yours to keep, whether you choose to continue reading my work or not. You're not risking even a penny to check everything out.

Get started now by clicking the "Subscribe Now" link below. This will take you to a secure order form, where you'll have the chance to review everything before submitting your order.

Sincerely,



Porter Stansberry
Founder, Stansberry & Associates Investment Research
July 2013

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LEGAL DISCLAIMER: This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. Stansberry & Associates Investment Research expressly forbids its writers from having a financial interest in any security they recommend to our subscribers. And all Stansberry & Associates Investment Research (and affiliated companies), employees, and agents must wait 24 hours after an initial trade recommendation is published on the Internet, or 72 hours after a direct mail publication is sent, before acting on that recommendation. Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

The Hyperloop Has Been Unleashed: Here Are The Other Most Ridiculous Patents

Submitted by Tyler Durden on 08/13/2013 12:27 -0400

ETC

Fail

With the market still stuck in the summer doldrums, where it will be until the Taper announcement and the German election, the dominant topic of water cooler conversation today is Elon Musk's hyperloop idea. While the feasibility, and not to mention profitability, of this concept remains to be determined, it got us thinking: what are some of the other more ridiculous patent ideas conceived in history - a topic particularly germane now that the Obama himself has decided to become the anti-patent troll-in-chief (at least on behalf of those who tend to spend generously for lobbying and other favor-inducing purposes). Below, courtesy of BusinessWeek, we list what may be some of the most absurd, bizarre, humorous and outright idiotic inventions and patent ideas awarded over the years.

From BusinessWeek:

The U.S. Patent & Trademark Office is drowning in a deluge of applications. On Mar. 16, Acting Director John Doll said that even if the office closed its doors, it would take almost two years to clear the backlog. With the agency understaffed and underfunded, it's no wonder some silly applications have slipped through the net. Here are some of the most absurd patents awarded in the past decade, courtesy of Totally Absurd. You'll find some choice statements from the actual patent applications (good luck deciphering some of the language), along with our, often incredulous, commentary.

Gas Factory

Patent awarded: 2006
Patent says: "In addition to the environmentally destructive effects of ruminant animal methane emissions, such emissions represent wasted energy, as up to thirteen percent of the food ruminant animals eat is lost as methane."
We say: It would take a lot of cows to produce useful levels of biomass. Not to mention, you'd need workers to monitor the contraptions. Probably not efficient.

Dad Saddle

Patent awarded: 2002
Patent says: "A number of devices have been devised for carrying infants and young children. Such devices often are not appropriate or useful for carrying larger children. Nor are known conventional arrangements adapted to support a standing child."
We say: Spurs not included. If your child is too big for a stroller, it's probably time he or she learned to walk.

Gerbil Shirt

Patent awarded: 1999
Patent says: "A pet display vest for a person, having an elongated, enclosed, pet receiving, passageway extending thereacross with at least one closable pet admitting entry, at least part of the passageway being transparent so that, when the vest is worn, a pet moving along the passageway across a wearer's body can be viewed by a spectator."
We say: A great invention if you ever thought, "Gee, I'd really like to take my small rodent out for a walk and get it some sun." Just try not to trip.

Quick Draw Call

Patent awarded: 2004
Patent says: "No one of the devices actually known allows the possibility of quickly and easily setting the cellular telephone to its use condition and then as well quickly and easily setting it back to rest."
We say: If Inspector Gadget had a cell phone, this is how he'd store it. It's the old gun-in-the-sleeve trick, but for your phone.

Be the Bike

Patent awarded: 2004
Patent says: "The body of the rider acts as a connecting means between the front and rear roller assemblies and allows high-performance riding, exercise and competition."
We say: Luges seemed too safe? There doesn't seem to be a way to catch yourself if you fall, though, so wear plenty of pads.

Half Wit

Patent awarded: 2005
Patent says: "Most types of protective head gear or helmets cover and protect the entire or majority of the user's head. For many activities that require protection of the head, maximum protection is desirable. However, there are some activities where only some protection is desired."
We say: We're not quite sure which activities this application is referring to, but it seems like this design relies on one falling only backward, which doesn't seem entirely practical.

Baby Bottom Art

Patent awarded: 2000
Patent says: "The addition of a newborn infant to a family inspires feelings of nostalgia and the related desire to create a lasting remembrance of the child's infancy."
We say: It's a dip-your-baby's-butt-in-paint kit. Now mothers have something else to embarrass their kids with at parties.

Banana Suitcase

Patent awarded: 2003
Patent says: "A banana protective device for storing and transporting a banana carefully."
We say: A protective case designed for the one fruit that already comes in a protective case.

Birdman

Patent awarded: 1999
Patent says: "The difficulties in obtaining closeness and the restrained mobility are obstacles hindering the person from practicing the hobby or profession of animal observation."
We say: Just be really patient and try not to move as you lure birds with your feeder-laden headgear. Really, don't move.

Bumper Dumper

Patent awarded: 2000
Patent says: "A well known difficulty experienced by travelers or individuals camping in a wilderness environment is finding suitable toilet facilities."
We say: It's a toilet seat that connects to a trailer hitch. You can come up with the jokes.

Plumber-Chic Pants

Patent awarded: 2002
Patent says: "The basic functions of dress are to provide warmth and protection, to beautify or enhance sexual appeal and to supply information about the wearer."
We say: It's true, these pants do supply information about the wearer. Perhaps a little too much, what with the hole designed to showcase his or her rear.

Ear Anchors

Patent awarded: 1999
Patent says: "It is therefore a primary objective of the present invention to provide an in-cord detachable ear hanger for an in-ear phone which can protect the in-ear phone from being pulled off position from the user's ear."
We say: Just avoid pulling on any part of the cord not between your ear and the clip, otherwise both will fall off. (This design flaw is actually stated in the patent.)

Flying Bike

Patent awarded: 2003
Patent says: "There is need for [a] simple, inflatable structure that, when propelled forwardly, will provide lift for various loads, as for recreational and other purposes."
We say: Finally, a flying bike. The inventor suggests mounting a rocket on the machine for when you tire of pedaling.

Turtle Air Bags

Patent awarded: 2000
Patent says: "It is generally record[ed] that there is a greater risk of serious injury to motorcyclists in the case of an accident than to automobile passengers. This is due, inter alia, to the fact that, unlike automobiles, motorcycles are not equipped with protective systems which enclose users thereof."
We say: Does this safety device really make riding a motorcycle seem less daunting?

Gas Grabber

Patent awarded: 2001
Patent says: "There are various devices in this field for dealing with the problems of intestinal discharges with some degree of success. However, all of them are somewhat cumbersome and/or bulky to use."
We say: Two words: "flatulence deodorizer." All other words fail us.

Jacques Fido

Patent awarded: 2001
Patent says: "The invention is a special modified scuba diving apparatus intended for use by an animal."
We say: It's hard enough to get a leash around a dog's neck, much less an entire scuba suit.

Life Expectancy Watch

Patent awarded: 2002
Patent says: "Life expectancy has been a major concern of people throughout the ages."
We say: It's hard to feel good amid a spiraling economy, crumbling infrastructure, a decaying environment, and a sky-high divorce rate. But now there's hope! This watch reminds you it's only a matter of time before you die.

Neck Pack

Patent awarded: 2005
Patent says: "Traveling with many items, such as a telephone, pen or pencil, coins, cigarettes, etc., can be very cumbersome, particularly when all of the items need to be readily accessible."
We say: A take on the classic fanny pack, this invention moves the party to your neck.

Redundant Recumbent

Patent awarded: 2000
Patent says: "Systems which allow one to operate a computer device from an ergonomically superior, recumbent position. Provision is made for supporting the computer device and the body parts of the operator at elevations and inclinations which make the computer device the most comfortable and ergonomically superior to operate."
We say: Could you see your boss O.K.'ing this?

Motorized Ice Cream Cone

Patent awarded: 1999
Patent says: "The repetitive task of moving one's tongue up and down to manipulate a hollow ring can become monotonous and tiring, especially for a child."
We say: No children we know seem to struggle with the act of eating ice cream.

Snake Walker

Patent awarded: 2002
Patent says: "There are many snake owners that do not spend much time handling their snakes. This is largely because they must hold them constantly while handling them for fear of losing control of them."
We say: This one will surely have snakes replacing puppies as the conversation starter for singles in the park.

Stud Spectacles

Patent awarded: 2003
Patent says: "A frameless glassware assembly attaching to body piercing studs."
We say: Fashion nightmare.

Cry No More

Patent awarded: 2000
Patent says: "The inventive device includes a pacifier having an outwardly extending guard plate, apertures in opposite sides of the guard plate, and adjustable straps employing hook and loop fasteners to form loops for engaging the straps between the apertures in the guard plate and an infant's ears."
We say: Is strapping a muzzle/pacifier to a baby's head to shut him or her up really an advisable solution?

Bulletproof Desk

Patent awarded: 2001
Patent says: "The present invention relates generally to protection against personal assault, and more particularly to personal assault protection for those in vulnerable environments such as school rooms."
We say: It's hard not to mention that many schools struggle to afford books these days, much less military-grade protective gear.

And now... a bathroom-free capsule that crosses the San Andreas fault in a pressurized tunnel at 760 mph.

Newly Discovered Eighth Grade Exam From 1912 Shows How Dumbed Down America Has Become

Have you ever seen the movie “Idiocracy”?  It is a movie about an “average American” that wakes up 500 years in the future only to discover that he is the most intelligent person by far in the “dumbed down” society that is surrounding him.  Unfortunately, that film is a very accurate metaphor for what has happened to American society today.  We have become so “dumbed down” that we don’t even realize what has happened to us.  But once in a while something comes along that reminds us of how far we have fallen.  In Kentucky, an eighth grade exam from 1912 was recently donated to the Bullitt County History Museum.  When I read this exam over, I was shocked at how difficult it was.  Could most eighth grade students pass such an exam today?  Of course not.  In fact, I don’t even think that I could pass it.  Sadly, this is even more evidence of “the deliberate dumbing down of America” that former Department of Education official Charlotte Iserbyt is constantly warning us about.  The American people are not nearly as mentally sharp as they once were, and with each passing generation it gets even worse. (Read More.....)

Collapsing Earth: Why Are Giant Sinkholes Swallowing Cars, Homes And People All Around The World?

Has the crust of the earth become more unstable?  All over the planet, giant sinkholes are forming.  Many of them are so massive and are opening up so suddenly that they are actually swallowing cars, homes and even people.  So why is this happening?  Is the earth’s crust collapsing?  Is it expanding?  Is something else to blame for this phenomenon?  It seems like there is a story about another giant sinkhole in the news almost every single day now, and scientists seem to be at a loss for an explanation.  Could human activity be responsible?  Yes, the number of sinkholes in the United States definitely seems to be increasing, but we are also seeing massive sinkholes occur all over the globe – often in very rural areas.  There just doesn’t seem to be any pattern that would seem to indicate that human activity is the primary factor.  Hopefully scientists can figure out whatever is causing it, because this epidemic just seems to keep getting worse.

For example, a giant sinkhole that is 60 feet wide suddenly opened up and threatened to swallow an entire resort (Read More....)

Picturing The Dis-United States Of Europe

Submitted by Tyler Durden on 08/13/2013 - 13:04

With calls for a European renaissance and a general belief in stability through the German elections, it is perhaps worth a reminder of the structural problems that the supposedly bottoming union is facing. Nowhere is that single monetary policy-facing dilemma more evident than in the massive economic growth divergences across the EU nations and the current huge gap in unemployment rates from Greece to Austria and beyond. It seems the world is waiting for Merkel's re-election and fold on austerity (seemingly confirmed by the leaked BuBa report recently) but EU stress test transparency may remove the symbiotic safety net of bank bond buying sooner than many believe. With monetary policy somewhat euthanized across the EU, what's left for the fragmented transmission channels but more promises as pension funds and banks are stuffed to the gills with their own domestic bonds.

Market Soars In Anticipation Of Lockhart's 'Sept-Taper'-Off Chatter

Submitted by Tyler Durden on 08/13/2013 - 12:57

Since Europe closed, US equities have been on a tear - all on their own... Bonds, FX, and credit markets have shrugged as short-term VIX has been hammered lower dragging stocks to the high of the day. It seems the exuberance anticipated 'non-voting member' Lockhart's more dovish comments:

*LOCKHART EXPECTS U.S. ECONOMY TO PICK UP IN 2013 SECOND HALF
*LOCKHART SAYS ANY QE CHANGE SHOULD BE 'CAUTIOUS FIRST STEP'
*LOCKHART SAYS QE TAPER POSSIBLE AT ANY OF NEXT THREE MEETINGS

His main comment that "I don't expect to have enough data to be sure of my outlook next month" seems to have triggered the last little leg higher. And if a non-voting meber can do this - do all these talking heads still think the market is 'pricing-in' a taper?

SWISS SHOP CLERK: Oprah racism claims 'absolutely untrue' and a 'horror'...

Oprah sorry she ever mentioned it...

Here's The Law That's Driving Record Numbers Of Americans To Renounce Their Citizenship

By Josh Barro | Business Insider – Mon, Aug 12, 2013

A record number of Americans are giving up their U.S. citizenship. The Wall Street Journal reports that 1,130 Americans renounced their citizenship in the second quarter of 2013, more than did so in all of 2012.

To my surprise, the list of new ex-Americans is publicly available; I didn't recognize any of the names on a quick scan.

According to the Journal, the surge in expatriations seems to be driven by the upcoming implementation of the Foreign Account Tax Compliance Act (FATCA), a 2010 law that forces foreign financial institutions to disclose more information to the IRS about Americans' accounts and investments. Starting in 2014, foreign financial institutions will have to tell the IRS about income accruing to American clients (or businesses owned by Americans), and they'll have to withhold American income tax as appropriate.

In other words, it's going to become a lot harder to hide your income with a Swiss bank account.

The IRS can't directly tell foreign banks what data to turn over. But it has a pretty big stick — it can impose a 30% withholding tax on payments from the U.S. to foreign financial institutions unless they cooperate. As a result, many foreign banks and foreign countries have been entering into agreements with the IRS to comply with FATCA.

If you're an American living in the U.S. and your strategy for hiding income abroad isn't working anymore, you may have few options but to pay up. But if you live abroad, you have another choice available: Renounce your U.S. citizenship so you're not liable for American income tax.

That's one driver of the surge in renunciations. Another likely factor is the increase in capital gains and income tax rates in 2013, meaning that wealthy American expatriates can get a bigger tax saving by renouncing citizenship than they used to.

But a third factor is that FATCA creates compliance headaches apart from the actual tax bills it leads to. As the WSJ describes:

Some U.S. citizens say they are exasperated by a growing raft of paperwork that forces U.S. citizens living abroad to declare the minutiae of their financial holdings and other assets. That has increased the attraction of becoming a citizen in places such as Hong Kong, where the individual tax rate is capped at 15%.

"My decision was less about the actual amount of taxes I had to pay, and more about the system," said one investment banker, who renounced his U.S. citizenship and is now a Hong Kong citizen. "I'm not an ultrawealthy dude. It was the hassle with all the paperwork."

A few months ago, I attended a dinner where I sat between two Americans living abroad who complained that FATCA has made foreign banks less willing to provide American expatriates with checking accounts, credit cards and mortgages. This has been a major point of complaint for organizations representing American expatriates.

FATCA also complicates matters for foreign businesses with American investors (and for Americans who want to invest in foreign businesses) since American ownership makes a business subject to FATCA reporting.

If you intend to move back to the U.S., you're probably not going to renounce your citizenship because it was hard to get a checking account, or even because you had to forego an investment opportunity. But if you're a dual citizen with weak ties to the U.S. and the law is materially interfering with your financial dealings, it might be a reason to go ahead and quit being an American.

Marie Sapirie, the legal editor at Tax Notes, even says the IRS proposed renouncing citizenship as an option for an American with a complicated tax situation who had long resided abroad.

Last fall, I attended an American Swiss Foundation trip to Switzerland and FATCA was the number one hobby horse for the Swiss participants. The difficulty in evaluating the Swiss complaints is that the Swiss have a combination of good and bad reasons for hating FATCA. The law creates compliance burdens for Americans living in Switzerland and Swiss who do legitimate business with Americans. But it also undermines tax evasion strategies that are the key reason that some Americans were interested in banking in Switzerland in the first place.

Of course, every law has compliance costs, and it's not even clear that it's such a big problem if more Americans, presumably dual citizens living abroad with relatively weak ties to the U.S., are renouncing citizenship. But the benefits of FATCA may also be relatively modest: It's expected to raise $7.6 billion in added taxes over 10 years.

In 1999, the State Department estimated that there are between three and six million Americans living abroad; if those numbers are similar today, that means FATCA will generate about $170 in extra annual taxes per expatriate.

The revenue estimate for FATCA may prove incorrect in either direction; it's based on a guess about how much unreported foreign income will be discovered when the new reporting and withholding requirements come into effect. As the law is implemented next year, we'll start to see how much revenue actually rolls in — and whether the law is worth the compliance costs and expatriations that it causes.