Business / Economic / Financial

[ This link to a somewhat more cumulative blog posts page will precede current days news since most all topics remain current in terms of impact and longer-term effect and can be searched by topical index term more easily. The same is provided since the blog site http://alpeiablog.blogspot.com   has just been censored as to size by google which is typical for google as nsa / cia / gov’t shill as more are becoming aware of. The same is true for microsoft, another co. that’s seen their best days and relies on the government to maintain their monopoly. Up to now the better page http://www.scribd.com/alpeia  is provided for ease of formatting and clarity thereby while the Washington Post page is the real deal but without formatting http://www.washingtonpost.com/wp-srv/community/mypost/index.html?plckPersonaPage=PersonaComments&plckUserId=alpeia&newspaperUserId=alpeia    .   The following is the cumulative archive of  blog posts / topics for 2010 as the new year starts anew:  http://albertpeia.com/December312010postsarchive.htm       or PDF formatted version   
http://albertpeia.com/December312010postsarchive.pdf     ]

 

 

Fed upgrades economic outlook (Washington Post) [ Wow! Like the ‘no-recession / great recession / depression’ , what do expect these incompetent, and complicit wall street favored frauds to say. This is truly an existential moment of desperation for them and as before, they are disposed to anything that buys them time … I say: they’re out of time!  47 Statistics That Indicate That Economic Stress Points In 2011 Could Be Setting The Stage For A Global Economic Meltdown In 2012 Is the world approaching a devastating global economic meltdown? Right now there are a large number of factors that are creating economic stress points all over the globe.‘The American Dream Feb 16, 2011 Is the world approaching a devastating global economic meltdown?  Right now there are a large number of factors that are creating economic stress points all over the globe.  All of the crazy money printing that the Federal Reserve and other central banks have been doing is putting inflationary pressure on agricultural commodities, oil and precious metals.  Massive floods, horrific droughts and extreme weather patterns all over the globe are ruining crops and creating food shortages.  Some nations are now actually hoarding food, and in other nations rising prices have sparked food riots.  The price of oil has been moving back towards $100 a barrel, and if it stays at a high level for an extended period of time that is going to have very serious consequences for the global economy.  In addition, the growing sovereign debt crisis could erupt again at any time.  Half a dozen nations in Europe are on the verge of insolvency, Japan’s national debt is now well over 200 percent of GDP, and the global financial system is growing increasingly concerned about the exploding national debt of the United States.  The truth is that the entire world financial system is a house of cards balanced on a razor’s edge and it could come down at any time.

Sadly, very little has changed since the world financial system experienced almost a complete meltdown back in 2008.  Global financial markets are still a whirlpool of debt and speculation.  One really bad week could put us right back where we were prior to the infamous Wall Street bailouts.  Very little in our world is truly stable anymore.  As we have seen recently in Egypt, the globe can literally change almost overnight.  All it would take is for one really bad event to happen and world financial markets would instantly start imploding.

So when will the coming economic collapse happen?  Nobody knows for sure, but the fact that the global economy is increasingly becoming less stable as we approach the year 2012 is making a lot of people very nervous.

The following are 47 statistics that indicate that economic stress points in 2011 could be setting the stage for a global economic meltdown in 2012….

#1 According to the United Nations, global food prices set a new all-time record during the month of January.

#2 In early February the worst freeze in 60 years wiped out entire crops all across the southwestern U.S. and northern Mexico.  Already, it has been reported that some U.S. supermarkets have doubled or even tripled prices for certain produce items.

#3 It is being reported that due to the recent horrible freeze in Mexico cases of tomatoes that would usually cost shop owners between 12 and 15 dollars are now going for up to $40.

#4 One of China’s key agricultural provinces is facing its worst drought in 200 years.

#5 The Food and Agriculture Organization says that up to two-thirds of China’s wheat crop could be at risk of failing due to weather conditions.

#6 Officials in Mexico are estimating that four million tons of corn have been lost because of the recent freeze.  That represents a full 16 percent of Mexico’s annual corn harvest.

#7 The price of corn has doubled over the last six months and it recently hit a new all-time high.

#8 The U.S. Department of Agriculture has announced that corn supplies are the tightest that they have been in 15 years.

#9 It appears that Chinese imports of corn will be about 9 times larger than the U.S. Department of Agriculture originally projected them to be for 2011.

#10 The price of wheat has more than doubled over the past year and it hit a 30-month high on Monday.

#11 In the event of a global catastrophe, current global stockpiles of wheat would only be able to feed the world for 82 days.

#12 According to Forbes, the price of soybeans is up about 50% since last June.

#13 The price of cotton has more than doubled over the past year.

#14 The commodity price of orange juice has doubled since 2009.

#15 The price of sugar is the highest it has been in 30 years.

#16 The United Nations is projecting that the global price of food will increase by another 30 percent by the end of 2011.

#17 In the U.K., the official rate of inflation is now twice as high as the target rate of inflation.

#18 Inflation in China is starting to get out of control.  For example, food prices in China rose 10.3 percent during the month of January.

#19 Almost 14 percent of all credit card accounts in the United States are currently 90 days or more delinquent.

#20 New home sales in the state of California were at the lowest level ever recorded in the month of January.

#21 According to the U.S. Bureau of Labor Statistics, the number of job openings in the United States declined for a second straight month during December.

#22 Average household debt in the United States has now reached a level of 136% of average household income.

#23 It is estimated that there are about 5 million homeowners in the United States that are at least two months behind on their mortgages, and it is being projected that over a million American families will be booted out of their homes this year alone.

#24 Today, 46% of all Americans carry a credit card balance from month to month.

#25 700,000 Americans have signed up for a credit card that has interest rates that go as high as 59.9%.

#26 Americans now owe more than $889 billion on student loans, which is even more than they owe on credit cards.

#27 The FDIC is “insuring” U.S. bank deposits that total 5.4 trillion dollars with a deposit insurance fund that is currently sitting at approximately negative 8 billion dollars.

#28 The Social Security trust fund will run a deficit of 56 billion dollars this year.  Just a couple of years ago government planners were promising that we would not have any Social Security deficits until at least 2016 or 2017.

#29 When you adjust wages for inflation, middle class workers in the United States make less money today than they did back in 1971.

#30 4.2 million Americans have been unemployed for one year or longer at this point.

#31 The number of Americans that have become so discouraged that they have given up searching for work completely now stands at an all-time high.

#32 According to a recent Gallup poll, 35 percent of Americans believe that unemployment is currently the most important problem in the United States.  Another 29 percent believe that the economy is currently our biggest problem.

#33 Gallup also says that 19.6 percent of the workforce in America is currently either unemployed or underemployed.

#34 The U.S. government says that 504,000 Americans “dropped out of the labor force” in January.

#35 The Obama administration is projecting that the federal budget deficit will be 1.65 trillion dollars for fiscal 2011.

#36 It is estimated that the total U.S. national debt will be greater than 100 percent of GDP by the end of this fiscal year.

#37 The U.S. government relies on foreign nations such as China and Japan to finance 40 percent of all new government debt.

#38 State and local government debt is now sitting at an all-time high of 22 percent of U.S. GDP.

#39 The Chinese are now hoarding gold like there is no tomorrow.  In fact, Chinese demand for gold has now risen to approximately 25% of total global production.

#40 According to a recent report from the World Economic Forum, the world is going to need another $100 trillion in credit to support projected “economic growth” over the next decade.

#41 According to the U.S. Conference of Mayors, visits to soup kitchens are up 24 percent over the past year.

#42 One out of every seven Americans is now on food stamps.

#43 One out of every six elderly Americans now lives below the federal poverty line.

#44 During the last school year, almost half of all school children in the state of Illinois came from families that were considered to be “low-income”.

#45 According to a survey released very close to the end of 2010, 55 percentof all Americans are now living paycheck to paycheck.  A major economic downturn could quickly wipe out millions of families.

#46 Gasoline prices in the United States are now the highest that they have ever been in the middle of February.

#47 Faith in our economic system continues to decline.  According to one new report, only 26 percent of Americans now trust the U.S. financial system.’

 

Deception at the Fed Dr. Ron Paul | The Federal Reserve has been given a dual mandate: keeping prices stable and maximizing employment. This policy relies in part on numerical chicanery.   Obama proposes $3.7 trillion budget (Washington Post) [ What the heck! It’s only ‘helicopter ben’ monopoly money anyway; that paper stuff (Globalists Push SDRs as World Reserve Currency As investor Marc Faber noted last year, this funny money intervention by the Federal Reserve is going to create a final crisis that will destroy the U.S. financial system. The Fed “will print and print and print until the final crisis wipes out the whole system,” Faber warned.   IMF calls for dollar alternative The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world’s reserve currency. The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.  ). Speaking of Monopoly / atlantic city, n.j., maryanne trump barry and sam alito, et als  have done all right for themselves as the corrupt judiciary usually does, one way or another. Indeed, judicial retirement funds for these plushly accoutered lifetime appointees is up 25.9% and the general operating fund up 6.6% (source, http://www.washingtonpost.com/wp-srv/special/politics/federal-budget-2012/index.html  … the trumps are getting it up front and on the back end, which is typical in a pervasivly corrupt system as defacto bankrupt america … abolish the courts .     Connecticut, California join probe of Ally (Washington Post)  [ I’d be much more impressed if they initiated a probe of more readily discernible criminal offenses in violation of the RICO Act   (Other newark / new jersey and new york, n.y. metro, viz., ie., connecticut, and of course, d.c., d.c. metro, viz., ie., virginia experience … corrupt federal judges as maryanne trump barry, sam alito, shiff, matz (california), hall, underhill, dorsey, etc.. Defacto bankrupt america’s so-called system is pervasively corrupt and broken (AP)   Abolish the corrupt, costly, economically wasteful lifetime extravagantly appointed federal courts - see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )  ]   http://albertpeia.com    Frauds/Liars (sic-lawyers)Covering Up for Other Frauds/Liars (sic-lawyers). In Productive Societies as China, Japan, etc., Fraudulent Liars (sic-lawyers) and the Fraudulent u.s. System They're a Part of Are Unheard Of/Non-existent. List of Files Regarding Filed Attorney Grievance Against Fraud coan et als  Or Here For A Clearer View Of  Filed Grievance Complaint, Response, Exhibits, and Related RICO Filings  Note the Committee of Frauds/Liars (sic-lawyers). Included are DOJ Rep., State Court Rep., State Atty. General Office Rep., and even a Vegetable Garden yale law prof who probably never practiced law in his life. How Pathetic!   http://albertpeia.com/fbiofficela91310 ]   Justice: FBI improperly opened probes   (Washington Post)  [ I just hope they’re as zealous (in probing readily discernible crime) with regard to my RICO matters and the corruption in the (judicial / legal) process since, in the final analysis, it will have been the corruption within that will have brought the nation down irrevocably and totally.]

]  Policymakers think the recovery is on "firmer footing." But they also expect high unemployment to persist at least through the end of 2013.

 

 


Panetta outlines plan for bin Laden (Washington Post) [ Yeah, and if panetta’s grandmother had wheels she’d be a trolley car. I mean, how much more irrelevant can the cia become, beyond their drug deals, arms deals, among other self-interested / perpetuating ops / commotions / promotions. In case they haven’t looked recently, pervasively corrupt america is defacto bankrupt; and in large part owing to their flawed, self-perpetuating strategies (oh, how they loved and miss the cold war). Who cares (about Osama bin Laden or his deputy Ayman al-Zawahiri). Indeed, one way or another, it makes no difference. Moreover, take a look at the ‘stand-down’ order as discussed infra regarding ‘that pearl harbor event / neo-con wet dream’. They are so pathetic! A parallel universe? They only wish!    ] CIA Director Leon Panetta told Congress on Wednesday that if Osama bin Laden or his deputy Ayman al-Zawahiri is captured they will be held by the military and probably will be sent to Guantanamo Bay. (Reuters)

 

 

On national debt, interest is the monster (Washington Post) [ No! That’s not correct! This is a two-headed monster and the gargantuan principal amount the other head. Bondholders will never be paid (paper turned over for paper till the biggest ponzi scheme in world history comes tumblin’ down. Moreover, assumptions are wildly optimistic and totally unrealistic). Pervasively corrupt america is defacto bankrupt!  That’s reality!  Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"   11-25-10  The U.S. economy "is a complete disaster," Howard Davidowitz …Are you kidding me? "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."As with the economy, Davidowitz is unwaveringly consistent in his views on President Obama, calling him "deranged, dysfunctional and discredited."Results of the midterm election show "the people of this country think we are in a catastrophe," he says. "I'm with them."    Timid Tuesday: Is it Safe?   Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘
  ]  Starting in 2014, net interest payments will surpass the amount spent on education, transportation, energy and all other discretionary programs outside defense. In 2018, they will outstrip Medicare spending

 

House brainstorms for budget trims (Washington Post) [ Brainstorms? The mere mention of the word brain juxtaposed with the denizens of capital hill and one can’t help but conjure up images of multiple scarecrows scurry about that yellow brick road en route to see the wizard while singing in unison ‘if they only had a brain’.  ] 

 

 

In Bahrain, authorities move against protesters   Police use tear gas, clubs and rubber bullets to disperse crowd  (Washington Post) [  Bahrain authorities launch surprise attack on protesters  [There’s the america and saudi Arabia effect; far less than democratic and far more deadly in the mideast among other places; talk about hypocrites. How does one family claim ownership of all the oil reserves of a sovereign nation as the saudis; time for the saudis to go the way of dictator Mubarak and take the war criminal americans with them.   ]  Los Angeles Times Tear gas canisters bombard sleeping protesters in Manama's Pearl Square. At least two men are reported killed   Video:  Bahrain protesters look to emulate Egypt revolt euronews    Riot Police Attack Bahrain Protesters Voice of America

‘Saudi Arabia sending troops to Bahrain’  Saudi Arabia is sending troops to Bahrain in a move to crack down on pro-democracy protesters who took to the streets in the capital Manama, a political analyst says. [SAUDIS TOLD OBAMA 'NOT TO HUMILIATE MUBARAK' [ Sounds like they’re hearing footsteps…Previous: Egyptian capital teeters on anarchy  Mubarak asks cabinet to resign as anti-regime protests intensify  (Washington Post) [ Mubarak should have been looking in the mirror as he asked his cabinet to resign … 30 years is a long time, and coincidentally, time for him to go.   In Egypt: Access denied (Washington Post) [The day part of the Internet died: Egypt goes dark [I disagree! Part of the internet didn’t die, but rather the order to so darken the nation heralded the demise, at 30 years and counting, of the so-called leadership in the persona of Mubarak. Time for him to go! After all, he’s been in a position, with Egypt among the only Mideast nations to have signed a peace treaty with israel, to have stepped up with substantial credibility in taking a strong position against israeli transgressions, violations of international law / u.n. resolutions, war crimes, etc., which beyond soft-touch, he failed to do. And, of all places, he sends his family to Orwellian england; he still loves those colonial masters … how pathetic. I mean, 30 years … how free-flowing does anyone think the election process is at this point … and one could ask the same regarding the entrenched powers that be in pervasively corrupt, defacto bankrupt america, to be fair. Then there’s saudi arabia; talk about do nothing hypocrites. How does one family claim ownership of all the oil reserves of a sovereign nation; I suspect only when foreign corporations say so. The only Mideast nations showing backbone are Turkey, Lebanon, and Syria, and, of course the perennially propaganda painted bad-boy Iran among possibly some of the smaller emirates, ie., Qatar, etc., (I lack sufficient information regarding these other nations).  ] (AP)         Internet cutoff fails to silence Egypt protests (AP) -  ]

Dick Cheney and Donald Rumsfeld booed at GOP convention in D.C. New York Daily News | Donald Rumsfeld and Dick Cheney were booed on Thursday at the Conservative Political Action Conference.     Ron Paul At CPAC: ‘Government is in the process of failing’ Is he running for US Senate? Is he signaling his bid for US president? Or is he hinting at something deeper within the US political climate?     Milbank: Donald trumps CPAC | Gibbs gone  (Washington Post) [  Trump’s a loser, dressed up and propped up by and to shill for a declining, fallen nation in the most corrupt regions of the country (every fallen nation has such); of that there is no question …"Over the years I've participated in many battles and have really almost come out very, very victorious every single time," the Donald said. (Except for the bankruptc[ies], that is. [ trump’s never won a battle that wasn’t fixed in advance (including the ‘pre-packaged bankrupcies’ crammed down the throats of objecting creditors – jersey general ] ) "I've beaten many people and companies, and I've won many wars," he added. (Though he didn't serve in the military.) "I have fairly [according to mobster rules; ie., bribery, money laundering, etc.] but intelligently [ as any other mob boss … trump is total b*** s***, a fraud, and lightweight … and, despite the façade, quite insecure … trump’s a total mental case … He truly is the ‘poster-boy’ of american decline and part of the problem, not the solution! …trump also said america’s become the laughingstock of the world … true enough … and trump the biggest joke … NEWS FLASH: Direct from Lost Angeles Learning Annex – Presenting mobster t_rump of new yoke, new joyzey, and now caleefornia mob fame with his continuing message for the past several years: buy real estate (and watch the values go down…..riiiiight!).
Bank sues Trump over Chicago tower loan...
Trump casino to miss interest payment...
trump’s fired (from ‘his own company’)

Gunfire Erupts Inside trump Taj Mahal Casino, 1 Dead - Second Such Incident In A Year At N.J. Mainstay Ends With Employee Killed – What else would you you expect from a mobster’s casino in mob-infested jersey!

Trump luxury resort folds, leaving buyers defrauded…litigation has commenced…send for sister maryanne, the corrupt federal judge to preside, coverup, etc., she’s in n.y./n.j./pa 3rd circuit ct appeals, understands drug money laundering/fraud and handles her own motions to recuse her and like mobster trump should be in jail  ... (see RICO Case)

 ]  earned many billions of dollars [ at whose expense ], which in a sense was both a scorecard and acknowledgment of my abilities [ to fool most of the people, all of the time. ] ."  TRUMP DRAWS CHEERS, BOOS AT CONSERVATIVE CONFERENCE...
PONDERING PRESIDENTIAL RUN... [Don’t make me laugh! … Donald T_rump Would Impose 25% Tax on China Imports if President  [  trump also said america’s become the laughingstock of the world … true enough … and trump the biggest joke … Indeed, that trump even posits the possibility of a run when he should be in jail is a testament to just how big a laughingstock pervasively corrupt, defacto bankrupt america’s become!  [ If he was mobster in chief, mobster and scoundrel trump wraps himself in populist american flag and offers up an (too little too late – typical lightweight) implausible solution to keep ‘the juice’ flowing though he’d already be in jail in a rational, non-declining nation with meaningful laws. All China has to do is dump (and not prospectively buy) their ever more and declining in value day-by-day (from dollar debasement policies) u.s. paper / bonds and overnight and the u.s. economy consequently  thereby collapse. [ When you come right down to it, this has been america’s most significant export. Indeed, this irrevocable structural shift, hailed by cia men hw bush and clinton (clinton couldn’t have survived with them) by way of NAFTA as the greatest  thing since sliced bread was indeed in no uncertain terms condemned and warned against by Perot, a man of honor who, unlike his opponents, could not be bought, which is the reason, in pervasively corrupt america, he could never have been elected. Interestingly, you may have noticed the good (but not great, other than the spotlight on pervasive bribery including judges, police, politicians, etc., being far too light) the film ‘The Untouchables’ getting a wide re-airing of late, purporting to be a significant part of american folklore / history / culture. However, the reality is that in america, and certainly today, the real story with impact is that of ‘The Touchables’. The reality is that Elliot Ness died a broken man; bankrupt, unable to even win election to the mayoralty of his then current hometown. He was incorruptible; and hence, in the real america, unelectable at the least if not also all but unemployable (he and his are among those few genetic anomalies in america as I’ve previously alluded to. How far america has fallen from even false perception! Pervasively corrupt, meaningfully lawless america can’t even fake it anymore. See, for example, http://albertpeia.com/CIAAgentAffidavit1.jpg     http://albertpeia.com/FBIAgentAffidavit11.jpg      , and of course, corrupt legal / judicial processes, etc.,   Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense …  The pervasively corrupt american illegal system … corrupt u.s. courts / (lawyers) / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and costly bureaucracies. Rules of law mean nothing to these typically corrupt americans. Most, including sam alito of the u.s. supreme court, concerning  drug money laundering and obstruction of justice in the 3rd circuit ( also maryanne trump barry who covered-up drug money laundering through her brother’s casinos in a civil RICO case) should have gone to or belong in jail. Contrary to popular belief, they do it for the money, personal money, big, cash, untraceable money. The fog of war is great for such things (360 tons $100 bills flown into Iraq and missing, etc.). [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ]. america’s just a fraudulent and failed defacto bankrupt nation.  ] “I would announce, without equivocation, a 25% tax increase on anything purchased from China.” ]
CHENEY HECKLED... 'DRAFTDOGER!' 'WHERE'S BIN LADEN?'   ]

 

 

 ] At least two are killed, while those involved in the protests say others are critically injured. There is no official word on deaths or injuries.

 

 

 

 

Bulls Remain Undaunted: Dave's Daily  ‘Bulls liked earnings from Dell and Abercrombie & Fitch as earnings continue to make analysts' forecasts look dumb. So far earnings are beating estimates by nearly 80%. M&A deals with Family Dollar and Genzyme being acquired were also positively received. Ignored was poor housing data as starts beat expectations owing to builders trying to get ahead of new building code rules leading to a large beat. But, new permits were down sharply. Even "core" PPI showed inflation taking hold while Industrial Production declined well below estimates. And, Borders finally gave up the ghost by filing for bankruptcy. It's interesting how these things cycle. Twenty years ago you lined-up at Blockbuster for the latest video and now it's on death's door. Borders was the next hip thing and now we have ereaders and "poof!" there it goes. Fed minutes showed some "discussion" over the merits of continuing QE2 given better data probably not the result of these activities. Nevertheless they upgraded economic growth slightly which was well-received. Perhaps POMO will lighten up, it did today. Bulls are determined to keep this rally going even if all of North Africa and the Middle East blow up. Emerging markets continue to suffer relative to U.S equities which probably reflect repatriation from less stable areas and a bet on better growth prospect at home. Commodities rallied and the dollar fell which is no surprise. Bonds behaved poorly with higher inflation in view. Volume improved Wednesday but overall still remains light…’

 

 

 

Great Inflation Debate: Core Producer Prices Run Hot Phillips ‘In the monthly battle over whether inflation is in the offing, the inflationistas got something to hold onto this morning. The monthly core producer prices for January — stripping out food and energy prices — came in at 0.5%, higher than 0.2% than economists had been expecting. Miller Tabak’s Peter Boockvar notes that the main rise in the core price was a 1.4% increase in prescription drug costs.

Alan Ruskin of Deutsche Bank writes:

Core intermediates and core crude were worryingly strong. In theory this pipeline pressure is not good for risk appetite and equities one way or the other. Either it dampens profit margins, or it is passed along to consumers, hurting real disposable income and encouraging policy tightening. Given a choice the market much prefers the former to the latter, not least because profit margins are less transparent, and determined even more by labor costs than raw materials. As such, pipeline price pressures will probably only seriously dampen enthusiasm for equities and risky assets when they start to show up more obviously in CPI or less clearly in industrial earnings.

CPI will be on the economic docket on Thursday, with expectations for an increase of 0.3% in the headline number and 0.1% in the core figure. That number will be a lot more important to the markets. Yields on Treasurys are up a bit after the PPI report, but nothing major.’

 

 



 

21 Signs That The Once Great U.S. Economy Is Being Gutted, Neutered, Defanged, Declawed And Deindustrialized Once upon a time… The Economic Collapse  Feb 12, 2011 ‘Once upon a time, the United States was the greatest industrial powerhouse that the world has ever seen.  Our immense economic machinery was the envy of the rest of the globe and it provided the foundation for the largest and most vibrant middle class in the history of the world.  But now the once great U.S. economic machine is being dismantled piece by piece.  The U.S. economy is being gutted, neutered, defanged, declawed and deindustrialized and very few of our leaders even seem to care.  It was the United States that once showed the rest of the world how to mass produce televisions and automobiles and airplanes and computers, but now our industrial base is being ripped to shreds.  Tens of thousands of our factories and millions of our jobs have been shipped overseas.  Many of our proudest manufacturing cities have been transformed into “post-industrial” hellholes that nobody wants to live in anymore.

Meanwhile, wave after wave of shiny new factories is going up in nations such as China, India and Brazil.  This is great for those countries, but for the millions of American workers that desperately needed the jobs that have been sent overseas it is not so great.

This is the legacy of globalism.  Multinational corporations now have the choice whether to hire U.S. workers or to hire workers in countries where it is legal to pay slave labor wages.  The “great sucking sound” that Ross Perot warned us about so long ago is actually happening, and it has left tens of millions of Americans without good jobs.

So what is to become of a nation that consumes more than it ever has and yet continues to produce less and less?

Well, the greatest debt binge in the history of the world has enabled us to maintain (and even increase) our standard of living for several decades, but all of that debt is starting to really catch up with us.

The American people seem to be very confused about what is happening to us because most of them thought that the party was going to last forever.  In fact, most of them still seem convinced that our brightest economic days are still ahead.

After all, every time we have had a “recession” in the past things have always turned around and we have gone on to even greater things, right?

Well, what most Americans simply fail to understand is that we are like a car that is having its insides ripped right out.  Our industrial base is being gutted right in front of our eyes.

Most Americans don’t think much about our “trade deficit”, but it is absolutely central to what is happening to our economy.  Every year, we buy far, far more from the rest of the world than they buy from us.

In 2010, the U.S. trade deficit was just a whisker under $500 billion.  This is money that we could have all spent inside the United States that would have supported thousands of American factories and millions of American jobs.

Instead, we sent all of those hundreds of billions of dollars overseas in exchange for a big pile of stuff that we greedily consumed.  Most of that stuff we probably didn’t need anyway.

Since we spent almost $500 billion more with the rest of the world than they spent with us, at the end of the year the rest of the world was $500 billion wealthier and the American people were collectively $500 billion poorer.

That means that the collective “economic pie” that we are all dividing up is now $500 billion smaller.

Are you starting to understand why times suddenly seem so “hard” in the United States?

Meanwhile, jobs and businesses continue to fly out of the United States at a blinding pace.

This is a national crisis.

We simply cannot expect to continue to have a “great economy” if we allow our economy to be deindustrialized.

A nation that consumes far more than it produces is not going to be wealthy for long.

The following are 21 signs that the once great U.S. economy is being gutted,  neutered, defanged, declawed and deindustrialized….

#1 The U.S. trade deficit with the rest of the world rose to 497.8 billion dollars in 2010.  That represented a 32.8% increase from 2009.

#2 The U.S. trade deficit with China rose to an all-time record of 273.1 billion dollars in 2010.  This is the largest trade deficit that one nation has had with another nation in the history of the world.

#3 The U.S. trade deficit with China in 2010 was 27 times larger than it was back in 1990.

#4 In the years since 1975, the United States had run a total trade deficit of 7.5 trillion dollars with the rest of the world.

#5 The United States spends more than 4 dollars on goods and services from China for every one dollar that China spends on goods and services from the United States.

#6 In 1959, manufacturing represented 28 percent of all U.S. economic output.  In 2008, it represented only 11.5 percent and it continues to fall.

#7 The number of net jobs gained by the U.S. economy during this past decade was smaller than during any other decade since World War 2.

#8 The Bureau of Labor Statistics originally predicted that the U.S. economy would create approximately 22 million jobs during the decade of the 2000s, but it turns out that the U.S. economy only produced about 7 million jobsduring that time period.

#9 Japan now manufactures about 5 million more automobiles than the United States does.

#10 China has now become the world’s largest exporter of high technology products.

#11 Manufacturing employment in the U.S. computer industry is actually lower in 2010 than it was in 1975.

#12 The United States now has 10 percent fewer “middle class jobs” than it did just ten years ago.

#13 According to Tax Notes, between 1999 and 2008 employment at the foreign affiliates of U.S. parent companies increased an astounding 30 percent to 10.1 million. During that exact same time period, U.S. employment at American multinational corporations declined 8 percent to 21.1 million.

#14 Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs. Today, only 9 percent of the jobs in the United States are manufacturing jobs.

#15 Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China’s share had soared to 20 percent.

#16 The number of Americans that have become so discouraged that they have given up searching for work completely now stands at an all-time high.

#17 Half of all American workers now earn $505 or less per week.

#18 The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

#19 Since 2001, over 42,000 U.S. factories have closed down for good.

#20 In 2008, 1.2 billion cellphones were sold worldwide.  So how many of them were manufactured inside the United States?  Zero.

#21 Ten years ago, the “employment rate” in the United States was about 64%.  Since then it has been constantly declining and now the “employment rate” in the United States is only about 58%.  So where did all of those jobs go?

The world is changing.

We are bleeding national wealth at a pace that is almost unimaginable.

We are literally being drained dry.

Did you know that China now has the world’s fastest train and the world’s largest high-speed rail network?

They were able to afford those things with all of the money that we have been sending them.

How do you think all of those oil barons in the Middle East became so wealthy and could build such opulent palaces?

They got rich off of all the money that we have been sending them.

Meanwhile, once great U.S. cities such as Detroit, Michigan now look like war zones.

Back in 1985, the U.S. trade deficit with China was about 6 million dollars for the entire year.

As mentioned above, the U.S. trade deficit with China for 2010 was over 273billion dollars.

What a difference 25 years can make, eh?

What do you find when you go into a Wal-Mart, a Target or a dollar store today?

You find row after row after row of stuff made in China and in other far away countries.

It can be more than a bit difficult to find things that are actually made inside the United States anymore.  In fact, there are quite a few industries that have completely and totally left the United States.  For certain product categories it is now literally impossible to buy something made in America.

So what are we going to do with our tens of millions of blue collar workers?

Should we just tell them that their jobs are not ever coming back so they better learn phrases such as “Welcome to Wal-Mart” and “Would you like fries with that”?

For quite a few years, the gigantic debt bubble that we were living in kind of insulated us from feeling the effects of the deindustrialization of America.

But now the pain is starting to kick in.

It has now become soul-crushingly difficult to find a job in America today.

According to Gallup, the U.S. unemployment rate is currently 10.1% and when you throw in “underemployed” workers that figure rises to 19.6%.

Competition for jobs has become incredibly fierce and it is going to stay that way.

The great U.S. economic machine is being ripped apart and dismantled right in full view of us all.

This is not a “conservative” issue or a “liberal” issue.  This is an American issue.

The United States is rapidly being turned into a “post-industrial” wasteland.

It is time to wake up America.’

 

 

 

 

 

Apple and Google's Weaknesses Summarized in 250 Words Shuster ‘Buzz was a flop. Safari can't grow. And neither Google or Apple seem to understand why.How can Google and Apple -- two companies who have set standards, cornered markets, and mastered their trades -- be so adept in certain areas and completely outmatched by a three-person startup in another? Google design manager Nadav Savio answered that question by eloquently summarizing the biggest weaknesses of the two companies in a mere 250 words.

It's been said that Google doesn't get 'social' and, though I think that is vastly overstated, there is truth there. Similarly, I'd say that Apple doesn't understand the internet. Well I have a simple theory about it. There's a cliché that everyone's greatest strength is also their greatest weakness, and I believe that applies as well to organizations as to people.

Take Apple. They make amazing, holistic products and services and one of their primary tools is control. Fanatical, centralized control. Control over the design, over the hardware, over the experience. And that's exactly the opposite of the internet, which is about decentralization and messy, unfiltered chaos.

Google, on the other hand, gets the internet, but has trouble with humans. And I'd say it's not so much because it's an engineering-heavy organization or that Google doesn't know how to have fun (both reasons I've seen stated publicly). I think it's that one of Google's biggest strengths is in search, which is largely about things like precision and recall, about stitching the chaos of the internet into some semblance of order. But social interactions happen in the variance, in the messy spaces that seem meaningless. Much social meaning is carried by phatic communication and that is exactly opposite to what Google does, which is to optimize signal vs. noise, looking for the meaning and discarding the meaningless.

Presumably, we can find the undoing of other organizations in their strengths. What, for example, is Microsoft really, really good at? Or Facebook?’

 

 

 

 

 

This is that unmentionable reality as I alluded to earlier on close scrutiny of the data, ‘that stock prices have been manipulated to the upside beyond any and all rational basis‘ and as I previously wrote: Perception vs. Reality: Four Reasons to Remain Cautious on U.S. Equities  [ Hey, Abbott … That’s Lou Costello calling him from the other side … Wake up! … Just kidding … but I’m not kidding when I say that contrary to Abbott’s view, infra, if you’re not a successful market timer you should rethink your position as an equity investor. Moreover, in contradistinction to Mr. Abbott’s implication, if you’re not a successful speculator (there are very few), you should rethink your position as a short seller: reason…, you could be wiped out, lose more than your principal, forced to cover (that’s why the same is considered a contrary market indicator, particularly in these manipulated, contrived markets). When I did my MBA thesis (1977, NYU, GBA, Eve.Prog., Finance), a review of the data revealed even then (and much more so now with computer programmed market manipulation) that the market remained biased / propped up (artificially, especially now with computerized manipulation) to the upside for far longer periods of time than for the downside which meant that dollar-cost averaging (through regular, periodic investment, for example), meant you were accumulating shares at higher prices generally for longer periods of time skewing the average cost to the upside (dollar-cost-averaging in declining markets was ok if analysis / forecast saw resurgence based on fundamentals - now absent – which is timing, as even senile wall street / gov’t shill Buffet would attest, that ‘greedy when others are fearful thing’). Abbott discusses perception which is the psychological factor involved in security evaluation / analysis; but investors need not and should become nuts themselves, particularly when as now, the inmates are running the asylum. ] Abbott ‘Perception determines short-term market movements. The difference between perception and reality determines the direction of major market trends. Though I generally try to avoid making macro prognostications, I believe bottom-up analysis can be informative about the current level of stock prices. I want to share what my recent work tells me about where stocks are (and where they might be headed). I will outline some various nuggets of collective wisdom that are taken for granted right now by stock bulls, and I will attempt to demonstrate how reality is likely to differ from these perceptions.

First, a disclaimer. This is not a market timing call. At all times, I stay away from market timing predictions. I think that's a loser's game in the long run. Even if I'm correct about the discrepancies between the following perceptions and realities, there's no saying when people will change their minds or shift their focuses. That said, let's dive in.

Perception vs. Reality #1
Perception: Low Interest Rates, Questionable Bond Outlook Means Stocks are Attractive
Reality: Interest Rates Are Being Artificially and Deliberately Manipulated

It's no secret that the Federal Reserve's low interest rate policy and quantitative easing efforts have held interest rates very low for very long. However, when people talk about stock market implications of bond yields, they rarely mention the fact that bond yields are artificially low. In an unmanipulated market, bond prices and stock valuations should be related, but I regard that connection as highly dubious right now. Investors who say that stocks deserve higher multiples (lower earnings yields) because bond yields are so low may well be setting themselves up for disappointing returns/frustrating losses when bond prices normalize. Again, this isn't a market timing call, and yields may remain low for quite some time. But, eventually this discrepancy will correct itself, and stock performance is likely to suffer at that time.

Perception vs. Reality #2
Perception: Earnings Growth Has Been Strong and Will Remain That Way
Reality: Top-Line Growth Will Have to Pick Up; Cost-Cutting has Run Its Course

Earnings growth has certainly been robust, but much of the strength has come from companies running lean cost structures and wringing as much efficiency as possible out of their employees and their assets. Though the recession has ended, the economy is not yet healthy enough to fuel strong sales growth. Companies can only boost profits by cutting costs and increasing productivity for so long. Therefore, top-line growth will have to play a larger role going forward than it has over the past 4-6 quarters. Whether or not economic growth is strong enough to drive revenue increases is unsure, but the current level of stock prices undoubtedly assumes it is. Any stagnation of the recovery and concomitant sluggish sales will likely hit stock prices.

Perception vs. Reality #3
Perception: European Debt Crisis Drives Short-Term Volatility, but It's Not a Long-Term Concern
Reality: Crisis May Be a Harbinger of What's to Come in the U.S. if States, the Feds Don't Improve Balance Sheets

So far, turmoil in Greece and Ireland has served only as a temporary headwind to U.S. stocks. In keeping with the investment world's increasingly short-term focus, people seem more concerned with what fiscal crises in Europe mean for U.S. stocks over the coming days and months than with what they might mean down the road. I believe that this interpretation misses the mark. Since the U.S. fiscal situtation is generally considered to be stronger than that in many European countries, U.S. federal and municipal debt issuance has been relatively smooth, and interest rates have only risen modestly. If the U.S. doesn't get serious about its fiscal woes, eventually the crisis will arrive on American shores. There's no way of telling when this might happen, but the current level of stock prices seems to imply that it never will.

Here's the problem with that. To fix the federal balance sheet and/or to improve state and municipal balance sheets, legislators will have to raise taxes and/or cut spending. Tax hikes and spending cuts both reduce consumer spending. This hurts growth. There's no way around this. Stocks can certainly continue to rise for some time, but austerity will be bearish if/when it comes. If it doesn't come, we're in for a much bigger crisis some time down the road.

Perception vs. Reality #4
Perception: Everywhere You Look, You See Good Companies at Cheap Prices
Reality: It's Hard to Find Genuine Bargains, but There are Intriguing Short Prospects Everywhere

There is no shortage of stock market commentators who claim that they see bargains everywhere they look. Perhaps I'm not looking in the right places, but I've been having a difficult and increasingly impossible time finding good companies at reasonable prices. I use similar criteria to assess long and short investments, and I find intriguing shorts in lots of sectors right now. This tells me that valuations are stretched. Certainly they can become more so before we get a selloff, but every day that stocks rally, they get more expensive.

I've written on Seeking Alpha about a number of stocks which I regard as expensive (CRM, OPEN, GMCR), and take my word for it: there are plenty more than these whose shares I do not want to own at present levels. A few weeks ago, I also mused about the Facebook-Goldman deal and argued that this valuation is indicative of excessive investor enthusiasm. Bargains are hard to find, and as valuations go up, so does positive sentiment. While this is not a prediction of an impending correction or bear market, it is a message of caution for people who think stocks are cheap right now.

All that said, I always try to consider both sides of any investment issue, and there are some reasons for optimism. Job growth has shown signs of improvement, and some economic data have been increasingly (though not uniformly) positive. The Federal Reserve remains accommodative, and I'm skeptical about whether or not there is political will for austerity. For these reasons, stocks could continue onward and upward. That said, I see too many reasons for caution, and investors are turning a blind eye to these concerns as their complacency rises.’



 

 

12 Economic Collapse Scenarios That We Could Potentially See In 2011 What could cause an economic collapse in 2011? Well, unfortunately there are quite a few “nightmare scenarios” that could plunge the entire globe into another massive financial crisis.
The Economic Collapse Jan 20, 2011 ‘What could cause an economic collapse in 2011? Well, unfortunately there are quite a few “nightmare scenarios” that could plunge the entire globe into another massive financial crisis.  The United States, Japan and most of the nations in Europe are absolutely drowning in debt.  The Federal Reserve continues to play reckless games with the U.S. dollar.  The price of oil is skyrocketing and the global price of food just hit a new record high.  Food riots are already breaking out all over the world.  Meanwhile, the rampant fraud and corruption going on in world financial markets is starting to be exposed and the whole house of cards could come crashing down at any time.  Most Americans have no idea that a horrific economic collapse could happen at literally any time.  There is no way that all of this debt and all of this financial corruption is sustainable.  At some point we are going to reach a moment of “total system failure”.

So will it be soon?  Let’s hope not.  Let’s certainly hope that it does not happen in 2011.  Many of us need more time to prepare.  Most of our families and friends need more time to prepare.  Once this thing implodes there isn’t going to be an opportunity to have a “do over”.  We simply will not be able to put the toothpaste back into the tube again.

So we had all better be getting prepared for hard times.  The following are 12 economic collapse scenarios that we could potentially see in 2011….

#1 U.S. debt could become a massive crisis at any moment.  China is saying all of the right things at the moment, but many analysts are openly worried about what could happen if China suddenly decides to start dumping all of the U.S. debt that they have accumulated.  Right now about the only thing keeping U.S. government finances going is the ability to borrow gigantic amounts of money at extremely low interest rates.  If anything upsets that paradigm, it could potentially have enormous consequences for the entire world financial system.

#2 Speaking of threats to the global financial system, it turns out that “quantitative easing 2″ has had the exact opposite effect that Ben Bernanke planned for it to have.  Bernanke insisted that the main goal of QE2 was to lower interest rates, but instead all it has done is cause interest rates to go up substantially.  If Bernanke this incompetent or is he trying to mess everything up on purpose?

#3 The debt bubble that the entire global economy is based on could burst at any time and throw the whole planet into chaos.  According to a new report from the World Economic Forum, the total amount of credit in the world increased from $57 trillion in 2000 to $109 trillion in 2009.  The WEF says that now the world is going to need another $100 trillion in credit to support projected “economic growth” over the next decade.  So is this how the new “global economy” works?  We just keep doubling the total amount of debt every decade?

#4 As the U.S. government and the Federal Reserve continue to pump massive amounts of new dollars into the system, the floor could fall out from underneath the U.S. dollar at any time.  The truth is that we are already starting to see inflation really accelerate and everyone pretty much acknowledges that official U.S. governments figures for inflation are an absolute joke.  According to one new study, the cost of college tuition has risen 286% over the last 20 years, and the cost of “hospital, nursing-home and adult-day-care services” rose 269% during those same two decades.  All of this happened during a period of supposedly “low” inflation.  So what are price increases going to look like when we actually have “high” inflation?

#5 One of the primary drivers of global inflation during 2011 could be the price of oil.  A large number of economists are now projecting that the price of oil could surge well past $100 dollars a barrel in 2011.  If that happens, it is going to put significant pressure on the price of almost everything else in the entire global economy.  In fact, as I have explained previously, the higher the price of oil goes, the faster the U.S. economy will decline.

#6 Food inflation is already so bad in some areas of the globe that it is setting off massive food riots in nations such as Tunisia and Algeria.  In fact, there have been reports of people setting themselves on fire all over the Middle East as a way to draw attention to how desperate they are.  So what is going to happen if global food prices go up another 10 or 20 percent and food riots spread literally all over the globe during 2011?

#7 There are persistent rumors that simply will not go away of massive physical gold and silver shortages.  Demand for precious metals has never been higher.  So what is going to happen when many investors begin to absolutely insist on physical delivery of their precious metals?  What is going to happen when the fact that far, far, far more “paper gold” and “paper silver” has been sold than has ever actually physically existed in the history of the planet starts to come out?  What would that do to the price of gold and silver?

#8 The U.S. housing industry could plunge the U.S. economy into another recession at any time.  The real estate market is absolutely flooded with homes and virtually nobody is buying.  This massive oversupply of homes means that the construction of new homes has fallen off a cliff.  In 2010, only 703,000 single family, multi-family and manufactured homes were completed.  This was a new record low, and it was down 17% from the previous all-time record which had just been set in 2009.

#9 A combination of extreme weather and disease could make this an absolutely brutal year for U.S. farmers.  This winter we have already seen thousands of new cold weather and snowfall records set across the United States.  Now there is some very disturbing news emerging out of Florida of an “incurable bacteria” that is ravaging citrus crops all over Florida.  Is there a reason why so many bad things are happening all of a sudden?

#10 The municipal bond crisis could go “supernova” at any time.  Already, investors are bailing out of bonds at a frightening pace.  State and local government debt is now sitting at an all-time high of 22 percent of U.S. GDP.  According to Meredith Whitney, the municipal bond crisis that we are facing is a gigantic threat to our financial system….

“It has tentacles as wide as anything I’ve seen. I think next to housing this is the single most important issue in the United States and certainly the largest threat to the U.S. economy.”

Former Los Angeles mayor Richard Riordan is convinced that things are so bad that literally 90% of our states and cities could go bankrupt over the next five years….

#11 Of course on top of everything else, the quadrillion dollar derivatives bubble could burst at any time.  Right now we are watching the greatest financial casino in the history of the globe spin around and around and around and everyone is hoping that at some point it doesn’t stop.  Today, most money on Wall Street is not made by investing in good business ideas.  Rather, most money on Wall Street is now made by making the best bets.  Unfortunately, at some point the casino is going to come crashing down and the game will be over.

#12 The biggest wildcard of all is war.  The Korean peninsula came closer to war in 2010 than it had in decades.  The Middle East could literally explode at any time.  We live in a world where a single weapon can take out an entire city in an instant.  All it would take is a mid-size war or a couple of weapons of mass destruction to throw the entire global economy into absolute turmoil.

Once again, let us hope that none of these economic collapse scenarios happens in 2011.

However, we have got to realize that we can’t keep dodging these bullets forever.

As bad as 2010 was, the truth is that it went about as good as any of us could have hoped.  Things are still pretty stable and times are still pretty good right now.

But instead of using these times to “party”, we should be using them to prepare.

A really, really vicious economic storm is coming and it is going to be a complete and total nightmare.  Get ready, hold on tight, and say your prayers.’

 

 



Poor Recovery: The Problem Is Institutional [ Well it’s true that the problem is institutional as in pervasively corrupt, incompetent, nonproductive in real terms relative to their cost / damage (still no pros on the wall street fraud which is ongoing in terms of the last crisis, the worthless paper marked to anything, and the current bubble fraud that’s high-frequency computerized churn-and-earn high-frequency commissioned / sold into, 360 tons of $100 bills disappear in Iraq, etc.. What do they get paid for?)  ( Peter Schiff: Washington a parasite to economy US foreclosures hit record highs in 2010, but that may not be the worst of it. 2011 may be even worse. Meanwhile, JP Morgan Chase exceeded market expectations, announcing a 47% rise in quarterly profits and released details on a $28.1 billion pay and bonus pool. Peter Schiff, the President of Euro Pacific Capital said Washington and Wall Street are becoming one force and are sucking the underlying American dry like a parasite’.); but the problem is structural, as in transfer of jobs, industries, etc. (among the sources of the huge over-compensation to wall street, company executives), never to return in any meaningful sense; and as in the defacto bankruptcy of the nation with insurmountable record debt / deficits or stated another way, broke. Unlike in the past, once beyond the propaganda, rhetoric, and smoke and mirrors / obfuscation, there is no prospective way for america to grow its way out, nor are there funds in real money with which to do it. Quite simply, america’s broke / bankrupt in every which way.   ] Loundsbury ‘Harold Meyerson, Op Ed Columnist at The Washington Post, has hit the nail right on the head, in the opinion of GEI. Meyerson says the debate about whether the recession and poor recovery is a cyclical problem or a structural problem is misguided. He says the problem is institutional - - - and is he ever right!

In a column last week, Myerson points out that the devastation of The Great Recession has fallen disproportionately on the blue collar population, those without a college degree. And he traces the rolling over of median family income in this century, not just in the downturn, but since the turn of the century. Even at the peak, in 2007, median family income was less than in 2000.

What Meyerson doesn't point out is that average incomes have faired better in the 21st century and in all of the past 50 years. In fact, average family income has risen more than 2.5 times as much and median income over the last 30 years. Why is this important? Because the more there is a fat tail of ever higher incomes for a few, the greater the difference between average and median income becomes.

Myerson says:

The great sociologist William Julius Wilson has long argued that the key to the unraveling of the lives of the African American poor was the decline in the number of "marriageable males" as work disappeared from the inner city. Much the same could now be said of working-class whites in neighborhoods that may not look like the ghettos of Cleveland or Detroit but in which productive economic activity is increasingly hard to find.

This grim new reality has yet to inform our debate over how to come back from this mega-recession. Those who believe our downturn is cyclical argue that job-creating public spending can restore us to prosperity, while those who believe it's structural - that we have too many carpenters, say, and not enough nurses - believe that we should leave things be while American workers acquire new skills and enter different lines of work. But there's a third way to look at the recession: that it's institutional, that it's the consequence of the decisions by leading banks and corporations to stop investing in the job-creating enterprises that were the key to broadly shared prosperity.

Since Meyerson has chosen income disparity as a cornerstone of his argument, let's look at how incomes have grown over the last 50 years. These are shown in the following graph, not adjusted for inflation.

click to enlarge images  [chart]

Real median income and average income seem to grow similarly in the 1950s and 1960s, the growth of average income starts to pull away in the mid-1960s and appears to continue to gain gound for the the next 40+ years. The more average income deviates from median income the more money is found in the high income tail on the distribution curve. This is often called a "fat tail", which is very appropriate in this discussion because that is where the fat cats are. The fat tail has not gotten so because ten times as many people equaled the incomes of the former fat cats, but more because a few fat cats have received 10 times the income. This is exemplified by the often quoted statistic that average CEO salaries were 40x average worker pay 50 years ago and today are more like 400x.

The change income distribution that seems to be appearing in the above graph becomes more apparent in the following graph where real income gains are shown for the last six decades starting with the ten years from 1949 - 1959 (the 1950s) and ending with 1999 - 2009 (the 2000s). [chart]

The 1950s and 60s were real boom years. Starting with the 1970s a lower level of income growth was established, but even that lower level could not be maintained in the 2000s.

After the 1950s every decade has seen average real income grow more than the median. The fat tail has gotten fatter over the past half century in every decade, without exception. Yes the average did decline in the 2000s, but the median declined 76% more!

The most dramatic pattern of change is evident when the data is divided into two halves: 1949 to 1979 and 1979 - 2009. This is done in the following graph:  [chart]

For thirty years after World War II the wealth of the country increased in a balanced manner. The average income containing the greater contribution from the top earners of the day, grew at a rate very similar to the income growth of the broader population, represented by the median.

Yes there were "fat cats" and they had significantly larger incomes than the bulk of the population. And these top incomes grew over those three decades, but at almost the same rate as the majority of the populace.

Then something happened. From 1979-2009 it appears that the American pie suddenly got smaller. In the later three decades the real median income growth was less than 10% of the rate seen from 1949 to 1979. And as the pie got smaller, the fat cats took a much larger share. The average income grew at a rate 254% that of the median income. You might say that, as the cow gave less milk, the top of the economic ladder skimmed more and more cream off the top.

Meyerson identifies the force majuere to be corporate America:

Our multinational companies still invest, of course - just not at home. A study by the Business Roundtable and the U.S. Council Foundation found that the share of the profits of U.S.-based multinationals that came from their foreign affiliates had increased from 17 percent in 1977 and 27 percent in 1994 to 48.6 percent in 2006. As the companies' revenue from abroad has increased, their dependence on American consumers has diminished. The equilibrium among production, wages and purchasing power - the equilibrium that Henry Ford famously recognized when he upped his workers' pay to an unheard-of $5 a day in 1913 so they could afford to buy the cars they made, the equilibrium that became the model for 20th-century American capitalism - has been shattered. Making and selling their goods abroad, U.S. multinationals can slash their workforces and reduce their wages at home while retaining their revenue and increasing their profits. And that's exactly what they've done.

Meyerson doesn't get into some of the other areas that might be brought to bear on the current condition of the American economy:

Part of the problem is that Americans have fallen into the way of the easiest path, where, either by credit card or by making quick trades, the desires of the moment are satisfied with no seemingly current cost.

It seems that few want to think about the needs of tomorrow. This is true starting with the masses who kiss off the idea of working hard in school to prepare for what they will need 20 years down the road. This is also true of the "capitalist" who finds that skimming a few percent off each of many deals a year to get quick, large quarterly returns is much easier than investing and building something that will will make much larger returns extending over decades and producing things of real economic utility.

There are a number of things that Meyerson does not address, but if you want to hit one nail at a time, I think he has picked the baddest nail in the plank. He finishes his column thusly:

Our economic woes, then, are not simply cyclical or structural. They are also - chiefly - institutional, the consequence of U.S. corporate behavior that has plunged us into a downward cycle of underinvestment, underemployment and under-consumption. Our solutions must be similarly institutional, requiring, for starters, the seating of public and worker representatives on corporate boards. Short of that, there will be no real prospects for reversing America's downward mobility.

If we were to address all the other issues I mentioned previously and did not address the institutional problem Meterson has identified, we would not ultimately solve our economic puzzle.’

 

 

20 Shocking New Economic Records That Were Set In 2010 2010 was quite a year, wasn’t it? 2010 will be remembered for a lot of things, but for those living in the United States, one of the main things that last year will be remembered for is economic decline…The Economic Collapse Jan 14, 2011   ‘2010 was quite a year, wasn’t it?  2010 will be remembered for a lot of things, but for those living in the United States, one of the main things that last year will be remembered for is economic decline.  The number of foreclosure filings set a new record, the number of home repossessions set a new record, the number of bankruptcies went up again, the number of Americans that became so discouraged that they simply quit looking for work reached a new all-time high and the number of Americans on food stamps kept setting a brand new record every single month.  Meanwhile, U.S. government debt reached record highs, state government debt reached record highs and local government debt reached record highs.  What a mess!  In fact, even many of the “good” economic records that were set during 2010 were indications of underlying economic weakness.  For example, the price of gold set an all-time record during 2010, but one of the primary reasons for the increase in the price of gold was that the U.S. dollar was rapidly losing value.  Most Americans had been hoping that 2010 would be the beginning of better times, but unfortunately economic conditions just kept getting worse.

So will things improve in 2011?  That would be nice, but at this point there are not a whole lot of reasons to be optimistic about the economy.  The truth is that we are trapped in a period of long-term economic decline and we are now paying the price for decades of horrible decisions.

Amazingly, many of our politicians and many in the mainstream media have declared that “the recession is over” and that the U.S. economy is steadily improving now.

Well, if anyone tries to tell you that the economy got better in 2010, just show them the statistics below.  That should shut them up for a while.

The following are 20 new economic records that were set during 2010….

#1 An all-time record of 2.87 million U.S. households received a foreclosure filing in 2010.

#2 The number of homes that were actually repossessed reached the 1 million mark for the first time ever during 2010.

#3 The price of gold moved above $1400 an ounce for the first time ever during 2010.

#4 According to the American Bankruptcy Institute, approximately 1.53 million consumer bankruptcy petitions were filed in 2010, which was up 9 percent from 1.41 million in 2009.  This was the highest number of personal bankruptcies we have seen since the U.S. Congress substantially tightened U.S. bankruptcy law several years ago.

#5 At one point during 2010, the average time needed to find a job in the United States had risen to an all-time record of 35.2 weeks.

#6 Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs. Today, only 9 percent of the jobs in the United States are manufacturing jobs, which is believed to be a new record low.

#7 The number of Americans working part-time jobs “for economic reasons” was the highest it has been in at least five decades during 2010.

#8 The number of American workers that are so discouraged that they have given up searching for work reached an all-time high near the end of 2010.

#9 Government spending continues to set new all-time records.  In fact, at the moment the U.S. government is spending approximately 6.85 million dollars every single minute.

#10 The number of Americans on food stamps surpassed 43 million by the end of 2010.  This was a new all-time record, and government officials fully expect the number of Americans enrolled in the program to continue to increase throughout 2011.

#11 The number of Americans on Medicaid surpassed 50 million for the first time ever in 2010.

#12 The U.S. Census Bureau originally announced that 43.6 million Americans are now living in poverty and according to them that was the highest number of Americans living in poverty that they had ever recorded in 51 years of record-keeping.  But now the Census Bureau says that they miscalculated and that the real number of poor Americans is actually 47.8 million.

#13 According to the FDIC, 157 banks failed during 2010.  That was the highest number of bank failures that the United States has experienced in any single year during the past decade.

#14 The Federal Reserve brought in a record $80.9 billion in profits during 2010.  They returned $78.4 billion of that to the U.S. Treasury, but the real story is that thanks to the Federal Reserve’s continual debasement of our currency, the U.S. dollar was worth less in 2010 than it ever had been before.

#15 It is projected that the major financial firms on Wall Street will pay out an all-time record of $144 billion in compensation for 2010.

#16 Americans now owe more than $881 billion on student loans, which is a new all-time record.

#17 In July, sales of new homes in the United States declined to the lowest level ever recorded.

#18 According to Zillow, U.S. housing prices have now declined a whopping 26 percent since their peak in June 2006.  Amazingly, this is even farther than house prices fell during the Great Depression.  From 1928 to 1933, U.S. housing prices only fell 25.9 percent.

#19 State and local government debt reached at an all-time record of 22 percent of U.S. GDP during 2010.

#20 The U.S. national debt has surpassed the 14 trillion dollar mark for the first time ever and it is being projected that it will soar well past 15 trillion during 2011.

There are some people that have a hard time really grasping what statistics actually mean.  For people like that, often pictures and charts are much more effective.  Well, that is one reason I like to include pictures and graphs in many of my articles, and below I have posted my favorite chart from this past year.  It shows the growth of the U.S. national debt from 1940 until today.  I honestly don’t know how anyone can look at this chart and still be convinced that our nation is not headed for a complete financial meltdown….[chart]

 

 

14 Eye Opening Statistics Which Reveal Just How Dramatically The U.S. Economy Has Collapsed Since 2007 Most Americans have become so accustomed to the “new normal” of continual economic decline that they don’t even remember how good things were just a few short years ago. ‘The Economic Collapse Jan 10, 2011

’Most Americans have become so accustomed to the “new normal” of continual economic decline that they don’t even remember how good things were just a few short years ago.  Back in 2007, unemployment was very low, good jobs were much easier to get, far fewer Americans were living in poverty or enrolled in welfare programs and government finances were in much better shape.  Of course most of this prosperity was fueled by massive amounts of debt, but at least times were better.  Unfortunately, things have really deteriorated over the last several years.  Since 2007, unemployment has skyrocketed, foreclosures have set new all-time records, personal bankruptcies have soared and U.S. government debt has gotten completely and totally out of control.  Poll after poll has shown that Americans are now far less optimistic about the future than they were in 2007.  It is almost as if the past few years have literally sucked the hope out of millions upon millions of Americans.

Sadly, our economic situation is continually getting worse.  Every month the United States loses more factories.  Every month the United States loses more jobs.  Every month the collective wealth of U.S. citizens continues to decline.  Every month the federal government goes into even more debt.  Every month state and local governments go into even more debt.

Unfortunately, things are going to get even worse in the years ahead.  Right now we look back on 2005, 2006 and 2007 as “good times”, but in a few years we will look back on 2010 and 2011 as “good times”.

We are in the midst of a long-term economic decline, and the very bad economic choices that we have been making as a nation for decades are now starting to really catch up with us.

So as horrible as you may think that things are now, just keep in mind that things are going to continue to deteriorate in the years ahead.

But for the moment, let us remember how far we have fallen over the past few years.  The following are 14 eye opening statistics which reveal just how dramatically the U.S. economy has collapsed since 2007….

#1 In November 2007, the official U.S. unemployment rate was just 4.7 percent.  Today, the official U.S. unemployment rate is 9.4 percent.

#2 In November 2007, 18.8% of unemployed Americans had been out of work for 27 weeks or longer.  Today that percentage is up to 41.9%.

#3 As 2007 began, there were just over 1 million Americans that had been unemployed for half a year or longer.  Today, there are over 6 million Americans that have been unemployed for half a year or longer.

#4 Nearly 10 million Americans now receive unemployment insurance, whichis almost four times as many as were receiving it back in 2007.

#5 More than half of the U.S. labor force (55 percent) has “suffered a spell of unemployment, a cut in pay, a reduction in hours or have become involuntary part-time workers” since the “recession” began in December 2007.

#6 According to one analysis, the United States has lost a total of approximately 10.5 million jobs since 2007.

#7 As 2007 began, only 26 million Americans were on food stamps.  Today, an all-time record of 43.2 million Americans are enrolled in the food stamp program.

#8 In 2007, the U.S. government held a total of $725 billion in mortgage debt.  As of the middle of 2010, the U.S. government held a total of $5.148 trillion in mortgage debt.

#9 In the year prior to the “official” beginning of the most recent recession in 2007, the IRS filed just 684,000 tax liens against U.S. taxpayers.  During 2010, the IRS filed over a million tax liens against U.S. taxpayers.

#10 From the year 2000 through the year 2007, there were 27 bank failures in the United States.  From 2008 through 2010, there were 314 bank failures in the United States.

#11 According to the U.S. Department of Housing and Urban Development, the number of U.S. families with children living in homeless sheltersincreased from 131,000 to 170,000 between 2007 and 2009.

#12 In 2007, one poll found that 43 percent of Americans were living “paycheck to paycheck”.  Sadly, according to a survey released very close to the end of 2010, approximately 55 percent of all Americans are now living paycheck to paycheck.

#13 In 2007, the “official” federal budget deficit was just 161 billion dollars.  In 2010, the “official” federal budget deficit was approximately 1.3 trillion dollars.

#14 As 2007 began, the U.S. national debt was just under 8.7 trillion dollars.  Today, the U.S. national debt has just surpassed 14 trillion dollars and it continues to soar into the stratosphere.

So is there any hope that we can turn all of this around?

Unfortunately, the massive amount of debt that we have piled up as a society over the last several decades has made that impossible.

If you add up all forms of debt (government debt, business debt, individual debt), it comes to approximately 360 percent of GDP.  It is the biggest debt bubble in the history of the world.

If the federal government and our state governments stop borrowing and spending so much money, our economy would collapse.  But if they keep borrowing and spending so much money they will continually make the eventual economic collapse even worse.

We are in the terminal stages of the most horrific debt spiral the world has ever seen, and when the debt spiral gets stopped the house of cards is going to finally come down for good.

So enjoy these times while you still have them.  Yes, today is not nearly as prosperous as 2007 was, but today is most definitely a whole lot better than 2015 or 2020 is going to be.

Sadly, we could have avoided this financial disaster completely if only we had listened more carefully to those that founded this nation.  Once upon a time, Thomas Jefferson said the following….

I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.’

 

 

Tipping Point: 25 Signs That The Coming Financial Collapse Is Now Closer Then Ever The financial collapse that so many of us have been anticipating is seemingly closer then ever. Over the past several weeks, there have been a host of ominous signs for the U.S. economy.

The Economic Collapse
Dec 17, 2010

The financial collapse that so many of us have been anticipating is seemingly closer then ever.  Over the past several weeks, there have been a host of ominous signs for the U.S. economy.  Yields on U.S. Treasuries have moved up rapidly and Moody’s is publicly warning that it may have to cut the rating on U.S. government debt soon.  Mortgage rates are also moving up aggressively.  The euro and the U.S. dollar both look incredibly shaky.  Jobs continue to be shipped out of the United States at a blistering pace as our politicians stand by and do nothing.  Confidence in U.S. government debt around the globe continues to decline.  State and local governments that are drowning in debt across the United States are savagely cutting back on even essential social services and are coming up with increasingly “creative” ways of getting more money out of all of us.  Meanwhile, tremor after tremor continues to strike the world financial system.  So does this mean that we have almost reached a tipping point?  Is the world on the verge of a major financial collapse?

Let’s hope not, but with each passing week the financial news just seems to get eve worse.  Not only is U.S. government debt spinning wildly toward a breaking point, but many U.S. states (such as California) are in such horrific financial condition that they are beginning to resemble banana republics.

But it is not just the United States that is in trouble.  Nightmarish debt problems in Greece, Spain, Portugal, Ireland, Italy, Belgium and several other European nations threaten to crash the euro at any time.  In fact, many economists are now openly debating which will collapse first – the euro or the U.S. dollar.

Sadly, this is the inevitable result of constructing a global financial system on debt.  All debt bubbles eventually collapse.  Currently we are living in the biggest debt bubble in the history of the world, and when this one bursts it is going to be a disaster of truly historic proportions.

So will we reach a tipping point soon?  Well, the following are 25 signs that the financial collapse is rapidly getting closer….

#1 The official U.S. unemployment rate has not been beneath 9 percent since April 2009.

#2 According to the U.S. Census Bureau, there are currently 6.3 million vacant homes in the United States that are either for sale or for rent.

#3 It is being projected that the U.S. trade deficit with China could hit 270 billion dollars for the entire year of 2010.

#4 Back in 2000, 7.2 percent of blue collar workers were either unemployed or underemployed.  Today that figure is up to 19.5 percent.

#5 The Chinese government has accumulated approximately $2.65 trillion in total foreign exchange reserves.  They have drained this wealth from the economies of other nations (such as the United States) and instead of reinvesting all of it they are just sitting on much of it.  This is creating tremendous imbalances in the global economy.

#6 Since the year 2000, we have lost 10% of our middle class jobs.  In the year 2000 there were approximately 72 million middle class jobs in the United States but today there are only about 65 million middle class jobs.

#7 The United States now employs about the same number of people in manufacturing as it did back in 1940.  Considering the fact that we had 132 million people living in this country in 1940 and that we have well over 300 million people living in this country today, that is a very sobering statistic.

#8 According to CoreLogic, U.S. housing prices have now declined for three months in a row.

#9 The average rate on a 30 year fixed rate mortgage soared 11 basis points just this past week.  As mortgage rates continue to push higher it is going to make it even more difficult for American families to afford homes.

#10 22.5 percent of all residential mortgages in the United States were in negative equity as of the end of the third quarter of 2010.

#11 The U.S. monetary base has more than doubled since the beginning of the most recent recession.

#12 U.S. Treasury yields have been rising steadily during the 4th quarter of 2010 and recently hit a six-month high.

#13 Incoming governor Jerry Brown is scrambling to find $29 billion more to cut from the California state budget.  The following quote from Brown about the desperate condition of California state finances is not going to do much to inspire confidence in California’s financial situation around the globe….

“We’ve been living in fantasy land. It is much worse than I thought. I’m shocked.”

#14 24.3 percent of the residents of El Centro, California are currently unemployed.

#15 The average home in Merced, California has declined in value by 63 percent over the past four years.

#16 Detroit Mayor Dave Bing has come up with a new way to save money.  He wants to cut 20 percent of Detroit off from essential social services such as road repairs, police patrols, functioning street lights and garbage collection.

#17 The second most dangerous city in the United States – Camden, New Jersey – is about to lay off about half its police in a desperate attempt to save money.

#18 In 2010, 55 percent of Americans between the ages of 60 and 64 were in the labor market.  Ten years ago, that number was just 47 percent.  More older Americans than ever find that they have to keep working just to survive.

#19 Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China’s share had soared to 20 percent.

#20 The U.S. government budget deficit increased to a whopping $150.4 billion last month, which represented the biggest November budget deficit on record.

#21 The U.S. government is somehow going to have to roll over existing debt and finance new debt that is equivalent to 27.8 percent of GDP in 2011.

#22 The United States had been the leading consumer of energy on the globe for about 100 years, but this past summer China took over the number one spot.

#23 According to an absolutely stunning new poll, 40 percent of all U.S. doctors plan to bail out of the profession over the next three years.

#24 As 2007 began, there were just over 1 million Americans that had been unemployed for half a year or longer.  Today, there are over 6 million Americans that have been unemployed for half a year or longer.

#25 All over the United States, local governments have begun instituting “police response fees”.  For example, New York Mayor Michael Bloomberg has come up with a plan under which a fee of $365 would be charged if police are called to respond to an automobile accident where no injuries are involved.  If there are injuries as a result of the crash that is going to cost extra.

 

 

 

 

16 Nightmarish Economic Trends To Watch Carefully In 2011    The American Dream Dec 15, 2010 ‘If you only watch the “economic pundits” on television, it can be very confusing to figure out exactly what is happening with the U.S. economy.  One pundit will pull out a couple statistics that got a little bit better over the past month and claim that we have entered a time of solid recovery.  Another pundit will pull out a couple statistics that got a little worse over the past month and claim that we are headed for trouble.  So what is the truth?  Well, if you really want to get a clear idea of what is really going on you have to look at the long-term trends.  There are some economic trends which just keep getting worse year after year after year, and it is those trends that tell the real story of the decline of our economic system.

As you examine the long-term trends, you quickly come to realize that the U.S. is trapped in an endless spiral of debt, the middle class is being wiped out, the U.S. dollar is being destroyed and America is rapidly becoming a post-industrial wasteland.

Posted below are 16 nightmarish economic trends to watch carefully in 2011.  It is becoming exceedingly apparent that unless something is done rapidly we are heading for an economic collapse of unprecedented magnitude….

#1 Do you want to see something scary?  Just check out the chart below.  Since the beginning of the economic downturn, the U.S. monetary base has more than doubled.  But don’t worry – Federal Reserve Chairman Ben Bernanke has promised us that this could never cause inflation.  In fact, Bernanke says that we need to inject even more dollars into the economy.  So if you are alarmed by the chart below, you are just being irrational according to Bernanke….

[chart]

#2 Thousands of our factories, millions of our jobs and hundreds of billions of dollars of our national wealth continue to be shipped overseas.  In 1985, the U.S. trade deficit with China was 6 million dollars for the entire year.  In the month of August alone, the U.S. trade deficit with China was over 28 billion dollars.  Nobel economist Robert W. Fogel of the University of Chicago is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040 if current trends continue.

#3 The United States is rapidly becoming a post-industrial wasteland.  Back in 1959, manufacturing represented 28 percent of all U.S. economic output.  In 2008, it represented only 11.5 percent and it continues to fall.  Sadly, the truth is that America is being deindustrialized.  As of the end of 2009, less than 12 million Americans worked in manufacturing.  The last time that less than 12 million Americans were employed in manufacturing was in 1941.

#4 The number of Americans that have been out of work for an extended period of time has absolutely exploded over the last few years.  As 2007 began, there were just over 1 million Americans that had been unemployed for half a year or longer.  Today, there are over 6 million Americans that have been unemployed for half a year or longer.

#5 The middle class continues to be squeezed out of existence.  According to a poll taken in 2009, 61 percent of Americans ”always or usually” live paycheck to paycheck.  That was up substantially from 49 percent in 2008 and 43 percent in 2007.

#6 The number of Americans living in poverty is absolutely skyrocketing.  42.9 million Americans are now on food stamps, and one out of every six Americans is now enrolled in at least one anti-poverty program run by the federal government.  Unfortunately, many of those that have been hardest hit by this economic downturn have been children.  According to one new study, approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years.

#7 Many American families have been pushed beyond the breaking point during this economic downturn.  Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008.  The final number for 2010 is expected to be even higher.

#8 The U.S. real estate market continues to stagnate.  During the third quarter of 2010, 67 percent of mortgages in Nevada were “underwater”, 49 percent of mortgages in Arizona were “underwater” and 46 percent of mortgages in Florida were “underwater”.  So what happens if home prices go down even more?

#9 More elderly Americans than ever are being forced to put off retirement and continue working.  In 2010, 55 percent of Americans between the ages of 60 and 64 were in the labor market.  Ten years ago, that number was just 47 percent.  Unfortunately, it looks like this problem will only get worse in the years ahead.  In America today, approximately half of all workers have less than $2000 saved up for retirement.

#10 In the United States today, there are simply far too many retirees and not nearly enough workers to support them.  Back in 1950 each retiree’s Social Security benefit was paid for by 16 workers.  Today, each retiree’s Social Security benefit is paid for by approximately 3.3 workers.  By 2025 it is projected that there will be approximately two workers for each retiree.

#11 Financial assets continue to become concentrated in fewer and fewer hands.  For example, the “big four” U.S. banks (Citigroup, JPMorgan Chase, Bank of America and Wells Fargo) had approximately 22 percent of all deposits in FDIC-insured institutions back in 2000.  As of the middle of 2009 that figure was up to 39 percent.

#12 The Federal Reserve has been destroying the value of the U.S. dollar for decades.  Since the Federal Reserve was created in 1913, the U.S. dollar has lost over 95 percent of its purchasing power.  An item that cost $20.00 in 1970 would cost you $112.35 today.  An item that cost $20.00 in 1913 would cost you $440.33 today.

#13 Commodity prices continue to soar into the stratosphere.  Ten years ago, the price of a barrel of oil hovered around 20 to 30 dollars most of the time.  Today, the price of oil is rapidly closing in on 100 dollars a barrel and there are now fears that it could soon go much higher than that.

#14 Federal government spending is completely and totally out of control.  The U.S. government budget deficit increased to a whopping $150.4 billion last month, which represented the biggest November deficit on record.  But our politicians can’t seem to break their addiction to debt.  In fact, Democrats are trying to ram through a 1,924 page, 1.1 trillion dollar spending bill in the final days of the lame-duck session of Congress before the Republicans take control of the House of Representatives next year.

#15 The U.S. national debt is rapidly closing in on 14 trillion dollars.  It is more than 13 times larger than it was just 30 short years ago.  According to an official U.S. Treasury Department report to Congress, the U.S. national debt is projected to climb to an estimated $19.6 trillion by 2015.

#16 Unfortunately, the official government numbers grossly understate the horrific nature of the crisis we are facing.  John Williams of Shadow Government Statistics has calculated that if the federal government would have used GAAP accounting standards to measure the federal budget deficit for 2009, it would have been approximately 8.8 trillion dollars.  Not only that, but John Williams now says that U.S. government debt is so wildly out of control that it is mathematically impossible for us to “grow” our way out of it….

The government’s finances not only are out of control, but the actual deficit is not containable.  Put into perspective, if the government were to raise taxes so as to seize 100% of all wages, salaries and corporate profits, it still would be showing an annual deficit using GAAP accounting on a consistent basis.  In like manner, given current revenues, if it stopped spending every penny (including defense and homeland security) other than for Social Security and Medicare obligations, the government still would be showing an annual deficit. Further, the U.S. has no potential way to grow out of this shortfall.

The more one examines the U.S. economic situation, the more depressing it becomes.  The U.S. financial system is trapped inside a horrific debt spiral  and we are headed straight for economic oblivion.

If our leaders attempt to interrupt the debt spiral it will plunge our economy into a depression.  If our leaders attempt to keep the debt spiral going for several more years it will just make the eventual crash even worse.  Either way, we are headed for a financial implosion that will be truly historic.

The debt-fueled good times that we have been enjoying for the last several decades are rapidly coming to an end.  Unfortunately for the tens of millions of Americans that are already suffering, our economic problems are only going to get worse in the years ahead.’

 

 

 

 

Jobless Recovery?: 25 Unemployment Statistics That Are Almost Too Depressing To Read ‘… Unemployment is up again! That’s right – even though Wall Street is swimming in cash and the Obama administration is declaring that “the recession is over”, the U.S. unemployment rate has gone even higher. So are you enjoying the jobless recovery? Economic Collapse Blog Dec 4, 2010 ‘Guess what?  Unemployment is up again!  That’s right – even though Wall Street is swimming in cash and the Obama administration is declaring that “the recession is over”, the U.S. unemployment rate has gone even higher ... Times are really, really tough and unfortunately the long-term outlook is very bleak.  We should have compassion on those who are out of work right now, because soon many of us may join them.

The following are 25 unemployment statistics that are almost too depressing to read….

#1 According to the Bureau of Labor Statistics, the U.S. unemployment rate for November was 9.8 percent.  This was up from 9.6 percent in October, and it continues a trend of depressingly high unemployment rates.  The official unemployment number has been at 9.5 percent or higher for well over a year at this point.

#2 In November 2006, the “official” U.S. unemployment rate was just 4.5 percent.

#3 Most economists had been expecting the U.S. economy to add about 150,000 jobs in November.  Instead, it only added 39,000.

#4 In the United States today, there are over 15 million people who are “officially” considered to be unemployed for statistical purposes.  But everyone knows that the “real” number is even much larger than that.

#5 As 2007 began, there were just over 1 million Americans that had been unemployed for half a year or longer.  Today, there are over 6 million Americans that have been unemployed for half a year or longer.

#6 The number of “persons not in the labor force” in the United States recently set another new all-time record.

#7 It now takes the average unemployed American over 33 weeks to find a job.

#8 When you throw in “discouraged workers” and “underemployed workers”, the “real” unemployment rate in the state of California is actually about 22 percent.

#9 In America today there are not nearly enough jobs for everyone.  In fact, there are now approximately 5 unemployed Americans for every single job opening.

#10 According to The New York Times, Americans that have been unemployed for five weeks or less are three times more likely to find a new job in the coming month than Americans that have been unemployed for over a year.

#11 The U.S. economy would need to create 235,120 new jobs a month to get the unemployment rate down to pre-recession levels by 2016.  Does anyone think that there is even a prayer that is going to happen?

#12 There are 9 million Americans that are working part-time for “economic reasons”.  In other words, those Americans would gladly take full-time jobs if they could get them, but all they have been able to find is part-time work.

#13 In 2009, total wages, median wages, and average wages all declined in the United States.

#14 As of the end of 2009, less than 12 million Americans worked in manufacturing.  The last time that less than 12 million Americans were employed in manufacturing was in 1941.

#15 The United States has lost at least 7.5 million jobs since the recession began.

#16 Today, only about 40 percent of Ford Motor Company’s 178,000 workers are employed in North America, and a big percentage of those jobs are in Canada and Mexico.

#17 In 1959, manufacturing represented 28 percent of U.S. economic output.  In 2008, it represented 11.5 percent.

#18 Earlier this year, one poll found that 28% of all American households had at least one member that was looking for a full-time job.

#19 In the United States today, over 18,000 parking lot attendants have college degrees.

#20 The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

#21 As the employment situation continues to stagnate, millions of American families have decided to cut back on things such as insurance coverage.  For example, the percentage of American households that have life insurance coverage is at its lowest level in 50 years.

#22 Unless Congress acts, and there is no indication that is going to happen, approximately 2 million Americans will stop receiving unemployment checks over the next couple of months.

#23 A poll that was released by the Pew Research Center back in June discovered that an astounding 55 percent of the U.S. labor force has experienced either unemployment, a pay decrease, a reduction in hours or an involuntary move to part-time work since the economic downturn began.

#24 According to Richard McCormack, the United States has lost over 42,000 factories (and counting) since 2001.

#25 In the United States today, 317,000 waiters and waitresses have college degrees.

But this is what we get for creating the biggest debt bubble in the history of the world.  For decades we have been digging a deeper hole for ourselves by going into increasingly larger amounts of debt.  In America today, our entire economy is based on debt.  Even our money is debt.  We were fools if we ever thought this could go on forever. Just think about it.  Have you ever gone out and run up a bunch of debt?  It can be a lot of fun sitting behind the wheel of a new car, running your credit cards up to the limit and buying a beautiful big house that you cannot afford. But in the end what happens? It always catches up with you. Well, our collective debt is starting to catch up with us.  There is a sea of red ink on every level of American society.  It is only a matter of time before it destroys our economy. IF YOU THINK THAT THINGS ARE BAD NOW, JUST WAIT.  THINGS ARE GOING TO GET A WHOLE LOT WORSE.  A HORRIFIC ECONOMIC COLLAPSE IS COMING, AND IT IS GOING TO BE VERY, VERY PAINFUL.’




Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"   11-25-10  The U.S. economy "is a complete disaster," Howard Davidowitz declared here in July, the most recent in a string of dire predictions from Tech Ticker's most entertaining guest.On the eve of Thanksgiving, I asked Davidowitz if he had any regrets, or was ready to throw in the towel given recent signs of economic revival. Are you kidding me? "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."As with the economy, Davidowitz is unwaveringly consistent in his views on President Obama, calling him "deranged, dysfunctional and discredited."Results of the midterm election show "the people of this country think we are in a catastrophe," he says. "I'm with them."Check the accompanying video for more of Howard's unfettered opinions and stay tuned for additional clips from this interview. And...Happy Thanksgiving! Aaron Task is the host of Tech Ticker. You can follow him on Twitter at @atask or email him at [email protected]

 

 

 

Timid Tuesday: Is it Safe?   Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘

 

 


 

 

 17 Things Worrying Investors   Lloyd's Wall of Worry
 
Worry Count: 17


CHINA: 1,330,044,605 people can’t be wrong.

The PIIGS: Fasten your seatbelts. It’s gonna be a long, bumpy, expensive, weird, (insert your own adjective here) freak show of a ride.

CALIFORNIA AND THE OTHER 49 STATES: Not yet as dire as “The PIIGS”. Might I suggest the classier moniker of “The Prosciuttos” for the American basket-case states?

QE II: Gobble?

U.S. ECONOMY: The “Punky Brewster” of the global economic landscape.

UNEMPLOYMENT: Only thing worse than losing your job, losing your unemployment check. At least there’s the holiday season to cheer everyone up (read: heavy sarcasm).

TAXES: Praying to the Financial Market Gods that we don’t have another TARP-like vote fiasco.

OBAMA ADMINISTRATION PART II: Still two years before the Pres. election and the peanut gallery is already pleading for a Hail Mary Pass to get them back in the game.

HFT: Instead of beating up these liquidity supplying traders, let’s honor them with their very own stock exchange. But wait -- with no retail saps to pick-off they will never get that Day 1 opening bell tick. Perfect.

XMAS 2010: As my professor friend Nick says, “Nowadays Americans are dining off of two menus – The Million Dollar and the $0.99 Cent.” And both are pissed about it.

CURRENCIES: Poor Mr. Greenback. Does someone need a hug?

HOUSING CRISIS: Price Stabilization – Are we there yet? Just a little bit more. Are we there yet? Just a little bit more. Are we there yet? Just a little bit more….

INFLATION/DEFLATION: Fed Chief Ben B. comes out swinging from his heels in defense of inflation promotion. Don’t punch yourself out as this one is likely to go the distance.

COMMODITIES: Corrected but still sky high; fortunately these prices are only affecting core, basic, life-sustaining necessities and sparing our electronic gadgets and plus-sized SUVs. Whew!

INSIDER TRADING: Another black eye for Hedge Funds. I estimate that makes black eye number 6,597.

INTEREST RATES: South Korea and China slowly turning up the dial to “11”. On the other hand the U.S. has removed the dial altogether. This never ends well….

NORTH KOREA: Here we go again. (and now Egypt, etc.)




Consumer confidence down,
LiveLeak.com - Loonie closes above U.S. dollar  dollar for first time closes below parity on Canadian loonie … hey, hey, hey …      'Huge' stock decline — but not yet  MarketWatch  -  Brimelow ‘Commentary: Adens … ‘mega trend’ looks grim … The Adens expect a hyperinflationary collapse … ‘ Oh come on! Manipulated dollar decline with inflated earnings, stock prices thereby, etc., … we’ve seen this all before … the last few crashes …  Jobless rate jumps to 9.8% as hiring slows (Washington Post) [  The reality is not a mystery! The nation’s been thrown under the bus for the greater good (wealth) of the very few (frauds on wall street, etc.);  wall street giving out record bonuses from their accomplished fraud (with no-recession b.s. bernanke help) of $144 BILLION: Come on! This is gettin’ even more downright ridiculous (if that’s even possible)! Pending home foreclosure / distress sales up, oil prices (and oil stocks) up, debased dollar down, plus a little familiar ‘better than expected’ thrown in along with prospects of a ‘no-recession bernanke’ market-frothing bull session on 60 minutes and, voila, suckers’ rally into the close to keep the suckers suckered! What’s good for the frauds on wall street is bad for just about everyone else which includes the vast majority of people and businesses, domestically and globally, as current dollar manipulation / debasement ultimately results in higher costs and loss of purchasing power (ie., oil, etc.). Clearly, this is one of those fraudulent wealth transfers to the frauds on wall street et als which will ultimately be paid for by those who least are in a position to afford it, courtesy of the ever more worthless Weimar dollar, etc., inflating earnings, eps, lowering p/e multiples, etc., see infra. This is an especially great time to sell / take profits while you can since there's much worse to come! Previous: Rosy numbers on consumer sentiment, unemployment (far better than private forecasts) from the government prior to the holiday so-called ‘shop till you drop’? How can anyone believe anything they say? Najerian interviewed by Motek chimes in with the reason for good retail cheer; viz., people have stopped paying their mortgages and are using the funds to purchase retail goods; while Davidowitz adds that with record numbers of americans on food stamps, real unemployment at 17+, and wall street giving out record bonuses from their accomplished fraud (with no-recession b.s. bernanke help) of $144 BILLION …  the high end stores / jewelers will do well … daaaaah! And, with insiders and wall street frauds selling into the bubble as preceded last crash, this is an especially great opportunity to sell / take profits! Suckers’ rally on light volume, full moon, and government complicity (false data / reports) to keep suckers suckered (easy for the wall street frauds to do with just a mouse click / push of the button – and, they know all those technical trade lines that are easy to program in this current phase of the scam/fraud with the debased dollar). Keep in mind, the totally mindless blather from the ‘cottage industries’ of and fraudulent wall street itself in talking up lower P/E multiples when the same is a direct result of the debasement of the dollar and the consequent manipulation / translation (not real, see Davis, infra) which preceded the financial crisis / last crash. Unemployment, trade, deficit, etc., numbers continue decidedly worse than expected along with other negative data (and in the ‘wrong direction’, that spin accorded ‘down but not as bad as before’ b*** s*** ) yet the market has rallied like no tomorrow with used home foreclosure / distressed sales, though abated owing to ‘foreclosuregate’, the other ‘heralded’ good news.  Moreover, the dumbo lemmings of Europe have jumped on the fraudulent defacto bankrupt american crazy train propelled to the precipice also as if no tomorrow. This is about keeping the suckers sucked in with the help of a market-frothing pre-election debased dollar for favorable currency translation and paper (but not real when measured in, ie., gold, etc.) profits which preceded the last crisis, inflating a bubble as in the last crisis to facilitate the churn-and-earn, particularly with computerized (and high frequency) trades and which commissions they’ll get again on the way down. There is nothing to support these overbought stock prices, fundamentally or otherwise. These are desperate criminals ‘at work’. Even wall street shill, the senile Buffett is saying we’re still in a recession (depression) [ Davis: ‘… all profits are inflated by 10% (from falling, debased dollar) and that 10% is the E that gets divided from the P and gives us a much better price/multiple to hang our hats on and that gets investors to BUYBUYBUY …’  The bull market that never was / were  beyond wall street b.s. when measured in gold     ]   This is a great opportunity to sell / take profits (these lower dollar, hyperinflationary currency manipulations / translations to froth paper stocks will end quite badly as in last crash)!  This is a global depression. This is a secular bear market in a global depression. The past up moves were manipulated bull (s***) cycles (at best) in a secular bear market. This has been a typically manipulated bubble as has preceded the prior crashes with great regularity that the wall street frauds and insiders commission and sell into. This is a typical wall street ‘programmed computerized high-frequency churn and earn pass the hot potato scam / fraud as in prior crashes  ( widely reported, high-frequency trading routinely accounts for more than 50% of daily U.S. equity trading volume and regularly approaches 70%.  )’. This national decline, economic and otherwise, will not end until justice is served and the wall street frauds et als are criminally prosecuted, jailed, fined, and disgorgement imposed.The Stock Market's Long Decline Has Begun Smith ] 

 

 

 

 

Chinese Demand For Gold “Explosive” According to an executive of Industrial and Commercial Bank of China, the world’s largest bank by market value, demand in China for physical gold and gold-related investments is growing at an “explosive” pace and its appetite for the yellow metal is poised to remain robust amid inflation concerns, reports Reuters.

 

Analyst: Oil Will Hit $300 in a Decade, Regardless of Egypt Read more: Analyst: Oil Will Hit $300 in a Decade, Regardless of Egypt Weeden & Co. oil analyst Charles Maxwell says oil prices are bound to move steadily higher during the next decade, eventually hitting $300 a barrel, regardless of whatever happens in Egypt.

 

47 Statistics That Indicate That Economic Stress Points In 2011 Could Be Setting The Stage For A Global Economic Meltdown In 2012 Is the world approaching a devastating global economic meltdown? Right now there are a large number of factors that are creating economic stress points all over the globe.‘The American Dream Feb 16, 2011 Is the world approaching a devastating global economic meltdown?  Right now there are a large number of factors that are creating economic stress points all over the globe.  All of the crazy money printing that the Federal Reserve and other central banks have been doing is putting inflationary pressure on agricultural commodities, oil and precious metals.  Massive floods, horrific droughts and extreme weather patterns all over the globe are ruining crops and creating food shortages.  Some nations are now actually hoarding food, and in other nations rising prices have sparked food riots.  The price of oil has been moving back towards $100 a barrel, and if it stays at a high level for an extended period of time that is going to have very serious consequences for the global economy.  In addition, the growing sovereign debt crisis could erupt again at any time.  Half a dozen nations in Europe are on the verge of insolvency, Japan’s national debt is now well over 200 percent of GDP, and the global financial system is growing increasingly concerned about the exploding national debt of the United States.  The truth is that the entire world financial system is a house of cards balanced on a razor’s edge and it could come down at any time.

Sadly, very little has changed since the world financial system experienced almost a complete meltdown back in 2008.  Global financial markets are still a whirlpool of debt and speculation.  One really bad week could put us right back where we were prior to the infamous Wall Street bailouts.  Very little in our world is truly stable anymore.  As we have seen recently in Egypt, the globe can literally change almost overnight.  All it would take is for one really bad event to happen and world financial markets would instantly start imploding.

So when will the coming economic collapse happen?  Nobody knows for sure, but the fact that the global economy is increasingly becoming less stable as we approach the year 2012 is making a lot of people very nervous.

The following are 47 statistics that indicate that economic stress points in 2011 could be setting the stage for a global economic meltdown in 2012….

#1 According to the United Nations, global food prices set a new all-time record during the month of January.

#2 In early February the worst freeze in 60 years wiped out entire crops all across the southwestern U.S. and northern Mexico.  Already, it has been reported that some U.S. supermarkets have doubled or even tripled prices for certain produce items.

#3 It is being reported that due to the recent horrible freeze in Mexico cases of tomatoes that would usually cost shop owners between 12 and 15 dollars are now going for up to $40.

#4 One of China’s key agricultural provinces is facing its worst drought in 200 years.

#5 The Food and Agriculture Organization says that up to two-thirds of China’s wheat crop could be at risk of failing due to weather conditions.

#6 Officials in Mexico are estimating that four million tons of corn have been lost because of the recent freeze.  That represents a full 16 percent of Mexico’s annual corn harvest.

#7 The price of corn has doubled over the last six months and it recently hit a new all-time high.

#8 The U.S. Department of Agriculture has announced that corn supplies are the tightest that they have been in 15 years.

#9 It appears that Chinese imports of corn will be about 9 times larger than the U.S. Department of Agriculture originally projected them to be for 2011.

#10 The price of wheat has more than doubled over the past year and it hit a 30-month high on Monday.

#11 In the event of a global catastrophe, current global stockpiles of wheat would only be able to feed the world for 82 days.

#12 According to Forbes, the price of soybeans is up about 50% since last June.

#13 The price of cotton has more than doubled over the past year.

#14 The commodity price of orange juice has doubled since 2009.

#15 The price of sugar is the highest it has been in 30 years.

#16 The United Nations is projecting that the global price of food will increase by another 30 percent by the end of 2011.

#17 In the U.K., the official rate of inflation is now twice as high as the target rate of inflation.

#18 Inflation in China is starting to get out of control.  For example, food prices in China rose 10.3 percent during the month of January.

#19 Almost 14 percent of all credit card accounts in the United States are currently 90 days or more delinquent.

#20 New home sales in the state of California were at the lowest level ever recorded in the month of January.

#21 According to the U.S. Bureau of Labor Statistics, the number of job openings in the United States declined for a second straight month during December.

#22 Average household debt in the United States has now reached a level of 136% of average household income.

#23 It is estimated that there are about 5 million homeowners in the United States that are at least two months behind on their mortgages, and it is being projected that over a million American families will be booted out of their homes this year alone.

#24 Today, 46% of all Americans carry a credit card balance from month to month.

#25 700,000 Americans have signed up for a credit card that has interest rates that go as high as 59.9%.

#26 Americans now owe more than $889 billion on student loans, which is even more than they owe on credit cards.

#27 The FDIC is “insuring” U.S. bank deposits that total 5.4 trillion dollars with a deposit insurance fund that is currently sitting at approximately negative 8 billion dollars.

#28 The Social Security trust fund will run a deficit of 56 billion dollars this year.  Just a couple of years ago government planners were promising that we would not have any Social Security deficits until at least 2016 or 2017.

#29 When you adjust wages for inflation, middle class workers in the United States make less money today than they did back in 1971.

#30 4.2 million Americans have been unemployed for one year or longer at this point.

#31 The number of Americans that have become so discouraged that they have given up searching for work completely now stands at an all-time high.

#32 According to a recent Gallup poll, 35 percent of Americans believe that unemployment is currently the most important problem in the United States.  Another 29 percent believe that the economy is currently our biggest problem.

#33 Gallup also says that 19.6 percent of the workforce in America is currently either unemployed or underemployed.

#34 The U.S. government says that 504,000 Americans “dropped out of the labor force” in January.

#35 The Obama administration is projecting that the federal budget deficit will be 1.65 trillion dollars for fiscal 2011.

#36 It is estimated that the total U.S. national debt will be greater than 100 percent of GDP by the end of this fiscal year.

#37 The U.S. government relies on foreign nations such as China and Japan to finance 40 percent of all new government debt.

#38 State and local government debt is now sitting at an all-time high of 22 percent of U.S. GDP.

#39 The Chinese are now hoarding gold like there is no tomorrow.  In fact, Chinese demand for gold has now risen to approximately 25% of total global production.

#40 According to a recent report from the World Economic Forum, the world is going to need another $100 trillion in credit to support projected “economic growth” over the next decade.

#41 According to the U.S. Conference of Mayors, visits to soup kitchens are up 24 percent over the past year.

#42 One out of every seven Americans is now on food stamps.

#43 One out of every six elderly Americans now lives below the federal poverty line.

#44 During the last school year, almost half of all school children in the state of Illinois came from families that were considered to be “low-income”.

#45 According to a survey released very close to the end of 2010, 55 percentof all Americans are now living paycheck to paycheck.  A major economic downturn could quickly wipe out millions of families.

#46 Gasoline prices in the United States are now the highest that they have ever been in the middle of February.

#47 Faith in our economic system continues to decline.  According to one new report, only 26 percent of Americans now trust the U.S. financial system.’

 

 

World Bank President Zoellick Says Surging Food Prices Have Pushed 44 Million People Into Extreme Poverty Countries in Latin America and Africa, including Bolivia and Mozambique, are most at risk of food riots as prices advance, the United Nations reported.



 

(2-16-11) Dow  12,288  +61  Nasdaq  2,825  +21   S&P 500  1,336  +8   [CLOSE- OIL $88  (-54% for year 2008) (RECORD TRADING HIGH $147.27) GAS $3.11 (reg. gas in LAND OF FRUITS AND NUTS  $3.35 REG./ $3.53 MID-GRADE/ $3.62 PREM./ $3.68  DIESEL) /  GOLD $1,378 (+24% for year 2009) / SILVER $30.69  (+47% for year 2009) PLATINUM $1,829 (+56% for year 2009)  Metal News for the Day    / DOLLAR= .73 EURO, 83 YEN, .62 POUND STERLING, ETC. (How low can you go - LOWER)/  http://www.federalreserve.gov/releases/h15/update      10 YR NOTE YIELD 3.62%        …..…     AP Business Highlights                          ...Yahoo Market Update...                    T. Rowe Price Weekly Recap – Stocks / Bonds / Currencies -  Domestic / International                          This Is a Secular Bear Market and The End of Buy and Hold … and Hope      MARKET MANIPULATION AND HOW THE LATEST BUBBLE-FRAUD PRE-COMING CRASH IS BEING ACCOMPLISHED 3-11-10      6 Theories On Why the Stock Market Has Rallied  3-9-10 [archived website file]     Risks Lurk for ETF Investors        The bull market that never was/were  beyond wall street b.s. when measured in gold             Property Values Projected to Fall 12% in 2010 Jan 31, 2010           The Week Ahead: Risk Is Off the Cliff; Unwind Has Begun Jan 31, 2010     01-13-10 Forecast for 2010 from Seeking Alpha Contributor     THE COMING MARKET CRASH / CORRECTION   1-28-10 Maierhofer          (01-15-10) 11 Clear Signs Economy Sinking     Economic Black Hole 1-22-10: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not Going To Recover     Current Economic / Fiscal Charts         Trendsresearch.com forecast for 2009          1-7-10 Crash is coming!          ‘WORST ECONOMIC COLLAPSE EVER’       Must Read Economic / Financial Data                      This Depression is just beginning     The coming depression…  thecomingdepression.net     MUST READ: JEREMY GRANTHAM’S QUARTERLY UPDATE 25 January 2010 (850 on the S&P) by TPC       The Next Wave of Collapse is Coming Sooner than you think       Sliding Back Into the Great Depression  ABSOLUTELY, ABSURDLY, RIDICULOUS! SELL / TAKE PROFITS WHILE YOU CAN SINCE MUCH, MUCH WORSE TO COME!  

 

 

 

 

National / World

 

 

 

‘Fox News Caught’ at #1 trend after Ron Paul hoax Infowars | Search exposing Fox News-CPAC dirty trick tops Google trends.

 

Kill Switch Beta: Government Blocks 84,000 Websites Kurt Nimmo | Sites were taken offline in calculated fashion in order to send a message.

 

Report Vindicates Questions In Anthrax Conspiracy Steve Watson | Independent panel finds that science linking Ivins to government anthrax spores was inconclusive.

 

V for Victory Continues to Draw Strong Submissions Infowars.com | Flood of submissions show a wide variety of creativity and dedication to spreading the word of liberty.

 

The Takedown of Hosni Mubarak The Alex Jones Channel | Why has the media left untouched the mystery of Mubarak’s reported coma coinciding with his sudden departure?

 

 

Hillary Announces Expanded US Cyber-Coup Campaign Tarpley.net | Wikileaks is Cass Sunstein’s “cognitive infiltration” project.

 

 

 

Poll: Majority of Republicans Doubt Obama’s Birthplace Roll Call | A slim majority of Republicans still disbelieve Obama was born in the U.S.

 

 

 

 

 

 

‘Cheney Stand Down Order’ #1 on Google Trends Infowars | Search term about Dick Cheney’s 9/11 actions reaches top of Google.

 

The Suez Canal Workers Stage Sit-in as U.S. Warships Dispatched Kurt Nimmo | Military in control of government has vowed to not allow labor strikes to paralyze the world’s most populous Arab nation.

TSA Workers Admit To Stealing Huge Amounts Of Cash From Passengers Steve Watson & Paul Watson | It has been revealed that TSA workers admit to stealing cash and possessions from passengers.

 

WeAreChange Confronts Dick Cheney on 9/11 Standdown Order Aaron Dykes | Activist group confronts former vice president Dick Cheney about inconsistencies in 9/11 testimony and actions in PEOC bunker. ‘Infowars.comFebruary 15, 2010The testimony of Norman Mineta before the 9/11 Commission leaves compelling questions about former Vice President Dick Cheney’s actions on the day of 9/11. Then Transportation Secretary Mineta witnessed Cheney refuse to contradict an apparent standdown order as an aide warned of something incoming at the Pentagon. Cheney has given conflicting reports about what time he entered the PEOC bunker. Mineta later confirmed his suppressed 9/11 Commission testimony and refuted Cheney’s account of arriving later.During the CPAC conference, WeAreChange.org confronted Cheney about these questions, which he refused to address.“Hey Mr. Cheney, what did you do in the underground bunker on 9/11? Dick Cheney we know what you did on 9/11 with the standdown order. Norman Mineta testified against you on the 9/11 Commission report. What happened on 9/11?”When he was being forced out, WeAreChange.org founder Luke Rudkowski calmly asked security not to push him; security backed off after asking him, ‘Are you being polite?’
Luke Rudkowski and James Lane of We Are Change confront Dick Cheney in Washington D.C. at CPAC 2/10/2011.
WeAreChangeOklahoma – Newt Gingrich and Dick Cheney (CPAC 2011)
Chairman of the Joint Chiefs of Staff Instruction 3610.01A issued June 1, 2001 on “Aircraft Piracy (Hijacking) and Destruction of Derelict Airborne Objects
(Click each document for a larger image)

Cheney dodged the continuing questions by exiting with his entourage into an elevator. As a woman started repeating “Thank you Mr. Cheney for all you’ve done,” Rudkowski interjected that he was a ‘terrorist.’ Certainly, the use of admittedly elevated terror alerts throughout the Bush administration to stoke the fear card and score political dominion alone is reason to justify this label. The implications of what really happened on 9/11, and in relation to Cheney’s apparent standdown order, is even more compelling. Notably, a change in the standard operating procedure for the chain of command during the event of a hijacked aircraft was changed in June 2001, including subjecting NORAD’s response to DoD approval (SEE BELOW).
The former Vice President’s re-entry into the public limelight, after years of dealing with heart issues, is what appears to be an attempt to re-brand the Bush Administration in time to retain neo-con power in the coming GOP presidential primary field, where tea party politics and candidates like Ron Paul have obviously taken root with conservative voters in the years of the Obama administration. This confrontation occurred during the same CPAC convention where Ron Paul won the presidential straw poll and Dick Cheney was heckled and called a “war-monger” during a pep rally where Donald Rumsfeld was given the “Defender of the Constitution Award.”

From Norman Mineta’s testimony:

“During the time that the airplane was coming into the Pentagon, there was a young man who would come in and say to the Vice President…the plane is 50 miles out…the plane is 30 miles out….and when it got down to the plane is 10 miles out, the young man also said to the vice president “do the orders still stand?” And the Vice President turned and whipped his neck around and said “Of course the orders still stand, have you heard anything to the contrary!?’

 

 

Mexican Troops Conduct Vehicle Search On U.S. Soil Paul Joseph Watson | Yet another military incursion by a foreign power as Homeland Security is more concerned about training Americans to spy on each other

 

 

Russia says foreign power may have caused spy satellite loss The Russian space agency suggested Monday that a foreign power may have been behind the space accident that disabled one of the country’s most modern military satellites earlier this month.

 

 

 

 

Drudgereport: DEBT NOW EQUALS ENTIRE ECONOMY
OBAMA AGENDA IS OVER
Obama refers to himself as 'The Gipper'… [ Riiiight! …anything you say wobmama the b for b*** s***… or maybe the bipper, the chipper, or the yankee clipper (the new joltin’ joe) …sounds like he’s losing it! ] ...
Egypt's protests flare despite military warning...

Libya set for 'day of anger'...
Thousands of police confront protesters in Yemen...
Riot police storm Bahrain camp; 2 reported dead...
ABCNEWS Correspondent Beaten...
100 Egyptians reach Italy amid Arab exodus...
CARTER: Muslim 'hood nothing 'to be afraid of'...
PAPER: Senate hearing turns into farce as American ignorance on Egypt revealed...
USA TO REBUKE ISRAEL AT UN
Poll: Majority of Republicans Doubt Obama's Birthplace...
Agents Shot in Mexico...

WORRIES OBAMA OFFICIALS...
ICE IN VICE...
GAO: Feds have 'operational control' of 44% of border; just 15% 'air tight'...
DAY 3: 'Watson' the computer creams human 'JEOPARDY!' champs...
REPORT: Steve Jobs receiving treatment at cancer center...
     PAPER: 'Reportedly sicker than previously admitted'...
ISSA MAKES A MOVE: New subpoena seeks records on sweetheart loans...
U.S. Government Shuts Down 84,000 Websites, ‘By Mistake’

'Kill Switch' Internet bill alarms privacy experts...
GOP BLASTS FCC NET RULES...

TSA agents busted at JFK for stealing $160,000 from bags...

Hillary Clinton donors indicted...
Man mugs 96-year-old -- for $5...
France Wants New Global Finance System; End of Dollar Dominance...
Fannie, Freddie bailout: $153 billion and counting...
GALLUP: Unemployment at 10.3%...
Muslim Bros plan political party...

Present Two Faces...
Pakistan Islamists warn of protests if US prisoner freed...
SECSTATE JR: Sen Kerry arrives in Pakistan, expresses 'regret', 'sorrow'...
GADDAFI TELLS PALESTINIANS: REVOLT AGAINST ISRAEL
World Bank: Food prices at 'dangerous levels'...
Gov't Motors to pay out $189 million in bonuses; some workers to get 50% payoffs..
Deficit Expected to Jump to $1.65 Trillion...

...'slow train wreck coming'
BUDGET BLOWOUT: How big is $3.73 trillion? $12,000 from each American...
ANALYSIS: $1.5 trillion tax hike over 10 years...
AIRLINES: New fees would be $2 billion tax increase on flyers...
Sessions: Obama failed on budget...
Long Spending Fight...
Produce prices to skyrocket with freeze in Mexico, Southwest...

Clothing Prices to Rise 10% Starting in Spring...
China Replaced Japan in 2010 as Number 2 Economy...

China plans Colombian rail link to challenge Panama canal...
The March On Berlusconi...
Berlusconi indicted in prostitution probe...

Malware 'Aimed at Iran Hit Five Sites'...

Mubarak 'falls into coma after final speech'...
Egyptian military orders last protesters out of 'Liberation Square'...
Consolidates power...
Delivers ultimatum...

 

 

 

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http://www.albertpeia.com/currentopics2ndqtr10108.htm 
http://www.albertpeia.com 
http://www.albertpeia.com/alresume.htm

http://www.albertpeia.com/wallstreetlunacy2ndqtr10108.htm 

http://www.scribd.com/alpeia

 

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Congress begins debate on regulation of financial 'WMDs'  (Washington Post) [ Wow! Sounds like a … ‘no-plan’! I mean, what do regulations, or even laws for that matter, even matter, which is what in large part matters, concerning what’s the matter with pervasively corrupt, defacto bankrupt america. Fines and disgorgement through enforcement of the ‘already on the books’ laws for the blatant (and still extant, now marked to anything as per FASB legislated rule change regarding the toxic assets / worthless paper that continues to be cashed out by the perps with fed help) wall street frauds would have by multiples surpassed the budget cuts the ‘government’ is quibbling over as if same would barely put a dent in the unsustainable debt levels, deficits. How pathetic! ]  A House committee is examining how regulators are writing rules that could determine the safety, efficiency and cost of derivatives.

 

 

Obama careful in crackdown (Washington Post) [ Sounds like a page out of the former american-installed shah of Iran’s play-book … The important difference here is the life and death continued struggle of Iran against the Zionist israeli / american regimes (look at what the latter regimes do, not what they say) … Indeed, the great american/israeli hope for Iran, ‘son of shah’ … pshaw! I have a special affinity for Egypt, a land of great wisdom with the richest of histories and culture and wisdom of the ages in wisely, at one time, holding Cats in their highest regard and esteem!  ] President Obama cautiously criticized the Iranian government Tuesday for carrying out a deadly crackdown on street demonstrations, as hard-line legislators in Tehran called for the execution of several prominent opposition leaders. (Afp/getty Images)

 

 

Americans climb out of debt, save more (Washington Post) [ There is what is known in basic economics as the so-called “paradox of thrift’ and the negative portends for the economy the natural concomitant. There is no getting away from that age-old economic equation Gross Domestic Product is the sum of all spending on goods and services in a nation's economy in a year. The formula for GDP is: GDP = C + I + G + (Ex - Im), where “C” equals spending by consumers, “I” equals investment by businesses, “G” equals government spending and “(Ex - Im)” equals net exports, that is, the value of exports minus imports. Net exports may be negative. Of late, the C component has risen to near 71%, fueled by unsustainable credit. Private investment owing to a structural shift has lagged for want of real (profitable domestic)  investment opportunities (the wall street computer-programmed high frequency churn-and-earn is NOT a component here but rather a net negative owing to the lesser propensity to consume of the frauds on wall street), and we all know the direction of government spending. Read more: GDP and the Players Three: All Together Now: C + I + G — Infoplease.com http://www.infoplease.com/cig/economics/consumption-investment-government.html#ixzz1E79N4H4B   . That said, this (saving) is still good for americans generally since the government has long since all but stopped concerning themselves with the dire predicament of the vast majority of the nation and citizens. ] The recession that just rocked the U.S. economy happened in part because Americans were borrowing and spending more than they could afford. Now, three years after the downturn began, families are moving faster than many analysts had expected to put their finances in order by paying down debt and boosting their savings.

 

 

Jump in global food prices pushes millions into poverty (Washington Post) [ There’s no mystery here … the inevitable consequence of the world’s adoption of america’s funny-money new age alchemy of spinning paper into fools’ gold … Indeed, the prognostications have been hot and heavy, from hyperinflationary depression to … as investor Marc Faber noted last year, this funny money intervention by the Federal Reserve is going to create a final crisis that will destroy the U.S. financial system. The Fed “will print and print and print until the final crisis wipes out the whole system,” Faber warned. Now this fraudulent bubble that the frauds on wall street commission and sell into is great for the frauds on wall street but bad for everyone else since that value has to be made up somewhere, by some one … guess (the obvious)… and if you can’t (guess), you haven’t been paying attention!   ] Data released by the IMF show the cost of grain and other staples is near its historic high.

 

 

So be it? Milbank: Boehner and his party's proposal for budget cuts would reverse the economic recovery. (Washington Post) [ Come on! Wake up! Think of it this way, in simple terms. Already bankrupt, you further bankrupt yourself by spending money you don’t really have which gives that ‘warm and fuzzy feeling’ (albeit to the next election) and obfuscates the cold, hard reality. That a structural shift has occurred in economic / financial terms (that ‘sucking sound’) there is no question. At some point, if there are glass half-full people in the bunch (I am not one of them and believe this structural shift is ‘forever’ and defacto bankrupt america’s decline is irrevocable owing to pervasive corruption, fraud, criminal complicity, etc.. Kind of like madoff’s ponzi scheme (at some point they always unravel / can’t cover and in the current news madoff the fraud said the banks knew and you can take that to the bank since madoff said it) … But isn’t it also true that we all know and that america’s jig is up! Should the hole continue to be dug so irretrievably deep that digging the way out is absolutely impossible ( I and others already believe that point’s been surpassed, and these cuts so small as to be almost insignificant … Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘   ) Obama proposes $3.7 trillion budget (Washington Post) [ What the heck! It’s only ‘helicopter ben’ monopoly money anyway; that paper stuff (Globalists Push SDRs as World Reserve Currency As investor Marc Faber noted last year, this funny money intervention by the Federal Reserve is going to create a final crisis that will destroy the U.S. financial system. The Fed “will print and print and print until the final crisis wipes out the whole system,” Faber warned.   IMF calls for dollar alternative The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world’s reserve currency.    Budget makes deep cuts, cautious trades (Washington Post) [ I still have great difficulty wrapping my mind around the cut in the (relatively minuscule) heating oil program for the poor (after all, that’s potentially lethal to such disenfranchised groups) … Drudgereport:White House to Slash Heating Program for Poor…but still no pros of massive frauds on wall street which fines and disgorgement of would yield huge amounts to cover spending... [ Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"   11-25-10  The U.S. economy "is a complete disaster," Howard Davidowitz declared here in July, the most recent in a string of dire predictions from Tech Ticker's most entertaining guest.On the eve of Thanksgiving, I asked Davidowitz if he had any regrets, or was ready to throw in the towel given recent signs of economic revival. Are you kidding me? "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."As with the economy, Davidowitz is unwaveringly consistent in his views on President Obama, calling him "deranged, dysfunctional and discredited."Results of the midterm election show "the people of this country think we are in a catastrophe," he says. "I'm with them."Check the accompanying video for more of Howard's unfettered opinions and stay tuned for additional clips from this interview. And...Happy Thanksgiving! Aaron Task is the host of Tech Ticker. You can follow him on Twitter at @atask or email him at [email protected]Timid Tuesday: Is it Safe?   ]
 ] Fed chairman offers dire warnings about the damage Congress could wreak if it refrains from raising the government's debt limit this spring.  ] The $3.7 trillion plan proposes to trim or terminate more than 200 federal programs to make room for increases aimed at boosting the economy.    Speaking of Monopoly / atlantic city, n.j., maryanne trump barry and sam alito, et als  have done all right for themselves as the corrupt judiciary usually does, one way or another. Indeed, judicial retirement funds for these plushly accoutered lifetime appointees is up 25.9% and the general operating fund up 6.6% (source, http://www.washingtonpost.com/wp-srv/special/politics/federal-budget-2012/index.html  … the trumps are getting it up front and on the back end, which is typical in a pervasivly corrupt system as defacto bankrupt america … abolish the courts .     Connecticut, California join probe of Ally (Washington Post)  [ I’d be much more impressed if they initiated a probe of more readily discernible criminal offenses in violation of the RICO Act   (Other newark / new jersey and new york, n.y. metro, viz., ie., connecticut, and of course, d.c., d.c. metro, viz., ie., virginia experience … corrupt federal judges as maryanne trump barry, sam alito, shiff, matz (california), hall, underhill, dorsey, etc.. Defacto bankrupt america’s so-called system is pervasively corrupt and broken (AP)   Abolish the corrupt, costly, economically wasteful lifetime extravagantly appointed federal courts - see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )  ]   http://albertpeia.com    Frauds/Liars (sic-lawyers)Covering Up for Other Frauds/Liars (sic-lawyers). In Productive Societies as China, Japan, etc., Fraudulent Liars (sic-lawyers) and the Fraudulent u.s. System They're a Part of Are Unheard Of/Non-existent. List of Files Regarding Filed Attorney Grievance Against Fraud coan et als  Or Here For A Clearer View Of  Filed Grievance Complaint, Response, Exhibits, and Related RICO Filings  Note the Committee of Frauds/Liars (sic-lawyers). Included are DOJ Rep., State Court Rep., State Atty. General Office Rep., and even a Vegetable Garden yale law prof who probably never practiced law in his life. How Pathetic!   http://albertpeia.com/fbiofficela91310 ]   Justice: FBI improperly opened probes   (Washington Post)  [ I just hope they’re as zealous (in probing readily discernible crime) with regard to my RICO matters and the corruption in the (judicial / legal) process since, in the final analysis, it will have been the corruption within that will have brought the nation down irrevocably and totally.]

 

 

 

John Hussman: Rich Valuations and Poor Market Returns Hussman ‘Last week, the S&P 500 Index ascended to a Shiller P/E in excess of 24 (this "cyclically-adjusted P/E" or CAPE represents the ratio of the S&P 500 to 10-year average earnings, adjusted for inflation). Prior to the mid-1990's market bubble, a multiple in excess of 24 for the CAPE was briefly seen only once, between August and early-October 1929. Of course, we observed richer multiples at the heights of the late-1990's bubble, when investors got ahead of themselves in response to the introduction of transformative technologies such as the internet. After a market slide of more than 50%, investors again pushed the Shiller multiple beyond 24 during the housing bubble and cash-out financing free-for-all that ended in the recent mortgage collapse. And here we are again. This is not to say that we can rule out yet higher valuations, but with no transformative technologies driving the economy, little expansion in capital investment, and ongoing retrenchment in consumer balance sheets, I can't help but think that the "virtuous cycle" rhetoric of Ben Bernanke is an awfully thin gruel by comparison. We should not deserve to be called "investors" if we fail to recognize that valuations are richer today than at any point in history, save for the few months before the 1929 crash, and a bubble period that has been rewarded by zero total return for the S&P 500 since 2000. Indeed, the stock market has lagged the return on low-yielding Treasury bills since August 1998. I am not sure that even members of my own profession have learned anything from this.

[chart]

Based on our standard methodology (elaborated in numerous prior weekly comments), we presently estimate that the S&P 500 is priced to achieve an average total return over the coming decade of just 3.15% annually. Again, we've seen weaker projected returns over the past decade. But then again, the S&P 500 lost about 5% annually in the decade following the 2000 peak, and even including the recent advance, has achieved an annual total return since 2000 of almost exactly zero. So despite periodic speculative runs, rich valuations have an annoying way of ruining the fun. Equally important, even during extended speculative periods as we observed in the late-1990's, those advances have tended to suffer deep and abrupt intermediate-term corrections once elevated valuations are joined by overbought conditions, overbullish sentiment, and rising interest rates, as we observe today.’

 

 

 

 

 

Negative Stock Session Follows Disappointing Data   Midnight Trader ‘4:30 PM, Feb 15, 2011 --

GLOBAL SENTIMENT
Hang Seng down 0.96%
Nikkei up 0.2%
FTSE down 0.38%

 

 

 

The Undeniable Signs of Inflation  Kaminis ‘January's Import and Export Price Report showed significant price increases in both imports and exports, and unfortunately, across both overall measures and those excluding food and fuel. We posit that the chatter that has overwhelmed the financial airwaves of late, making an argument we made years ago mind you, is worth listening to once again. Inflation portends to blindside the market and its caretakers, the group of merry men who shrug off all evil until it is upon them.

Inflation chatter is all the rage again on the financial airwaves. You will recall our important work on this subject from several years ago. If not for a near depression that depressed prices as demand was desolated, the inflation topic would probably have been the highest concern globally over the last few years. However, now that the global economy is recovering, and with China firing up all engines, inflation signs and concerns are resurfacing. Once again, the scent is first found in raw material resources, including rare earth metals, but also in the high use commodities of energy and agriculture. Those factors were at play again in driving January 2011 Import and Export Prices higher. For now, talking-head speak-easies are blowing off the possibility of feed through to finished goods, but it won't be the first train that runs them over either. Stick with The Greek, and I'll do my best to keep you out of the way of the loco.

More signs of economic recovery, and also inflation, were found in the latest import/export prices data, reported today by the Bureau of Labor Statistics for January. Import prices gained 1.5% in January, marking the fourth consecutive month of plus one percent increases. That is something that last occurred in July 2008, which to help you recall the period, was a time in which the now extinct Washington Mutual beast still roamed the earth, though in small numbers.

The drivers of import price growth are the same now as they were then, commodities, including energy. Fuel import prices increased 3.9% in January, a snail's pace compared to the 14.1% jump that characterized the previous three months. But January's pace is not to be ignored, and neither is the 12.4% increase of the past year, a period characterized by economic recovery.

Behind the gains in energy prices were a 3.4% increase in petroleum prices, which have since been dwarfed on Middle East upheaval. And look deeper, as Natural Gas prices advanced 13% through the month. It was a period in which much of the US got buried in snow. In fact, cold and snowy weather so affected fuel usage, that natural gas recently fell below its five-year average for this time of year. As reported by the EIA in its weekly update, for the period ending February 4, Natural Gas Inventory stood 45 Bcf below the five-year average. If things were to continue to trend, we might test the bottom of the historical price range, though the weather is warming significantly across the country this week. Still, the hijacking of several oil tankers in a short span of time, along with raised Middle East worries, have oil supply uncertainty adding to push natural gas prices higher with oil; it being a regionally sourced commodity that is increasingly a replacement resource for oil.

Drunken train track wandering market guides should take note of the horn in the distance, as non-fuel import prices increased by 0.8% in January. The noteworthy rise was driven by industrial supplies and materials (unfinished metals and chemicals drove this), finished goods, and foods, feeds, and beverages. Consumer goods prices moved 0.3% ahead, with the largest contributors to the increase coming from a 0.9% hike in apparel, footwear, and household goods prices, and a 4.0% rise in jewelry prices. Prices for automotive vehicles rose 0.5%, led by a 1.2% increase in parts prices. Here we see examples of price increase that affect every consumer.

Price increase is still mostly found in raw materials or unfinished goods, but in the case of rising cotton prices, it is finding its way through to textiles and clothing (apparel up 0.9%). Meanwhile, the government just approved increased ethanol usage in gasoline, which in the past led to mayhem within the whole of agriculture. While December's increase in non-fuel import prices was just 0.3%, November's also marked 0.8%, another measure that draws comparisons to 2008.

Export Prices

Export prices also increased significantly in January, rising 1.2%. The advance for the full year was 6.8%, the largest 12-month increase since that same late 2007 (Sept.) through 2008 (Sept.) period; just before the walls came completely tumbling in on the economy. As the economy improves, it also affects demand for agricultural goods. It is not that people eat more, though that is certainly the case as well (especially for the malnourished), but also that they eat more proteins and more processed foods. As families rise in class, which is occurring in China and India, they also consume more, and more proteins. This in turn pushes prices higher for proteins and for the feeds used to raise livestock, which are likewise derived from agriculture.

Meanwhile, what seems to be climate change driven drought in Russia and this year in China, restricting important supply sources, will only increase pressure on the whole of agricultural goods, and inevitably processed foods. Agricultural export prices rose 3.2% in January, adding to a dramatic 12-month advance of 22.6%. Price increase was driven by advances in soybeans, corn and wheat. While cotton declined fractionally in January, it has more than doubled over the past year. And a recent freeze in Mexico has completely wiped out some vegetable crops and will certainly drive prices higher for Americans.

That is not the end of the story though, as prices for non-agricultural exports also advanced considerably, rising 0.9% in January. Higher prices for industrial supplies and materials, capital goods, and automotive vehicles more than offset a 0.4 percent drop in prices for consumer goods. Higher airfares also contributed to the overall increase, and those of course are impacted and related to increased fuel costs. Consumer goods prices might also benefit from dollar play (longer term), and also economies of scale gained as sales grow. Nonagricultural goods prices are up 5.3% over the last 12 months; that's pretty inflationary for dollar pegged trading partners.

China

Prices of goods imported from China increased 0.3% for the fourth month in a row. Chinese goods are up 1.4% over the past year. That's healthy price rise, and you will see more of this if the US government gets its way with regard to the Yuan. You might see more US jobs return too, but that is debatable, since they might simply find a new foreign home, say maybe Indonesia. Prices of goods from Japan and all our major trading partners were up, with significant increases from the EU, Mexico and Canada, due to fuel.

Conclusion

The pace of price increases should intensify as competition for scarce resources squeezes them. With factors at play like civil unrest, wild weather and even pirating and regulation (like with off-shore oil drilling), it seems clear to me that the inflation train is roaring our way. We think dollar dilution, and the Fed's inflated view of its ability to reverse the curse, should also burden the economy in the future, especially if US Treasuries lose their luster globally. Meanwhile, outside of recent stock market gains, wealth is down due to home value declines. Income should be down also, given high unemployment. Banks may be opening up a bit, but it should take some time, to maybe never, before free capital flow comes to be again (and good riddance). Thus, there's a tight rein around economic horsepower.

We must look towards the expansion of the developing world as the cure for what ails us. In this regard, the birth of new democracies is a good thing, but global instability and weak human nature are ugly flies in that ointment, and could ruin everything.’

 

 

 

 

Silver Markets and Real Money: Dave's Daily  ‘I'm old enough to have had a silver certificate and being a kid never gave it much thought. In 1960, with silver prices at $1.29 meant holders could redeem their certificates for silver. This just wouldn't do. So in 1964, the government halted redemption of Silver Certificates for Silver Dollar coins. By June 1968 all redemption in silver ceased. Obviously with holders demanding silver prices would continue to rise given less supply. Then being old enough to be in the business in 1979 I watched my Quotron terminal as the Hunt Bros. drove prices up to a high of $48.70 before their attempt to corner the market came apart. The unwinding of these positions as margin calls hit holders was quite a chaotic spectacle for someone just five years in the business. Well, enough history. Today, with silver in backwardation (current front month prices greater than back month contracts) there's a supply problem which is bullish. Some are suggesting that Asians are buying silver and gold ETFs to demand delivery. That would be something! Adding fuel to precious metals rallies are signs of higher inflation in Asia and today with London reporting 4% annual rate. Again rumors are swirling there is some major "watershed" event for the "yen". What it is, I don't know and the purveyor of this news didn't provide details either. Sometimes rumors are "early truths" or just shenanigans. Meanwhile, back at Wall & Broad, stocks saw selling even as the Fed tossed in more POMO for Da Boyz. The sour selling mood was triggered by a worse than expected Retail Sales report that bulls were quick to blame on weather. Is Chucky the Consumer running out of credit? Exxon is finding less oil at least in places where it's permitted to look. This and Retail Sales drove prices lower. Volume was again quite light while breadth per the WSJ was negative.’

 

 

 

 

"We Are Apple" and Five Other Horrifying Corporate Anthems That Will Stun You Into Submission Minyanville ‘For all the talk these days about being a "team player," it wouldn't be a wholly terrible idea to take a look at some corporate anthems that would make even the most cynical employee's chest swell with pride. Or is that embarrassment?
Up first, a corporate anthem commissioned by Apple in 1984 to get employees amped up for the year's new offerings:
http://www.youtube.com/watch?v=nbJy0O4UFSM&feature=player_embedded
Next up, The Gazprom Song:
http://www.youtube.com/watch?v=xGbI87tyr_4&feature=player_embedded
But wait, it only gets better from here. Ladies and gents, I present to you...the corporate song of Coal India Limited!
http://www.youtube.com/watch?v=-ZG1MKFyh9E&feature=player_embedded
When you're done wiping the tears from your emotional eyes, take a look at what keeps Fujitsu employees motivated to get up every morning and...do whatever the hell it is Fujitsu actually does:
http://www.youtube.com/watch?v=FRTf3UXCpiE&feature=player_embedded
Not to be outdone, IBM created this anthemic gem for its, uh...champions:
http://www.youtube.com/watch?v=gZ85Abu_TBs&feature=player_embedded
Not to be outdone, Ernst & Young entered the fray with this:
http://www.youtube.com/watch?v=MaIq9o1H1yo&feature=player_embedded
Below is where the AT&T, Unisys, and Hewlett-Packard corporate anthems were supposed to go, but a sense of general unease and off-the-charts depression set in and, for the sake of us all, let's just leave well enough alone.’

 

 

 

 

 

Grant February 15, a.m. (from USAGOLD.com) --
Rising rates and reserve requirements in China may have tamped inflation somewhat in January. CPI came in at 4.9% y/y, but the market is always a little suspicious of Chinese data that misses expectations, especially when the news may have been leaked in advance. CPI was pretty much spot-on yesterday's whisper. PPI surged to a 6.6% y/y pace in January, up from 5.9% in Dec.Inflation in the UK is now officially running twice as hot as the Bank of England's target of 2.0%. Jan CPI accelerated to 4.0% y/y and BoE Governor Mervyn King sees potential for inflation to rise even further in the short-term. Here in America, import prices rose a higher than expected 1.5% in Jan, while export prices were up 1.2%. Inflation, which had largely been a problem in the emerging world, seems to be coming home to roost in the industrial world. Now the question becomes, will there be a policy response? Of course, this is exactly what Ben Bernanke's Fed wants. He recently suggested inflation around 2% would be appropriate, but perhaps Mr. King can now offer some insights on how hard it is to maintain target once that inflation train starts rolling.[chart]John Williams of Shadow Government Statistics tracks US CPI in the same way that the BLS did it historically. The chart above compares CPI calculated using 1990 methodology, versus the current methodology. It suggests that inflation is already more than double Bernanke's soft 2% target. If you use 1980 methodology, as the chart below does, the inflation picture is substantially worse. The implication is, when the BLS doesn't like the picture that's being painted, they change the methodology. As Mr. Williams says, if your real life experience suggests inflation is not benign, there's probably a reason for that. Visit www.shadowstats.com for a dose of perspective.[chart]News late yesterday that the EU finance ministers had reached an agreement on a permanent bailout fund initially lifted the euro. However, subsequent speculation that it wasn't really a done-deal after all, combined with Q4 GDP misses in core-Europe, took the little breeze out of the single currency's sail. German, French and Italian GDP expanded just 0.4%, 0.3% and 0.1% respectively in Q4, all below market expectations. Greece slipped deeper into recession in Q4, with GDP falling an additional 1.4%. The Greek economy may have contracted as much as 4.5% last year, which would be the biggest drop in 50-years. Greece was the first EU country to get a bailout. At this rate, if there is indeed a new permanent bailout facility, Greece may be waiting when the door opens.This morning's US January retail sales was a miss at just +0.3%, on expectations ranging from +0.6 to +0.9. As is the case with every bad data point these days, weather was to blame. The market also continues to digest President Obama's $3.7 trillion FY2012 budget proposal. Perhaps not surprisingly, the President's plan to cut $1.1 trillion in spending over the next decade has drawn the ire from both sides of the political spectrum. Mr. Obama said this morning that he prefers to use a "a scalpel...not a machete," presumably to avoid too much pain (or political backlash). An op-ed in today's Washington Post calls it like it is: President Obama's budget kicks the hard choices further down the road.When we reach the end of the road and can kick the can no further, a machete may prove to be a tool too small for the job. Faced with the prospect of monumental pain that would be a direct result of decades of can kicking, the government may still opt for an alternative to fiscal responsibility. A devaluation of the dollar would be an increasingly attractive option, as the pain would be more fully shared than cuts to government services that would largely effect the poor and middle class, and tax hikes that would target the wealthy. Currency devaluation can also be accomplished without an act of Congress, so our politicians would have the political cover they need. Peter Grant is USAGOLD's resident economist and a well-known analyst globally in the forex and precious metals markets.’

 

 

 

Deception at the Fed Dr. Ron Paul | The Federal Reserve has been given a dual mandate: keeping prices stable and maximizing employment. This policy relies in part on numerical chicanery.

 

 

Barack Obama’s Budget For 2012: A Complete And Total Joke The Economic Collapse | Don’t question the wacky economic growth assumptions.

 

 

Greece reassures IMF on privatization UPI | IMF and the EU recently criticized Greece for its slow efforts to turn services over to private concerns.

 

 

Deutsche Boerse, NYSE Agree to Historic Merger Deutsche Boerse and NYSE Euronext announced the creation of the world’s largest exchange operator on Tuesday, dodging political issues that could threaten completion of a deal.

 

UK Inflation Surges to 4%, Highest Since Nov. 2008 British consumer price inflation surged to double the Bank of England’s target in January, official data showed on Tuesday, raising pressure on the central bank to look seriously at increasing interest rates.

 

Barack Obama’s Budget For 2012: A Complete And Total Joke Is Barack Obama trying to play a joke on all of us? The budget that the Obama administration has submitted for fiscal 2012 is so out of touch with reality that it may as well be a budget for “Narnia”, “Fantasy Island”, “Atlantis” or some other mythical land.

 

South Carolina Mulls New Currency To Protect Against Fed Collapse Continuing a pattern of attempts to assert South Carolina’s independence from the federal government, State Sen. Lee Bright, R-Roebuck, has introduced legislation that backs the creation of a new state currency that could protect the financial stability of the Palmetto State in the event of a breakdown of the Federal Reserve System.

 

 

National / World

 

 

‘Cheney Stand Down Order’ #1 on Google Trends Infowars | Search term about Dick Cheney’s 9/11 actions reaches top of Google.

 

The Suez Canal Workers Stage Sit-in as U.S. Warships Dispatched Kurt Nimmo | Military in control of government has vowed to not allow labor strikes to paralyze the world’s most populous Arab nation.

TSA Workers Admit To Stealing Huge Amounts Of Cash From Passengers Steve Watson & Paul Watson | It has been revealed that TSA workers admit to stealing cash and possessions from passengers.

 

WeAreChange Confronts Dick Cheney on 9/11 Standdown Order Aaron Dykes | Activist group confronts former vice president Dick Cheney about inconsistencies in 9/11 testimony and actions in PEOC bunker. ‘Infowars.comFebruary 15, 2010The testimony of Norman Mineta before the 9/11 Commission leaves compelling questions about former Vice President Dick Cheney’s actions on the day of 9/11. Then Transportation Secretary Mineta witnessed Cheney refuse to contradict an apparent standdown order as an aide warned of something incoming at the Pentagon. Cheney has given conflicting reports about what time he entered the PEOC bunker. Mineta later confirmed his suppressed 9/11 Commission testimony and refuted Cheney’s account of arriving later.During the CPAC conference, WeAreChange.org confronted Cheney about these questions, which he refused to address.“Hey Mr. Cheney, what did you do in the underground bunker on 9/11? Dick Cheney we know what you did on 9/11 with the standdown order. Norman Mineta testified against you on the 9/11 Commission report. What happened on 9/11?”When he was being forced out, WeAreChange.org founder Luke Rudkowski calmly asked security not to push him; security backed off after asking him, ‘Are you being polite?’
Luke Rudkowski and James Lane of We Are Change confront Dick Cheney in Washington D.C. at CPAC 2/10/2011.
WeAreChangeOklahoma – Newt Gingrich and Dick Cheney (CPAC 2011)
Chairman of the Joint Chiefs of Staff Instruction 3610.01A issued June 1, 2001 on “Aircraft Piracy (Hijacking) and Destruction of Derelict Airborne Objects
(Click each document for a larger image)

Cheney dodged the continuing questions by exiting with his entourage into an elevator. As a woman started repeating “Thank you Mr. Cheney for all you’ve done,” Rudkowski interjected that he was a ‘terrorist.’ Certainly, the use of admittedly elevated terror alerts throughout the Bush administration to stoke the fear card and score political dominion alone is reason to justify this label. The implications of what really happened on 9/11, and in relation to Cheney’s apparent standdown order, is even more compelling. Notably, a change in the standard operating procedure for the chain of command during the event of a hijacked aircraft was changed in June 2001, including subjecting NORAD’s response to DoD approval (SEE BELOW).
The former Vice President’s re-entry into the public limelight, after years of dealing with heart issues, is what appears to be an attempt to re-brand the Bush Administration in time to retain neo-con power in the coming GOP presidential primary field, where tea party politics and candidates like Ron Paul have obviously taken root with conservative voters in the years of the Obama administration. This confrontation occurred during the same CPAC convention where Ron Paul won the presidential straw poll and Dick Cheney was heckled and called a “war-monger” during a pep rally where Donald Rumsfeld was given the “Defender of the Constitution Award.”

From Norman Mineta’s testimony:

“During the time that the airplane was coming into the Pentagon, there was a young man who would come in and say to the Vice President…the plane is 50 miles out…the plane is 30 miles out….and when it got down to the plane is 10 miles out, the young man also said to the vice president “do the orders still stand?” And the Vice President turned and whipped his neck around and said “Of course the orders still stand, have you heard anything to the contrary!?’

 

 

Mexican Troops Conduct Vehicle Search On U.S. Soil Paul Joseph Watson | Yet another military incursion by a foreign power as Homeland Security is more concerned about training Americans to spy on each other

 

 

Russia says foreign power may have caused spy satellite loss The Russian space agency suggested Monday that a foreign power may have been behind the space accident that disabled one of the country’s most modern military satellites earlier this month.

 

 

 

 

‘Saudi Arabia sending troops to Bahrain’  Saudi Arabia is sending troops to Bahrain in a move to crack down on pro-democracy protesters who took to the streets in the capital Manama, a political analyst says. [SAUDIS TOLD OBAMA 'NOT TO HUMILIATE MUBARAK' [ Sounds like they’re hearing footsteps…Previous: Egyptian capital teeters on anarchy  Mubarak asks cabinet to resign as anti-regime protests intensify  (Washington Post) [ Mubarak should have been looking in the mirror as he asked his cabinet to resign … 30 years is a long time, and coincidentally, time for him to go.   In Egypt: Access denied (Washington Post) [The day part of the Internet died: Egypt goes dark [I disagree! Part of the internet didn’t die, but rather the order to so darken the nation heralded the demise, at 30 years and counting, of the so-called leadership in the persona of Mubarak. Time for him to go! After all, he’s been in a position, with Egypt among the only Mideast nations to have signed a peace treaty with israel, to have stepped up with substantial credibility in taking a strong position against israeli transgressions, violations of international law / u.n. resolutions, war crimes, etc., which beyond soft-touch, he failed to do. And, of all places, he sends his family to Orwellian england; he still loves those colonial masters … how pathetic. I mean, 30 years … how free-flowing does anyone think the election process is at this point … and one could ask the same regarding the entrenched powers that be in pervasively corrupt, defacto bankrupt america, to be fair. Then there’s saudi arabia; talk about do nothing hypocrites. How does one family claim ownership of all the oil reserves of a sovereign nation; I suspect only when foreign corporations say so. The only Mideast nations showing backbone are Turkey, Lebanon, and Syria, and, of course the perennially propaganda painted bad-boy Iran among possibly some of the smaller emirates, ie., Qatar, etc., (I lack sufficient information regarding these other nations).  ] (AP)         Internet cutoff fails to silence Egypt protests (AP) -  ]

 

 

 

 

Dick Cheney and Donald Rumsfeld booed at GOP convention in D.C. New York Daily News | Donald Rumsfeld and Dick Cheney were booed on Thursday at the Conservative Political Action Conference.     Ron Paul At CPAC: ‘Government is in the process of failing’ Is he running for US Senate? Is he signaling his bid for US president? Or is he hinting at something deeper within the US political climate?     Milbank: Donald trumps CPAC | Gibbs gone  (Washington Post) [  Trump’s a loser, dressed up and propped up by and to shill for a declining, fallen nation in the most corrupt regions of the country (every fallen nation has such); of that there is no question …"Over the years I've participated in many battles and have really almost come out very, very victorious every single time," the Donald said. (Except for the bankruptc[ies], that is. [ trump’s never won a battle that wasn’t fixed in advance (including the ‘pre-packaged bankrupcies’ crammed down the throats of objecting creditors – jersey general ] ) "I've beaten many people and companies, and I've won many wars," he added. (Though he didn't serve in the military.) "I have fairly [according to mobster rules; ie., bribery, money laundering, etc.] but intelligently [ as any other mob boss … trump is total b*** s***, a fraud, and lightweight … and, despite the façade, quite insecure … trump’s a total mental case … He truly is the ‘poster-boy’ of american decline and part of the problem, not the solution! …trump also said america’s become the laughingstock of the world … true enough … and trump the biggest joke … NEWS FLASH: Direct from Lost Angeles Learning Annex – Presenting mobster t_rump of new yoke, new joyzey, and now caleefornia mob fame with his continuing message for the past several years: buy real estate (and watch the values go down…..riiiiight!).
Bank sues Trump over Chicago tower loan...
Trump casino to miss interest payment...
trump’s fired (from ‘his own company’)

Gunfire Erupts Inside trump Taj Mahal Casino, 1 Dead - Second Such Incident In A Year At N.J. Mainstay Ends With Employee Killed – What else would you you expect from a mobster’s casino in mob-infested jersey!

Trump luxury resort folds, leaving buyers defrauded…litigation has commenced…send for sister maryanne, the corrupt federal judge to preside, coverup, etc., she’s in n.y./n.j./pa 3rd circuit ct appeals, understands drug money laundering/fraud and handles her own motions to recuse her and like mobster trump should be in jail  ... (see RICO Case)

 ]  earned many billions of dollars [ at whose expense ], which in a sense was both a scorecard and acknowledgment of my abilities [ to fool most of the people, all of the time. ] ."  TRUMP DRAWS CHEERS, BOOS AT CONSERVATIVE CONFERENCE...
PONDERING PRESIDENTIAL RUN... [Don’t make me laugh! … Donald T_rump Would Impose 25% Tax on China Imports if President  [  trump also said america’s become the laughingstock of the world … true enough … and trump the biggest joke … Indeed, that trump even posits the possibility of a run when he should be in jail is a testament to just how big a laughingstock pervasively corrupt, defacto bankrupt america’s become!  [ If he was mobster in chief, mobster and scoundrel trump wraps himself in populist american flag and offers up an (too little too late – typical lightweight) implausible solution to keep ‘the juice’ flowing though he’d already be in jail in a rational, non-declining nation with meaningful laws. All China has to do is dump (and not prospectively buy) their ever more and declining in value day-by-day (from dollar debasement policies) u.s. paper / bonds and overnight and the u.s. economy consequently  thereby collapse. [ When you come right down to it, this has been america’s most significant export. Indeed, this irrevocable structural shift, hailed by cia men hw bush and clinton (clinton couldn’t have survived with them) by way of NAFTA as the greatest  thing since sliced bread was indeed in no uncertain terms condemned and warned against by Perot, a man of honor who, unlike his opponents, could not be bought, which is the reason, in pervasively corrupt america, he could never have been elected. Interestingly, you may have noticed the good (but not great, other than the spotlight on pervasive bribery including judges, police, politicians, etc., being far too light) the film ‘The Untouchables’ getting a wide re-airing of late, purporting to be a significant part of american folklore / history / culture. However, the reality is that in america, and certainly today, the real story with impact is that of ‘The Touchables’. The reality is that Elliot Ness died a broken man; bankrupt, unable to even win election to the mayoralty of his then current hometown. He was incorruptible; and hence, in the real america, unelectable at the least if not also all but unemployable (he and his are among those few genetic anomalies in america as I’ve previously alluded to. How far america has fallen from even false perception! Pervasively corrupt, meaningfully lawless america can’t even fake it anymore. See, for example, http://albertpeia.com/CIAAgentAffidavit1.jpg     http://albertpeia.com/FBIAgentAffidavit11.jpg      , and of course, corrupt legal / judicial processes, etc.,   Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense …  The pervasively corrupt american illegal system … corrupt u.s. courts / (lawyers) / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and costly bureaucracies. Rules of law mean nothing to these typically corrupt americans. Most, including sam alito of the u.s. supreme court, concerning  drug money laundering and obstruction of justice in the 3rd circuit ( also maryanne trump barry who covered-up drug money laundering through her brother’s casinos in a civil RICO case) should have gone to or belong in jail. Contrary to popular belief, they do it for the money, personal money, big, cash, untraceable money. The fog of war is great for such things (360 tons $100 bills flown into Iraq and missing, etc.). [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ]. america’s just a fraudulent and failed defacto bankrupt nation.  ] “I would announce, without equivocation, a 25% tax increase on anything purchased from China.” ]
CHENEY HECKLED... 'DRAFTDOGER!' 'WHERE'S BIN LADEN?'   ]

 

 

 

 

 

 

Drudgereport: DEBT NOW EQUALS ENTIRE ECONOMY
OBAMA AGENDA IS OVER
Obama refers to himself as 'The Gipper'… [ Riiiight! …anything you say wobmama the b for b*** s***… or maybe the bipper, the chipper, or the yankee clipper (the new joltin’ joe) …sounds like he’s losing it! ] ...
France Wants New Global Finance System; End of Dollar Dominance...
Fannie, Freddie bailout: $153 billion and counting...
GALLUP: Unemployment at 10.3%...
Muslim Bros plan political party...

Present Two Faces...
Pakistan Islamists warn of protests if US prisoner freed...
SECSTATE JR: Sen Kerry arrives in Pakistan, expresses 'regret', 'sorrow'...
GADDAFI TELLS PALESTINIANS: REVOLT AGAINST ISRAEL
World Bank: Food prices at 'dangerous levels'...
Gov't Motors to pay out $189 million in bonuses; some workers to get 50% payoffs..
Deficit Expected to Jump to $1.65 Trillion...

...'slow train wreck coming'
BUDGET BLOWOUT: How big is $3.73 trillion? $12,000 from each American...
ANALYSIS: $1.5 trillion tax hike over 10 years...
AIRLINES: New fees would be $2 billion tax increase on flyers...
Sessions: Obama failed on budget...
Long Spending Fight...
Produce prices to skyrocket with freeze in Mexico, Southwest...

Clothing Prices to Rise 10% Starting in Spring...
China Replaced Japan in 2010 as Number 2 Economy...

China plans Colombian rail link to challenge Panama canal...
The March On Berlusconi...
Berlusconi indicted in prostitution probe...

Malware 'Aimed at Iran Hit Five Sites'...

Mubarak 'falls into coma after final speech'...
Egyptian military orders last protesters out of 'Liberation Square'...
Consolidates power...
Delivers ultimatum...

 

 

 

 

 

Concerns over European defense cuts (Washington Post) [ At some point, rationality must overcome irrationality; if only necessity being the mother of this new-found invention (rationality). Interestingly, there was a blip on television news from a NATO rep talking up the technological / military superiority of NATO relative to Russia (without whose technological prowess that space station and crew would literally be lost in space). So take that, literally … and make the cuts (rational). ] European policymakers say the cuts are necessary given their financial straits, and that training, not sheer numbers, is what matters in a post-Cold War world.

 

 

Budget makes deep cuts, cautious trades (Washington Post) [ I still have great difficulty wrapping my mind around the cut in the (relatively minuscule) heating oil program for the poor (after all, that’s potentially lethal to such disenfranchised groups) … Drudgereport:White House to Slash Heating Program for Poor…but still no pros of massive frauds on wall street which fines and disgorgement of would yield huge amounts to cover spending... [ Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"   11-25-10  The U.S. economy "is a complete disaster," Howard Davidowitz declared here in July, the most recent in a string of dire predictions from Tech Ticker's most entertaining guest.On the eve of Thanksgiving, I asked Davidowitz if he had any regrets, or was ready to throw in the towel given recent signs of economic revival. Are you kidding me? "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."As with the economy, Davidowitz is unwaveringly consistent in his views on President Obama, calling him "deranged, dysfunctional and discredited."Results of the midterm election show "the people of this country think we are in a catastrophe," he says. "I'm with them."Check the accompanying video for more of Howard's unfettered opinions and stay tuned for additional clips from this interview. And...Happy Thanksgiving! Aaron Task is the host of Tech Ticker. You can follow him on Twitter at @atask or email him at [email protected]Timid Tuesday: Is it Safe?   Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘ ]
 ] Fed chairman offers dire warnings about the damage Congress could wreak if it refrains from raising the government's debt limit this spring.  ] The $3.7 trillion plan proposes to trim or terminate more than 200 federal programs to make room for increases aimed at boosting the economy.

 

 

Robinson: Do conservatives love freedom? (Washington Post) [  Truth be told, I’ve oft referred to myself as conservative. I also embrace freedom; which, of course, is the antithesis of ‘such conservatives’ as ie., mobsters as trump et als, Maryanne trump barry, sam alito, mafia, neo-cons cheney, dumbya bush, rumsfeld, mental cases as john bolton, trump, dummy palin, limbaugh, hannity, etc., who in their near facist way always want control; ie., your thoughts, actions, inclinations, etc.. The left, totalitarian communism, wobamanoids in the dhs, etc., are little different. I personally am constrained to disassociate myself with the likes of the foregoing and as discussed infra:

Dick Cheney and Donald Rumsfeld booed at GOP convention in D.C. New York Daily News | Donald Rumsfeld and Dick Cheney were booed on Thursday at the Conservative Political Action Conference.     Ron Paul At CPAC: ‘Government is in the process of failing’ Is he running for US Senate? Is he signaling his bid for US president? Or is he hinting at something deeper within the US political climate?     Milbank: Donald trumps CPAC | Gibbs gone  (Washington Post) [  Trump’s a loser, dressed up and propped up by and to shill for a declining, fallen nation in the most corrupt regions of the country (every fallen nation has such); of that there is no question …"Over the years I've participated in many battles and have really almost come out very, very victorious every single time," the Donald said. (Except for the bankruptc[ies], that is. [ trump’s never won a battle that wasn’t fixed in advance (including the ‘pre-packaged bankrupcies’ crammed down the throats of objecting creditors – jersey general ] ) "I've beaten many people and companies, and I've won many wars," he added. (Though he didn't serve in the military.) "I have fairly [according to mobster rules; ie., bribery, money laundering, etc.] but intelligently [ as any other mob boss … trump is total b*** s***, a fraud, and lightweight … and, despite the façade, quite insecure … trump’s a total mental case … He truly is the ‘poster-boy’ of american decline and part of the problem, not the solution! …trump also said america’s become the laughingstock of the world … true enough … and trump the biggest joke … NEWS FLASH: Direct from Lost Angeles Learning Annex – Presenting mobster t_rump of new yoke, new joyzey, and now caleefornia mob fame with his continuing message for the past several years: buy real estate (and watch the values go down…..riiiiight!).
Bank sues Trump over Chicago tower loan...
Trump casino to miss interest payment...
trump’s fired (from ‘his own company’)

Gunfire Erupts Inside trump Taj Mahal Casino, 1 Dead - Second Such Incident In A Year At N.J. Mainstay Ends With Employee Killed – What else would you you expect from a mobster’s casino in mob-infested jersey!

Trump luxury resort folds, leaving buyers defrauded…litigation has commenced…send for sister maryanne, the corrupt federal judge to preside, coverup, etc., she’s in n.y./n.j./pa 3rd circuit ct appeals, understands drug money laundering/fraud and handles her own motions to recuse her and like mobster trump should be in jail  ... (see RICO Case)

 ]  earned many billions of dollars [ at whose expense ], which in a sense was both a scorecard and acknowledgment of my abilities [ to fool most of the people, all of the time. ] ."  TRUMP DRAWS CHEERS, BOOS AT CONSERVATIVE CONFERENCE...
PONDERING PRESIDENTIAL RUN... [Don’t make me laugh! … Donald T_rump Would Impose 25% Tax on China Imports if President  [  trump also said america’s become the laughingstock of the world … true enough … and trump the biggest joke … Indeed, that trump even posits the possibility of a run when he should be in jail is a testament to just how big a laughingstock pervasively corrupt, defacto bankrupt america’s become!  [ If he was mobster in chief, mobster and scoundrel trump wraps himself in populist american flag and offers up an (too little too late – typical lightweight) implausible solution to keep ‘the juice’ flowing though he’d already be in jail in a rational, non-declining nation with meaningful laws. All China has to do is dump (and not prospectively buy) their ever more and declining in value day-by-day (from dollar debasement policies) u.s. paper / bonds and overnight and the u.s. economy consequently  thereby collapse. [ When you come right down to it, this has been america’s most significant export. Indeed, this irrevocable structural shift, hailed by cia men hw bush and clinton (clinton couldn’t have survived with them) by way of NAFTA as the greatest  thing since sliced bread was indeed in no uncertain terms condemned and warned against by Perot, a man of honor who, unlike his opponents, could not be bought, which is the reason, in pervasively corrupt america, he could never have been elected. Interestingly, you may have noticed the good (but not great, other than the spotlight on pervasive bribery including judges, police, politicians, etc., being far too light) the film ‘The Untouchables’ getting a wide re-airing of late, purporting to be a significant part of american folklore / history / culture. However, the reality is that in america, and certainly today, the real story with impact is that of ‘The Touchables’. The reality is that Elliot Ness died a broken man; bankrupt, unable to even win election to the mayoralty of his then current hometown. He was incorruptible; and hence, in the real america, unelectable at the least if not also all but unemployable (he and his are among those few genetic anomalies in america as I’ve previously alluded to. How far america has fallen from even false perception! Pervasively corrupt, meaningfully lawless america can’t even fake it anymore. See, for example, http://albertpeia.com/CIAAgentAffidavit1.jpg     http://albertpeia.com/FBIAgentAffidavit11.jpg      , and of course, corrupt legal / judicial processes, etc.,   Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense …  The pervasively corrupt american illegal system … corrupt u.s. courts / (lawyers) / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and costly bureaucracies. Rules of law mean nothing to these typically corrupt americans. Most, including sam alito of the u.s. supreme court, concerning  drug money laundering and obstruction of justice in the 3rd circuit ( also maryanne trump barry who covered-up drug money laundering through her brother’s casinos in a civil RICO case) should have gone to or belong in jail. Contrary to popular belief, they do it for the money, personal money, big, cash, untraceable money. The fog of war is great for such things (360 tons $100 bills flown into Iraq and missing, etc.). [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ]. america’s just a fraudulent and failed defacto bankrupt nation.  ] “I would announce, without equivocation, a 25% tax increase on anything purchased from China.” ]
CHENEY HECKLED... 'DRAFTDOGER!' 'WHERE'S BIN LADEN?'   ]

 

 

Symbolic reductions (Washington Post) Gerson: Why would the GOP cut funding for bed nets in Africa? [ Well, given the perilous state of a nation-state in peril; viz., defacto bankrupt america and the imperiled citizenry therein, one might ask how such was funded in the first instance… Drudgereport: DEBT NOW EQUALS ENTIRE ECONOMY
OBAMA AGENDA IS OVER
Obama refers to himself as 'The Gipper'… [ Riiiight! …anything you say wobmama the b for b*** s***… or maybe the bipper, the chipper, or the yankee clipper (the new joltin’ joe) …sounds like he’s losing it! ] ...
France Wants New Global Finance System; End of Dollar Dominance...
Fannie, Freddie bailout: $153 billion and counting...
GALLUP: Unemployment at 10.3%...
GADDAFI TELLS PALESTINIANS: REVOLT AGAINST ISRAEL
Gov't Motors to pay out $189 million in bonuses; some workers to get 50% payoffs..
Deficit Expected to Jump to $1.65 Trillion...

...'slow train wreck coming'
BUDGET BLOWOUT: How big is $3.73 trillion? $12,000 from each American...
ANALYSIS: $1.5 trillion tax hike over 10 years...
AIRLINES: New fees would be $2 billion tax increase on flyers...
Sessions: Obama failed on budget...
Long Spending Fight...
Produce prices to skyrocket with freeze in Mexico, Southwest...

Clothing Prices to Rise 10% Starting in Spring...
China Replaced Japan in 2010 as Number 2 Economy...

China plans Colombian rail link to challenge Panama canal...
The March On Berlusconi...

Malware 'Aimed at Iran Hit Five Sites'...

Mubarak 'falls into coma after final speech'...
Egyptian military orders last protesters out of 'Liberation Square'...
Consolidates power...
Delivers ultimatum...

]

 

 

Could the Dow Hit 4,500? [ Short answer: YES! Prechter et als say even far lower (which I would agree with in real terms, but not in debased dollar terms.)  ] Norfolk ‘October 20, 1999: I am at a breakfast briefing run by a British investment house. Scarfing my bacon bap and croissant, washed down with the treacly and malodorous coffee that only hotels can provide, I feel quite the patronised lower-order businessman as I listen to the market overview.

Suddenly, I become uneasy. It's not the stomach registering the high fat food - nothing like it for dealing with last night's alcohol, I find - it's the strange disconnection between what the fund reps are telling me and what they want me to do. They are feeding me dead pig so I will recommend equity investment to my clients - but they're telling me (with relaxed smiles) "the American stock market could be as much as 50% too high, and a correction is overdue", as I reported in a letter to a client the next day.

We sure get bought cheaply, don't we?

It was around the same time that I attended a monthly broker network meeting in Worcester, where another fund house recruiting sergeant told us IFA doughboys how (in 1999) the tech boom was only in its first phase, and a sort of super-boom was coming next.

That's when I decided (1) to start reminding my people that most of their pensions and investments had an option to switch to cash within the wrapper - with the caveat that I had no crystal ball, and (2) to change my own business and earnings model to survival mode.

The next year, when one of our colleagues at the monthly get-together revealed that the best asset class for the last 12 months had been cash and asked hands up who'd seen that coming, I kept my hand down. I didn't want to disappear in a hail of slightly stale bread rolls.

Today I read in "The Spectator" magazine an article by Merryn Somerset Webb, editor-in-chief of "Moneyweek". She points out the inflationary boom in the East and suggests a contrarian play - invest West (counting Japan as part of the West) - but warns of overvaluation here, too:

"I refer you to two valuation measures that seek to tell us where markets will go over ten to 20 years, the cyclically adjusted price-earnings ratio and the Q ratio of market value to underlying asset value. According to their biggest fan, the strategist Andrew Smithers, they now tell us that the US market is around 70 per cent overvalued."

I fear that Smithers is an optimist; or rather, when he says a market is overvalued, I assume he's using a theoretical fair value as his point of reference, and ignoring the overshoot effect. 70% overvaluation implies a 40% (ish) drop; but for a long time I've been watching for a 70% drop.

Back in October 2008, J. Kyle Bass of Hayman Advisors (.pdf here) was saying "We think we will see 10-12% unemployment, a 4-5% decline in GDP, and the equity markets could drop at least 70% from peak to trough." (I love that reassuringly conservative "at least", don't you? As Wavy Gravy said at Woodstock, "There is always a little bit of heaven in a disaster area." Maybe we will all be feeding each other again, man.)

So I had a go at drawing a picture... in December 2008, I took the Dow at close at the start of each calendar month from late October 1928 to 80 years later, and divided it by inflation (CPI-U) as announced for the end of the preceding month (I figured that even official figures for consumer prices aren't as manipulated as the gold market). Here's what I got: [chart]
Re-done today to the end of January, here's the same story updated:
[chart]
Read this way, the real peak was at the end of 1999, then the market halved until monetary inflation from 2003 blew up real estate, then it halved again until the wonders of QE, and sometime soon the Fed's lungs are going to give out once more.

Allowing for inflation, a drop of 70% from December 1999 would mean the Dow's low should be just under 4,500 today. That red dot really doesn't look so freakishly out of whack in context - not half so much as the Twin Peaks before it.

Of course, inflation is the joker in the pack. I'm talking about a deflation of the Dow in real terms; one way that could happen is a phoney boom discounted by high inflation - like 1973 - 1982, for instance:
[chart]

It took until April 1992 for the real Dow to get back to what it had been worth in December 1972; but at least it got back. The dollar lost 70% of its consumer purchasing power over the same period.

Like I said in my last SA article (This Liquidity Will Soak Us All ), it may be that we're going to wet, no matter what tree we stand under.

Meantime, I'm buying my own sandwiches.’

 

 

 

 

 

Beware The Lagging Dow Trick  Adler ‘When the Dow lags the broader market like it did today, it’s usually a sign the market managers want to run it up without the public on board, so beware of that if it continues for a few days. The bad news out of Fedex (FDX) is causing some after hours unpleasantness, but you know how that game goes. Shakeout at night, market makers' delight. Uncle Ben is scheduled to deposit $5-7 billion into Primary Dealer trading accounts tomorrow, but a big Treasury settlement will suck a massive amount of cash out of their wallets. The Treasury settles a whopping $62 billion in notes and bonds on Wedneday. That's a lot more than the Fed cash they got in the last week which will be only $12.5 billion to $23.5 billion including what they got last week. You might here a giant sucking sound for a day. I saw little change in the technicals today. This narrowly based uptrend has the potential to go on and on with minor shakes along the way. The 10-12 month cycle projection looks to be honing in on 1390 in my cycle work. That will probably shift some with the idealized top window open from now through April. The Wells Fargo-NAHB homebuilders index will be out at 10 AM Tuesday. Builder traffic has been non-existent and purchase mortgage applications have been hovering just above 20 year lows, so I don't see any improvement likely in sales activity. The numbers could easily get worse if they weren't already so close to the zero bound. The market shouldn't be surprised by that, but given the big Treasury settlement sucking cash out of dealer and other accounts, that could be a catalyst for a selloff. All of this bad news will be a setup for dealers to take down some inventory for another run as the Fed stuffs their trading accounts with cash in the days ahead. Bears should not be fooled by this. Don't get sucked in. Dippers, hold your fire until the selling is washed out.’

 

 

 

 

 

Stock Market Resiliency Being Put to the Test Editor's Note: This article was written by Richard Suttmeier, chief market strategist at ValuEngine.com ‘The test of resiliency for stocks comes from the dynamics for the US capital markets, both fundamentally and technically. The yield on the 10-year US Treasury note has held my annual value level at 3.791, and these high yields are a drag on equity valuations. Comex gold has been volatile but seems to find a home at my annual pivot at $1356.5. Nymex crude oil trades on both sides of my semiannual pivot at $87.52. In this environment US stocks have become overvalued fundamentally and overbought technically. Stocks have been trading under a ValuEngine Valuation Warning for the past three days as the major averages push the envelope of new multi-year highs.I still see the warning flags flying from Egypt, Europe, and the emerging markets which are laggards as we approach mid-February. While the Dow Industrial Average is up 5.6% year to date the iShares MSCI Emerging Markets Index Fund (EEM) is down 5.4%, and the iShares FTSE China 25 Index Fund (FXI) is down 4.0% and is below both its 50-day simple moving average at $43.28 and its 200-day simple moving average at $42.13. These types of negative divergences suggest to me that US stocks are vulnerable once their Fed-induced bubbles pop.Thursday’s equity closes were above all of this week’s pivots at 12,142 Dow Industrial Average, 1316.2 S&P 500, 2770 Nasdaq, 5077 Dow Transports, and 800.13 Russell 2000. The S&P 500 tested and held its weekly pivot at 1316.2. The Dow Transport Average outperformed on Thursday and tested its annual pivot at 5179.
 


We are trading under a ValuEngine Valuation Warning -- 16 of 16 sectors overvalued with only 33.15% of all stocks undervalued on Wednesday, below the 35% threshold by this measure. This also means that 66.86% of all stocks are overvalued. Why does Wall Street think stocks are cheap?

The US Treasury 10-Year Yield -- (3.702) My annual value level is 3.791 with a weekly risky level at 3.525.

Comex Gold -- ($1361.7) My quarterly and annual pivots are $1331.3 and $1356.5 with daily, monthly, quarterly, and semiannual risky levels are $1375.2, $1412.4, $1441.7, and $1452.6.

Nymex Crude Oil – ($87.14) My semiannual pivot at $87.52 has become a magnet with a monthly pivot at $91.83.

The Euro -- (1.3593) My quarterly value level is 1.3227 with my monthly risky level at 1.4225.

Foreclosure Lull as Repossessions Rise Again

Foreclosure paperwork issues have slowed the home foreclosure process over the past two months, but as this dilemma works its way to a solution, foreclosures will rise again, as will bank auctions of OREO (Other Real Estate Owned). As a result, more homeowners who are missing mortgage payments are staying in their homes longer, adding to the backlog of bad loans. Meanwhile, banks are picking up the pace in repossessions taking back 78,133 properties in January according to RealtyTrac. This is up 12% from December. Banks took back more than a million homes in 2010, and about five million borrowers are at least two months behind on mortgage payments.The housing problems remain the same: high unemployment, a weak housing market, falling home prices, and tighter lending standards.’

 

 

 

 

Bernanke Helps Fuel an Increasingly Expensive Market   Roche ‘As the market continues to grind higher each and every day, it’s useful to gain some perspective on just how much Bernanke is impacting valuations and generating disequilibrium in the market. In order to do so we’ll review a number of long-term valuation indicators.

The first is Warren Buffett’s self proclaimed favorite valuation tool (see here for more). He uses the total market cap of the US stock market compared to GNP. He has generally maintained that levels below 80% are bullish. The latest reading of 106% is well below the levels seen at the last two market peaks, but well above the historical average levels. You will notice that the permanently high valuations coincide with the Greenspan Put which has now morphed into the Bernanke Put.

click to enlarge images [chart]

John Hussman’s latest piece succinctly describes the current market environment in which Ben Bernanke continues to encourage speculation and malinvestment. As we all know by now it is Bernanke’s goal to keep asset prices “higher than they otherwise would be” in an attempt to generate a self sustaining economic recovery through asset prices. This is the insane notion that nominal wealth will lead to real wealth.

In fact, Ben Bernanke has this quite backwards. Fundamentals drive real wealth – not nominal price increases. But two bubbles in one decade doesn’t teach this man a lesson. Hussman elaborates:

Last week, the S&P 500 Index ascended to a Shiller P/E in excess of 24 (this “cyclically-adjusted P/E” or CAPE represents the ratio of the S&P 500 to 10-year average earnings, adjusted for inflation). Prior to the mid-1990′s market bubble, a multiple in excess of 24 for the CAPE was briefly seen only once, between August and early-October 1929. Of course, we observe richer multiples at the heights of the late-1990′s bubble, when investors got ahead of themselves in response to the introduction of transformative technologies such as the internet. After a market slide of more than 50%, investors again pushed the Shiller multiple beyond 24 during the housing bubble and cash-out financing free-for-all that ended in the recent mortgage collapse.

And here we are again. This is not to say that we can rule out yet higher valuations, but with no transformative technologies driving the economy, little expansion in capital investment, and ongoing retrenchment in consumer balance sheets, I can’t help but think that the “virtuous cycle” rhetoric of Ben Bernanke is an awfully thin gruel by comparison. We should not deserve to be called “investors” if we fail to recognize that valuations are richer today than at any point in history, save for the few months before the 1929 crash, and a bubble period that has been rewarded by zero total return for the S&P 500 since 2000. Indeed, the stock market has lagged the return on low-yielding Treasury bills since August 1998. I am not sure that even members of my own profession have learned anything from this.

[chart]

Using his expected returns methodology Mr. Hussman is looking for annual returns of just 3.15% in the coming decade:

[chart]

Dshort brings us the Q Ratio which has now hit “nosebleed” territory again. This is consistent with the other metrics which all showed relatively stable ranges until the Fed began its unusual policy of propping up markets following the 87 crash. The latest reading of 1.17 is well below the Nasdaq bubble peak, but is higher than any other historical peak. “Nosebleed” could be an understatement.

[chart]

As I mentioned in December, we have to ask ourselves if any of this matters as long as the Fed is directly involved in promoting speculation. It’s now clear that the Bernanke Put is well ingrained in every investor’s head. Never has the Federal Reserve been so explicit about propping up asset prices and it has created a speculative frenzy that has every investor trying to front-run the Fed.

The problem for the Fed will be letting their foot off the gas. They have created a beast that they likely no longer control. When and if the Fed ever ends QE it is likely that markets will begin to revert to the mean. This will likely force the Fed’s hand to stabilize markets. So what we’ve created with this explicit backstop is a positive feedback loop. Can the Fed ever get out of the market now? And if they don’t it’s likely that markets will spiral higher until they cannot control the inevitable collapse.

The foolishness of current Fed policy cannot be downplayed. Let’s hope for the sake of US citizens that they are as quick to take credit for the inevitable market decline as they have been about taking credit for the rally. For once they admit to having contributed to malinvestment and misallocation of resources we can likely begin mounting a case that closes this horrible chapter in American history where the Central Bank attempted to turn our economy into a financialized ponzi scheme.’

 




Hosni Mubarak resigns: Switzerland to freeze assets of ousted ruler Switzerland has announced it was freezing assets in the country owned by newly resigned President Hosni Mubarak of Egypt.

 

 

 

 

The Faulty Economic Model Behind America’s Support for Dictators (Instead of Democracies) It is obvious that America has long supported dictators, instead of democracies, in developing countries.

 

Fannie, Freddie bailout: $153 billion … and counting When the dust settles, the federal bailout of Fannie Mae and Freddie Mac will be the most expensive government rescue of the financial crisis — it already stands at $153 billion and counting.

 

 

 

 

The American Dream: It’s the Bank versus the Republic You Tube | THE AMERICAN DREAM takesa look at why leaders throughout our history have warned us and fought against the current type of financial system we have in America today.

 

 

 

Debt now equals total U.S. economy Washington Times | Obama projects that the gross federal debt will top $15 trillion this year, officially equalling the size of the entire U.S. economy.

 

 

 

Obama Releases $3.73 Trillion Budget WSJ | President Barack Obama released a $3.73 trillion budget for fiscal-year 2012 Monday.

 

 

France wants new global finance system France will help the transition to a global financial system based on ‘several international currencies’, the French Economy Minister said today.

 

Worst Freeze In 60 Years Wipes Out Entire Crops Across The Southwestern U.S. And Northern Mexico Get ready to pay a lot more for produce at the supermarket. In early February the worst freeze in 60 yearswiped out entire crops all across the southwestern U.S. and northern Mexico.

 

Roubini’s Next Crisis Is Scary Food for Thought Forget Egypt for a moment. Skip the water crisis in China. Look past angst on the streets of Bangladesh. If you want to see how extreme the effects of surging food prices are becoming, look to wealthy Japan.

 

UN: Escalating food prices leading to civil unrest In January, world food prices hit a record high. The Associated Press reports that escalating food prices is related to civil unrest.

 

Engineered Economic Collapse Approaching; the Inevitable Ron Paul constantly reminds us that money is created out of thin air, which is to say it’s an illusion. Therefore, the debt must be an illusion too, correct? Yet, fiscal conservatives still use the debt as a tool of fear to make budget cuts that they selectively deem expendable.

 

China overtakes Japan as world’s second-largest economy China has leapfrogged Japan to become the world’s second-largest economy, a title Japan has held since 1968.

 

Obama's budget would add $13 trillion to national debt President Barack Obama visited Susan Yoder's science class Monday at Parkville Middle School and Center of Technology in Parkville, Md.       Video:  Obama Advisor: President Made Tough Budget Cuts The Associated Press  Rejected Tax Increases Make a Return in Obama Administration Budget Plan Bloomberg

 

 

National / World

 

 

 

Obama Pencils In $37 Billion Budget Increase For DHS, Naked Body Scanners Steve Watson | No austerity measures to deal with for the bloated security theatre overlords

 

House OKs short-term extension of Patriot Act Los Angeles Times The House passes an extension of Patriot Act surveillance measures, temporarily bypassing 'tea party' lawmakers and others who say the provisions threaten privacy.     Rep. Gibson votes against extending Patriot Act provisions The Saratogian     44: Patriot Act extension passes House, one week after unexpected defeat Washington Post

 

 

France joins China in effort for end of the dollar RTE | France will help the transition to a global financial system based on ‘several international currencies.’

 

Neocons Target Ron Paul After CPAC Poll Win Kurt Nimmo | Paul has stood tall against the neocon version of U.S. foreign policy.

 

Congressman Ron Paul booted from conservative group for anti-war views The conservative group Young Americans for Freedom (YAF) announced Saturday that Rep. Ron Paul (R-TX) would be expelled from the group’s National Advisory Board because of his “delusional and disturbing alliance with the fringe Anti-War movement.”

 

Terrorist Who Trained London Bombers Was Working For US Government Paul Joseph Watson | Listen up Glenn Beck: “Radical Islam” is a creature of the US military-industrial complex

 

Was Judge John Roll the actual target of the Giffords shooting? Ethan A. Huff | Judge Roll was considered by some to be one of the most constitutionally-centered judges in history.

 

 

 

Ron Paul to U.S. Government: Stop Propping Up Dictators CNN | Ron Paul speaks with Wolf Blitzer on Egypt and the GOP nomination during the Conservative Political Action Conference (CPAC).

 

Conning Slaves Becky Akers | Boobus Americanus happily hugs his chains so long as his masters feign that he’s in charge.

 

21 Signs That The Once Great U.S. Economy Is Being Gutted The Economic Collapse | The United States is rapidly being turned into a “post-industrial” wasteland.

 

Engineered Economic Collapse Approaching Eric Blair | Fiscal conservatives still use the debt as a tool of fear to make budget cuts.

 

Alex Jones: Egypt a campaign to destabilize region The Alex Jones Channel | Contrary to the ideas that the uprising in Egypt could signal true freedom, there is every reason believe that it is part of a larger destabilization effort in the region, sponsored by the U.S. military and multi-national intelligence rings.

 

Report: Mubarak in coma, no decision on move to hospital Egyptian newspaper al-Masry al-Youm reported that deposed Egyptian president Hosni Mubarak has been in a coma since Saturday, quoting “well-informed sources.”

 

Egypt’s new military regime to effectively outlaw strikes CAIRO – Egypt’s new military rulers will issue a warning on Monday against anyone who creates “chaos and disorder,” an army source said.

 

Gaddafi tells Palestinians: revolt against Israel Palestinian refugees should capitalise on the wave of popular revolts in the Middle East by massing peacefully on the borders of Israel until it gives in to their demands, Libyan leader Muammar Gaddafi said on Sunday.

 

 

Quiet military coup was behind Mubarak’s resignation Haaretz | After Mubarak’s Thursday-night address Egyptian military leaders, anticipating the anger of the protesters, told Mubarak that if he did not step down voluntarily the army would force him out.

 

Egyptian military dissolves parliament, suspends Constitution BBC | Egypt’s new military authorities say they are dissolving parliament and suspending the constitution.

 

David Icke: There’s Been NO REVOLUTION So Far David Icke | I have been watching the understandable euphoria in Egypt live on Al Jazeera television, but please, there must be a sense of perspective here – and urgently.

 

Algeria shuts down internet and Facebook as protest mounts Internet providers were shut down and Facebook accounts deleted across Algeria on Saturday as thousands of pro-democracy demonstrators were arrested in violent street demonstrations.

 

Algeria Internet Not Shut Down, According To Renesys Analysis Internet intelligence authority Renesys, whichconfirmed the Egypt outage weeks ago, says in a new blog post that it has no evidence that Algeria’s Internet has been shut down.

 

Dear Glenn Beck, Egypt Destabilization-Op Hatched by Globalists, Not Communists Alex Jones breaks down the real factors behind Egypt’s uprising in a special video report where he rebuffs the theories of Glenn Beck, who tries to link the Muslim Brotherhood to radical socialism in the United States.

 

Wisconsin Gov. Walker Threatens To Deploy National Guard As ‘Intimidation Force’ Against Workers’ Unions Think Progress | When asked by a reporter what will happen if workers resist, Gov. Walker replied that he would call out the National Guard.


 

Rep. Jones pushes for end to Afghanistan War ENC Today | They are faces, not numbers, for Rep. Walter B. Jones, R-NC.

 

 

Anonymous hack reveals HBGary plan to destroy WikiLeaks V3 | Data released as part of a hacking attack by the Anonymous group has shown what appears to be a corporate plan to destroy WikiLeaks.




 

Tea Party declares war on military spending Guardian | Dispute between the Republican party establishment and the Tea Party movement boiled over into the public arena during this week’s CPAC conference.

 

 

 

 

 

 

 

 

Stocks gain as Mubarak resigns (Washington Post) [  Come on! Don’t be ridiculous! Stocks gain regardless of the ‘event resignation’ as pointed out by Dave, immediately infra. The ‘miracle’ of computer-programmed high-frequency trading fraud with fed / congressional complicity, which will inevitably end quite badly for the vast majority at whose expense the gains for the relative few are made.  One-Way Market Action: Dave's Daily  ‘"To the moon"(Alice) might be a better description of this nonstop bullish action. All week markets were worrying about Egypt. When things were bad there, markets rallied. When things seemed better, markets rallied. When Cisco and Credit Suisse posted lousy reports, markets rallied. When China raised interest rates, markets rallied. Every dip has been bought and every dip has been buying. All this was taking place while many emerging markets were breaking down creating some divergence from previously high inter-market correlations. Things are going so well most reliable technical indicators are getting steamrolled by what those few trading must believe is a rosy future. Market rallies have been steady but not spectacularly higher with daily .50% type moves. But, those add up. Does all this frustrate us? Partially, since active portfolios exited a couple of weeks ago but Lazy Portfolios are doing better. Making sense of Mr. Market has never been an easy proposition. I'm back from attending the annual Inside ETFs conference in Florida where I moderated a panel on technical analysis. Most panelists were bullish but couldn't pin-point why other than "price" analysis. Friday Mubarak gave up probably needing the extra time to round-up the loot before he left town for a Club Med in Dubai or some such place. Markets opened lower on Mubarak's initial determination but then rallied some on his change of heart Friday…’   ] The relief over the embattled leader's departure extends well beyond Tahrir Square.

 

 

Ahmadinejad speaks on Egypt (Washington Post) [ ‘Ahmadinejad says Egypt, Tunisia were inspired by Iran's anti-Western protests’ … Yeah … this is really the truth … buttressed by factual reality … I mean, though suffering the economic pain of american / israeli / nato destructive mis-adventures in the mid-east, the american public is relatively insulated from the realities of same, from war crimes to destruction of innocent lives and property, by way of propaganda and inured by their own zombification. The realities of the west’s inflicted horrors have finally come home to roost. There are and will be consequences! This world is not a vacuum. ]

 

 

GOP's plan for spending cuts sets Capitol Hill showdown (Washington Post) [ Showdown? How ‘bout hoedown! I mean, give me a break … who’s kidding whom … but the ‘show’ part fits! Timid Tuesday: Is it Safe?   Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘   Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"   11-25-10  The U.S. economy "is a complete disaster," Howard Davidowitz declared here in July, the most recent in a string of dire predictions … "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."As with the economy, Davidowitz is unwaveringly consistent in his views on President Obama, calling him "deranged, dysfunctional and discredited."Results of the midterm election show "the people of this country think we are in a catastrophe," he says. "I'm with them."] Some Republicans express concerns about the steep cuts, but some cheer the trims as an important political objective -- meeting a campaign pledge they made last fall to grass-roots activists.

 

 

 

Milbank: Donald trumps CPAC | Gibbs gone  (Washington Post) [  That trump is a loser, dressed up and propped up by and to shill for a declining, fallen nation in the most corrupt regions of the country (every fallen nation has such), there is no question …"Over the years I've participated in many battles and have really almost come out very, very victorious every single time," the Donald said. (Except for the bankruptc[ies], that is.  [ trump’s never won a battle that wasn’t fixed in advance – jersey general ]    ) "I've beaten many people and companies, and I've won many wars," he added. (Though he didn't serve in the military.) "I have fairly [according to mobster rules; ie., bribery, money laundering, etc.] but intelligently [ as any other mob boss … trump is total b*** s***, a fraud, and lightweight … and, despite the façade, quite insecure … trump’s a total mental case … He truly is the ‘poster-boy’ of american decline and part of the problem, not the solution! NEWS FLASH: Direct from Lost Angeles Learning Annex – Presenting mobster t_rump of new yoke, new joyzey, and now caleefornia mob fame with his continuing message for the past several years: buy real estate (and watch the values go down…..riiiiight!).
Bank sues Trump over Chicago tower loan...
Trump casino to miss interest payment...
trump’s fired (from ‘his own company’)

Gunfire Erupts Inside trump Taj Mahal Casino, 1 Dead - Second Such Incident In A Year At N.J. Mainstay Ends With Employee Killed – What else would you you expect from a mobster’s casino in mob-infested jersey!

Trump luxury resort folds, leaving buyers defrauded…litigation has commenced…send for sister maryanne, the corrupt federal judge to preside, coverup, etc., she’s in n.y./n.j./pa 3rd circuit ct appeals, understands drug money laundering/fraud and handles her own motions to recuse her and like mobster trump should be in jail  ... (see RICO Case)

 ]  earned many billions of dollars [ at whose expense ], which in a sense was both a scorecard and acknowledgment of my abilities [ to fool most of the people, all of the time. ] ."

 

Egypt's popular uprising triumphs     In 18 days, a revolution topples 30-year regime Hosni Mubarak becomes the second Arab leader in a month to succumb to his people's potent thirst for freedom.  (Washington Post) [ That 82 year old, 30 year Egyptian potentate, Pharhosni Mubarak was done was never in question. What comes next is another matter entirely:

 

Drudgereport: IMF CALLS FOR ALTERNATIVE TO $$ AS WORLD'S RESERVE
MILITARY TAKES COMMAND
'Egypt is Free,' crowds chant...
WIRE: Military coup was behind Mubarak's exit...  
Military calls for normal business activity to resume...

DAY 18: Mubarak and family flee Cairo for Sharm el-Sheikh...
Swiss freeze assets...
Obama learns of resignation watching TV...
Crisis Puts White House in Disarray...
Director of National Intelligence: Muslim Brotherhood 'Largely Secular,' 'Has Eschewed Violence'...
'Weakness' in USA...
Ahmadinejad: Egyptian protests herald new Mideast...
AL-JAZEERA LIVE FEED...
FRANCE 24 LIVE FEED...
Mubarak Hangs Tough...

VP Urges Protestors to Ignore Media, and Go Home...
AL-JAZEERA LIVE FEED...
CIA Panetta Confused: Said Strong likelihood Mubarak would 'step down tonight'...
March to palace being organized...
REUTERS LIVE...
ElBaradei warns Egypt will 'explode'....
Egypt's govt on the brink..
FLASH CRASH: APPLE stock loses $10 billion in four minutes...

Jobs' Health Rumor?
Global Stock Exchanges Headed for Major Consolidation...
Kyl becomes fifth senator to step aside...
Fed Governor Resigns; Bernanke Adviser Questioned Stimulus...

NBC: Intelligence officials 'scrambling to try to determine exactly what this all means'...
TRUMP DRAWS CHEERS, BOOS AT CONSERVATIVE CONFERENCE...

PONDERING PRESIDENTIAL RUN... [Don’t make me laugh! … Donald T_rump Would Impose 25% Tax on China Imports if President  [  trump also said america’s become the laughingstock of the world … true enough … and trump the biggest joke … Indeed, that trump even posits the possibility of a run when he should be in jail is a testament to just how big a laughingstock pervasively corrupt, defacto bankrupt america’s become!  [ If he was mobster in chief, mobster and scoundrel trump wraps himself in populist american flag and offers up an (too little too late – typical lightweight) implausible solution to keep ‘the juice’ flowing though he’d already be in jail in a rational, non-declining nation with meaningful laws. All China has to do is dump (and not prospectively buy) their ever more and declining in value day-by-day (from dollar debasement policies) u.s. paper / bonds and overnight and the u.s. economy consequently  thereby collapse. [ When you come right down to it, this has been america’s most significant export. Indeed, this irrevocable structural shift, hailed by cia men hw bush and clinton (clinton couldn’t have survived with them) by way of NAFTA as the greatest  thing since sliced bread was indeed in no uncertain terms condemned and warned against by Perot, a man of honor who, unlike his opponents, could not be bought, which is the reason, in pervasively corrupt america, he could never have been elected. Interestingly, you may have noticed the good (but not great, other than the spotlight on pervasive bribery including judges, police, politicians, etc., being far too light) the film ‘The Untouchables’ getting a wide re-airing of late, purporting to be a significant part of american folklore / history / culture. However, the reality is that in america, and certainly today, the real story with impact is that of ‘The Touchables’. The reality is that Elliot Ness died a broken man; bankrupt, unable to even win election to the mayoralty of his then current hometown. He was incorruptible; and hence, in the real america, unelectable at the least if not also all but unemployable (he and his are among those few genetic anomalies in america as I’ve previously alluded to. How far america has fallen from even false perception! Pervasively corrupt, meaningfully lawless america can’t even fake it anymore. See, for example, http://albertpeia.com/CIAAgentAffidavit1.jpg     http://albertpeia.com/FBIAgentAffidavit11.jpg      , and of course, corrupt legal / judicial processes, etc.,   Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense …  The pervasively corrupt american illegal system … corrupt u.s. courts / (lawyers) / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and costly bureaucracies. Rules of law mean nothing to these typically corrupt americans. Most, including sam alito of the u.s. supreme court, concerning  drug money laundering and obstruction of justice in the 3rd circuit ( also maryanne trump barry who covered-up drug money laundering through her brother’s casinos in a civil RICO case) should have gone to or belong in jail. Contrary to popular belief, they do it for the money, personal money, big, cash, untraceable money. The fog of war is great for such things (360 tons $100 bills flown into Iraq and missing, etc.).

 [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ]. america’s just a fraudulent and failed defacto bankrupt nation.  ] “I would announce, without equivocation, a 25% tax increase on anything purchased from China.” ]
CHENEY HECKLED... 'DRAFTDOGER!' 'WHERE'S BIN LADEN?'   ]



 

Mubarak Steps Down as President, Army Takes Over ABC News | Egypt’s embattled President Hosni Mubarak abruptly stepped down as president, ending his 30-year America’s Strategic Repression of the ‘Arab Awakening’ A popular backlash against American-supported dictatorships and repressive regimes has been anticipated for a number of years, with arch-hawk geopolitical strategist Zbigniew Brzezinski articulating a broad conception of a ‘Global Political Awakening’ taking place, in which the masses of the world (predominantly the educated, exploited and impoverished youth of the ‘Third World’) have become acutely aware of their subjugation, inequality, exploitation and oppression.



 

One-Way Market Action: Dave's Daily  ‘"To the moon"(Alice) might be a better description of this nonstop bullish action. All week markets were worrying about Egypt. When things were bad there, markets rallied. When things seemed better, markets rallied. When Cisco and Credit Suisse posted lousy reports, markets rallied. When China raised interest rates, markets rallied. Every dip has been bought and every dip has been buying. All this was taking place while many emerging markets were breaking down creating some divergence from previously high inter-market correlations. Things are going so well most reliable technical indicators are getting steamrolled by what those few trading must believe is a rosy future. Market rallies have been steady but not spectacularly higher with daily .50% type moves. But, those add up. Does all this frustrate us? Partially, since active portfolios exited a couple of weeks ago but Lazy Portfolios are doing better. Making sense of Mr. Market has never been an easy proposition. I'm back from attending the annual Inside ETFs conference in Florida where I moderated a panel on technical analysis. Most panelists were bullish but couldn't pin-point why other than "price" analysis. Friday Mubarak gave up probably needing the extra time to round-up the loot before he left town for a Club Med in Dubai or some such place. Markets opened lower on Mubarak's initial determination but then rallied some on his change of heart Friday…’

 

 

 

 

Bad News and Higher Prices - Bullish Wall of Worry or Reason to Worry?  [Definitely reason to worry; this up, up and away, valuation be damned preceded the last crash and the crash before that!  ], On Friday February 11, 2011 ‘If it's too obvious, it's obviously wrong. More often than not, this proverbial Wall Street adage has the last laugh. What's the prevailing consent on Wall Street? What's suspiciously obvious today?

- The Fed is here to help. As long as there's QE2 (or QE3, 4, etc,) prices will go up.

- January was positive. As January goes, so goes the year.

- This is the third year of the Presidential Election Year Cycle. There hasn't been a negative third year since 1939.

- There's no catalyst to send stocks higher.

While Wall Street analysts are trying to one up each other's positive forecasts, the Fear Index, VIX (Chicago Options: ^VIX) has fallen to a 3 year low. The last time the VIX was at a similar level was in April 2010, just before a literally fear-inspiring 17% correction and the May 'Flash Crash' (see chart below).The ETF Profit Strategy Newsletter didn't subscribe to the prevailing optimism in April 2010 and warned that: 'The message conveyed by the composite bullishness is unmistakably bearish. The pieces are in place for a major decline.'Does that mean that the bottom will fall out again within a matter of days? Not necessarily, but now is certainly not the time to be married to your holdings. Tight sell stops are warranted because any minor correction could turn into a large one. Why?

New Bull Market, or Mother of all Bear Market Rallies?

The devil's in the long-term trend. If we are in a new bull market, any dip would present a buying opportunity. If we are in the mother of all bear market rallies, every rally is a trap and represents a selling opportunity.How can one determine whether we are in a new bull market, or a bear market rally?     [chart]     It's said that bull markets climb a wall of worry. No doubt there was extreme pessimism surrounding the March 2009 lows. That's one of the reasons the ETF Profit Strategy Newsletter sent out a strong buy signal on March 2, 2009.But pessimism at the bottom doesn't equal a wall of worry. In fact, following the initial bout of disbelief, investors embraced the rally rather quickly. In late 2009, sentiment readings became frothy, in January 2010 they rivaled 2007 extremes (stocks fell 9%), and in April 2010 they exceeded 2007 extremes (stocks fell 17%).About two thirds of the rally from the 2009 lows was accompanied by optimism. This is no wall of worry.

Glass Half Full Outlook

Think about it, even the truly big problems - unemployment and falling real estate (NYSEArca: IYR - News) prices - were sugar coated from the very beginning. The unemployment problem was charmingly called 'jobless recovery' and falling real estate prices were simply ignored.The Case-Shiller home price index is down four months in a row, but nobody is bothered. A few days ago, MarketWatch ran an article: '10 reasons to be bullish on housing.'Courtesy of the continuing real estate conundrum, the FDIC closed 157 banks in 2010, and 14 thus far in 2011. According to a Wall Street Journal article, the top 10 U.S. owned banks (NYSEArca: KBE - News) had $13.8 billion in unrealized losses.Those are not reflected in earnings numbers as long as financial institutions (NYSEArca: XLF - News) believe the investment will later rebound. Guess what? Banks are pretty darn sure prices will reclaim their 2006 all-time highs.In addition to the $13.8 billion in unrealized losses, the top 10 U.S. banks owned $360.7 billion in illiquid, hard to value assets (called level 3 assets). While paper earnings appear solid, it appears as if banks are hiding skeletons in their closets. But who cares, stocks (NYSEArca: VTI - News) are up.

Anomaly Explained

Ben Bernanke has openly admitted that asset inflation, or the wealth effect from rising stock prices, is the objective of QE2. Obviously, the money flow from the Federal Reserve over banks into the stock market has been the driving force behind this monster rally.Much of the Fed money has been funneled into commodities. Since QE2, net speculative positions in wheat and copper have doubled, oil soared 115%, soybeans 40% and corn 15%. Rising commodity prices (NYSEArca: DBC - News) are putting the squeeze on lower income Americans and will eventually lower profit margins for the materials sector (NYSEArca: XLB - News).It's quite likely that this ripple effect will spill over into the retail (NYSEArca: XRT - News), technology (NYSEArca: XLK - News), and consumer discretionary sector (NYSEArca: XLY - News). From there it's just a matter of time until it hits the broader Dow (DJI: ^DJI), S&P (SNP: ^GSPC) and Nasdaq (Nasdaq: ^IXIC).Contrary to its objective, QE2 has also sent interest rates soaring. Higher interest rates tend to encourage the money to flow from equities into bonds. Higher interest rates put pressure on bond (NYSEArca: AGG - News) and stock prices alike.

Early Detection

The trend is your friend, but the trend is a fair-weather friend and can turn at any given time. The trend doesn't announce its intention to change direction. It switches back and worth as it pleases without your permission.Courtesy of your friend the trend, everybody is a genius in a bull market ... and a nave misguided trend follower when prices drop without prior notice.There is no foolproof way to find out when the market is about to change directions. There are, however, ways to put the odds in your favor.Watching support levels has proven a very effective way. A few months ago 1,170  was a crucial support level highlighted by the ETF Profit Strategy Newsletter. The S&P tested this level no less than five times, but never broker below it and rallied over 10% since.Just recently, 1,270 was such a support level. The S&P tested it twice before moving into the 1,320 range. The market is dynamic and can change swiftly; therefore, it's the market that dictates support levels, not us. We just identify and use them.At the current juncture, support levels are vital because they define the trend. As long as support remains intact, so does the rally. Once support is broken, watch out…’

 

 

 

 

Stock Market Resiliency Being Put to the Test Minyanville Suttmeier, chief market strategist at ValuEngine.com.’The test of resiliency for stocks comes from the dynamics for the US capital markets, both fundamentally and technically. The yield on the 10-year US Treasury note has held my annual value level at 3.791, and these high yields are a drag on equity valuations. Comex gold has been volatile but seems to find a home at my annual pivot at $1356.5. Nymex crude oil trades on both sides of my semiannual pivot at $87.52. In this environment US stocks have become overvalued fundamentally and overbought technically. Stocks have been trading under a ValuEngine Valuation Warning for the past three days as the major averages push the envelope of new multi-year highs.I still see the warning flags flying from Egypt, Europe, and the emerging markets which are laggards as we approach mid-February. While the Dow Industrial Average is up 5.6% year to date the iShares MSCI Emerging Markets Index Fund (EEM) is down 5.4%, and the iShares FTSE China 25 Index Fund (FXI) is down 4.0% and is below both its 50-day simple moving average at $43.28 and its 200-day simple moving average at $42.13. These types of negative divergences suggest to me that US stocks are vulnerable once their Fed-induced bubbles pop.Thursday’s equity closes were above all of this week’s pivots at 12,142 Dow Industrial Average, 1316.2 S&P 500, 2770 Nasdaq, 5077 Dow Transports, and 800.13 Russell 2000. The S&P 500 tested and held its weekly pivot at 1316.2. The Dow Transport Average outperformed on Thursday and tested its annual pivot at 5179.
 


We are trading under a ValuEngine Valuation Warning -- 16 of 16 sectors overvalued with only 33.15% of all stocks undervalued on Wednesday, below the 35% threshold by this measure. This also means that 66.86% of all stocks are overvalued. Why does Wall Street think stocks are cheap?

The US Treasury 10-Year Yield
-- (3.702) My annual value level is 3.791 with a weekly risky level at 3.525.
Comex Gold -- ($1361.7) My quarterly and annual pivots are $1331.3 and $1356.5 with daily, monthly, quarterly, and semiannual risky levels are $1375.2, $1412.4, $1441.7, and $1452.6.
Nymex Crude Oil – ($87.14) My semiannual pivot at $87.52 has become a magnet with a monthly pivot at $91.83.
The Euro -- (1.3593) My quarterly value level is 1.3227 with my monthly risky level at 1.4225.

Foreclosure Lull as Repossessions Rise Again
Foreclosure paperwork issues have slowed the home foreclosure process over the past two months, but as this dilemma works its way to a solution, foreclosures will rise again, as will bank auctions of OREO (Other Real Estate Owned). As a result, more homeowners who are missing mortgage payments are staying in their homes longer, adding to the backlog of bad loans. Meanwhile, banks are picking up the pace in repossessions taking back 78,133 properties in January according to RealtyTrac. This is up 12% from December. Banks took back more than a million homes in 2010, and about five million borrowers are at least two months behind on mortgage payments.
The housing problems remain the same: high unemployment, a weak housing market, falling home prices, and tighter lending standards.’

 

 

 

Debunking the 'Debunking Myths of U.S. Collapse' Post  Ridder [ Stated another way, the collapse of the (dis)united states is at hand. Now, let me state, that doesn’t mean america will disappear from the face of the earth, but the reality truly is ‘death from a thousand cuts’. It’s not just China’s rise, but america’s decline and fall with the concomitant relative rise of other nations, regions. Quite simply, and historically factual reality has proven, nation-states cannot and have not survived the multitude of negative, destructive, and self-destructive things america has done and prosper as a leading nation. From perpetual war, to pervasive corruption, fraud, criminality across all stratum including institutions, government of american society, to what I believe as well to be an evolved genetic bias of inherent criminality/mental illness which is ill-adapted to the strictures of a more enlightened 21st Century by way of near instantaneously available information, with truth and factual reality being america’s greatest enemy. In support of the foregoing I will reiterate reasons, infra.]  ‘This is a short response to another post I recently read, "Debunking Myths of U.S. Collapse," which was a follow up to the article "The End of America? Not Quite." This post had various and numerous flaws, in my opinion, which I thought had to be addressed. I have unfortunately recently undergone shoulder surgery, so I will not be able to provide as comprehensive response as I might hope; but I will provide some basic arguments and thoughts that rebut or refute the statements given in the "Debunking" post. First, under the heading "Printing Money Does Not Create Wealth," in which the author attempts to refute this statement, there is this line of reasoning:

"How will the 'wasted' money get into the hands of the wealth creators? If the new ear pickers go into their communities and spend it at local businesses, the printed money goes from useless employees, into the accounts of productive businesses (of course the producers get less after layers of tax bites). So the act of spending printed dollars itself will get those dollars into the hands of businesses who are able to create wealth."

Quickly, I will point to Japan, which has tried this over 20 years and seems not to have created much wealth as measured by the Japanese stock market. On the face of it this is a Keynesian solution and one source to explain the Keynesian fallacies, and provide logic for its arguments, is the book, "The Failure of the New Economics: An Analysis of the Keynesian Fallacies."

Secondly, we come across this statement:

You will realize Dick Cheney got it right when he said 'Deficits don't matter,' and will rest well knowing the US will not default through non-payment, nor hyper-inflation."

The author Murray Rothbard in the book, "Making Economic Sense," rebuts this thinking where he writes:

"Myth 1: Deficits are the cause of inflation; deficits have nothing to do with inflation."

"In recent decades we always have had federal deficits. The invariable response of the party out of power, whichever it may be, is to denounce those deficits as being the cause of perpetual inflation. And the invariable response of whatever party is in power has been to claim that deficits have nothing to do with inflation. Both opposing statements are myths.

"Deficits mean that the federal government is spending more than it is taking in in taxes. Those deficits can be financed in two ways. If they are financed by selling Treasury bonds to the public, then the deficits are not inflationary. No new money is created; people and institutions simply draw down their bank deposits to pay for the bonds, and the Treasury spends that money. Money has simply been transferred from the public to the Treasury, and then the money is spent on other members of the public.

"On the other hand, the deficit may be financed by selling bonds to the banking system. If that occurs, the banks create new money by creating new bank deposits and using them to buy the bonds. The new money, in the form of bank deposits, is then spent by the Treasury, and thereby enters permanently into the spending stream of the economy, raising prices and causing inflation. By a complex process, the Federal Reserve enables the banks to create the new money by generating bank reserves of one-tenth that amount. Thus, if banks are to buy $100 billion of new bonds to finance the deficit, the Fed buys approximately $10 billion of old Treasury bonds. This purchase increases bank reserves by $10 billion, allowing the banks to pyramid the creation of new bank deposits or money by ten times that amount. In short, the government and the banking system it controls in effect "print" new money to pay for the federal deficit.

"Thus, deficits are inflationary to the extent that they are financed by the banking system; they are not inflationary to the extent they are underwritten by the public."

Third, the author is just plain wrong mathematical analysis under the heading, "Printing Money Will Cause the U.S. Dollar to Lose Reserve-Currency Status," the author writes:

"Granted, China is growing at roughly 10% a year, and we are only growing at 3%. I get that. Let's do the math though and see if we should worry. If China is a $6 trillion economy, growing at 10%, they grow by $600 billion a year. If we are a $14 trillion economy growing at 3%, we grow by $420 billion a year. In this close to reality example, China is closing the gap at $180 billion a year. At this rate - it will take China 44 years to even match the US in GDP. Can they continue to grow at 10% a year, while their largest customer grows at 3% for 44 straight year? We are a far cry from no longer being the largest economy. The biggest economy in the world should be blessed with the reserve currency."

I took $14 trillion and grew it at a 3% rate in a spreadsheet and then took $6 trillion in a spreadsheet and grew it at 10% a year. One will find that if the 3% and 10% growth rates hold then in only 13 years (from a base year of zero) the Chinese economy would surpass the U.S. economy. This is much lower than 44 years, actually less than 30% of the time! It appears the author forgot to compound the growth rates but just used the difference in the first year to compute a timeline. Finally, the OECD showed that the EU-27 had a larger economy than the U.S. in 2009.

Fourth, there is this paragraph headline, "If Money Printing is Good, Then Just Print Enough To Give Everyone $1 Million," and then tries to protect the money printing position, which starts as follows:

"If printing is not a big deal, then why not just print away? The doom and gloomers jump to the conclusion that if I think printing won't cause the collapse of America, it must be a good thing. So why not seek more of that good thing?"

The author then rambles on about how he is not calling for everyone to get a huge lump sum and therefore his money printing position is okay. Left unanswered is what is the "right" amount of money to print and how exactly does it get distributed. Rothbard provides a more thoughtful analysis of this type of situation, again, in his book, "The Mystery of Banking," where he introduces the Angel Gabriel analogy:

"To show why an increase in the money supply confers no social benefits, let us picture to ourselves what I call the "Angel Gabriel" model. The Angel Gabriel is a benevolent spirit who wishes only the best for mankind, but unfortunately knows nothing about economics. He hears mankind constantly complaining about a lack of money, so he decides to intervene and do something about it. And so overnight, while all of us are sleeping, the Angel Gabriel descends and magically doubles everyone's stock of money. In the morning, when we all wake up, we find that the amount of money we had in our wallets, purses, safes, and bank accounts has doubled.

"What will be the reaction? Everyone knows it will be instant hoopla and joyous bewilderment. Every person will consider that he is now twice as well off, since his money stock has doubled. In terms of our Figure 3.4, everyone's cash balance, and therefore total M, has doubled to $200 billion. Everyone rushes out to spend their new surplus cash balances. But, as they rush to spend the money, all that happens is that demand curves for all goods and services rise. Society is no better off than before, since real resources, labor, capital, goods, natural resources, productivity, have not changed at all. And so prices will, overall, approximately double, and people will find that they are not really any better off than they were before. Their cash balances have doubled, but so have prices, and so their purchasing power remains the same. Because he knew no economics, the Angel Gabriel's gift to mankind has turned to ashes.

"But let us note something important for our later analysis of the real world processes of inflation and monetary expansion. It is not true that no one is better off from the Angel Gabriel's doubling of the supply of money. Those lucky folks who rushed out the next morning, just as the stores were opening, managed to spend their increased cash before prices had a chance to rise; they certainly benefited. Those people, on the other hand, who decided to wait a few days or weeks before they spent their money, lost by the deal, for they found that their buying prices rose before they had the chance to spend the increased amounts of money. In short, society did not gain overall, but the early spenders benefited at the expense of the late spenders. The profligate gained at the expense of the cautious and thrifty: another joke at the expense of the good Angel." (Pages 45-46)

Fifth, it appears that the author has reintroduced the fallacy of the labor theory of value when he states:

"The U.S. Dollar Has Lost 96% of its Purchasing Power - Thus Printing Makes Us Poorer. This argument only covers one side of the story. While each individual dollar buys less goods, the argument is incomplete. To bust this myth, we just need to look at how much time it requires to pay for those goods. Instead of looking at how many dollars it takes to buy a candy bar today compared to 30 years ago, I would challenge you to instead value the candy bar in hours of labor to obtain it."

I am almost at a loss as how to respond to the labor theory of value appearing to pop up again. I think one can go to any of today’s basic economic textbooks and have that fallacy addressed. I only hope the author was intending to discuss real wages and unfortunately used poor wording that accidently came out as in favor for the labor theory of value.

Finally, the author writes:

"I want the reader to know though, you can rest confident knowing that tonight the U.S. will not collapse by the time you wake up in the morning. Sleep well because the U.S. Dollar will not be worthless when you wake up ... Fear for the collapse of America is unwarranted and rooted in misunderstanding of the monetary system in which we live under today. We are not Greece. Or Weimar. Or Zimbabwe."

I would caution the reader that author’s writing has numerous fallacies and mathematical inaccuracies. A need for clearer and more thoughtful thinking is needed to analyze the monetary and fiscal policies of Greece, Weimar, and Zimbabwe and compare them to the U.S. I do recall a while ago that the central bank head of Zimbabwe said his bank was just doing the same thing the FED was. This is not the type of neighborhood I would like to take even a short visit to.’

 

 

 

 

IMF calls for dollar alternative The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world’s reserve currency. The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.

 

Shocking New IMF Report: The U.S. Dollar Needs To Be Replaced As The World Reserve Currency And SDRs “Could Constitute An Embryo Of Global Currency” The IMF is trying to move the world away from the U.S. dollar and towards a global currency once again. In a new report entitled “Enhancing International Monetary Stability—A Role for the SDR”, the IMF details the “problems” with having the U.S. dollar as the reserve currency of the globe and the IMF discusses the potential for a larger role for SDRs (Special Drawing Rights).

 

CBO Director Says Obamacare Would Reduce Employment by 800,000 Workers Testifying today before the House Budget Committee, Congressional Budget Office (CBO) Director Doug Elmendorf confirmed that Obamacare is expected to reduce the number of jobs in the labor market by an estimated 800,000.

 

Goldman Sachs Not So Bullish About Gold This recent note out of the Goldman Sachs Investment Strategy Group is likely to wrinkle some feathers in the world of gold investors. Goldman sees gold as an increasingly poor investment going forward.

 

National / World

 

 

Reparations: Rahm Says Pay the Banksters First Kurt Nimmo | Emanuel knows black Americans will never see a cent under the transfer of wealth scheme known as slave reparations.

 

House Clears Path For Extension Of Government Spying On American Citizens Steve Watson | PATRIOT Act renewal clears House vote, will be passed next week.

 

Globalists Push SDRs as World Reserve Currency Kurt Nimmo | The banksters have purposely attacked the dollar in order to move us into a globalist world currency.

 

T_rump: Ron Paul Has “Zero Chance” Of Beating Obama Paul Joseph Watson |  {  Drudgereport: TRUMP DRAWS CHEERS, BOOS AT CONSERVATIVE CONFERENCE...      PONDERING PRESIDENTIAL RUN... [Don’t make me laugh! … Donald T_rump Would Impose 25% Tax on China Imports if President  [ trump also said america’s become the laughingstock of the world … true enough … and trump the biggest joke … Indeed, that trump even posits the possibility of a run when he should be in jail is a testament to just how big a laughingstock pervasively corrupt, defacto bankrupt america’s become!  [ If he was mobster in chief, mobster and scoundrel trump wraps himself in populist american flag and offers up an (too little too late – typical lightweight) implausible solution to keep ‘the juice’ flowing though he’d already be in jail in a rational, non-declining nation with meaningful laws. All China has to do is dump (and not prospectively buy) their ever more and declining in value day-by-day (from dollar debasement policies) u.s. paper / bonds and overnight the u.s. economy consequently  thereby collapses. [ When you come right down to it, this has been america’s most significant export. Indeed, this irrevocable structural shift, hailed by cia men hw bush and clinton (clinton couldn’t have survived with them) by way of NAFTA as the greatest  thing since sliced bread was indeed in no uncertain terms condemned and warned against by Perot, a man of honor who, unlike his opponents, could not be bought, which is the reason, in pervasively corrupt america, he could never have been elected. Interestingly, you may have noticed the good (but not great, other than the spotlight on pervasive bribery including judges, police, politicians, etc., being far too light) the film ‘The Untouchables’ getting a wide re-airing of late, purporting to be a significant part of american folklore / history / culture. However, the reality is that in america, and certainly today, the real story with impact is that of ‘The Touchables’. The reality is that Elliot Ness died a broken man; bankrupt, unable to even win election to the mayoralty of his then current hometown. He was incorruptible; and hence, in the real america, unelectable at the least if not also all but unemployable (he and his are among those few genetic anomalies in america as I’ve previously alluded to. How far america has fallen from even false perception! Pervasively corrupt, meaningfully lawless america can’t even fake it anymore. See, for example, http://albertpeia.com/CIAAgentAffidavit1.jpg     http://albertpeia.com/FBIAgentAffidavit11.jpg      , and of course, corrupt legal / judicial processes, etc.,   Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense …  The pervasively corrupt american illegal system … corrupt u.s. courts / (lawyers) / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and costly bureaucracies. Rules of law mean nothing to these typically corrupt americans. Most, including sam alito of the u.s. supreme court, concerning  drug money laundering and obstruction of justice in the 3rd circuit ( also maryanne trump barry who covered-up drug money laundering through her brother’s casinos in a civil RICO case) should have gone to or belong in jail. Contrary to popular belief, they do it for the money, personal money, big, cash, untraceable money. The fog of war is great for such things (360 tons $100 bills flown into Iraq and missing, etc.).

 [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ]. america’s just a fraudulent and failed defacto bankrupt nation.  ] “I would announce, without equivocation, a 25% tax increase on anything purchased from China.” ]
CHENEY HECKLED... 'DRAFTDOGER!' 'WHERE'S BIN LADEN?'  }

 In reality, the Texas Congressman has a better chance than Republican darling Sarah Palin.

 

Wael Ghonim of Google plays an integral part in ElBaradei’s bid to seize power Tony Cartalucci | Perhaps Ghonim doesn’t know who ElBaradei really works for and that he consorts with the very men making the US policy he feigns to deplore.

 

 

 

Dick Cheney and Donald Rumsfeld booed at GOP convention in D.C. New York Daily News | Donald Rumsfeld and Dick Cheney were booed on Thursday at the Conservative Political Action Conference.


 

Cheney Heckled at CPAC: Paul Supporters Hijack Cheney-Rumsfeld Reunion TPM | Dick Cheney just popped up here at CPAC to introduce his old pal and Bush administration colleague Donald Rumsfeld when fans of Ron Paul loudly accused the former VP of being a ‘war criminal.’

 

 

 

Mubarak Steps Down as President, Army Takes Over ABC News | Egypt’s embattled President Hosni Mubarak abruptly stepped down as president, ending his 30-year

 

 

 

America’s Strategic Repression of the ‘Arab Awakening’ A popular backlash against American-supported dictatorships and repressive regimes has been anticipated for a number of years, with arch-hawk geopolitical strategist Zbigniew Brzezinski articulating a broad conception of a ‘Global Political Awakening’ taking place, in which the masses of the world (predominantly the educated, exploited and impoverished youth of the ‘Third World’) have become acutely aware of their subjugation, inequality, exploitation and oppression.

 

 

 

 

Drudgereport: IMF CALLS FOR ALTERNATIVE TO $$ AS WORLD'S RESERVE
MILITARY TAKES COMMAND
'Egypt is Free,' crowds chant...
WIRE: Military coup was behind Mubarak's exit...  
Military calls for normal business activity to resume...

DAY 18: Mubarak and family flee Cairo for Sharm el-Sheikh...
Swiss freeze assets...
Obama learns of resignation watching TV...
Crisis Puts White House in Disarray...
Director of National Intelligence: Muslim Brotherhood 'Largely Secular,' 'Has Eschewed Violence'...
'Weakness' in USA...
Ahmadinejad: Egyptian protests herald new Mideast...
AL-JAZEERA LIVE FEED...
FRANCE 24 LIVE FEED...
Mubarak Hangs Tough...

VP Urges Protestors to Ignore Media, and Go Home...
AL-JAZEERA LIVE FEED...
CIA Panetta Confused: Said Strong likelihood Mubarak would 'step down tonight'...
March to palace being organized...
REUTERS LIVE...
ElBaradei warns Egypt will 'explode'....
Egypt's govt on the brink..
FLASH CRASH: APPLE stock loses $10 billion in four minutes...

Jobs' Health Rumor?
Global Stock Exchanges Headed for Major Consolidation...
Kyl becomes fifth senator to step aside...
Fed Governor Resigns; Bernanke Adviser Questioned Stimulus...

NBC: Intelligence officials 'scrambling to try to determine exactly what this all means'...
TRUMP DRAWS CHEERS, BOOS AT CONSERVATIVE CONFERENCE...

PONDERING PRESIDENTIAL RUN... [Don’t make me laugh! … Donald T_rump Would Impose 25% Tax on China Imports if President  [  trump also said america’s become the laughingstock of the world … true enough … and trump the biggest joke … Indeed, that trump even posits the possibility of a run when he should be in jail is a testament to just how big a laughingstock pervasively corrupt, defacto bankrupt america’s become!  [ If he was mobster in chief, mobster and scoundrel trump wraps himself in populist american flag and offers up an (too little too late – typical lightweight) implausible solution to keep ‘the juice’ flowing though he’d already be in jail in a rational, non-declining nation with meaningful laws. All China has to do is dump (and not prospectively buy) their ever more and declining in value day-by-day (from dollar debasement policies) u.s. paper / bonds and overnight and the u.s. economy consequently  thereby collapse. [ When you come right down to it, this has been america’s most significant export. Indeed, this irrevocable structural shift, hailed by cia men hw bush and clinton (clinton couldn’t have survived with them) by way of NAFTA as the greatest  thing since sliced bread was indeed in no uncertain terms condemned and warned against by Perot, a man of honor who, unlike his opponents, could not be bought, which is the reason, in pervasively corrupt america, he could never have been elected. Interestingly, you may have noticed the good (but not great, other than the spotlight on pervasive bribery including judges, police, politicians, etc., being far too light) the film ‘The Untouchables’ getting a wide re-airing of late, purporting to be a significant part of american folklore / history / culture. However, the reality is that in america, and certainly today, the real story with impact is that of ‘The Touchables’. The reality is that Elliot Ness died a broken man; bankrupt, unable to even win election to the mayoralty of his then current hometown. He was incorruptible; and hence, in the real america, unelectable at the least if not also all but unemployable (he and his are among those few genetic anomalies in america as I’ve previously alluded to. How far america has fallen from even false perception! Pervasively corrupt, meaningfully lawless america can’t even fake it anymore. See, for example, http://albertpeia.com/CIAAgentAffidavit1.jpg     http://albertpeia.com/FBIAgentAffidavit11.jpg      , and of course, corrupt legal / judicial processes, etc.,   Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense …  The pervasively corrupt american illegal system … corrupt u.s. courts / (lawyers) / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and costly bureaucracies. Rules of law mean nothing to these typically corrupt americans. Most, including sam alito of the u.s. supreme court, concerning  drug money laundering and obstruction of justice in the 3rd circuit ( also maryanne trump barry who covered-up drug money laundering through her brother’s casinos in a civil RICO case) should have gone to or belong in jail. Contrary to popular belief, they do it for the money, personal money, big, cash, untraceable money. The fog of war is great for such things (360 tons $100 bills flown into Iraq and missing, etc.).

 [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ]. america’s just a fraudulent and failed defacto bankrupt nation.  ] “I would announce, without equivocation, a 25% tax increase on anything purchased from China.” ]
CHENEY HECKLED... 'DRAFTDOGER!' 'WHERE'S BIN LADEN?'

 

 

 

Kevin Warsh to leave Federal Reserve Board (Washington Post) [  How ‘bout gettin’ them all to leave … now that would sound like a … sound plan!   Is Ben Bernanke A Liar, A Lunatic Or Is He Just Completely And Totally Incompetent?  Infowars.com Did you see Ben Bernanke’s testimony before the House Budget Committee on Wednesday? It was quite a show. Bernanke seems to believe that if he just keeps on repeating the same mantras over and over that somehow they will become true.   ] The departure leaves the governing board almost entirely in the hands of Obama appointees.

 

 

Mubarak's defiance puts U.S. on the defensive (Washington Post) [  Kissinger on Egypt unrest (2-01-11) – “This is only the first scene of the first act of a drama that is to be played out”   - And what scene of what act are we in now sweet hank, pray tell. Indeed, after kissinger’s ingratiating comments of the wobama administration’s ‘proper’ handling of the crisis thus far (drummin’ up potential new ‘business’ for doin’ who knows what if anything at all) … his ‘consulting business’ must be … off … considerably! ]  

 

House Republicans divided on spending cuts (Washington Post) [ Holy smokes! … $100 billion … Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘ ]
 ]    ] An already wobbly week for House Republicans turns chaotic as their unruly new majority flatly rejects a spending plan crafted by House leaders, saying its cuts fell far short of fulfilling a campaign pledge to slice $100 billion from federal programs.

 

 

Mubarak's iron rule Robinson: Crumbling but not gently (Washington Post) [ True enough … that crumbling but not gently thing … sounds very ‘americana’ … Spreading unrest raises pressure on Mubarak (Washington Post) An array of new developments turned against President Hosni Mubarak on Wednesday as Egypt moved closer to a full rupture between its autocratic government and a growing popular rebellion. [  Do not talk about ruptures in the presence of Pharhosni Mubarak he chides the Washington Post! After all, at 82 years old and 30 years in power, hernias are known to quite easily happen… Previous: Free elections still distant prospect for Egypt     Activists express doubts about feasibility of September ballot  (Washington Post) ["I'm shocked by what the Americans say - that Mubarak must stay as president so we can prepare for new elections,'' said Negad El Borai, a human rights advocate and lawyer in Cairo. "Mubarak must leave, and then we can talk." … Truth be told, I’m not shocked. Indeed, though this is only marginally what america / israel wanted, this will stick to america / israel like glue; that proverbial albatross; that lose, lose scenario for america in the region. Previous:  Egypt protests continue as Mubarak's government offers concessions (Washington Post) [ Come on! Let not all of us join america’s / israel’s, et als, and  mubarak’s delusions. After all, here’s an 82 year old tyrant, in power for 30 years, yet in some parallel universe appears to think he’s calling the shots. Other than literal and quite foolish shots against protesters, even journalists, see infra, there are few indeed that would trust his mindset, such as it is, much less his judgment, so flawed as he has now shown it to be. What is obvious is that this long overdue ‘people’s election’ cannot be thwarted by platitudes and small talk, but resisting the inevitable will turn an american quasi-ally into an anti-american breeding ground because there’s just no reconciling a pro-mubarak, however slight, position with american / israeli, et als war crimes in the region.  Restless Cairo protesters hoping for U.S. support (Washington Post) [ The sad reality here is, much like wobama’s Afghanistan fiasco, that america has ‘bought it’. This is truly yet another ‘loss, loss’ scenario as is true of america’s mideast policy generally. Defacto bankrupt america’s initiatives in the region particularly, though generally true of all american policy, is the ‘square pegs in round holes’ approach to almost everything they do, which certainly is not lost on the rest of the world. Coddling and caving in to israeli / neocon / zionist paranoia despite the war mongering intransigence of the former is devastating to a nation as pervasively corrupt america which is facing insurmountable domestic problems of its own, economically, financially, politically, and geo-politically. This should bring to mind the missteps of a former fading empire in this same region desperately trying to remain relevant. Indeed, from Balfour’s Despoliation to arbitrary boundaries, etc., Orwellian britain’s demise (decline) as a real player globally was, as america’s currently, significantly and irrevocably hastened. Quite simply, pervasively corrupt, defacto bankrupt america will increasingly be viewed as a bunch of  ‘muck-ups’ who can’t handle their own substantial problems much less those of other nations; and in fact, invariably exacerbate existing conditions / problems, particularly when pandering to israel’s self-interested concerns. ] While the ouster of President Hosni Mubarak remains the most pressing concern for protesters, the role of U.S. is far from absent in the dialogue. { Previous:  Amid Arab protests, U.S. influence has waned (Washington Post) [ And that’s just the way israel likes it … and to america’s detriment, of course … which is not lost on even George Soros … Drudgereport: Soros: 'The main stumbling block is Israel'...  ….. Egyptian protesters plan new push     Government detains foreigners, says it's willing to open talks  (Washington Post) [ Open talks? ‘bout what? Building a pyramid in mubarak’s honor before stepping down? He’s done … finito … burnt as an over-micro-waved burrito! The following from the Post is indeed the straw that broke the riders with whips he sent on camels’ and horses’ backs!  ‘Wants to die in Egypt? How touching, or the reality, he’s just plain touched as in totally ‘out of it’.   ‘…In what the U.S. State Department called a "concerted campaign to intimidate," several dozen journalists were rounded up by security forces and detained for hours, along with foreigners working as teachers, engineers and human rights researchers. Across the city, angry bands of supporters of President Hosni Mubarak also beat journalists; several reporters said that they were threatened with death…’   ]  Cairo seeks to shift blame for clashes by rounding up journalists; U.S. worries renewed protests could spark more violence from Mubarak supporters. Demonstrations in Egypt take bloody turn    In Cairo square, Mubarak backers confront anti-government crowds  (Washington Post) [  Not too difficult for desperate and done mubarak to contrive:   Mubarak Says Egyptians Have to Choose Between “Chaos” and Him … Then Sends In His Thugs to Stir Up Chaos  (Infowars.com) In order to justify staying in power until elections are held in September, President Mubarak said on tv that the people had to choose between him and “chaos”.    ]  The coordinated nature of day's events suggested that Mubarak's supporters were determined to show, as he had warned, that the country faced a "choice between chaos and stability."   [  Previous:    Mubarak's pledge seen as not enough   Egyptian president plans to stay in office to transfer power  (Washington Post) [ Let me put it another way: Mubarak is as done as an over-cooked tamale … He seems to be stalling for time and even in his age impaired mind certainly knows his position is untenable, unsustainable, and even more irrational as each second passes. There is a possibility that he’s using same to move money / treasure for himself and others, literally as well, buying time. See infra …  Previous:  Mubarak seeks dialogue, shows no sign of relenting   Demonstrators call for massive protest but lack leadership  (Washington Post) [ He relented when he resorted to media / internet blackout. Indeed, this lack of sign thing is a testament to how far from reality 30 years has taken him, not to mention the other 52 years that have taken their toll on his cognitive processes. Whether it is plaques ‘on the brain’ or outright senility, that he is so disengaged from the events unfolding around him, one may only wonder how he lasted this long. Nor did his choice of cia standin / shill, new VP Suleiman enhance his now untenable position which leaves him as ‘done as a burnt enchilada’.  Kissinger on Egypt unrest – “This is only the first scene of the first act of a drama that is to be played out”   [ The import of this so-called interview, and it is here that I part company with alex jones, et als (who by the way, censored me for this very thesis, which puts him and his at the top of my hypocrite list), is that the so-called elite have orchestrated these events and ‘are in control’. First, there are no elites in this world; you can’t derive elites from apes, notochordates, and initially single celled organisms. Second, almost by definition and certainly by history, there are no elites in america even if you were to accept the first proposition (though true) as untrue. What you do have, in this world and america particularly (with few exceptions as I’ve discussed elsewhere / comments / my website), are inherent criminals and mentally ill people of varying degrees of unscrupulousness and insanity who do commit crimes, both small and large, to further their interests or fortunes (sociopaths / psychopaths). The ’so-called alpha-dogs’ of the human species at most, but still incompetent vegetables who, if you look at anything they touch (to use a term term of such incompetent vegetables as historically pertains to their role in the mideast – and generally the state of the world) it invariably goes ‘pear shaped’ (english term). What hasn’t zionist kissinger not messed up as appointee or ‘consultant’ – what does he get paid for? No! The fact is, they have absolutely no idea how this unfolds and as with most of their lives, they will predictably choose the most sordid, despicable, and diabolical course at every turn because … that is their inherently criminal, mentally ill / unstable nature to do so. ]

]  Fragile steps to end crisis seen as plans take shape for a transition process that would allow Mubarak to remain as a figure head until new elections.  ]  After decades of repression, democracy advocates say it could take many months -- if not years -- to lay groundwork for open and credible elections.  ]

 

 

 

Mubarak cedes some authority but refuses to quit      In latest bid to quell protests, president transfers powers to VP  (Washington Post) [Wow! ‘Earlier Thursday, CIA Director Leon Panetta told Congress that "there is a strong likelihood that Mubarak may step down this evening."…’ Talk about being out of the loop and stuck with ‘foot-in-mouth’ … not that you’d expect more from the CIA … CIA's dilemma in Egypt (Washington Post)  [ Come on! How does anyone take these ‘muck-ups’ seriously … As a purported journalist, Mr. Ignatius should know better. What distracts the agency is self-interest and greed … yes, greed for themselves, theirs, and a raison d’etre that assures their continued funding (oh how they miss the cold war, hot ones will have to do) on top of their private so-called ‘black ops’. They’re wrong or absent without leave (awol) on major events purportedly within their bailiwick; ie., mideast, israel, ‘wmd’s in Iraq’, 9-11, Egypt, etc.; and, as well, are fallacious in their policy direction, directives, etc.. I mean, beyond their nefarious undertakings, they look more and more like Maxwell Smarts (‘Get Smart’) minus ‘99’ every day. Expanded Free Trade: Exporting Jobs [ When you come right down to it, this has been america’s most significant export. Indeed, this irrevocable structural shift, hailed by cia men hw bush and clinton (clinton couldn’t have survived without them) by way of NAFTA as the greatest  thing since sliced bread was indeed in no uncertain terms condemned and warned against by Perot, a man of honor who, unlike his opponents, could not be bought, which is the reason, in pervasively corrupt america, he could never have been elected. Interestingly, you may have noticed the good (but not great, other than the spotlight on pervasive bribery including judges, police, politicians, etc., being far too light) the film ‘The Untouchables’ getting a wide re-airing of late, purporting to be a significant part of american folklore / history / culture. However, the reality is that in america, and certainly today, the real story with impact is that of ‘The Touchables’. The reality is that Elliot Ness died a broken man; bankrupt, unable to even win election to the mayoralty of his then current hometown. He was incorruptible; and hence, in the real america, unelectable at the least if not also all but unemployable (he and his are among those few genetic anomalies in america as I’ve previously alluded to. How far america has fallen from even false perception! Pervasively corrupt, meaningfully lawless america can’t even fake it anymore. At CIA, mistakes by officers are often overlooked (Washington Post) [ Duuuh! I want to know of even one thing that’s not overlooked concerning those incompetent mental cases at the cia; from assassinations, to illegal drug dealing, to illegal arms sales, to corruption, to disinformation, etc., to america’s and the world’s (ie., those WMD’s in Iraq, etc.) substantial detriment. See, for example, http://albertpeia.com/CIAAgentAffidavit1.jpg     http://albertpeia.com/FBIAgentAffidavit11.jpg      , and of course, corrupt legal / judicial processes, etc.,   Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense  ( http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         )   ]:

CRIME STATISTICS > TOTAL CRIMES (MOST RECENT) BY COUNTRY  SHOWING LATEST AVAILABLE DATA (america’s No. 1).

Rank  

Countries 

Amount 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

The following youtube video is well worth the look and explains how and why the frauds on wall street have gotten away with their devastating fraud thus far.  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed.  ( UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...         CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN BLACK PANTHER CASE... ex-Justice official quit over the handling of a voter intimidation case against the New Black Panther Party accused his former employer of instructing attorneys in the civil rights division to ignore cases that involve black defendants and white victims US v. AZ...    Cases against Wall Street lag despite Holder’s vows to target financial fraud  Obama broke promises ):

‘THE OBAMA DECEPTION’  http://www.youtube.com/watch?v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from=PL&index=0&playnext=1. [ The Obama Deception Number 1 on U.S. Google Trends  ]

‘The Obama Deception’ Censored  ‘The Obama Deception’ has been censored      In light of this development, I provide an archived site version which appears to be complete (but will be compared with earlier version and replaced with same if incomplete)        http://albertpeia.com/obamadeceptionhighqualityversion.flv

Then there is the well researched, produced, and informative ‘ESOTERIC AGENDA’ which explains how we’ve gotten to this forlorn point: http://video.google.com/videoplay?docid=-7052400717834950257# 

For the Same Reason I’ve Included Here a Web Site Archived FLV Version of Esoteric Agenda    http://albertpeia.com/esotericagenda.flv

]   ] Ignatius: Its fight against al-Qaeda has distracted the agency.

] Egyptian leader's defiance stuns and angers hundreds of thousands in Cairo who respond with chants of "revolution, revolution."

 

 

Cisco Slump, Mubarak Saga Keep Lid On Stocks  [ But guess what? The fraudulent wall street rally point … ‘news that Egyptian President Hosni Mubarak would step down’ … never happened!  ] ‘Disappointing earnings projections from Cisco and PepsiCo pressured Wall Street Friday morning, but news that Egyptian President Hosni Mubarak would step down buoyed markets by midday and the major indexes essentially flat by the closing bell.The Nasdaq actually ticked positive to gain 1 point to 2,790, despite Wednesday’s troubling report from Cisco that included a decline in gross margins along with its better than expected earnings and revenue. (See “Cisco: Prelude To Profits, Or Layoffs.”)Cisco’s shares slumped 14.2%, but the rest of the tech sector as fairly resilient. Apple was also in the news, after a sudden plunge in the 1 p.m. hour on little news before recovering to finish with a 1% decline. (See “Did Someone Have A Fat Finger On Apple Today?”)Egypt jumped back into the headlines shortly after the open, with speculation that President Hosni Mubarak would resign. In a speech that began just before the U.S. markets closed, Mubarak stopped short of confirming his departure, but did say he would transfer some of his presidential powers to Vice President Omar Suleiman until a September election.It was a tough day for companies who rang the closing bells at NYSE and Nasdaq, since all eyes were on Mubarak’s speech that ran past the end of trading. The S&P 500 added 1 point to 1,322, while the Dow Jones industrial average broke its eight-day winning streak with an 11-point decline to 12,229.Aside from Cisco, a weaker-than-anticipated forecast from PepsiCo also pressured stocks, overshadowing any enthusiasm for the latest snapshot of the job market. New jobless claims fell to their lowest level since July 2008 last week, according to the Labor Department, dropping to 383,000. The four-week moving average was down to 415,500.’

 

 

 

 

Initial Jobless Claims Drop to 383,000 [ Come on! Who believes anything they say / report! ]

 

 

 

 

Minimum 5% Correction Begins Cooper ‘Minyanville Editor's Note: The following is a free edition of Jeff Cooper's Daily Market Report…..Is it getting better?Or do you feel the same?One (U2)

“Synchronicity is no more baffling or mysterious than the discontinuities of physics. It is only the ingrained belief in the sovereign power of causality that creates intellectual difficulties and makes it appear unthinkable that causeless events exist or could ever exist. But if they do, then we must regard them as creative acts, as the continuous creation of a pattern that exists from all eternity, repeats itself sporadically, and is not derivable from any known antecedents. Continuous creation is to be thought of not only as a series of successive acts of creation, but also as the eternal presence of the ONE creative act.” -
- Carl Jung

[ Wow! … Note to myself: Never bother reading the verbose, circumlocution-prone jung. And, truth be told, while I believe it to be true there’s a substantial correction in the offing, and it’s also true that the business cycles shouldn’t be ignored (though computerization has lessened the impact of ‘inventory recessions’), and that the market is significantly overvalued; the following is a bit much and included as a matter of curiosity (those modern day alchemists thing … ie., helicopter ben spinning more fake money from paper, fraudulent wall street’s worthless assets from paper and spin, etc..) and correct for the wrong or questionable reasons but is somewhat of a ‘hoot’; and so, you may borrow and don Mickey’s sorcerer’s (apprentice) hat and hang on for the ride. Whew! … that Jungian verbosity thing must be catching! Happy halloweeny! ]

 

Cisco Slump, Mubarak Saga Keep Lid On Stocks  [ But guess what? The fraudulent wall street rally point … ‘news that Egyptian President Hosni Mubarak would step down’ … never happened!  ] ‘Disappointing earnings projections from Cisco and PepsiCo pressured Wall Street Friday morning, but news that Egyptian President Hosni Mubarak would step down buoyed markets by midday and the major indexes essentially flat by the closing bell.The Nasdaq actually ticked positive to gain 1 point to 2,790, despite Wednesday’s troubling report from Cisco that included a decline in gross margins along with its better than expected earnings and revenue. (See “Cisco: Prelude To Profits, Or Layoffs.”)Cisco’s shares slumped 14.2%, but the rest of the tech sector as fairly resilient. Apple was also in the news, after a sudden plunge in the 1 p.m. hour on little news before recovering to finish with a 1% decline. (See “Did Someone Have A Fat Finger On Apple Today?”)Egypt jumped back into the headlines shortly after the open, with speculation that President Hosni Mubarak would resign. In a speech that began just before the U.S. markets closed, Mubarak stopped short of confirming his departure, but did say he would transfer some of his presidential powers to Vice President Omar Suleiman until a September election.It was a tough day for companies who rang the closing bells at NYSE and Nasdaq, since all eyes were on Mubarak’s speech that ran past the end of trading. The S&P 500 added 1 point to 1,322, while the Dow Jones industrial average broke its eight-day winning streak with an 11-point decline to 12,229.Aside from Cisco, a weaker-than-anticipated forecast from PepsiCo also pressured stocks, overshadowing any enthusiasm for the latest snapshot of the job market. New jobless claims fell to their lowest level since July 2008 last week, according to the Labor Department, dropping to 383,000. The four-week moving average was down to 415,500.’

 

 

 

 

Initial Jobless Claims Drop to 383,000 [ Come on! Who believes anything they say / report! ]

 

 

 

 

Minimum 5% Correction Begins Cooper ‘Minyanville Editor's Note: The following is a free edition of Jeff Cooper's Daily Market Report…..Is it getting better?Or do you feel the same?One (U2)

“Synchronicity is no more baffling or mysterious than the discontinuities of physics. It is only the ingrained belief in the sovereign power of causality that creates intellectual difficulties and makes it appear unthinkable that causeless events exist or could ever exist. But if they do, then we must regard them as creative acts, as the continuous creation of a pattern that exists from all eternity, repeats itself sporadically, and is not derivable from any known antecedents. Continuous creation is to be thought of not only as a series of successive acts of creation, but also as the eternal presence of the ONE creative act.” -
- Carl Jung

[ Wow! … Note to myself: Never bother reading the verbose, circumlocution-prone jung. And, truth be told, while I believe it to be true there’s a substantial correction in the offing, and it’s also true that the business cycles shouldn’t be ignored (though computerization has lessened the impact of ‘inventory recessions’), and that the market is significantly overvalued; the following is a bit much and included as a matter of curiosity (those modern day alchemists thing … ie., helicopter ben spinning more fake money from paper, fraudulent wall street’s worthless assets from paper and spin, etc..) and correct for the wrong or questionable reasons but is somewhat of a ‘hoot’; and so, you may borrow and don Mickey’s sorcerer’s (apprentice) hat and hang on for the ride. Whew! … that Jungian verbosity thing must be catching! Happy halloweeny! ]

The relevance of trading with time and cycle may alone be less accurate than forecast with price; however its relevance increases as forecasted times approach, price patterns and momentum wanes showing signs of reversal.
When taken together, time/price harmonics have accurately predicted significant market turning points.
Numbers don’t mean anything until they turn the market, but numbers, not fundamentals, turn the market. It was not the fundamentals that turned the market in March 2009.
One of W.D. Gann’s major methods for market timing was to use fractions of a circle, specifically into quarters, eighths, and thirds, to count the number of days, weeks, and months between highs and lows.
For example, the circle has 360 degrees, 90 is one-quarter, 45 is one-eighth.
Rounding, one-eighth of 90 is 11, two-eighths is 22, three-eighths is 33, and four-eights is 45.
W.D. Gann was the greatest student and researcher of the market ever but he was very secretive about what he revealed and how he revealed it. He never chose his words without a distinct reason.
For example, one of Gann’s books was called 45 Years in Wall Street. Note that the title was not 45 Years on Wall Street, but in Wall Street.
The book was not about his career on Wall Street but about a cycle on Wall Street.
As well as regular cycles, there are random fluctuations in things too. The random occurrences can camouflage the periodicity of cycles and also generate what appear to be new, smaller cycles… which they may not be. This is one of the problems with market-timing signals.
In addition, many things act as if they are influenced simultaneously by several different rhythmic influences, the composite effect of which is not regular at all.
Cycles may have been present in the figures you have been studying merely by chance. The ups and downs you have noticed, which come at more or less regular intervals, may have just happened to come that way. The regularity, the cycle, is there but in such circumstances it may carry no significance
Cycles can invert, appear and disappear, and elipticalize.
When forecasting stock market cycles, they can be influenced by random events. The predictive value of cycles provide only specific probabilities when the suggested time period is approached.
Fixed time cycles are apparent in stock market tops and bottoms. But, eventually a cycle may cease to continue. For example, the four-year cycle in the US stock market held true from 1954 to 1982, producing accurate forecasts of eight market bottoms. Had an investor recognized the cycle in 1962 he could have amassed a fortune over the next 20 years. But in 1986, the cycle’s prediction of a low failed to provide a bear market and in 1987 its rising phase failed to prevent the largest crash since 1929.
When the market doesn’t do what is expected it is talking, but ultimately the regression to the mean is vicious.
Long-term cycles, such as the Kondratieff Cycle as well as Elliott Waves, suggested that the big-picture bull market was coming to an end in 2000.
The Kondratieff Cycle is a common, often-quoted cycle of financial and economic behavior that lasts about 54 years. This 54-year cycle is close to the Fibonacci 55 number.
One year is a little less than 55 weeks.
Fifty-five was an important count for W.D. Gann. He called a period of 49 to 55 days the Death Zone. February 8 was the 49th trading day from November 30, the day prior to the December 1 kickoff of this last leg up.
A Synodic Period is the length of time two planets meet in Conjunction, which means revolving 360 degrees to each other. The 360-degree period is divided into fractions known as the Sextile (60 degrees), Square (90 degrees), Trine (120 degrees), Opposition (180 degrees), and back to Conjunction again.
Many of the Synodic planetary cycles conform to the Fibonacci Summation series. Their relationship to natural harmonic vibration is not by chance.
For example Venus revolves around the sun in 61% of one year, or 225 days. Two-hundred-twenty-five was an important number for Gann because 180 + 45 = 225. These two planets possess the unique Fibonacci relationship of the 0.618 Golden Mean.
Every other conjunction of Mars/Jupiter is four-and-one-third years, or 233 weeks, another Fibonacci number. This ties to the four-year cycle mentioned above. While the four-year cycle went out of whack in 1986, there was a significant low in the fall of 1990 and late 1994, which began the parabolic move into 2000. There was a shakeout into 1998 and of course there was the 2002 low. There was a two-month shakeout into June/July of 2006 from 1326 S&P to 1219, which marked the low prior to the advance into the all-time high. Then there was the summer low in 2010. It's interesting that these same numbers from the last cycle 1326 and 1219 are so prominent four years later.
The recent S&P high this week was 1325 and the big April top in 2010 was 1219.
The Synodic period for the Saturn/Uranus combination is 45 years. One-eighth of the 360 degree circle and one-half of 90 is 45.
I bring this up because 45 years ago marked the top of the secular bull market in 1966. That bull market began in June 1949.
The powerful two-year advance from March 2009 may have been a result of the 60-year cycle exerting its influence.
One cycle of 45 years back from 1966 gives 1921, which was the big low prior to the run up into 1929.
If the four-year cycle holds up the next trough should be in 2012. Somewhere prior to then we should see an important peak. Will a two-year advance be followed by a two-year decline?
It is interesting that it was eight years from the 1921 low to the vertical peak in 1929 and that it was eight years from 2000 to the vertical drop into 2008. I can’t help but think that a mirror image foldback of sorts may be playing out with the market, making an important peak three years following the 2009 low, just as it made an important low in 1932, three years following the 1929 peak.

Conclusion: 1320 ties to March 6 and squares the 666 price low for a potential square out. The market has respected this level for two days and is gapping below 1320 this morning.
The pattern looks reminiscent of the November top, which was a grind up followed by a climatic spike. [chart]
Monday we saw a spike on the heels of a grinding move up.
The November high was at 1225. We tagged 1325 this week.
The November correction was between 4% and 5% and 152 points. I think another 4% to 5% correction is going to play out quickly into the anniversary of the March 6/9th 2009 low.
Fifty percent of the range from the November 1173 low to this week's 1325 high is 76 points. A decline to 50% of the last swing projects to 1249. There is some good DNA and symmetry there as this was the projection for the big inverse head-and-shoulders pattern from 2010. Moreover, 1248/1249 represents a 180-degree decline on the Square of 9 Chart.
Click here for square of nine chart.
A study of market history shows that corrections against the main trend are much more uniform while impulse legs in favor of the main trend can have a large degree of variability. Said in another way, it is easier to define and anticipate corrections not in favor of and against the primary trend that it is to judge the extent of the primary trend itself. In my experience, this is one of the most important lessons revealed in the study of stock market history.
Looking at the form of the advance from the September 1 kickoff, there are two legs separated by the November correction. Because of the persistence of the advance, which has seen no more than one 2% move in the last five months (compared to 14 moves of 2% or more in the preceding five-month period), the normal expectation would be to see a similar, uniform near-5% correction be bought with both hands by market participants. At the maximum I would expect the correction to extend to a backtest of the April/November 2010 highs of 1219/1227 respectively.
If the correction overbalances the November decline in time and price then the high was more significant.
If a uniform correction plays out it would give rise to a possible third drive up. Whether such a third drive into the anniversary of the April high if it plays out is a marginal new high or a significantly higher high remains to be seen. [chart]
Strategy: It looked like Elvis had left the building following the decline of January 28. However, after a genuine sell signal that players pounce on, there is often times a final squeeze. That may have been the run to 1320.
Fifty percent of the range from the 1275 low on January 28 to this week's 1325 high gives a midpoint of 1300. Any break of 1300, especially on the weekly closing basis (Friday) confirms a correction is underway from where I sit. This 1300 level ties to 1296, which is 6 X 6 X 6 X 6, resonating of the 666 price low. 1296 is in the upper right-hand corner of the Square of 9 Chart and aligns with May 6, the flash crash, so I would not underestimate how quickly a reversion to the mean in the persistency of the advance and a revulsion to sentiment could take place if everyone tried to get out of the door at the same time. [chart]
A Dow Theory non-confirmation has been ongoing for  three and a half weeks now, which is long in the tooth while the market has been overbought for months -- a situation where the chickens could come home to roost violently and quickly, despite the fact that the market has proven to be a Shrine of Boys Crying Wolf.
It may be time to yell wolf.
Trading Lessons: [chart] The following chart is mislabeled as FDX when it's actually FCX [chart]’

 

 

 

 

 

Counties Turning Asphalt Back to Gravel as Rising Materials Costs Hamper Road Maintenance  [Well, this sounds like a b*** s***ish story for the frauds on wall sreet; viz., load up on grovel companies, etc..  ] ‘We are going back to the Stone Age. Literally. From NACO (National Association of Counties): Several counties across the country are going back to the Stone Age — turning asphalt roads back to gravel, or considering doing so — as rising costs outstrip their ability to maintain their pavements.Counties in Iowa, Michigan, California and South Dakota are among those that have decided either to stop maintaining a percentage of their asphalt roads or to pulverize some paved roads and downgrade them to gravel.Naturally, California is home to some of the hardest-hit counties. Sonoma County, for example, based on annual projected revenues can only afford to budget $5 million to maintain all the county's roads. But estimates project the cost of maintenance at 11 times that, or $55 million.

 



 

 

Housing and Banking Issues Remain Problematic Editor's Note: This article was written by Richard Suttmeier, chief market strategist at ValuEngine.com‘With the average 30-year fixed rate mortgage up to 5.13% from 4.81% last week, mortgage applications continue to slide. The overall Mortgage Application Index declined 5.5% this week led by a 7.7% decline in the Refinance Index with the Purchase Index down 1.4%. A major negative factor has been significantly higher US Treasury yields. The yield on the 10-year US Treasury was at 2.334 in October in anticipation of QE2 9 (quantitative easing), and on Wednesday this yield touched 3.770 up 143.6 basis points. The main purpose of QE2 is to push longer term US Treasury yields lower so this policy has been a failure.

As a result of this failed monetary policy the percentage of homes that are underwater versus that have their mortgages outstanding has risen to 27%, which feeds on projecting even lower home prices as the supply of existing homes for sale continues to rise. This in turn puts more pressure on banks to make costly mortgage modifications, and write down more commercial real estate loans. These are the problems that originally emerged in mid-2005 for the homebuilders, at the end of 2006 for community banks and in March 2007 for regional banks including those considered “too big to fail.” Remember, toxic assets are still around and the larger banks are being asked by the FDIC to increase contributions to the FDIC Deposit Insurance Fund beginning April 1.

According to Zillow, home values posted their largest quarterly decline of 2.6% in the fourth quarter, down 5.9% year over year.

On the labor front, the Labor Department reported that employers posted fewer jobs openings in December, a drop of 140,000 to 3.1 million jobs, the lowest since September. Nearly 14.5 million Americans were out of work in December with 4.7 people competing for each job available. A healthy reading is 2 to 1. Key to the housing market and Main Street, USA, are construction jobs, and job openings fell sharply to 28,000 in December from 91,000 in November.

Wednesday’s closes were above all of this week’s pivots at 12,142 Dow Industrial Average, 1316.2 S&P 500, 2770 Nasdaq, 5077 Dow Transports, and 800.13 Russell 2000. The S&P 500 tested and held its weekly pivot at 1316.2. The Dow Transport Average remains below its 50-day simple moving average at 5098 and my annual pivot at 5179.
 


We are still trading under a ValuEngine Valuation Warning -- 16 of 16 sectors overvalued with only 34.28% of all stocks undervalued on Wednesday, below the 35% threshold by this measure. This also means that 65.72% of all stocks are overvalued. Why does Wall Street think stocks are cheap?

The US Treasury 10-Year Yield -- (3.646) Tested 3.770 on Wednesday versus my annual value level at 3.791. My annual value level is 3.791 with a weekly risky level at 3.525. The 10-Year auction helped stabilize the US Treasury market with an auction level at 3.665, a strong 3.23 bid to cover, and an aggressive 71% indirect bid.

Comex Gold -- ($1363.7) My quarterly, weekly, and annual pivots are $1331.3, $1342.8, and $1356.5 with monthly, quarterly, and semiannual risky levels are $1412.4, $1441.7, and $1452.6. Gold remains below its 50-day simple moving average at $1375.0.

Nymex Crude Oil -- ($86.85) My semiannual pivot at $87.52 remains a magnet between a trading range between the January 28 low at $85.11 and its January 31 high at $92.84. My semiannual pivot is $87.52 has become a magnet with weekly and monthly pivots at $91.62 and $91.83. The 200-day simple moving average is $80.75.

The Euro -- (1.3728) My quarterly value level is 1.3227 with a weekly pivot at 1.3511 and monthly risky level at 1.4225.

 

 

 

 

Fed’s Warsh Resigns; Bernanke Adviser Questioned Stimulus Bloomberg | The only governor to question the expansion of record monetary stimulus in November.

 

Ron Paul’s First Subcommittee Hearing: Complete Video Infowars.com | This is the first hearing held by Dr. Ron Paul as Chairman of the Domestic Monetary Policy and Technology subcommittee which oversees the Federal Reserve.

 

The Super Bowl flyover may have cost $450,000 A Dallas TV reporter estimated that the flyover cost the Navy a total of $450,000.

 

 

 

Is Ben Bernanke A Liar, A Lunatic Or Is He Just Completely And Totally Incompetent? Did you see Ben Bernanke’s testimony before the House Budget Committee on Wednesday? It was quite a show. Bernanke seems to believe that if he just keeps on repeating the same mantras over and over that somehow they will become true.

 

The Social Security Disaster The average retirement age is measured in spans of five years for accuracy.

 

Global Stock Exchanges Are Headed for Major Consolidation Germany’s Deutsche Boerse is in advanced talks to buy NYSE Euronext, and the London Stock Exchange has agreed to buy Canadian stock market operator TMX, as exchanges globally look for ways to boost their markets and cut costs.

 

Donald T_rump Would Impose 25% Tax on China Imports if President  [ If he was mobster in chief, mobster and scoundrel trump wraps himself in populist american flag and offers up an (too little too late – typical lightweight) implausible solution to keep ‘the juice’ flowing though he’d already be in jail in a rational, non-declining nation with meaningful laws. All China has to do is dump (and not prospectively buy) their ever more and declining in value day-by-day (from dollar debasement policies) u.s. paper / bonds and overnight and the u.s. economy consequently  thereby collapse. [ When you come right down to it, this has been america’s most significant export. Indeed, this irrevocable structural shift, hailed by cia men hw bush and clinton (clinton couldn’t have survived with them) by way of NAFTA as the greatest  thing since sliced bread was indeed in no uncertain terms condemned and warned against by Perot, a man of honor who, unlike his opponents, could not be bought, which is the reason, in pervasively corrupt america, he could never have been elected. Interestingly, you may have noticed the good (but not great, other than the spotlight on pervasive bribery including judges, police, politicians, etc., being far too light) the film ‘The Untouchables’ getting a wide re-airing of late, purporting to be a significant part of american folklore / history / culture. However, the reality is that in america, and certainly today, the real story with impact is that of ‘The Touchables’. The reality is that Elliot Ness died a broken man; bankrupt, unable to even win election to the mayoralty of his then current hometown. He was incorruptible; and hence, in the real america, unelectable at the least if not also all but unemployable (he and his are among those few genetic anomalies in america as I’ve previously alluded to. How far america has fallen from even false perception! Pervasively corrupt, meaningfully lawless america can’t even fake it anymore. See, for example, http://albertpeia.com/CIAAgentAffidavit1.jpg     http://albertpeia.com/FBIAgentAffidavit11.jpg      , and of course, corrupt legal / judicial processes, etc.,   Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense …  The pervasively corrupt american illegal system … corrupt u.s. courts / (lawyers) / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and costly bureaucracies. Rules of law mean nothing to these typically corrupt americans. Most, including sam alito of the u.s. supreme court, concerning  drug money laundering and obstruction of justice in the 3rd circuit ( also maryanne trump barry who covered-up drug money laundering through her brother’s casinos in a civil RICO case) should have gone to or belong in jail. Contrary to popular belief, they do it for the money, personal money, big, cash, untraceable money. The fog of war is great for such things (360 tons $100 bills flown into Iraq and missing, etc.).

 [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ]. america’s just a fraudulent and failed defacto bankrupt nation.  ]:

CRIME STATISTICS > TOTAL CRIMES (MOST RECENT) BY COUNTRY  SHOWING LATEST AVAILABLE DATA (america’s No. 1).

Rank  

Countries 

Amount 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

The following youtube video is well worth the look and explains how and why the frauds on wall street have gotten away with their devastating fraud thus far.  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed.  ( UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...         CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN BLACK PANTHER CASE... ex-Justice official quit over the handling of a voter intimidation case against the New Black Panther Party accused his former employer of instructing attorneys in the civil rights division to ignore cases that involve black defendants and white victims US v. AZ...    Cases against Wall Street lag despite Holder’s vows to target financial fraud  Obama broke promises ):

‘THE OBAMA DECEPTION’  http://www.youtube.com/watch?v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from=PL&index=0&playnext=1. [ The Obama Deception Number 1 on U.S. Google Trends  ]

‘The Obama Deception’ Censored  ‘The Obama Deception’ has been censored      In light of this development, I provide an archived site version which appears to be complete (but will be compared with earlier version and replaced with same if incomplete)        http://albertpeia.com/obamadeceptionhighqualityversion.flv

Then there is the well researched, produced, and informative ‘ESOTERIC AGENDA’ which explains how we’ve gotten to this forlorn point: http://video.google.com/videoplay?docid=-7052400717834950257# 

For the Same Reason I’ve Included Here a Web Site Archived FLV Version of Esoteric Agenda    http://albertpeia.com/esotericagenda.flv

]] “I would announce, without equivocation, a 25% tax increase on anything purchased from China.”

 

 

 

 

 

 

National / World

 

 

 

A Day in the Park Infowars | A strong entry for “The Answer to 1984 is 1776″ Video Contest.

 

Hitler finds out about the DHS Emergency Alert System and the See Something Say Something program Der Führer spazzes out over Obama stealing his centralized broadcasting system.

 

Obama Energy Secretary Promises “Massive” Coal Plant Closures Paul Joseph Watson | White House agenda to bankrupt coal industry via EPA regulations accelerates despite rolling blackouts

 

Big Sis Breaks Out “Heightened” Terror Alert as PATRIOT Act Heads to House Steve Watson & Paul Joseph Watson | Republicans and Democrats attempt to out do each other in quest to finish off freedom.

 

Victory: The Truth Will Out Infowars.com | Over the last few weeks, we have received a large number of excellent video contest entries.

 

 

Hosni Mubarak and American Foreign Policy Sartre | Our own citizens should hear the lesson and support any meaningful self-determination impulses.

 

 

 

Obama Energy Secretary Promises “Massive” Coal Plant Closures Obama Energy Secretary Steven Chu has launched the next phase of the White House’s publicly stated agenda to bankrupt the coal industry via EPA regulations after announcing the prospect of “massive” coal plant closures even as Texas and other states suffer rolling blackouts as a result of maxed-out power plants that cannot cope with demand.

 

Big Sis Breaks Out “Heightened” Terror Alert As PATRIOT ACT Extension Heads Back To House Floor Defeat for the proposed extension of the so called PATRIOT Act in the House Tuesday night made national headlines, yet the extension is set to pass by the end of the week anyway as it is brought back to the floor for another vote. But just in case anyone in Congress reaches the sudden epiphany that they are effectively voting on the Enabling Act, Big Sis Janet Napolitano has officially notified a congressional panel that the US faces the greatest possibility of a major terror attack since 9/11.

 

White House Lies On Blackouts Exposed We have become used to seeing politicians distort the truth, but when such lies are brazenly plastered all over the front page of the White House website, it really highlights how much contempt the government has for the intelligence of the American people.

 

Mubarak Refuses To Resign: ‘Will Not Be Dictated To By Orders From Outside’ Mubarak said he was not leaving Egypt, and said he “cannot and will not accept to be dictated orders from outside” and would remain until elections in September.

 

Liberals Surprised and Outraged by Sale of Huffington Post to AOL Once again, liberals and Democrats demonstrate they are clueless about how establishment politics work in America. Once again, they display their ignorance of the false right-left paradigm that controls the corporate media political realm, including the supposedly sterling liberal reputation of the Huffington Post.

 

Video: Alex Jones Exposes DHS Terror Fraud After making repeated attempts over several days, Alex Jones demonstrates to his listeners that the DHS reported terrorism threats and citizen spy programs are nothing more than Pavlovian boxes of control.

 

 

 

Faith and Fear: Christians fleeing Iraq victims of US invasion? Violence and intimidation has forced hundreds of thousands of Iraqi Christians to flee their homeland. Experts view them as one of the biggest victims of the 2003 U.S.-led invasion, with the minority group a continued target of extremists.

 

 

 

 

 

 

 

Sallai Meridor: Israel's fear (Washington Post) [ Come on! Wake up! Illegal nuke totin’, war crimes nation israel’s fears … p l e a s e, spare me the pro-israeli b*** s*** ! What israel fears is a projection of their own ill-founded motives and actions for which all norms, rules, laws governing civilized behavior are suspended for expedience at the least, and blood-thirst that some posit as a remnant of their historic role as Christ-killers (with roman ‘juice’).  Isn’t it time, in these desperate times for america, to put america’s, not israel’s interests, first.  Who cares what israel fears … In 1948, U.S. Secretary of Defense James Forrestal, an opponent of the creation of a Jewish state in Palestine, warned that, even though failure to go along with the Zionists might cost President Truman the states of New York, Pennsylvania, and California, it was about time that somebody should pay some consideration to whether we might not lose the United States….. Mr. Forrestal was absolutely correct! Isn’t that exactly what’s happened to defacto bankrupt america in intractable decline.    TIME TO REVOKE AND NULLIFY THE BALFOUR DECLARATION AND ABROGATE THE CREATION OF THE NATION STATE OF ISRAEL IN THE INTERESTS OF FAIRNESS, JUSTICE, PEACE AND PROSPECTIVE PROSPERITY FOR THIS WORLD!     Israel wary of transition in Egypt, concerned about regional stability (Washington Post) [ Who cares what the paranoid, war criminal, illegal nuke totin’, war criminal israelis are wary of. This country has gone down the tubes cow-towing to the paranoid, self-interested concerns of the psycho / sociopathic zionist israelis who are forever projecting their own pathological motives to every turn of history while ignoring their own culpability in producing the very outcomes they purportedly seek to avoid. War, conflict, greed, bloodshed is the historically based israeli way. ]   A resurgent Syria alarms u.s., israel (Washington Post) [  Tell me! What doesn’t alarm these two paranoid, zionist neo-nazi regimes of oppression, suppression, aggression, and regression. If they were individuals, they’d undoubtedly be diagnosed as psychopaths, sociopaths totally ignorant of the rights of others, laws, civilized behavior as israel pads her illegal nuke arsenals with american supplied weaponry / support while expecting all other nations to ‘role over and die’. Bipolar / manic / depressive, the ups and downs are increasingly difficult for even americans to follow. Obssessive / compulsive thy names are zionist israel / america. Projection / displacement regarding their own illegal acts, war crimes, etc.; what they distinguished from what they do … dissociative identity disorder, dissociative fugue? Yes … the u.s. and israel are the world’s lunatics, sorely in need of therapy! ]  Syria's fresh interference in Lebanon and its increasingly sophisticated weapons shipments to Hezbollah have alarm officials and prompt Israel's military to consider striking a Syrian weapons depot.

 

Spreading unrest raises pressure on Mubarak (Washington Post) An array of new developments turned against President Hosni Mubarak on Wednesday as Egypt moved closer to a full rupture between its autocratic government and a growing popular rebellion. [  Do not talk about ruptures in the presence of Pharhosni Mubarak he chides the Washington Post! After all, at 82 years old and 30 years in power, hernias are known to quite easily happen… Previous: Free elections still distant prospect for Egypt     Activists express doubts about feasibility of September ballot  (Washington Post) ["I'm shocked by what the Americans say - that Mubarak must stay as president so we can prepare for new elections,'' said Negad El Borai, a human rights advocate and lawyer in Cairo. "Mubarak must leave, and then we can talk." … Truth be told, I’m not shocked. Indeed, though this is only marginally what america / israel wanted, this will stick to america / israel like glue; that proverbial albatross; that lose, lose scenario for america in the region. Previous:  Egypt protests continue as Mubarak's government offers concessions (Washington Post) [ Come on! Let not all of us join america’s / israel’s, et als, and  mubarak’s delusions. After all, here’s an 82 year old tyrant, in power for 30 years, yet in some parallel universe appears to think he’s calling the shots. Other than literal and quite foolish shots against protesters, even journalists, see infra, there are few indeed that would trust his mindset, such as it is, much less his judgment, so flawed as he has now shown it to be. What is obvious is that this long overdue ‘people’s election’ cannot be thwarted by platitudes and small talk, but resisting the inevitable will turn an american quasi-ally into an anti-american breeding ground because there’s just no reconciling a pro-mubarak, however slight, position with american / israeli, et als war crimes in the region.  Restless Cairo protesters hoping for U.S. support (Washington Post) [ The sad reality here is, much like wobama’s Afghanistan fiasco, that america has ‘bought it’. This is truly yet another ‘loss, loss’ scenario as is true of america’s mideast policy generally. Defacto bankrupt america’s initiatives in the region particularly, though generally true of all american policy, is the ‘square pegs in round holes’ approach to almost everything they do, which certainly is not lost on the rest of the world. Coddling and caving in to israeli / neocon / zionist paranoia despite the war mongering intransigence of the former is devastating to a nation as pervasively corrupt america which is facing insurmountable domestic problems of its own, economically, financially, politically, and geo-politically. This should bring to mind the missteps of a former fading empire in this same region desperately trying to remain relevant. Indeed, from Balfour’s Despoliation to arbitrary boundaries, etc., Orwellian britain’s demise (decline) as a real player globally was, as america’s currently, significantly and irrevocably hastened. Quite simply, pervasively corrupt, defacto bankrupt america will increasingly be viewed as a bunch of  ‘muck-ups’ who can’t handle their own substantial problems much less those of other nations; and in fact, invariably exacerbate existing conditions / problems, particularly when pandering to israel’s self-interested concerns. ] While the ouster of President Hosni Mubarak remains the most pressing concern for protesters, the role of U.S. is far from absent in the dialogue. { Previous:  Amid Arab protests, U.S. influence has waned (Washington Post) [ And that’s just the way israel likes it … and to america’s detriment, of course … which is not lost on even George Soros … Drudgereport: Soros: 'The main stumbling block is Israel'...

Egyptian protesters plan new push     Government detains foreigners, says it's willing to open talks  (Washington Post) [ Open talks? ‘bout what? Building a pyramid in mubarak’s honor before stepping down? He’s done … finito … burnt as an over-micro-waved burrito! The following from the Post is indeed the straw that broke the riders with whips he sent on camels’ and horses’ backs!  ‘Wants to die in Egypt? How touching, or the reality, he’s just plain touched as in totally ‘out of it’.   ‘…In what the U.S. State Department called a "concerted campaign to intimidate," several dozen journalists were rounded up by security forces and detained for hours, along with foreigners working as teachers, engineers and human rights researchers. Across the city, angry bands of supporters of President Hosni Mubarak also beat journalists; several reporters said that they were threatened with death…’   ]  Cairo seeks to shift blame for clashes by rounding up journalists; U.S. worries renewed protests could spark more violence from Mubarak supporters. Demonstrations in Egypt take bloody turn    In Cairo square, Mubarak backers confront anti-government crowds  (Washington Post) [  Not too difficult for desperate and done mubarak to contrive:   Mubarak Says Egyptians Have to Choose Between “Chaos” and Him … Then Sends In His Thugs to Stir Up Chaos  (Infowars.com) In order to justify staying in power until elections are held in September, President Mubarak said on tv that the people had to choose between him and “chaos”.    ]  The coordinated nature of day's events suggested that Mubarak's supporters were determined to show, as he had warned, that the country faced a "choice between chaos and stability."   [  Previous:    Mubarak's pledge seen as not enough   Egyptian president plans to stay in office to transfer power  (Washington Post) [ Let me put it another way: Mubarak is as done as an over-cooked tamale … He seems to be stalling for time and even in his age impaired mind certainly knows his position is untenable, unsustainable, and even more irrational as each second passes. There is a possibility that he’s using same to move money / treasure for himself and others, literally as well, buying time. See infra …  Previous:  Mubarak seeks dialogue, shows no sign of relenting   Demonstrators call for massive protest but lack leadership  (Washington Post) [ He relented when he resorted to media / internet blackout. Indeed, this lack of sign thing is a testament to how far from reality 30 years has taken him, not to mention the other 52 years that have taken their toll on his cognitive processes. Whether it is plaques ‘on the brain’ or outright senility, that he is so disengaged from the events unfolding around him, one may only wonder how he lasted this long. Nor did his choice of cia standin / shill, new VP Suleiman enhance his now untenable position which leaves him as ‘done as a burnt enchilada’.  Kissinger on Egypt unrest – “This is only the first scene of the first act of a drama that is to be played out”   [ The import of this so-called interview, and it is here that I part company with alex jones, et als (who by the way, censored me for this very thesis, which puts him and his at the top of my hypocrite list), is that the so-called elite have orchestrated these events and ‘are in control’. First, there are no elites in this world; you can’t derive elites from apes, notochordates, and initially single celled organisms. Second, almost by definition and certainly by history, there are no elites in america even if you were to accept the first proposition (though true) as untrue. What you do have, in this world and america particularly (with few exceptions as I’ve discussed elsewhere / comments / my website), are inherent criminals and mentally ill people of varying degrees of unscrupulousness and insanity who do commit crimes, both small and large, to further their interests or fortunes (sociopaths / psychopaths). The ’so-called alpha-dogs’ of the human species at most, but still incompetent vegetables who, if you look at anything they touch (to use a term term of such incompetent vegetables as historically pertains to their role in the mideast – and generally the state of the world) it invariably goes ‘pear shaped’ (english term). What hasn’t zionist kissinger not messed up as appointee or ‘consultant’ – what does he get paid for? No! The fact is, they have absolutely no idea how this unfolds and as with most of their lives, they will predictably choose the most sordid, despicable, and diabolical course at every turn because … that is their inherently criminal, mentally ill / unstable nature to do so. ]

]  Fragile steps to end crisis seen as plans take shape for a transition process that would allow Mubarak to remain as a figure head until new elections.

    }  ]

 ]  After decades of repression, democracy advocates say it could take many months -- if not years -- to lay groundwork for open and credible elections.

  ]

 

 

Congress must raise debt ceiling, Bernanke warns (Washington Post)  [ Riiiiight, bunglo ben … this from the same ben who forecasted ‘no-recession’. The fact is, ‘helicopter ben shalom bernanke’ hasn’t the slightest idea what he’s doing and is the ‘poster boy’, epitome of that incompetent ivy league vegetable who’s long on rhetoric and cv but quite short on real results. The only thing that has been true as per his stated intentions, is an inflated new wall street bubble to and for the benefit of the wall street frauds. ‘Have printing press, will travel’ … that soldier of his and their fortune is a man called ‘Palawallstreet’ aka ben shalom bernanke … which temporary obfuscation with money that’s not really there in real terms means that beyond the temporary look good/feel good, disaster straight ahead. Bernanke's Worst Nightmare Is This Man's Boxes: Caroline Baum BusinessWeek  Feb. 10 (Bloomberg) -- Ben Bernanke arrived at his office a week ago and came face to face with his worst nightmare. Staring out at the Federal Reserve chairman from page C1 of the Feb. 3 edition of the Wall Street Journal was a photo ...  The Associated Press Video:  Republicans Grill Bernanke Over Inflation, Debt  Paul calls Fed's Bernanke "cocky" in House hearing Reuters  [ Yeah … Come on! … The incompetent ‘no-recession helicopter ben’ has nothing whatsoever to be cocky about; he’s clueless as to what to do; satisfied to be helping the frauds on wall street; but in the end, this will end … quite badly! ] Drudgereport:White House to Slash Heating Program for Poor…but still no pros of massive frauds on wall street which fines and disgorgement of would yield huge amounts to cover spending... [ Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"   11-25-10  The U.S. economy "is a complete disaster," Howard Davidowitz declared here in July, the most recent in a string of dire predictions from Tech Ticker's most entertaining guest.On the eve of Thanksgiving, I asked Davidowitz if he had any regrets, or was ready to throw in the towel given recent signs of economic revival. Are you kidding me? "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."As with the economy, Davidowitz is unwaveringly consistent in his views on President Obama, calling him "deranged, dysfunctional and discredited."Results of the midterm election show "the people of this country think we are in a catastrophe," he says. "I'm with them."Check the accompanying video for more of Howard's unfettered opinions and stay tuned for additional clips from this interview. And...Happy Thanksgiving! Aaron Task is the host of Tech Ticker. You can follow him on Twitter at @atask or email him at [email protected]Timid Tuesday: Is it Safe?   Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘ ]
 ] Fed chairman offers dire warnings about the damage Congress could wreak if it refrains from raising the government's debt limit this spring.

 

 

Rep. Lee (R-N.Y.) resigns after Craigslist incident  (Washington Post)  [  I am truly astounded; and, I say that without even a tinge of sarcasm. Where is the corpus dilicti here. That he is a fool and somewhat a dummy, if such is the standard for resignation, then all of capital hill should be tendering their resignations en masse. After all, aside from the inherent conflict, and particularly in light of a financial / fiscal / economic disaster in large part of their own making and compounding by failing to prosecute the perps and instead accommodate their crimes, ie., FASB rule change, etc., does not the consistent though undeserved raises they give themselves constitute of sorts a defalcation of duty, responsibility, and trust. Unlike congress, indeed all the pervasively corrupt and incompetent branches of u.s. government in their day-to-day activities / course of business, though tasteless, sleazy, etc., this so-called incident is without a corpus dilicti. It kind of reminds me of that scene in ‘Road to Perdition’ when mob kingpin Newman responds (in a somewhat incredulous, come on, who you kidding way) to former footsoldier Hanks by reminding him that they’re all murderers (in the room-including Hanks).]  Move came after a Web site reported that the married congressman had e-mailed a shirtless image of himself to a woman he met online.

 

 

CIA's dilemma in Egypt (Washington Post)  [ Come on! How does anyone take these ‘muck-ups’ seriously … As a purported journalist, Mr. Ignatius should know better. What distracts the agency is self-interest and greed … yes, greed for themselves, theirs, and a raison d’etre that assures their continued funding (oh how they miss the cold war, hot ones will have to do) on top of their private so-called ‘black ops’. They’re wrong or absent without leave (awol) on major events purportedly within their bailiwick; ie., mideast, israel, ‘wmd’s in Iraq’, 9-11, Egypt, etc.; and, as well, are fallacious in their policy direction, directives, etc.. I mean, beyond their nefarious undertakings, they look more and more like Maxwell Smarts (‘Get Smart’) minus ‘99’ every day. Expanded Free Trade: Exporting Jobs [ When you come right down to it, this has been america’s most significant export. Indeed, this irrevocable structural shift, hailed by cia men hw bush and clinton (clinton couldn’t have survived without them) by way of NAFTA as the greatest  thing since sliced bread was indeed in no uncertain terms condemned and warned against by Perot, a man of honor who, unlike his opponents, could not be bought, which is the reason, in pervasively corrupt america, he could never have been elected. Interestingly, you may have noticed the good (but not great, other than the spotlight on pervasive bribery including judges, police, politicians, etc., being far too light) the film ‘The Untouchables’ getting a wide re-airing of late, purporting to be a significant part of american folklore / history / culture. However, the reality is that in america, and certainly today, the real story with impact is that of ‘The Touchables’. The reality is that Elliot Ness died a broken man; bankrupt, unable to even win election to the mayoralty of his then current hometown. He was incorruptible; and hence, in the real america, unelectable at the least if not also all but unemployable (he and his are among those few genetic anomalies in america as I’ve previously alluded to. How far america has fallen from even false perception! Pervasively corrupt, meaningfully lawless america can’t even fake it anymore. At CIA, mistakes by officers are often overlooked (Washington Post) [ Duuuh! I want to know of even one thing that’s not overlooked concerning those incompetent mental cases at the cia; from assassinations, to illegal drug dealing, to illegal arms sales, to corruption, to disinformation, etc., to america’s and the world’s (ie., those WMD’s in Iraq, etc.) substantial detriment. See, for example, http://albertpeia.com/CIAAgentAffidavit1.jpg     http://albertpeia.com/FBIAgentAffidavit11.jpg      , and of course, corrupt legal / judicial processes, etc.,   Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense  ( http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         )   ]:

CRIME STATISTICS > TOTAL CRIMES (MOST RECENT) BY COUNTRY  SHOWING LATEST AVAILABLE DATA (america’s No. 1).

Rank  

Countries 

Amount 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

The following youtube video is well worth the look and explains how and why the frauds on wall street have gotten away with their devastating fraud thus far.  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed.  ( UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...         CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN BLACK PANTHER CASE... ex-Justice official quit over the handling of a voter intimidation case against the New Black Panther Party accused his former employer of instructing attorneys in the civil rights division to ignore cases that involve black defendants and white victims US v. AZ...    Cases against Wall Street lag despite Holder’s vows to target financial fraud  Obama broke promises ):

‘THE OBAMA DECEPTION’  http://www.youtube.com/watch?v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from=PL&index=0&playnext=1. [ The Obama Deception Number 1 on U.S. Google Trends  ]

‘The Obama Deception’ Censored  ‘The Obama Deception’ has been censored      In light of this development, I provide an archived site version which appears to be complete (but will be compared with earlier version and replaced with same if incomplete)        http://albertpeia.com/obamadeceptionhighqualityversion.flv

Then there is the well researched, produced, and informative ‘ESOTERIC AGENDA’ which explains how we’ve gotten to this forlorn point: http://video.google.com/videoplay?docid=-7052400717834950257# 

For the Same Reason I’ve Included Here a Web Site Archived FLV Version of Esoteric Agenda    http://albertpeia.com/esotericagenda.flv

]   ] Ignatius: Its fight against al-Qaeda has distracted the agency.

 

 

Rumors Cause Some Selling: Dave's Daily   [But more than a rumor, it is a market top] ‘A rumor making the rounds, later denied, was hedge fund kingpin Paul Tudor Jones was calling a market top. That caused a bout of selling which naturally increased volume from those weak handed investors. Nevertheless, PTJ's PR people stated: "Phooey" and that was that. There may also be some nervousness over current and impending arrests for insider trading. The bigger news is the divergence of emerging markets from previous "got to own" status to just the opposite as some $10 billion has come out of linked ETFs and markets are selling-off. With rumor denials confirmed meant a sharp late day recovery rally seemed logical as dip buyers are still ever present. The obligatory "buy program express" hit the tape late to keep losses to a minimum while the clear market leader DJIA (window dressing for the tourists) eked-out a slight gain. The Fed had tossed in another round of POMO and late in the day trading desks have to do "something" with it. Earnings continued to roll-in with impressive results. Coke came in with solid earnings that met expectations for example. Economic data was slim with more impressive stuff for Thursday. Then there was the much discussed ("what does it mean" news) that the German Bourse and NYSE will merge. The world gets smaller and perhaps more efficient while New York and perhaps Chicago lose some prestige and business…’

 

 

 

Cisco And Akamai Are Getting Crushed After Hours, So NASDAQ Futures Are Diving  , On Wednesday February 9, 2011, 4:59 pm EST  ‘It's going to be a pretty ugly day tomorrow for big tech. At least if the action right now is indicative.Two big names are diving.The first is Cisco, which is down 7% after hours on pretty meh earnings. The number was fine, but on the call the company has revealed margin pressure, and this is basically looking like a repeat of last quarter when the stock tanked after earnings.The other is Akamai, which is also down hard, on a revenue outlook that's less than impressive. The revenue outlook was well below expectations.With these two players diving, it's no surprise that NASDAQ-100 futures are getting whacked after hours, indicating a slide of more than 0.5%.Tech, of course, has been particularly hot of late.’

 

 

 

 

 

Is the Market Headed for a Sell-Off? Zaky  [ Yes … I agree, except that fundamentally the longer term prospects are even worse than his bearish outlook suggests (don’t forget the debasement of the dollar, manipulation, and spending / printing money the nation doesn’t have in real terms behind this manipulated uptick) and summarized as follows: ‘I suspect that this rally is on its very last legs. We should see a very healthy 10% or so correction within the next 1-2 week period ... This market is headed for a sell-off. ]

 

 

 

 

2011 Update: Another Lost Decade for Stocks - Are You Prepared?   [ I agree that this is but a (manipulated) bull cycle in a secular bear market with substantially worse to come! ]Kopas ‘In February 2010, we published an article on Seeking Alpha entitled “Another Lost Decade for Stocks - Are You Prepared?,” wherein we argued that the year 2000 marked a secular (long-term) peak for U.S. stocks. A secular bear market is formed when a series of business cycles are linked together, establishing an extended period of stock market under-performance. Our objective here is to bring you up-to-date on the progress of this secular bear market and help you prepare for the next ten years…’

 

 

How to Squeeze the Most Out of a Late-Stage Rally   ‘Something curious happened the last two months. In December, the investment community turned extremely bullish on stocks. By some measures optimism shot through the roof and eclipsed some of the readings seen at the 2007 all-time highs.Such extremes usually lead to some sort of a correction. In October 2007 they were followed by a 50%+ decline, in April 2010 by a near 20% decline. But not in December, prices kept climbing and curiously, sentiment starting fading away from the December extremes.In general, that is good news for anyone owning stocks, but sentiment is still elevated to a degree where being long stocks is quite risky. Testament is the fear barometer - the VIX (Chicago Options: ^VIX) fell to a 3 year low yesterday.

Technical Cracks

In addition to a constant flow of bad news domestically and abroad, some technical indicators are flashing red flags.Since the last mini sell-off on January 28 (when Egypt made front-page news), volume has dropped precipitously. Over 1.3 billion shares were traded on the NYSE when the S&P (SNP: ^GSPC), Dow Jones (DJI: ^DJI), and Nasdaq (Nasdaq: ^IXIC) dropped about 2% on January 28.The last five trading days saw volume of less than 1 billion shares (see chart below). According to technical analysis 101, low volume up days and high volume down days isn't exactly bullish. [chart] A look at the percentage of stocks trading above their 50-day moving average also conveys weakness. Five weeks ago 80% of stocks trading on the NYSE were above their respective 50-day MA. Since then the S&P (NYSEArca: IVV - News) has tagged on 5%, but the percentage of stocks above their 50-day MA has fallen to 75%.

2011 Performance - 52%?

Year-to-date the S&P 500 is up 5% - that's 5% in five weeks or 1% a week. At this pace the S&P is on course to gain 52% in 2011. Is that realistic?At some point in the not too distant future, traders are likely to look at the year-to-date performance and say, that's too good to be true!We've seen such 'too good to be true moments' in January and April 2010. Below is a small sampling of headlines that appeared within a day or two of the April 2010 peak, and days before the May 'Flash Crash.'

Bloomberg: 'U.S. stocks cheapest since 1990'

Wall Street Journal: Consumer mojo lifts profits'

Reuters: 'Greece contagion fears unfounded'

Yahoo Tech Ticker: 'S&P could hit 3000 by 2020'

Newsweek: 'America is back - The remarkable tale of an economic turnaround'

In contrast to that warm and fuzzy feeling, the ETF Profit Strategy Newsletter warned on April 16: 'The message conveyed by the composite bullishness is unmistakably bearish. The pieces are in place for a major decline.'The Fed-funded money flow has kept a constant bid beneath prices, but the common expectation that this pre-Presidential election year is going to be gang busters, particularly after a strong January, is reason for suspicion.

Safety Nets

The easiest way to guard against an unwanted decline is simply to sell. This locks in profits but often comes with the annoying side effect of having to watch stocks go up, while you are sitting on the sideline.Before buying or selling anything, investors should ask themselves whether they prefer to be on the sideline while stocks go up, or be fully invested when stocks go down. One of the two scenarios is bound to happen, at least temporarily.If you are not ready to cut loose from your stocks, you may consider buying put protection. $420 buys you the right to sell SPY at 132 anytime before May 20, 2011. If you want to spend less money for an earlier expiration date, the April put sells for $320, and the March put for $230. Like an insurance policy, this gives you piece of mind for a small premium.

Eagle Eye

As per the VIX, complacency is ever present right now, but that's exactly the time you want to be on guard. Like a thief, the market strikes when least expected.An effective way to limit risk and maximize profits is to set sell stops at major support levels. The market often tests support before resuming its uptrend. If support fails, watch out.Back in November, the ETF Profit Strategy Newsletter highlighted the pivotal role of the 1,170 level. The S&P tested - but never broke below - that level five times before continuing its diabolical up trend.Where is today's key support level? As per the ETF Profit Strategy Newsletter a failed low-risk entry would be the sign for a trend reversal. What is a failed low-risk entry? This signal is based on the percentR indicator, a measure of relative strength.In a strong market, particularly after a long up trend, percentR will hover above 80. A powerful enough decline can result in a drop below 80. Once percentR closes below 80 it will trigger a bullish low risk entry.It triggered such low-risk entries on January 19 and 28. It would have taken another down day and a close below that day's low, to get a failed low-risk entry.  In January, it would have taken a close below 1,279 and 1,275 to confirm a low-risk entry. It never happened.Since stocks have gained about 4% since the last low-risk entry, it's likely that the next low-risk entry will occur at higher prices. To pinpoint this major support now would be speculation. It's for sure, though, that no bear market will start without a failed low-risk entry…’

 

 

 

 

Stocks End Mostly Lower  Midnight Trader ‘4:32 PM, Feb 9, 2011 --

GLOBAL SENTIMENT

UPSIDE MOVERS

(+) TTWO easily beats with results.
(+) DIS beats with results.
(+) TSTC CEO buying shares.
(+) RL beats with results.
(+) CHBT beats with results.
(+) CHKP hikes buyback program.
(+) BIDU upgraded.
(+) PLAB guides higher.

DOWNSIDE MOVERS

(-) JOE exploring alternatives, including possible sale.
(-) FSLR inks new deal.
(-) WFC continues drop seen after announcing CFO retirement.
(-) BCDS misses with results, outlook.
(-) SNY warns for declining profit.

MARKET DIRECTION

Stock averages end narrowly mixed after spending a soggy session mostly in negative territory. Still, the blue-chip Dow's late-day spurt lands it barely in positive territory, just enough to extend its win streak to eight sessions. Strong consumer names such as Coca-Cola (KO) and Disney (DIS) gained, limiting the Dow's drop, after upbeat earnings reports. Wall Street is cooling off a bit as averages hit fresh multi-year highs earlier in the week. Major benchmarks are up more than 5% so far this year. Stocks also slipped as investors digested Federal Reserve Board Chairman Ben Bernanke's continuing testimony on the economic outlook and monetary and fiscal policy to the House Budget Committee. Speaking before the committee, Bernanke said that last month's jobless rate decline to 9% from 9.8% offers some reason for optimism, but said it would likely be several years before the unemployment rate returns to more normal levels, according to MarketWatch. Bernake said, despite economic improvements, the central bank will continue with its $600 billion stimulus plan. There were no major economic reports out today.

In company news:

Visa (V) was down on plans to buy PlaySpan, a privately held company whose payments platform handles transactions for digital goods in online games, digital media and social networks globally. According to the company, the acquisition will complement its 2010 CyberSource acquisition and extend its capabilities into one of the fastest-growing segments of eCommerce - digital and mobile commerce.

eBay (EBAY) was down following a Bloomberg report that the online auction company is planning to lay out a three-year plan tomorrow to expand its PayPal unit business and repel threats from Google (GOOG) and Apple (AAPL). PayPal is eBay's fastest-growing business. The service is set to generate more sales than eBay's e-commerce market place, the report said.

Teva Pharmaceuticals (TEVA) shares were lower despite positive drug trial news. Teva said results from a Phase III study of QNAZE HFA, its nasal aerosol corticosteroid in development to treat perennial allergic rhinitis (PAR) and seasonal allergic rhinitis, achieved all primary and secondary efficacy endpoints, demonstrating significantly greater relief of nasal symptoms, including runny nose, nasal congestion, nasal itching and sneezing, compared with placebo.

Goldman Sachs (GS) shares were down after Goldman Chief Financial Officer David Viniar said the company bought too many hard-to-sell assets before the financial crisis in 2008, Bloomberg reported. The comments came from a conference in Miami hosted by Credit Suisse. Viniar said that Goldman was "buying more illiquid assets than we probably should have."

French drug maker Sanofi-Aventis (SNY) was down following news that ongoing efforts to win over its takeover target U.S biotech Genzyme (GENZ) has prompted the firm to expect an earnings decline this year of between 5% and 10%. The company said it expects generic competition to accelerate next year and predicts a 5% to 10% decline in 2011 business earnings per share. The forecast does not assume a return of generic competition to cancer treatment Eloxatin in the U.S., or any benefit from the possible acquisition of Genzyme, the company said in its only reference to Genzyme in the quarterly earnings statement.

Investors are awaiting results from networking giant Cisco Systems (CSCO) due after the close today. Analysts are looking for Cisco to report EPS of $0.35 per share. In particular, analysts will be looking to see if CEO John Chambers joins other executives who are becoming more upbeat about the global economy.

Royal Dutch Shell (RDS.A) and BP (BP) are planning to close and sell refineries in the United States and Germany due to declining demand for fuels like gasoline, Bloomberg reports.
In earnings news:
--Alpha Natural Resources (ANR) reports Q4 EPS of $0.27, vs. Street estimates of $0.24 per share. Revenue was $993 million, better than expectations of $970 million.
--Coca-Cola (KO) reports Q4 adjusted EPS of $0.72, up 9% from the year-ago quarter and in line with the Thomson Reuters mean analyst estimate. Revenue of $10.5 billion tops the $7.5 billion seen a year ago. The Street expected $9.96 billion.
--Polo Ralph Lauren (RL) posted net income of $168 million, or $1.72 per diluted share, for the third quarter of fiscal 2011, versus net income of $111 million, or $1.10 per diluted share, for the same period in fiscal 2010. The Street view was $1.29 per share in earnings.’

 

 

 

 

 

Expanded Free Trade: Exporting Jobs [ When you come right down to it, this has been america’s most significant export. Indeed, this irrevocable structural shift, hailed by cia men hw bush and clinton (clinton couldn’t have survived without them) by way of NAFTA as the greatest  thing since sliced bread was indeed in no uncertain terms condemned and warned against by Perot, a man of honor who, unlike his opponents, could not be bought, which is the reason, in pervasively corrupt america, he could never have been elected. Interestingly, you may have noticed the good (but not great, other than the spotlight on pervasive bribery including judges, police, politicians, etc., being far too light) the film ‘The Untouchables’ getting a wide re-airing of late, purporting to be a significant part of american folklore / history / culture. However, the reality is that in america, and certainly today, the real story with impact is that of ‘The Touchables’. The reality is that Elliot Ness died a broken man; bankrupt, unable to even win election to the mayoralty of his then current hometown. He was incorruptible; and hence, in the real america, unelectable at the least if not also all but unemployable (he and his are among those few genetic anomalies in america as I’ve previously alluded to. How far america has fallen from even false perception! Pervasively corrupt, meaningfully lawless america can’t even fake it anymore. See, for example, http://albertpeia.com/CIAAgentAffidavit1.jpg     http://albertpeia.com/FBIAgentAffidavit11.jpg      , and of course, corrupt legal / judicial processes, etc.,   Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense  ( http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         )   ]:

CRIME STATISTICS > TOTAL CRIMES (MOST RECENT) BY COUNTRY  SHOWING LATEST AVAILABLE DATA (america’s No. 1).

Rank  

Countries 

Amount 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

The following youtube video is well worth the look and explains how and why the frauds on wall street have gotten away with their devastating fraud thus far.  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed.  ( UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...         CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN BLACK PANTHER CASE... ex-Justice official quit over the handling of a voter intimidation case against the New Black Panther Party accused his former employer of instructing attorneys in the civil rights division to ignore cases that involve black defendants and white victims US v. AZ...    Cases against Wall Street lag despite Holder’s vows to target financial fraud  Obama broke promises ):

‘THE OBAMA DECEPTION’  http://www.youtube.com/watch?v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from=PL&index=0&playnext=1. [ The Obama Deception Number 1 on U.S. Google Trends  ]

‘The Obama Deception’ Censored  ‘The Obama Deception’ has been censored      In light of this development, I provide an archived site version which appears to be complete (but will be compared with earlier version and replaced with same if incomplete)        http://albertpeia.com/obamadeceptionhighqualityversion.flv

Then there is the well researched, produced, and informative ‘ESOTERIC AGENDA’ which explains how we’ve gotten to this forlorn point: http://video.google.com/videoplay?docid=-7052400717834950257# 

For the Same Reason I’ve Included Here a Web Site Archived FLV Version of Esoteric Agenda    http://albertpeia.com/esotericagenda.flv

] Lounsbury ‘In January Steven Hansen observed that, through November, the trade deficit for manufactured goods was the equivalent of 1.3 million workers earning the median manufacturing wage in the U.S. Well, the trade deficit has been with us in a major way for nearly two decades. I am reminded of the 1992 presidential campaign where one of the three candidates, Ross Perot, argued against the adoption of NAFTA, The North American Free Trade Agreement. The other two candidates supported NAFTA.Perot is famous for his statement that a free trade agreement that was not a two way street would create a “giant sucking sound” of jobs going south to the cheap labor markets of Mexico. Both of Perot’s opponents (George H.W. Bush and Bill Clinton) argued that NAFTA would create jobs in the U.S. because of business expansion.However, the goods balance of trade for the U.S. with Mexico has been negative and steadily growing over the years. In 2010 it amounted to $61.6 billion, which was 9.5% of the total goods trade deficit last year.

So Perot has been vindicated in his opinion; expanded free trade has not been accompanied by an increase in jobs in the U.S. relative to the vast numbers of jobs created in the rest of the world as NAFTA became just a stepping stone on the pathway to global commerce.

Veronique de Rugy has produced a graph which shows how manufacturing output and manufacturing employment have varied over the years 1975 – 2010.

click to enlarge images

[chart]

The giant sucking sound actually started in 1980 as manufacturing employment peaked in 1979. The decline in employment in 1980-83 can be associated with the double recessions of that time period, which was also evidenced in the drop in manufacturing output. But when the recovery took hold, manufacturing resumed strong growth but employment gradually declined from 1984 to 2000, after which the decline accelerated.

Now, to be fair, not all the employment decline was due to increased employment overseas. Trade deficits remained fairly benign by 21st century standards. Employment declined significantly because of productivity improvements as more and more automation replaced manual labor. However, some of the decline was undoubtedly due to increased importation of goods to the U.S.

The rapid growth in the trade deficit for goods began in the early 1990s and we will start our detailed examination of the data with 1992, in deference to Mr. Perot.

Growth of the Trade Deficit for Goods

The first two tables show pertinent annual data. The table on the left shows the trade balance for goods. The table on the right shows the value of U.S. manufactured goods and manufacturing payroll employment.

[chart]

The sources for the data used in these tables are:

Productivity Improvement

In 19 years the value of U.S. manufacturing output has risen by 58% while manufacturing employment has declined by 31%. It only took 2.5 manufacturing employees in 2010 to produce what 5.8 employees produced in 1992. The dramatic improvement in labor productivity (and loss of jobs) is emphasized by the following graph.

[chart]

Jobs Equivalent to Manufactured Goods Trade Deficit

One cannot say that there is a U.S. jobs loss exactly equal to the trade deficit for manufactured goods. Here are some reasons:

However, it is not unreasonable to make the assumption that a significant portion of the manufacturing jobs equivalent to the trade deficit would have been created in the U.S.

The U.S. manufacturing jobs equivalence of the goods trade deficit is shown for each of the years starting with 1992 in the following table, along with the cumulative total. Hereafter we refer to the jobs equivalence as “jobs exported”.

[chart]

The jobs exported each year are shown in the following graph.

[chart]

The following graph shows that there have been a cumulative total of almost 29 million jobs exported over the past 19 years.

[chart]

Unemployment Today and the Counterfactual Labor Shortage

The total number of people employed today according to the latest BLS (Bureau of Labor Statistics) data is 139.3 million. If just half of the exported jobs were retained in the U.S., there would be about 153 million employed. The current civilian labor force is only 153 million so there would be no slack in the labor force at all. However, the labor participation rate has fallen from 67% in 2000-01 to 64.2% today. If the participation rate returned to 67% the civilian labor force would be 160 million. With 153 million employed the unemployment rate would be 4.4% and we would be complaining of labor shortages.

The Sweet Spot

If only some, even less than half, of the manufacturing that has been outsourced had been retained in the U.S., it is likely that there would still be an emerging market boom, but there would not be the severe structural unemployment problem that exists today in the U.S. It seems, looking at these numbers, that where we are is not the result of doing a fundamentally bad thing. It could be argued that it is actually the result of taking a good thing too far. It seems we missed the sweet spot and simply botched a beautiful shot.

Free Trade is a very good thing, but free trade taken too far is destructive. Hard data shows why.

Related Article

USA Trade Deficit Exports 1.3 million Jobs by Steven Hansen’

 

 

 

 

 

Ron Paul holds first hearing to scrutinize Fed Raw Story | Texas Republican Rep. Ron Paul on Wednesday held his first official hearing to examine the policies of the Federal Reserve on unemployment and economic growth.

 

Derivatives: The Real Reason Bernanke Funnels Trillions Into Wall Street Banks Seeking Alpha | Bernanke is printing money and funneling it into the Wall Street banks for one reason and one reason only.

 

Why Small Business Isn’t Hiring And Won’t Be Hiring Charles Hugh Smith | Small business can’t afford to believe in myths and fantasies. They are dealing with the harsh reality of adapt or die.



Gold at EUR1,000/oz – Strong Physical Demand Leading To Illiquid Conditions With the physical gold market remaining very small when compared to the futures and paper gold market (futures, CFDs etc) there are increasing concerns of illiquidity due to the scale of demand and lack of supply.


Derivatives: The Real Reason Bernanke Funnels Trillions Into Wall Street Banks We’ve been over the numerous BS excuses that US Dollar destroyer extraordinaire Ben Bernanke has made for QE enough times that today I’d rather simply focus on the REAL reason he continues to funnel TRILLIONS of Dollars into the Wall Street Banks.


ABC Consumer Comfort Index Plunges To Year Lows On Surging Gas Prices Once again the ABC Consumer Comfort index indicates that it is leaps and bounds more relevant than the ADP Private Payroll number.

 

Shocking Video Of Howard Dean Declaring That It Is The Job Of The Government To Redistribute Our Wealth In the shocking video you are about to watch, Howard Dean declares that it is the job of the government to redistribute our wealth.

 

 

Bernanke's Worst Nightmare Is This Man's Boxes: Caroline Baum BusinessWeek  Feb. 10 (Bloomberg) -- Ben Bernanke arrived at his office a week ago and came face to face with his worst nightmare. Staring out at the Federal Reserve chairman from page C1 of the Feb. 3 edition of the Wall Street Journal was a photo ...  The Associated Press Video:  Republicans Grill Bernanke Over Inflation, Debt  Paul calls Fed's Bernanke "cocky" in House hearing Reuters  [ Yeah … Come on! … The incompetent ‘no-recession helicopter ben’ has nothing whatsoever to be cocky about; he’s clueless as to what to do; satisfied to be helping the frauds on wall street; but in the end, this will end … quite badly! ]

 

 

 

(2-9-11) Dow  12,239  +6  Nasdaq  2,789  -8   S&P 500  1,320  -4   [CLOSE- OIL $86.79 (-54% for year 2008) (RECORD TRADING HIGH $147.27) GAS $3.11 (reg. gas in LAND OF FRUITS AND NUTS  $3.35 REG./ $3.53 MID-GRADE/ $3.62 PREM./ $3.68  DIESEL) /  GOLD $1,365 (+24% for year 2009) / SILVER $30.29 (+47% for year 2009) PLATINUM $1,845 (+56% for year 2009)  / DOLLAR= .72 EURO, 82 YEN, .62 POUND STERLING, ETC. (How low can you go - LOWER)/  http://www.federalreserve.gov/releases/h15/update      10 YR NOTE YIELD 3.65%        …..…     AP Business Highlights                          ...Yahoo Market Update...                             T. Rowe Price Weekly Recap – Stocks / Bonds / Currencies -  Domestic / International                          This Is a Secular Bear Market and The End of Buy and Hold … and Hope      MARKET MANIPULATION AND HOW THE LATEST BUBBLE-FRAUD PRE-COMING CRASH IS BEING ACCOMPLISHED 3-11-10      6 Theories On Why the Stock Market Has Rallied  3-9-10 [archived website file]     Risks Lurk for ETF Investors        The bull market that never was/were  beyond wall street b.s. when measured in gold             Property Values Projected to Fall 12% in 2010 Jan 31, 2010           The Week Ahead: Risk Is Off the Cliff; Unwind Has Begun Jan 31, 2010     01-13-10 Forecast for 2010 from Seeking Alpha Contributor     THE COMING MARKET CRASH / CORRECTION   1-28-10 Maierhofer          (01-15-10) 11 Clear Signs Economy Sinking     Economic Black Hole 1-22-10: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not Going To Recover     Current Economic / Fiscal Charts         Trendsresearch.com forecast for 2009          1-7-10 Crash is coming!          ‘WORST ECONOMIC COLLAPSE EVER’       Must Read Economic / Financial Data                      This Depression is just beginning     The coming depression…  thecomingdepression.net     MUST READ: JEREMY GRANTHAM’S QUARTERLY UPDATE 25 January 2010 (850 on the S&P) by TPC       The Next Wave of Collapse is Coming Sooner than you think       Sliding Back Into the Great Depression  ABSOLUTELY, ABSURDLY, RIDICULOUS! SELL / TAKE PROFITS WHILE YOU CAN SINCE MUCH, MUCH WORSE TO COME!  

 

 

 

National / World

 

 

 

Alex Jones Exposes “See Something, Say Something” as Patent Fraud Kurt Nimmo | There is no mechanism available to report real terrorism because it does not exist.

 

“See Something, Say Something” Exposed As Hoax Paul Joseph Watson | Alex Jones proves it’s impossible to report terror threats because the government has no interest in preventing terror.

 

DC News Station Covers “V For Victory” Campaign Infowars | Congress is questioning a new Homeland Security campaign called “If you see something, say something.”

 

As Government Prepares to Ban Lightbulbs, Americans Stock Up Paul Joseph Watson | Iconic Thomas Edison invention to be replaced with toxic mercury-filled, illness-causing CFLs by 2014 unless Ron Paul can lead successful fight back.

 

“Inexcusable”: TSA STILL Refusing To Release Naked Scanner Safety Reports Steve Watson | TSA once again lies, tells media machines are not capable of storing images.

 

TSA Blocks Airports From Hiring Private Security Back in January there was a healthy sign that a handful of airports around the country were saying no to the TSA and its sexual molestation searches and naked body porno scanners. Airport managers said they are opposed to the federal government telling them how to run security.

 

Leftists Attack Arianna Huffington For Selling Out To “Megacorp” AOL “She exploited our idealism and let us labor under the illusion that the Huffington Post was different, independent and leftist. Now she’s cashed in and three thousand indie bloggers find themselves working for a megacorp.”

 

Obamacare Advocate: Make Refusniks Wear Gold Stickers A leading advocate of Obamacare told NPR yesterday that Americans who refuse to pay for health care should be forced to wear gold stickers on their foreheads and refused emergency hospital treatment, in a chilling throwback to how Jews were persecuted by being made to wear yellow stars by the Nazis during the occupation of Europe.

 

 

Blago lawyers claim tape of phone call with Rahm Emanuel has disappeared from evidence NBC Chicago | Attorneys for former governor Rod Blagojevich have asked a federal judge to order prosecutors to produce two phone calls his lawyers say are mysteriously missing from evidence.

 

 

 

Man says ex-CIA agent Posada gave him explosives for hotel bombing Raw Story | Otto Rene Rodriguez said that he was given C-4 explosives and $2,000 by Luis Posada Carriles to enable the bombing at Havana’s Melia Cohiba hotel on Aug. 3, 1997.

 

 

 

‘Welfare Bum’ JP Morgan: We Need Gold! By making the announcement, J.P. Morgan is effectively saying gold is as rock solid an investment as triple-A rated Treasurys, adding to a movement that places gold at the top tier of asset classes.

 

Alex Jones: Feds Admit Emergency Takeover System Commissioners voted last week to require television and radio stations, cable systems and satellite TV providers to participate in a test that would have them receive and transmit a live code that includes an alert message issued by the president.

 

 

China police stop spread of Egypt news: activist Police in southwest China have barred activists from distributing leaflets about anti-government protests in Egypt and Tunisia, deeming the news too sensitive, one dissident said Wednesday.

 

 

 

Drudgereport: Oil hits $101 again...
Paul Ryan confronts over Fed's purchases of debt...
Soaring debt pushes Portugal towards bailout...
House GOP Targets Dozens of Gov't Programs...

CUT, CUT, CUT...
White House to Slash Heating Program for Poor…but still no pros of massive frauds on wall street which fines and disgorgement of would yield huge amounts to cover spending... [ Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"   11-25-10  The U.S. economy "is a complete disaster," Howard Davidowitz declared here in July, the most recent in a string of dire predictions from Tech Ticker's most entertaining guest.On the eve of Thanksgiving, I asked Davidowitz if he had any regrets, or was ready to throw in the towel given recent signs of economic revival. Are you kidding me? "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."As with the economy, Davidowitz is unwaveringly consistent in his views on President Obama, calling him "deranged, dysfunctional and discredited."Results of the midterm election show "the people of this country think we are in a catastrophe," he says. "I'm with them."Check the accompanying video for more of Howard's unfettered opinions and stay tuned for additional clips from this interview. And...Happy Thanksgiving! Aaron Task is the host of Tech Ticker. You can follow him on Twitter at @atask or email him at [email protected]Timid Tuesday: Is it Safe?   Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘ ]
UNDERDOG: CNN POLL: 51% SEE NO SECOND TERM FOR OBAMA...
71% OF ALL VEGAS HOMEOWNERS UNDER WATER...

'New normal' in housing bust...
STRESS...
Job openings fall for second straight month...
HOUSE VOTES NEXT WEEK TO BLOCK OBAMACARE FUNDS
WE'RE ON 'ROAD TO RUIN'

UPDATE: Egypt sees largest demos since start of revolt...
NEW WORLD TRADES...
Global Stock Exchanges Headed for Major Consolidation...
D Börse, NYSE in advanced talks...
London takes Canada...
Exchange chiefs seek new global powerhouses...

SAUDIS TOLD OBAMA 'NOT TO HUMILIATE MUBARAK' [ Sounds like they’re hearing footsteps…Previous: Egyptian capital teeters on anarchy  Mubarak asks cabinet to resign as anti-regime protests intensify  (Washington Post) [ Mubarak should have been looking in the mirror as he asked his cabinet to resign … 30 years is a long time, and coincidentally, time for him to go.   In Egypt: Access denied (Washington Post) [The day part of the Internet died: Egypt goes dark [I disagree! Part of the internet didn’t die, but rather the order to so darken the nation heralded the demise, at 30 years and counting, of the so-called leadership in the persona of Mubarak. Time for him to go! After all, he’s been in a position, with Egypt among the only Mideast nations to have signed a peace treaty with israel, to have stepped up with substantial credibility in taking a strong position against israeli transgressions, violations of international law / u.n. resolutions, war crimes, etc., which beyond soft-touch, he failed to do. And, of all places, he sends his family to Orwellian england; he still loves those colonial masters … how pathetic. I mean, 30 years … how free-flowing does anyone think the election process is at this point … and one could ask the same regarding the entrenched powers that be in pervasively corrupt, defacto bankrupt america, to be fair. Then there’s saudi arabia; talk about do nothing hypocrites. How does one family claim ownership of all the oil reserves of a sovereign nation; I suspect only when foreign corporations say so. The only Mideast nations showing backbone are Turkey, Lebanon, and Syria, and, of course the perennially propaganda painted bad-boy Iran among possibly some of the smaller emirates, ie., Qatar, etc., (I lack sufficient information regarding these other nations).  ] (AP)         Internet cutoff fails to silence Egypt protests (AP) - AP - In its effort to silence protesters, Egypt took a step that's rare even among authoritarian governments: It cut off the Internet across the entire country.       Mubarak fires Cabinet, defends army’s efforts   Sat, 29 Jan 2011 00:20:58 GMT  Egyptian President Hosni Mubarak dismisses his Cabinet, calls on the army to help put down rising potests...     Egypt's Mubarak sends in army, resists demands to quit (Reuters) - 1 hour agoReuters - Egyptian President Hosni Mubarak refused on Saturday to bow to demands that he resign after ordering troops and tanks into cities in an attempt to quell an explosion of street protests again...        ]      Embattled leader's move falls far short of demands that he give up his 30-year authoritarian rule, leave the country and permit fresh elections.  ]

 

 

 

 

 

Go to following pages for above links:
http://www.albertpeia.com/currentopics2ndqtr10108.htm 
http://www.albertpeia.com 
http://www.albertpeia.com/alresume.htm

http://www.albertpeia.com/wallstreetlunacy2ndqtr10108.htm 

http://www.scribd.com/alpeia

 

You may post a comment on my blog on any topic: http://alpeiablog.blogspot.com

 

 

Debt relief for states proposed (Washington Post) [  I’ve heard of the ‘blind leading the blind’, but the ‘bankrupt borrowing from the bankrupt’ seems to be a nouveau american phenomenon destined for ‘clichedom’.   Previous: Governors plan painful cuts amid budget crises  (Washington Post) [ This truly is a disaster in the making, with consequences even more dire than the grim outlook set forth by Meridith Whitney, if that could even be fathomed. It’s really going to be all that bad…see infra, The Economic Collapse, ‘#10 The municipal bond crisis could go “supernova” at any time.  Already, investors are bailing out of bonds at a frightening pace.  State and local government debt is now sitting at an all-time high of 22 percent of U.S. GDP.  According to Meredith Whitney, the municipal bond crisis that we are facing is a gigantic threat to our financial system….

“It has tentacles as wide as anything I’ve seen. I think next to housing this is the single most important issue in the United States and certainly the largest threat to the U.S. economy.”

Former Los Angeles mayor Richard Riordan is convinced that things are so bad that literally 90% of our states and cities could go bankrupt over the next five years…. ‘  ] Governors across the ideological spectrum are embracing the politics of austerity in a desperate effort to balance the books. ]   Proposal would ease financial burden on many state governments in the wake of the recession.

 

At CIA, mistakes by officers are often overlooked (Washington Post) [ Duuuh! I want to know of even one thing that’s not overlooked concerning those incompetent mental cases at the cia; from assassinations, to illegal drug dealing, to illegal arms sales, to corruption, to disinformation, etc., to america’s and the world’s (ie., those WMD’s in Iraq, etc.) substantial detriment. See also, ie., http://albertpeia.com/CIAAgentAffidavit1.jpg     http://albertpeia.com/FBIAgentAffidavit11.jpg      , and of course, corrupt legal / judicial processes, etc.,   Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense  ( http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         )   ]:

CRIME STATISTICS > TOTAL CRIMES (MOST RECENT) BY COUNTRY  SHOWING LATEST AVAILABLE DATA (america’s No. 1).

Rank  

Countries 

Amount 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

The following youtube video is well worth the look and explains how and why the frauds on wall street have gotten away with their devastating fraud thus far.  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed.  ( UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...         CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN BLACK PANTHER CASE... ex-Justice official quit over the handling of a voter intimidation case against the New Black Panther Party accused his former employer of instructing attorneys in the civil rights division to ignore cases that involve black defendants and white victims US v. AZ...    Cases against Wall Street lag despite Holder’s vows to target financial fraud  Obama broke promises ):

‘THE OBAMA DECEPTION’  http://www.youtube.com/watch?v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from=PL&index=0&playnext=1. [ The Obama Deception Number 1 on U.S. Google Trends  ]

‘The Obama Deception’ Censored  ‘The Obama Deception’ has been censored      In light of this development, I provide an archived site version which appears to be complete (but will be compared with earlier version and replaced with same if incomplete)        http://albertpeia.com/obamadeceptionhighqualityversion.flv

Then there is the well researched, produced, and informative ‘ESOTERIC AGENDA’ which explains how we’ve gotten to this forlorn point: http://video.google.com/videoplay?docid=-7052400717834950257# 

For the Same Reason I’ve Included Here a Web Site Archived FLV Version of Esoteric Agenda    http://albertpeia.com/esotericagenda.flv

 ] 

 

Four charged in 'brazen coverup' of insider trading (Washington Post) [  'The alleged conspirators "lacked a mobster's better-honed instinct for conversational discretion," said Janice K. Fedarcyk, head of the FBI's New York field office.'... Isn't that the truth; not like the big mobsters at goldman sachs, et als, who were well connected with plenty of juice and whose hard drives, conversations, etc., seemed never to make it to the crosshairs of real scrutiny, though any such prosecution of even the small fries like these wall street frauds should be welcomed, but with a sense of bewilderment as to how the aforesaid biggest frauds have yet to be prosecuted for the largest fraud in the history of this world with the consequences of their fraud 'now marked to anything' as they cashed out(that legislated FASB rule change / accommodation /complicity).  ]  Hedge fund manager allegedly tells colleague: Go to the office and shred "as much as you can."

 

Humility on the Nile Will: Maybe America's finally realizing the limits of its influence abroad. (Washington Post) [ I believe the power of Mr. Will’s article is twofold: First, that humility thing for america and the concomitant limits of american influence abroad. Like no other time in america’s short-lived history, america has a lot to be humble about. Afterall, america is defacto bankrupt, pervasively corrupt across all institutions whether they be governmental / judicial / private, and literally crime-ridden with crime rates exceeding by large margins those of other so-called civilized / tier one nations. Moreover, much like america’s commander(s) in chief, wobama the b (for b*** s*** - and war criminal bush), words are belied by actions / misdeeds. Indeed, the propping up of corrupt / criminal / oppressive regimes and the war crimes accompanying destruction and taking of innocent lives are facts lost on no one in this age like never before of ubiquitously available information which renders america’s once formidable propaganda machine now impotent in relative terms.Truth / reality works against america in every way. Second, and as important is that former global dichotomy that Mr. Will references; viz., the cold war and communism versus non-communism. No such simple lines now exist, nor can they be drawn owing to america’s failure, corruption, and meaningful lawlessness on so many levels and with such negative consequences. ]

 

 

 

 

This is that unmentionable reality as I alluded to earlier on close scrutiny of the data, ‘that stock prices have been manipulated to the upside beyond any and all rational basis‘ and as I previously wrote: Perception vs. Reality: Four Reasons to Remain Cautious on U.S. Equities  [ Hey, Abbott … That’s Lou Costello calling him from the other side … Wake up! … Just kidding … but I’m not kidding when I say that contrary to Abbott’s view, infra, if you’re not a successful market timer you should rethink your position as an equity investor. Moreover, in contradistinction to Mr. Abbott’s implication, if you’re not a successful speculator (there are very few), you should rethink your position as a short seller: reason…, you could be wiped out, lose more than your principal, forced to cover (that’s why the same is considered a contrary market indicator, particularly in these manipulated, contrived markets). When I did my MBA thesis (1977, NYU, GBA, Eve.Prog., Finance), a review of the data revealed even then (and much more so now with computer programmed market manipulation) that the market remained biased / propped up (artificially, especially now with computerized manipulation) to the upside for far longer periods of time than for the downside which meant that dollar-cost averaging (through regular, periodic investment, for example), meant you were accumulating shares at higher prices generally for longer periods of time skewing the average cost to the upside (dollar-cost-averaging in declining markets was ok if analysis / forecast saw resurgence based on fundamentals - now absent – which is timing, as even senile wall street / gov’t shill Buffet would attest, that ‘greedy when others are fearful thing’). Abbott discusses perception which is the psychological factor involved in security evaluation / analysis; but investors need not and should become nuts themselves, particularly when as now, the inmates are running the asylum. ] Abbott ‘Perception determines short-term market movements. The difference between perception and reality determines the direction of major market trends. Though I generally try to avoid making macro prognostications, I believe bottom-up analysis can be informative about the current level of stock prices. I want to share what my recent work tells me about where stocks are (and where they might be headed). I will outline some various nuggets of collective wisdom that are taken for granted right now by stock bulls, and I will attempt to demonstrate how reality is likely to differ from these perceptions.

First, a disclaimer. This is not a market timing call. At all times, I stay away from market timing predictions. I think that's a loser's game in the long run. Even if I'm correct about the discrepancies between the following perceptions and realities, there's no saying when people will change their minds or shift their focuses. That said, let's dive in.

Perception vs. Reality #1
Perception: Low Interest Rates, Questionable Bond Outlook Means Stocks are Attractive
Reality: Interest Rates Are Being Artificially and Deliberately Manipulated

It's no secret that the Federal Reserve's low interest rate policy and quantitative easing efforts have held interest rates very low for very long. However, when people talk about stock market implications of bond yields, they rarely mention the fact that bond yields are artificially low. In an unmanipulated market, bond prices and stock valuations should be related, but I regard that connection as highly dubious right now. Investors who say that stocks deserve higher multiples (lower earnings yields) because bond yields are so low may well be setting themselves up for disappointing returns/frustrating losses when bond prices normalize. Again, this isn't a market timing call, and yields may remain low for quite some time. But, eventually this discrepancy will correct itself, and stock performance is likely to suffer at that time.

Perception vs. Reality #2
Perception: Earnings Growth Has Been Strong and Will Remain That Way
Reality: Top-Line Growth Will Have to Pick Up; Cost-Cutting has Run Its Course

Earnings growth has certainly been robust, but much of the strength has come from companies running lean cost structures and wringing as much efficiency as possible out of their employees and their assets. Though the recession has ended, the economy is not yet healthy enough to fuel strong sales growth. Companies can only boost profits by cutting costs and increasing productivity for so long. Therefore, top-line growth will have to play a larger role going forward than it has over the past 4-6 quarters. Whether or not economic growth is strong enough to drive revenue increases is unsure, but the current level of stock prices undoubtedly assumes it is. Any stagnation of the recovery and concomitant sluggish sales will likely hit stock prices.

Perception vs. Reality #3
Perception: European Debt Crisis Drives Short-Term Volatility, but It's Not a Long-Term Concern
Reality: Crisis May Be a Harbinger of What's to Come in the U.S. if States, the Feds Don't Improve Balance Sheets

So far, turmoil in Greece and Ireland has served only as a temporary headwind to U.S. stocks. In keeping with the investment world's increasingly short-term focus, people seem more concerned with what fiscal crises in Europe mean for U.S. stocks over the coming days and months than with what they might mean down the road. I believe that this interpretation misses the mark. Since the U.S. fiscal situtation is generally considered to be stronger than that in many European countries, U.S. federal and municipal debt issuance has been relatively smooth, and interest rates have only risen modestly. If the U.S. doesn't get serious about its fiscal woes, eventually the crisis will arrive on American shores. There's no way of telling when this might happen, but the current level of stock prices seems to imply that it never will.

Here's the problem with that. To fix the federal balance sheet and/or to improve state and municipal balance sheets, legislators will have to raise taxes and/or cut spending. Tax hikes and spending cuts both reduce consumer spending. This hurts growth. There's no way around this. Stocks can certainly continue to rise for some time, but austerity will be bearish if/when it comes. If it doesn't come, we're in for a much bigger crisis some time down the road.

Perception vs. Reality #4
Perception: Everywhere You Look, You See Good Companies at Cheap Prices
Reality: It's Hard to Find Genuine Bargains, but There are Intriguing Short Prospects Everywhere

There is no shortage of stock market commentators who claim that they see bargains everywhere they look. Perhaps I'm not looking in the right places, but I've been having a difficult and increasingly impossible time finding good companies at reasonable prices. I use similar criteria to assess long and short investments, and I find intriguing shorts in lots of sectors right now. This tells me that valuations are stretched. Certainly they can become more so before we get a selloff, but every day that stocks rally, they get more expensive.

I've written on Seeking Alpha about a number of stocks which I regard as expensive (CRM, OPEN, GMCR), and take my word for it: there are plenty more than these whose shares I do not want to own at present levels. A few weeks ago, I also mused about the Facebook-Goldman deal and argued that this valuation is indicative of excessive investor enthusiasm. Bargains are hard to find, and as valuations go up, so does positive sentiment. While this is not a prediction of an impending correction or bear market, it is a message of caution for people who think stocks are cheap right now.

All that said, I always try to consider both sides of any investment issue, and there are some reasons for optimism. Job growth has shown signs of improvement, and some economic data have been increasingly (though not uniformly) positive. The Federal Reserve remains accommodative, and I'm skeptical about whether or not there is political will for austerity. For these reasons, stocks could continue onward and upward. That said, I see too many reasons for caution, and investors are turning a blind eye to these concerns as their complacency rises.’



 

 

 

Stock Momentum Trumps Valuation Warning Minyanville / Suttmeier ‘ Stocks began the week continuing the melt-up that began December 1. Within the first hour of trading, all weekly risky levels were violated, becoming pivots for the remainder of the week; 12,142 Dow Industrial Average, 1316.2 S&P 500, 2770 Nasdaq, 5077 Dow Transports, and 800.13 Russell 2000. These levels have an 85% chance of being tested again before the end of the week. The only major risky level is my quarterly risky level at 2853 for the Nasdaq. Keep in mind that the October 2007 high for the Nasdaq is 2861.51. Stocks are ignoring higher 10-year note and 30-year bond yields and the stronger dollar as the euro has declined from 1.3860 on February 2 to 1.3511 into Monday.
 


We are trading under a ValuEngine Valuation Warning -- 16 of 16 sectors overvalued and only 33.8% of all stocks undervalued, below the 35% threshold by this measure.

The US Treasury 10-Year Yield -- (3.648) My annual value level is 3.791 with a weekly risky level at 3.525.

Comex Gold -- ($1350.0) My quarterly, weekly and annual pivots are $1331.3, $1342.8 and $1356.5 with monthly, quarterly and semiannual risky levels are $1412.4, $1441.7, and $1452.6. The $1356.5 level is being tested this morning.

Nymex Crude Oil -- ($87.25) Closed below my semiannual pivot is $87.52 with weekly and monthly pivots at $91.62 and $91.83. The $87.52 level should be a magnet today.

The Euro -- (1.3583) My quarterly value level is 1.3227 with a weekly pivot at 1.3511 and monthly risky level at 1.4225.’

 

 

 

 

 

Hold Off on the Dow - Consider Malaysia and Taiwan ETFs  Gordon ‘Turmoil in Egypt set the markets back for a single day on 1/28/11. In fact, since the Egypt crisis mummified equities, the Dow Jones Industrials Diamonds Trust (DIA) has embarked on a seven-day winning streak.So ... what’s the frequency of seven consecutive days of gains? It’s only happened eight other times in the past decade.In spite of the odds that something ... anything ... might shake the faith, the bearish voices have been utterly silenced. Heck, the only bearish discussion in the media has been Meredith Whitney’s claim that U.S. municipalities will default on billions of dollars in debt obligations. No discussion of stock calamity or black swans ... only muni bond woes.Where have all the perma-bears gone? Weiss, Roubini, Hussman ... if the bull has any chance of survival, we’re gonna need you to convince your followers to “go short” on this seemingly unstoppable uptrend. As of now, the short sellers haven’t completely thrown in the towel as evidenced by a put-call ratio that’s yet to fall below 0.35.Think about the headlines that could have caused a meaningful sell-off. Last week’s jobs report was utterly pathetic ... no matter how you define “unemployment.” The ongoing rise in bond yields is a legitimate threat to real estate. And the additional rate hike from China is, if nothing else, a constant reminder of inflationary pressures worldwide.Correction or no correction, however, the real story is the exodus from emerging markets. The largest outflow in three years occurred last week, and the money has been heading for the seemingly sunnier shores of the U.S. of A.In my estimation, that’s a mistake. It’s not necessarily a mistake to sell your emerger for a big gain when it has hit a stop-limit loss order off a November 2010 high. It’s a mistake to chase U.S. equities that, while not overvalued by fundamental Forward P/E standards, are overbought in ”standard-deviation-above-the-50-day-and-200-day” standards.Essentially, as difficult as it is to be patient with your cash, you may have to practice delayed gratification. If you have confidence in U.S. companies, wait for a meaningful dip in the Dow Jones Industrials Diamonds Trust (DIA). And if you don’t have confidence in the ability of emerging markets to bounce back ... you’re too fearful. So consider buying funds that fuel China’s middle class consumption.Two of my favorites? Malaysia has manageable inflation, solid GDP growth and a trade surplus with China. The iShares MSCI Malaysia Fund (EWM) avoids interest-rate sensitive sectors like energy and materials, while capitalizing on China’s needs for simpler things like vegetable oil and rubber.In addition, China is likely to see its own version of an Internet boom in 2011-2012. Where do they get the products, services and expertise from? Taiwan. iShares MSCI Taiwan (EWT) has a 60% weighting in Information Tech.’

 

 

 

QE2 Failure: Investors Flock to Overvalued Stocks  Suttmeier ‘The yield on the 30-Year bond rose to 4.74 on Friday increasing the drag on equity valuations. Both the 10-Year and 30-Year yields are above their December trading ranges, raising consumer interest rates such as mortgage rates. Because of this, I say QE2 is a failure. This is forcing investors to increase allocations to stocks just when they become less attractive, more overvalued fundamentally and move overbought technically. Last week, the Dow Industrial Average reached a new high for the move at 12,092.42. Dow Transports and the Russell 2000 remain below the highs of mid-January.

·         The Dow Industrial Average (12,092) begins the week between my monthly value level at 11,759 and this week’s risky level at 12,142. The weekly chart remains extremely overbought.

·         The S&P 500 (1310.9) begins the week my quarterly value level at 1262.5 with this week’s risky level at 1316.2. The weekly chart remains extremely overbought.

·         The NASDAQ (2769) begins the week between my monthly value level at 2611 with a weekly pivot at 2770 and quarterly risky level at 2853. The weekly chart remains extremely overbought.

·         Dow Transports (5056) begins the week between monthly and weekly pivots at 4962 and 5077 and below my annual pivot at 5179, and below the January 18th high at 5256.80. Dow Transports is below its 50-day simple moving average at 5086 and will fall out of overbought territory on its weekly chart this week.

·         The Russell 2000 (800.11) begins the week above my annual and quarterly value levels at 784.16 and 765.50 with a weekly pivot at 800.13 with the January 14th high at 807.89. The weekly chart remains extremely overbought.

·         I cannot be overly bullish or bearish in the current market environment.

We are trading under another ValuEngine Valuation Warning - 16 of 16 sectors overvalued and only 34.73% of all stocks undervalued, below the 35% threshold by this measure.

The US Treasury 10-Year Yield – (3.650) The trading range set in December has been broken to the upside with my annual value level at 3.791 and weekly risky level at 3.525.

Comex gold – ($1349.5) Tested my annual pivot at $1356.5 last week, but could not get a weekly close above that level. My semiannual value level is $1300.6 with quarterly, weekly and annual pivots at $1300.6, $1331.3, 1342.8 and monthly, quarterly and semiannual risky levels are $1412.4, $1441.7 and $1452.6.

Nymex crude oil – ($88.90) Has not been able to sustain gains above $92 per barrel. I show weekly and monthly pivots at $91.62 and $91.83 as barriers for this week with my semiannual pivot at $87.52.

The euro – (1.3578) Could not sustain gains above 1.38 last week. My quarterly value level is 1.3227 with a weekly pivot at 1.3511 and monthly risky level at 1.4225. The weak euro versus the dollar on Thursday was offset by perceived positive comments from Fed Chief Ben Bernanke.

Bernanke Blunders - Fed Chief Bernanke expects the economy to improve this year with low inflation, despite the jump in commodity prices. The rise in commodities prices has been a factor for ten years, and consumers are feeling it at the gas pump, grocery stores and utilities bills.

The Federal Reserve is more worried about unemployment, but monetary policy has not helped create jobs on Main Street USA. Main Street depends upon construction jobs and these jobs are declining month after month.

Another blunder is the $600 billion QE2, which is aimed at jump-starting lending and making stock ownership more attractive. You can not increase lending when consumer rates such as mortgages are rising, and making stocks a less attractive alternative to US Treasuries. The main purpose of QE2 is to lower long term US Treasury yields, but the 10-Year yield is now 133 basis points higher since in October. Sure, stocks are higher, but buying now puts consumer capital at risk as stocks are overvalued and overbought. Consumers are buying stocks just as they bought new homes in 2005 and 2006.

Bank Failure Friday – The FDIC closed thee more banks last Friday and none were publicly traded.

· 25 banks failed in 2008

· 140 banks failed in 2009 with a peak of 50 in the third quarter

· 157 banks failed in 2010

· 14 banks have failed year to date in 2011

· 336 banks have failed since the end of 2007

· I still predict 500 to 800 bank failures in total by the end of 2012 into 2013.’

 

 

 

Monthly Market Valuation: Investors Are Too Bullish, Valuations Are Too High  [ The conclusion of the following detailed, documented analysis: ‘Wolinsky :In conclusion, the market is over-valued based on the above data. Tobin's Q, Shiller P/E and AAII data are all indicating that investors are too bullish and valuations are too high.’  ]

 

 

Why Small Business Isn’t Hiring And Won’t Be Hiring Charles Hugh Smith | Small business can’t afford to believe in myths and fantasies. They are dealing with the harsh reality of adapt or die.


 

59.9%? Americans Are Racking Up Huge Credit Card Balances at Outrageous Interest Rates Economic Collapse | It appears that the American people have fallen off the wagon and have gotten a taste for credit card debt once again.

 

 

Obama Budget Proposes Broader Unemployment Taxes Wall Street Journal | Proposal would aim to restock state unemployment-insurance trust funds by raising the amount of wages on which companies must pay unemployment taxes.

 

 

ECONOMIC CRISIS ARCHIVE

 

 

 

Stocks Remain Poised for Steep Decline McCurdy ‘When the second round of quantitative easing was announced late last year, Federal Reserve Chairman Bernanke indicated that one of the primary objectives of the program was to inflate risk assets such as stocks. In that respect, the program has been an unqualified success, as the S&P 500 index has now gained more than 26% during the course of 5 months.

However, as a result, the index P/E ratio has increased to more than 18, and the most reliable forecasting models based upon current earnings and dividends indicate that expected 10-year annual returns are now slightly more than 3%, regardless of whether or not the economy is in fact experiencing a sustained recovery.

Thus, from a purely investment perspective, stocks are priced to deliver very poor results during the coming decade. Additionally, the short-term outlook now favors the development of a potentially violent correction.

On Friday, the S&P 500 index moved up to another marginal new high for the rally from September, pushing an overextended advance to yet another extreme.

click to enlarge images

[chart]

The current short-term cycle from the end of November is now 46 trading days old, and it has yet to enter the final decline of the beta phase, suggesting that it will likely terminate in the 55 to 60 day range. The previous cycle had a duration of 63 trading days. These are moves of extremely long duration, well above their historical average of about 39 trading days.

[chart]

Of course, to truly put the overextended nature of the move in perspective, it must be viewed in the proper context afforded by the big picture. Below is a monthly chart of the S&P 500 since the current secular bear market began in 2000.

[chart]

Notice how the character of market behavior changed materially with the crash in late 2008. Since then, stocks have been moving effectively straight up or straight down. This type of volatile price action is typical for this stage of the bear market and indicates that we are still several years away from the terminal phase of the secular decline.

Returning to the short-term view, our Cyclical Trend Score (CTS) has been negatively diverging from price action since October, and the CTS is currently holding slightly above its December low.

[chart]

Although the CTS is not a near-term timing indicator, this negative divergence reflects a gradual deterioration in underlying strength. The developing weakness is also manifested by broad market internals such as breadth and volume, as both continue to negatively diverge from price behavior.

[chart]

[chart]

Finally, our Sentiment Score continues to hold near the lowest level since late 2007, reflecting irrationally excessive bullishness that leaves the market vulnerable to an abrupt decline.

[chart]

Of course, overextended rallies of this type have a tendency to continue making marginal new highs until, at some point, an unexpected catalyst sets in motion the inevitable correction, which will likely be fast and furious, wiping out several weeks of gains in a matter of sessions.

From a big picture perspective, the character of the next correction should provide a great deal of clarity with respect to long-term direction. A relatively weak retracement followed by a return to recent long-term highs would predict a subsequent breakout and continuation of the cyclical bull market, while a powerful, sustained downtrend would suggest the development of a long-term top.’

 

 

Rich Get Richer When Governments Tout Austerity Remember all that stuff about how the credit crunch was going to usher in a new age of austerity? The financial industry would shrink; the gulf between the haves and the have-nots would close; and taxes would rise for the top earners, forcing them to contribute more to society.

 

Ratigan And Fleckenstein Explain The Fed’s Role In Recent Food Price Ignited Revolutions For over a year now, Zero Hedge has been predicting that in its foolhardy attempt of “inflation or bust”, the Fed’s actions would sooner or later lead to mass rioting and possible revolutions.

 

The Golden Dragon Asian investors are demanding more and more precious metals, and fund managers are gladly obliging by providing them with new exchange-traded securities—like ETFs—in order to quench Asia’s thirst for precious metals.

 



 

 

Is the Market Headed for a Sell-Off? Zaky  [ Yes … I agree, except that fundamentally the longer term prospects are even worse than his bearish outlook suggests (don’t forget the debasement of the dollar, manipulation, and spending / printing money the nation doesn’t have in real terms behind this manipulated uptick) and summarized as follows: ‘I suspect that this rally is on its very last legs. We should see a very healthy 10% or so correction within the next 1-2 week period ... This market is headed for a sell-off. ]

 

 

 

 

2011 Update: Another Lost Decade for Stocks - Are You Prepared?   [ I agree that this is but a (manipulated) bull cycle in a secular bear market with substantially worse to come! ]Kopas ‘In February 2010, we published an article on Seeking Alpha entitled “Another Lost Decade for Stocks - Are You Prepared?,” wherein we argued that the year 2000 marked a secular (long-term) peak for U.S. stocks. A secular bear market is formed when a series of business cycles are linked together, establishing an extended period of stock market under-performance. Our objective here is to bring you up-to-date on the progress of this secular bear market and help you prepare for the next ten years.

The first benchmark we monitor is U.S. stock prices adjusted for inflation. In this chart below, we compare the U.S. stock market to the Shiller 10-year Price/Earnings ratio. This P/E ratio is an indication of investor confidence; a lack of that signals extreme valuation levels. Our conclusion is that investor psychology is still too optimistic and has a long way to go before reaching an undervalued stock market level.

[chart] click to enlarge

Updating our duration and valuation benchmarks, again we find progress, but not yet achieving the truly undervalued levels we expect to see toward the end of a secular bear market. Based upon previous cycles, it appears we are only slightly past the half way mark in terms of years, number of recessions, and valuations. A look at our chart and table comparing this to earlier secular bear markets illustrates our conclusion. We expect that a major bottom for inflation adjusted stock prices is still years away before stocks finally gravitate toward the target area outlined below.

[chart]

New Benchmark: Tobin Q Ratio

In this update we introduce another relative valuation benchmark created by Yale economics professor and Nobel laureate James Tobin, hence the name Tobin’s Q Ratio. The Q ratio is calculated as the total value of the stock market divided by the replacement cost of all its companies. Values greater than 1 indicate stock prices sell above their replacement cost and are therefore “expensive.” A reading below 1 indicates stocks can be bought below replacement cost and therefore indicates that it is cheaper to buy a company than to build one.

A long-term view of the Q ratio gives investors a good understanding of value, information about current risk levels and a method to assess probable returns for the long term. Secular bear markets historically bottom when the Q ratio declines to a bargain level less than .4, meaning stock prices sell for just 40% of replacement value. Today’s reading of 1.03 is above the average reading of .75 and considerably higher than the average secular low reading of .33. Investors beware; stocks have considerable more downside potential before the Q ratio truly reflects a great valuation. Buy and Hold tactics will continue to frustrate investors, just as they have in the past decade.

[chart]

In conclusion, none of the benchmarks we evaluate indicate we are anywhere close to a secular stock market bottom yet. In the meantime, a prudent and profitable investment strategy should be flexible enough to actively adjust portfolio asset allocation, depending on where we are in the business cycle and the direction of the secular trend.’

 

 

 

 

Shiller Ratio Points to U.S. Equities Being Significantly Overvalued   [ Yes they are indeed; so take this especially great opportunity to sell, take profits since there’s much, much worse to come! That computer-programmed spike into the close to keep suckers suckered does not change the aforesaid. This is particularly evident in their attempt to cash in on that superstitious scam known as the ‘January effect’ by way of these manipulated bubble-making buy programs; you know, loosen / soften the suckers up for the coming year’s new fraud / scam. ] The 'January Effect' Is More Market Myth Than Sound Analysis ...  Kumar ‘…January of 1929, for example, was off to a brisk start as the Dow Jones Industrial Average climbed to 317 from 307. But investors would be slammed later in the year by a historic stock market crash that heralded the start of the Great Depression. January of 1987, too, began nicely. The Dow climbed to 2160 at the end of the month after starting out at 1927. But Black Monday would hit investors in October of that year, leading to the sharpest historical stock market decline in percentage terms. More recently, January 2001 had a strong showing when the Dow Jones finished the month at 10,887 after starting at 10,646. Those reading it as an auspicious beginning would be hit first by the further fallout from collapse of the dot-com bubble and then the massive decline following the September 11 terrorist attacks. See full article from DailyFinance: http://srph.it/cyaPDT ‘… Then, more recently there’s ‘The stock market scored a strong gain and locked in its first positive finish for January since 2007 (we all know what happened after that! Crash!) with help from the energy sector, which climbed sharply in response to a spike in oil prices.(Yahoo/Briefing.com) … Higher oil prices … riiiiight! … that sounds bull(s***)ish … on fraudulent wall street. ]

 

 

 

 

 

National / World

 

 

Obama Launches Total Takeover of Media System Kurt Nimmo | The government has once again imposed an unreasonable and absurd mandate on business and the American people.

 

Poll: Ron Paul Has Greater Chance Of Beating Obama Than Palin Does In 2012 Steve Watson | Will the Libertarian Congressman take up the mantle?

 

Kleptocrats at Work Paul Craig Roberts | Kleptocracy is as old as government.

 

Evidence Shows Pole Shift Hysteria Hyped Test Pilot | There is good physical evidence that the magnetic poles of the Earth have inverted from time to time.

 

Confirmed: FBI Got Warning Day Before OKC Bombing Paul Joseph Watson | Documents released under Freedom of Information Act show feds tried to coerce Terry Nichols into accepting responsibility for phone call warning of imminent attack in return for protecting him from death penalty.

 

House Seen Blocking Obamacare Funds The U.S. House of Representatives is likely to vote to block funding for President Barack Obama’s signature healthcare overhaul when it takes up a budget plan next week, House Republican Leader Eric Cantor said on Tuesday.

 

Poll: Ron Paul Has Greater Chance Of Beating Obama Than Palin Does In 2012 A Rasmussen poll released Monday indicates that Congressman Ron Paul has a better shot of beating Obama in the 2012 presidential election than Sarah Palin would, should both decide to run on the GOP ticket.

 

Obama Launches Total Media Takeover System Even the Washington Post describes it like something out of Orwell’s 1984. The FCC has approved a presidential alert system. Obama may soon appear on your television or call your cell phone to warn you about the next specious al-Qaeda underwear bombing event.

 

Karzai in talks with US on permanent Afghan bases Afghan President Hamid Karzai said Tuesday that he was in talks with the United States about the possible establishment of permanent US military bases in his war-ravaged country.

 

Ron Paul On Verge Of Announcing 2012 Presidential Bid Political pundits are speculating that Ron Paul could be on the verge of announcing his much awaited 2012 presidential run, after the Texas Congressman agreed to give a speech in Iowa at an event entitled “presidential lecture series” that will feature other likely Oval Office candidates.

 

WORLD NEWS ARCHIVE

WORLD AT WAR ARCHIVE

 

 

 

Freed young leader energizes Egyptian protests (AP) In this still image taken from video, Google Inc executive Wael Ghonim cries during an interview in Cairo February 7, 2011. One man's tears provided a new impetus on Tuesday to protesters in Egypt seeking to keep up momentum in their campaign, now in its third week, to topple President Hosni Mubarak. Ghonim, who was detained and blindfolded by state security for 12 days, broke down in a television interview on Monday after his release saying a system that arrested people for speaking out must be torn down. Image taken from footage dated February 7, 2011. REUTERS/Dream TV via Reuters TV (EGYPT)

 

 

 

Egypt VP favored by Israel to succeed Mubarak, cables show [ Which of course is the best reason in the world, in addition to suleiman being both mubarak’s and the cia’s choice, to not allowing that succession to go forward being contrary to all notions of democracy (the dictator’s choice?).  ] Israel has long seen Omar Suleiman, Egypt’s recently appointed vice president, as the successor to Egyptian President Hosni Mubarak, US State Department cables released by secrets outlet WikiLeaks show.

 

 

Drudgereport: UNDERDOG: CNN POLL: 51% SEE NO SECOND TERM FOR OBAMA...
71% OF ALL VEGAS HOMEOWNERS UNDER WATER...

'New normal' in housing bust...
STRESS...
Job openings fall for second straight month...
HOUSE VOTES NEXT WEEK TO BLOCK OBAMACARE FUNDS
WE'RE ON 'ROAD TO RUIN'

UPDATE: Egypt sees largest demos since start of revolt...
New video shows brutal mob justice...
Israel Army Chief: Prepare for all-out war...
Released GOOGLE exec reveals he was behind FACEBOOK page...
Freed young leader energizes protests...
Saboteurs attack gas pipeline; cuts off flow to Israel, Jordan...

CAIRO DAY 12: Locked in standoff...
Mubarak clings to power as son quits ruling party...
Gov't seeks to ease Mubarak out...
Hopes to ride out protest wave...
Anderson Cooper in 'Undisclosed Location' After Another Attack; Couric, Williams Flee Egypt...
GOOGLE Exec Who Went Missing In Egypt Now Spokesman For Opposition Group...
MOTOROLA AD MOCKS 'APPLE ZOMBIE SOCIETY'...
Mafia 'holds Silvio Berlusconi photos'...
SUPER BOWL MOST-VIEWED TV IN HISTORY...
THE PACK PULLS IT OUT [ Congratulations to the Green Bay Packers! ]

 

 

 

Governors plan painful cuts amid budget crises  (Washington Post) [ This truly is a disaster in the making, with consequences even more dire than the grim outlook set forth by Meridith Whitney, if that could even be fathomed. It’s really going to be all that bad…see infra, The Economic Collapse, ‘#10 The municipal bond crisis could go “supernova” at any time.  Already, investors are bailing out of bonds at a frightening pace.  State and local government debt is now sitting at an all-time high of 22 percent of U.S. GDP.  According to Meredith Whitney, the municipal bond crisis that we are facing is a gigantic threat to our financial system….

“It has tentacles as wide as anything I’ve seen. I think next to housing this is the single most important issue in the United States and certainly the largest threat to the U.S. economy.”

Former Los Angeles mayor Richard Riordan is convinced that things are so bad that literally 90% of our states and cities could go bankrupt over the next five years…. ‘  ] Governors across the ideological spectrum are embracing the politics of austerity in a desperate effort to balance the books.

 

 

Egypt protests continue as Mubarak's government offers concessions (Washington Post) [ Come on! Let not all of us join america’s / israel’s, et als, and  mubarak’s delusions. After all, here’s an 82 year old tyrant, in power for 30 years, yet in some parallel universe appears to think he’s calling the shots. Other than literal and quite foolish shots against protesters, even journalists, see infra, there are few indeed that would trust his mindset, such as it is, much less his judgment, so flawed as he has now shown it to be. What is obvious is that this long overdue ‘people’s election’ cannot be thwarted by platitudes and small talk, but resisting the inevitable will turn an american quasi-ally into an anti-american breeding ground because there’s just no reconciling a pro-mubarak, however slight, position with american / israeli, et als war crimes in the region.  Restless Cairo protesters hoping for U.S. support (Washington Post) [ The sad reality here is, much like wobama’s Afghanistan fiasco, that america has ‘bought it’. This is truly yet another ‘loss, loss’ scenario as is true of america’s mideast policy generally. Defacto bankrupt america’s initiatives in the region particularly, though generally true of all american policy, is the ‘square pegs in round holes’ approach to almost everything they do, which certainly is not lost on the rest of the world. Coddling and caving in to israeli / neocon / zionist paranoia despite the war mongering intransigence of the former is devastating to a nation as pervasively corrupt america which is facing insurmountable domestic problems of its own, economically, financially, politically, and geo-politically. This should bring to mind the missteps of a former fading empire in this same region desperately trying to remain relevant. Indeed, from Balfour’s Despoliation to arbitrary boundaries, etc., Orwellian britain’s demise (decline) as a real player globally was, as america’s currently, significantly and irrevocably hastened. Quite simply, pervasively corrupt, defacto bankrupt america will increasingly be viewed as a bunch of  ‘muck-ups’ who can’t handle their own substantial problems much less those of other nations; and in fact, invariably exacerbate existing conditions / problems, particularly when pandering to israel’s self-interested concerns. ] While the ouster of President Hosni Mubarak remains the most pressing concern for protesters, the role of U.S. is far from absent in the dialogue. { Previous:  Amid Arab protests, U.S. influence has waned (Washington Post) [ And that’s just the way israel likes it … and to america’s detriment, of course … which is not lost on even George Soros … Drudgereport: Soros: 'The main stumbling block is Israel'...

Egyptian protesters plan new push     Government detains foreigners, says it's willing to open talks  (Washington Post) [ Open talks? ‘bout what? Building a pyramid in mubarak’s honor before stepping down? He’s done … finito … burnt as an over-micro-waved burrito! The following from the Post is indeed the straw that broke the riders with whips he sent on camels’ and horses’ backs!  ‘Wants to die in Egypt? How touching, or the reality, he’s just plain touched as in totally ‘out of it’.   ‘…In what the U.S. State Department called a "concerted campaign to intimidate," several dozen journalists were rounded up by security forces and detained for hours, along with foreigners working as teachers, engineers and human rights researchers. Across the city, angry bands of supporters of President Hosni Mubarak also beat journalists; several reporters said that they were threatened with death…’   ]  Cairo seeks to shift blame for clashes by rounding up journalists; U.S. worries renewed protests could spark more violence from Mubarak supporters. Demonstrations in Egypt take bloody turn    In Cairo square, Mubarak backers confront anti-government crowds  (Washington Post) [  Not too difficult for desperate and done mubarak to contrive:   Mubarak Says Egyptians Have to Choose Between “Chaos” and Him … Then Sends In His Thugs to Stir Up Chaos  (Infowars.com) In order to justify staying in power until elections are held in September, President Mubarak said on tv that the people had to choose between him and “chaos”.    ]  The coordinated nature of day's events suggested that Mubarak's supporters were determined to show, as he had warned, that the country faced a "choice between chaos and stability."   [  Previous:    Mubarak's pledge seen as not enough   Egyptian president plans to stay in office to transfer power  (Washington Post) [ Let me put it another way: Mubarak is as done as an over-cooked tamale … He seems to be stalling for time and even in his age impaired mind certainly knows his position is untenable, unsustainable, and even more irrational as each second passes. There is a possibility that he’s using same to move money / treasure for himself and others, literally as well, buying time. See infra …  Previous:  Mubarak seeks dialogue, shows no sign of relenting   Demonstrators call for massive protest but lack leadership  (Washington Post) [ He relented when he resorted to media / internet blackout. Indeed, this lack of sign thing is a testament to how far from reality 30 years has taken him, not to mention the other 52 years that have taken their toll on his cognitive processes. Whether it is plaques ‘on the brain’ or outright senility, that he is so disengaged from the events unfolding around him, one may only wonder how he lasted this long. Nor did his choice of cia standin / shill, new VP Suleiman enhance his now untenable position which leaves him as ‘done as a burnt enchilada’.  Kissinger on Egypt unrest – “This is only the first scene of the first act of a drama that is to be played out”   [ The import of this so-called interview, and it is here that I part company with alex jones, et als (who by the way, censored me for this very thesis, which puts him and his at the top of my hypocrite list), is that the so-called elite have orchestrated these events and ‘are in control’. First, there are no elites in this world; you can’t derive elites from apes, notochordates, and initially single celled organisms. Second, almost by definition and certainly by history, there are no elites in america even if you were to accept the first proposition (though true) as untrue. What you do have, in this world and america particularly (with few exceptions as I’ve discussed elsewhere / comments / my website), are inherent criminals and mentally ill people of varying degrees of unscrupulousness and insanity who do commit crimes, both small and large, to further their interests or fortunes (sociopaths / psychopaths). The ’so-called alpha-dogs’ of the human species at most, but still incompetent vegetables who, if you look at anything they touch (to use a term term of such incompetent vegetables as historically pertains to their role in the mideast – and generally the state of the world) it invariably goes ‘pear shaped’ (english term). What hasn’t zionist kissinger not messed up as appointee or ‘consultant’ – what does he get paid for? No! The fact is, they have absolutely no idea how this unfolds and as with most of their lives, they will predictably choose the most sordid, despicable, and diabolical course at every turn because … that is their inherently criminal, mentally ill / unstable nature to do so. ]

]  Fragile steps to end crisis seen as plans take shape for a transition process that would allow Mubarak to remain as a figure head until new elections.

    }  ]

 

Obama prods U.S. firms to help economy (Washington Post) [ Sounds like a plan! Riiiiight! Unfortunately wobama, unlike capital hill, and with bean-counters / number-crunchers / financial analysts paid to look beyond your next election cycle, there are few if any rational investment projects that comport with your politicking goals, particularly in light of your perpetual wars and the defacto bankruptcy of the nation … The Gipper's true heirs (Washington Post) [ ‘Wobama the b’ (for b*** s***), quite remarkably, seems to imply he is one. Yet, his ‘ask what you can do for your country’ entreaty to the ‘corporate execs’ (wake up wobama, they’ve already done it, shifting production / jobs irrevocably overseas, etc., while engaging in the largest fraud by way of wall street in the history of the world, with apparent impunity I might add as per professional criminal courtesy via you and your department of injustice) sounds awfully John F. Kennedyish; yet never the twain should meet (in fact, Reagan and his friend, William Holden reportedly lifted a glass and cheered Kennedy’s assassination – not totally ill-intended since they bought into that ‘Kennedy treason’ propaganda being pushed by the cia et als. Actually, Reagan’s greatest (and most unlikely going in) achievement was the peaceful transition from communism he helped initiate and facilitate with Russia’s rational and astute Mikhail Gorbachev which made way for substantial peace dividend for both nations.) Yes, wobama seems to be suffering from a form of multiple personality disorder which has invariably been interposed in defense of missteps and ‘bad behavior’, but as is true now, without success.  ]  Robinson: Republicans claim the Reagan mantle, but Democrats act almost like Reaganites.

 



 

 

Stocks Remain Poised for Steep Decline McCurdy ‘When the second round of quantitative easing was announced late last year, Federal Reserve Chairman Bernanke indicated that one of the primary objectives of the program was to inflate risk assets such as stocks. In that respect, the program has been an unqualified success, as the S&P 500 index has now gained more than 26% during the course of 5 months.

However, as a result, the index P/E ratio has increased to more than 18, and the most reliable forecasting models based upon current earnings and dividends indicate that expected 10-year annual returns are now slightly more than 3%, regardless of whether or not the economy is in fact experiencing a sustained recovery.

Thus, from a purely investment perspective, stocks are priced to deliver very poor results during the coming decade. Additionally, the short-term outlook now favors the development of a potentially violent correction.

On Friday, the S&P 500 index moved up to another marginal new high for the rally from September, pushing an overextended advance to yet another extreme.

click to enlarge images

[chart]

The current short-term cycle from the end of November is now 46 trading days old, and it has yet to enter the final decline of the beta phase, suggesting that it will likely terminate in the 55 to 60 day range. The previous cycle had a duration of 63 trading days. These are moves of extremely long duration, well above their historical average of about 39 trading days.

[chart]

Of course, to truly put the overextended nature of the move in perspective, it must be viewed in the proper context afforded by the big picture. Below is a monthly chart of the S&P 500 since the current secular bear market began in 2000.

[chart]

Notice how the character of market behavior changed materially with the crash in late 2008. Since then, stocks have been moving effectively straight up or straight down. This type of volatile price action is typical for this stage of the bear market and indicates that we are still several years away from the terminal phase of the secular decline.

Returning to the short-term view, our Cyclical Trend Score (CTS) has been negatively diverging from price action since October, and the CTS is currently holding slightly above its December low.

[chart]

Although the CTS is not a near-term timing indicator, this negative divergence reflects a gradual deterioration in underlying strength. The developing weakness is also manifested by broad market internals such as breadth and volume, as both continue to negatively diverge from price behavior.

[chart]

[chart]

Finally, our Sentiment Score continues to hold near the lowest level since late 2007, reflecting irrationally excessive bullishness that leaves the market vulnerable to an abrupt decline.

[chart]

Of course, overextended rallies of this type have a tendency to continue making marginal new highs until, at some point, an unexpected catalyst sets in motion the inevitable correction, which will likely be fast and furious, wiping out several weeks of gains in a matter of sessions.

From a big picture perspective, the character of the next correction should provide a great deal of clarity with respect to long-term direction. A relatively weak retracement followed by a return to recent long-term highs would predict a subsequent breakout and continuation of the cyclical bull market, while a powerful, sustained downtrend would suggest the development of a long-term top.’

 

 

 

 

Valuation Warning Continues for Stocks Minyanville ‘Editor's Note: This article was written by Richard Suttmeier, chief market strategist at ValuEngine.com, which is a fundamentally based quant research firm.

The yield on the 30-year bond rose to 4.74 on Friday, increasing the drag on equity valuations. Both the 10-year and 30-year yields are above their December trading ranges, raising consumer interest rates such as mortgage rates. Because of this I say QE2 is a failure. This is forcing investors to increase allocations to stocks just when they become less attractive, more overvalued fundamentally and more overbought technically. Last week the Dow Industrial Average reached a new high for the move at 12,092.42. Dow Transports and the Russell 2000 remain below the highs of mid-January.
 


We're trading under another ValuEngine Valuation Warning -- 16 of 16 sectors are overvalued and only 34.73% of all stocks are undervalued, below the 35% threshold by this measure.

The US Treasury 10-Year Yield -- (3.650) The trading range set in December has been broken to the upside with my annual value level at 3.791 and weekly risky level at 3.525.

Comex gold -- ($1349.5) Tested my annual pivot at $1356.5 last week, but could not get a weekly close above that level. My semiannual value level is $1300.6 with quarterly, weekly and annual pivots at $1300.6, $1331.3, 1342.8 and monthly, quarterly and semiannual risky levels are $1412.4, $1441.7 and $1452.6.

Nymex crude oil --
($88.90) Has not been able to sustain gains above $92 per barrel. I show weekly and monthly pivots at $91.62 and $91.83 as barriers for this week with my semiannual pivot at $87.52.

The euro --
(1.3578) Could not sustain gains above 1.38 last week. My quarterly value level is 1.3227 with a weekly pivot at 1.3511 and monthly risky level at 1.4225. The weak euro versus the dollar on Thursday was offset by perceived positive comments from Fed Chief Ben Bernanke.

Bernanke Blunders -- Fed Chief Bernanke expects the economy to improve this year with low inflation, despite the jump in commodity prices. The rise in commodities prices has been a factor for 10 years, and consumers are feeling it at the gas pump, grocery stores and utilities bills.

The Federal Reserve is more worried about unemployment, but monetary policy has not helped create jobs on Main Street USA. Main Street depends upon construction jobs and these jobs are declining month after month.

Another blunder is the $600 billion QE2, which is aimed at jump-starting lending and making stock ownership more attractive. You can not increase lending when consumer rates such as mortgages are rising, and making stocks a less attractive alternative to US Treasuries. The main purpose of QE2 is to lower long-term US Treasury yields, but the 10-Year yield is now 133 basis points higher since October. Sure stocks are higher, but buying now puts consumer capital at risk as stocks are overvalued and overbought. Consumers are buying stocks just as they bought new homes in 2005 and 2006!

Bank Failure Friday -- The FDIC closed three more banks last Friday and none were publicly traded.
 

 

 

 

Beware: True Unemployment Is Closer to 10%

 

 

The Burden of Lower Growth and More Frequent Recessions  Mauldin ‘The following is a preview of my new book, Endgame, out and in the bookstores next month. This is the beginning of chapter four, and it stands alone quite nicely. It will print out a little longer than normal, as there are a lot of graphs. My co-author Jonathan Tepper and I deal with why there will be slower growth, more volatility, and more frequent recessions in our future.

We’re optimists by nature. The natural order of the world is growth. Trees tend to grow, and economies do, too. Real economic growth solves most problems and is the best antidote to high deficits, but the problems that we have now won’t be solved by growth. They’re simply too big. Unless we have another Industrial Revolution or another profound technological revolution like electrification in the 1920s or the IT revolution in the 1990s, we will not be able to grow enough to pull ourselves out of the debt hole we’re in.

After the dot-com bust in 2000, the phrase “the muddle through economy” (a term coined by John) best described the U.S. economic situation. The economy would indeed be growing, but the growth would be below the long-term trend (which in the United States is about 3.3 percent) for the rest of the decade. (Indeed, growth for the decade was an anemic 1.9 percent annualized, the weakest decade since the Great Depression. Muddle through, indeed.)

The muddle through economy would be more susceptible to recession. It would be an economy that would move forward burdened with the heavy baggage of old problems while facing the strong headwinds of new challenges. The description of the world was accurate then, and it is even more accurate now. In March 2009, when almost everyone was predicting the apocalypse, it was hard to see how things could improve. The GDP turned around, industrial production has shot up, retail sales have bounced back, and the stock market rebounded strongly. Everything has turned up. However, GDP growth is slowing in the United States as we write in November 2010. Compared with previous recoveries, growth does not look that great, and people don’t feel the recovery. This is unlikely to change.

The muddle through economy is the product of a few major structural breaks in the world’s economies that have important implications for growth, jobs, and when we might see a recession again. The U.S. and most developed economies are currently facing many major headwinds that will mean that going forward, we’ll have slower economic growth, more recessions, and higher unemployment. All of these are hugely important for endgame since they vastly complicate policy making.

Lower growth will make our fiscal choices that much scarier. Importantly, these big changes also mean that governments, pension funds, and even private savers are probably making unreasonably rosy assumptions about how quickly the economy and asset prices will be able to increase in the future. As endgame unfolds, the reality of these big changes will set in.

Three Structural Changes

Investors are good at absorbing short-term information, but they are much less successful at absorbing bigger structural trends and understanding when secular breaks have occurred. Perhaps investors are like the proverbial frogs in the frying pan and do not notice long, slow changes around them. There are three large structural changes that have happened slowly over time that we expect to continue going forward. The U.S. economy will have:

1. Higher volatility

2. Lower trend growth

3. Higher structural levels of unemployment (The United States here is a proxy for many developed countries with similar problems, so much of this chapter applies elsewhere.)

1. Higher Volatility

Before the crash of October 2008, the world was living in “the great moderation,” a phrase coined by Harvard economist James Stock to describe the change in economic variables in the mid-1980s, such as GDP, industrial production, monthly payroll employment, and the unemployment rate, which all began to show a decline in volatility. As Figures 4.1 and 4.2 from the Federal Reserve Bank of Dallas show, the early 1980s in fact constituted a structural break in macroeconomic volatility. The GDP became a lot less volatile. As did employment.

The great moderation was seductive, and government officials, hedge fund managers, bankers, and even journalists believed “this time is different.” Journalists like Gerard Baker of the Times of London wrote in January 2007: Welcome to “the Great Moderation”: Historians will marvel at the stability of our era. Economists are debating the causes of the Great Moderation enthusiastically and, unusually, they are in broad agreement.

[chart]

[chart]

Good policy has played a part: central banks have got much better at timing interest rate moves to smooth out the curves of economic progress. But the really important reason tells us much more about the best way to manage economies. It is the liberation of markets and the opening-up of choice that lie at the root of the transformation. The deregulation of financial markets over the Anglo-Saxon world in the 1980s had a damping effect on the fluctuations of the business cycle ... The economies that took the most aggressive measures to free their markets reaped the biggest rewards.

In retrospect, this line of thinking looks hopelessly optimistic, even deluded. We do not write this to pick on Gerard Baker, but rather to point out that low volatility breeds complacency and increased risk taking. The greater predictability in economic and financial performance led hedge funds to hold less capital and to be less concerned with the liquidity of their positions.

Those heady days are now over, and we have now entered “the great immoderation.” One can confidently say that 2008 represents a structural break, moving back toward a period of greater volatility. Robert F. Engle, a finance professor at New York University who was the Nobel laureate in economics in 2003, has shown that periods of greatest volatility are predictable. Market sessions with particularly good or bad returns don’t occur randomly but tend to be clustered together. The market’s behavior illustrates this clustering. Volatility follows the credit cycle like night follows day, and periods following credit booms are marked by high volatility, for example, 2000–2003 and 2007–2008.

The period of low volatility of GDP, industrial production, and initial unemployment claims is now over. For a period of more than 20 years, excluding the brief 2001–2002 recession, volatility of real economic data was extremely low, as Figure 4.3 shows. Going forward, higher economic volatility, combined with a secular downtrend in economic growth, will create more frequent recessions. This is likely to lead to more market volatility as well.

[chart]

You can measure economic volatility in a variety of ways. Our preferred way is on a forward-looking basis. We have seen the highest volatility in the last 40 years across leading indicators, as Figure 4.4 shows. These typically lead the economic cycle. This only means one thing, higher volatility going forward.

For far too long, volatility was low and bred investor complacency. Going forward, we can expect a lot more economic and market volatility. We have had a strong cyclical upturn, but we will continue to face major structural headwinds. This means more frequent recessions and resultant higher volatility.

If we look at Japan following the Nikkei bust in 1989, we can see that volatility increased. Note that before the peak in the Nikkei, volatility had been largely subdued, with periodic movements corresponding to increases in the level of the market. As Figure 4.5 shows, following the crash, stock market volatility increased markedly, and volatility to the downside became far more prevalent.

[chart]

Equity volatility follows the credit cycle. If you push commercial and industrial (C&I) loans forward two years, it predicts increases in the Market Volatility Index (VIX) almost down to the month. We should expect heightened episodes of volatility for the next two years at a minimum. (See Figure 4.6.)

Fixed-income volatility also follows the credit cycle with a two-year lag. Figure 4.7 shows how the Fed Funds rate lags Merrill Lynch’s MOVE Index, which is a measure of fixed-income volatility, by three years.

[chart]

Another very good reason to believe we’ll continue to have high volatility even after we recover from the hangover of the credit binge is that the world is now much more integrated. This is a paradox and may seem hard to believe, but increased globalization actually makes the world more volatile through extended supply chains! (See Figure 4.8.)

Production in Japan, Germany, Korea, and Taiwan fell far more during the 2007–2009 recession than U.S. production fell even during the Great Depression. Not only was the downturn steeper than during the Great Depression but also the bounce back was even bigger.

This is truly staggering. If you believed in globalization, supply chain management, and deregulation, you would have thought they would lead to greater moderation, but the opposite happened. This was due to the credit freeze that particularly hit export-oriented economies because trade credit temporarily dried up. It was not about globalization per se.

Why has the world economy been so volatile? One of the main reasons is exports. If you look at exports as a percentage of GDP since the end of the Cold War, you’ll see that in almost all countries around the world, exports have rapidly risen in the last 20 years. In Asia, they have doubled, in India they have tripled, and in the United States they have increased by 50 percent. This makes us all more interconnected, and it means that supply chains become longer and longer.

Longer supply chains have enormous macroeconomic implications. As the Economic Cycle Research Institute points out, we’re now experiencing the bullwhip effect, “where relatively mild fluctuations in end demand are dramatically amplified up the supply chain, just as a flick of the wrist sends the tip of a bullwhip flying in a great arc.” The bullwhip effect makes greater export dependence very dangerous to supplier countries, which only contributes to cyclical volatility. This is easily seen in Figure 4.9. That is why Asian countries had some of the largest downturns and steepest upturns in the Great Recession and the following recovery.

[chart]

2. Lower Trend Growth

We are also seeing a secular decline over the last four cycles in trend growth across GDP, personal income, industrial production, and employment. You can see that in Figure 4.10.

Another view of declining trend growth is the decline in nominal GDP. Figure 4.11 shows that the 12-quarter rolling average has been on a steady decline for the last two decades.

[chart]

A combination of lower trend growth and higher volatility means more frequent recessions. Put another way, the closer trend growth is to zero and the higher volatility is, the more likely U.S. growth is to frequently dip below zero. Figure 4.12 shows a stylized view of recessions, but as trend growth dips, the economy will fall below zero percent growth more often.

Higher volatility has very important implications for equity and bond investors across asset classes. Indeed, the last three economic expansions were almost 10 years, but in previous decades, they averaged four or five years. From now on, we are apt to see recessions every three to five years.’

 

 

 

 

 

Find A Job? Good Luck In This Economy – 10 Reasons Why The Latest Unemployment Numbers Are No Reason To Cheer ‘The U.S. government is telling us that the unemployment rate fell all the way down to 9.0% in January. Should we all cheer? The Economic Collapse Feb 6, 2011 The U.S. government is telling us that the unemployment rate fell all the way down to 9.0% in January.  Should we all cheer?  Is it now going to be a lot easier to find a job?  Has the economy finally turned around?  Are happy days here again?  Well, it is a good thing to have a positive attitude, but the truth is that there is just not much to cheer about when you take a closer look at the recent unemployment numbers.  First of all, the U.S. economy only added 36,000 jobs in January.  Economists had been expecting an increase of about 145,000 jobs, and an increase of 150,000 jobs per month is necessary just to keep up with population growth.  So why did the unemployment rate go down?  Well, the government says that over half a million Americans suddenly dropped out of the labor force in January.  That doesn’t make a lot of sense, but this is how the government calculates their numbers.  So what happened to those 500,000 Americans?  Did they all win the lottery?  Have they all become independently wealthy?  Did they all die?  No, the vast majority of them are still around and the vast majority of them still desperately need jobs.  It is just that the government does not count them as “looking for work” anymore.It would be great if the employment situation in America actually was getting better.  All the time people send me absolutely heartbreaking stories about what they have had to endure in this economy.  Soon I hope to share some of those stories with you all.  It is hard to try to describe the absolute horror that many Americans are going through right now.People would like to believe that things are going to get better, but unfortunately that is just not going to be the case.  The government can try to massage the numbers to make them look better, but the truth is that the tens of millions of American families that are deeply suffering right now are not fooled.

The following are 10 statistics that reveal that the latest unemployment numbers from the government are no reason to cheer….

#1 According to CNBC, economists were expecting the U.S. economy to add 145,000 jobs during January. Obviously the 36,000 figure was a huge disappointment.

#2 Approximately 150,000 jobs need to be added to the economy each month just to keep up with population growth.

#3 The government jobs report also indicated that 504,000 Americans “dropped out of the labor force” in January.  That may make the unemployment numbers look better, but the truth is that the vast majority of those 500,000 Americans still need incomes and still need jobs.

#4 According to the latest numbers from Gallup, the unemployment rate actually increased to 9.8% at the end of January.

#5 Gallup’s measure of “underemployment” (those that are unemployed plus those that are working part-time but want full-time employment) was sittingat 18.9% at the end of January.

#6 As I reported yesterday, there are approximately 28 million Americansthat would like full-time jobs but that don’t have full-time jobs.

#7 According to Zero Hedge, the number of Americans that are “not in the labor force” but that would like a job right now has hit an all-time record high.  If you add all of those people into the official unemployment figure it would jump to 12.8%.

#8 According to Calculated Risk, this is the deepest and most brutal employment downturn that the United States has experienced since World War II.  The current employment downturn started 37 months ago and there doesn’t seem to be any indication that we will return to pre-recession levels any time soon.

#9 The U.S. Labor Department has also announced that job growth during 2010 was much weaker than they had previously reported. The numbers for 8 months were revised down, and the numbers for 4 months were revised up. After all of the revisions are accounted for, it turns out that a total of 215,000 fewer jobs were created during 2010 than originally calculated.

#10 According to one brand new survey, 4 out of every 10 Americans are struggling “a lot” to pay the bills right now.

The situation is not pretty out there.  The U.S. needs tens of millions more jobs than we have right now.

So where are all of our jobs going?  The video posted below contains some very strong hints.  The truth is that globalism is ripping our economic infrastructure apart, and all of the crazy rules and regulations we keep heaping on business are not helping either….U.S. workers have been merged into a “global labor pool” where we are expected to directly compete for jobs with people making slave labor wages on the other side of the globe.The more time you spend thinking about that, the more you start realizing that the standard of living of average American families is going to continue to decline.Unfortunately, as I wrote about in a recent article entitled “Nothing Is Stable Anymore“, the world is changing faster today than at any other time during our lifetimes.  Everything that we used to assume about employment, money, our economy and our finances is being turned upside down.  We now live in a world where very little can be taken for granted.2011 has already been a very tumultuous year.  The world is being transformed.  Nobody knows for sure what is going to happen next.One thing to really keep an eye on is the price of oil.  Right now, large numbers of investors are betting that the price of oil will rise to $125 a barrel by May.  Shockingly, some investors are even betting that the price of oil will rise to $250 a barrel by next December.If oil starts to spike dramatically, it will have tremendous implications for the U.S. economy.  Our entire economic system runs on oil.  The price of oil affects the price of everything else.If the price of oil keeps going up it is inevitably going to cause a slowdown in the U.S. economy and it will cause the unemployment situation to get even worse.So be glad that the employment situation is at least somewhat stable for now, because if things take a bad turn for the worse in 2011 who knows what kind of unemployment numbers we’ll be talking about a year from now.’




Hedge Fund Manager Bill Fleckenstein: Fed Money Printing to Cover Bank Theft Is Leading to Food Inflation Worldwide [ People really don’t comprehend the enormity of this reality / fraud /theft which is far more injurious than even set forth here with dire consequences to come. ] Dylan Ratigan says that the Fed is printing money to cover enormous theft by the big banks, and that money printing is leading to food inflation worldwide. (Bad weather and speculation on commodities are obviously also contributing to rising food prices).

 

 

Another Economic ‘Martial Law in the Streets’ Moment Approaches In the fall of 2008, during the lead up to the TARP bailout of the financial industry, Treasury Secretary Henry Paulson warned members of Congress that there will be Martial Law in America should they fail to pass the multi-trillion dollar looting of the taxpayer.

 

 

Jim Rogers: “I Expect More Currency Turmoil, More Social Unrest, More Governments Collapsing” More social and political turmoil is likely in the future so commodities prices will continue rising, renowned investor Jim Rogers, CEO of Rogers Holdings, told CNBC.

 

US cities face financial collapse Overdrawn American cities could face financial collapse in 2011, defaulting on billions of dollars borrowed and derailing the US economic recovery. Municipal bonds were once a very secure form of investment and are now defaulting, a trend that is on the rise. UMass economics professor Richard Wolff says this is going to translate into a diminished quality of life, we need more governmental services not fewer and it is going to affect everyone.

 

The Scariest Jobs Chart Ever Looks Totally Awful There are some weird things going on in this morning’s jobs report, but the headline number was a joke, and as such, the scariest jobs chart ever looks horrid.

 

Persons Not In Labor Force Who Want Job Now Jumps To All Time Record; Real Unemployment Rate At 12.8% Probably the last chart to bury any doubt about just how truly horrible today’s employment data was, comes from a little observed data metric: that showing the number of people who are not in the labor force, but who want a job now.

 

 

Underground world hints at China’s coming crisis Telegraph | windowless rooms that rent for £30 to £50 a month, which is as much as many of the city’s army of migrant labourers can afford.

 

 

World food prices hit record high AFP | World food prices reached their highest level ever recorded in January and are set to keep rising for months.

 

 

 

National / World

 

 

 

 

Al Jazeera’s Cairo office burned down by pro-Mubarak ‘thugs’ Raw Story | Al Jazeera’s office in Cairo was stormed by a “gang of thugs” and set on fire along with all the equipment inside it, the Arab news network said Friday.

 

 

 

Renewed pressure on Mubarak to quit as talks fail Alarab Online | Mubarak came under fresh pressure on Monday to step down as opponents said concessions made in landmark talks were not enough to halt a revolt against his 30-year rule.

 

 

 

White House Attacks Prison Planet.com Report On Blackouts Alex Jones & Paul Joseph Watson | White House Communications Director rebuttal a tissue of lies, deception, and spin.

 

Potemkin America Paul Craig Roberts | As wages stagnate and unemployment booms, U.S. prosperity appears as illusory as that of the old Soviet Union.

 

Obama Is Treating the Dictator in Egypt Exactly Like He’s Treating the Tyrants on Wall Street By failing to demand the tyrant that the U.S. has propped up for decades resigns, the U.S. is ensuring continued violence.

 

It Ain’t Just Mubarak — 7 of the Worst Dictators the U.S. Is Backing to the Hilt From Saudi Arabia to Uzbekistan to Chad, the U.S. keeps some very bad autocrats in power.

 

Activists and Local Communities Gaining Ground on Exposing Wal-Mart For Deceptive Practices John Galt | The myth of Wal-Mart as an indispensable part of Americana that presents the poor with a wide selection of affordable products is coming unraveled.

 

Anti-Energy Agenda Could Cause More Rolling Blackouts While the recent energy turmoil is a result of extreme weather conditions, it is symbolic and a grim foreshadowing of what our energy policy in the United States has become: an anti-energy agenda.

 

American Warships Heading to Egypt There is no clear indication that the U.S. government has affirmatively decided to directly involve our military in Egypt. However, it is obvious that the government is at least planning for the possibility.

 

Senior US Marine Says “Multiple Platoons” Are Headed To Egypt A senior member of the US Marine corps is telling people “multiple platoons” are deploying to Egypt, a source tells us.

 

Cheney calls Mubarak a good friend, U.S. ally Former Vice President Dick Cheney said Egyptian President Hosni Mubarak is a good friend and U.S. ally, but declined to predict whether the embattled leader would heed protesters’ calls to step down.

 

Egypt protesters call for final countdown Egyptian protesters call for fresh multi-million-strong rallies against out-of-favor President Hosni Mubarak and his government in the coming days.

 

Protester Shot And Killed In Alexandria, Egypt (GRAPHIC VIDEO) Graphic footage has surfaced of what appears to be a protester shot in the streets of Alexandria, Egypt by secret police.

 

Video of anti-Mubarak crowds venting anger in Iran, Turkey, West Bank As protesters demanding Egyptian President Hosni Mubarak’s ouster packed Cairo’s central square by the tens of thousands on Friday, similar demonstrations took place across the world, including Iran, Turkey and the West Bank.

 

Mass Anti-Government Protests In Serbia The Serbian capital Belgrade has seen its biggest anti-government protest in years as thousands of disenchanted Serbs demanded early elections.

 

Al Jazeera’s Cairo office burned down by pro-Mubarak ‘thugs’ Al Jazeera’s office in Cairo was stormed by a “gang of thugs” and set on fire along with all the equipment inside it, the Arab news network said Friday.

 

Alex Jones Calls Out Obama for Treason Infowars.com | Fury is building over rolling nationwide blackouts triggered by Obama’s deliberate agenda to block the construction of new coal-fired plants.

 

Big Sis and NFL Turn Super Bowl Into Police State Kurt Nimmo | High profile event exploited to acclimate Americans to Big Brother high-tech panopticon state.

 

Pole Shift Threatens To Cause Weather Chaos Paul Joseph Watson | According to some experts, the world’s weather is about to get even more chaotic as a result of natural climate change that we can do absolutely nothing to prevent.

 

DHS Seizes Websites for Merely LINKING to Copyrighted Material Eric Blair | We better wake up and share these stories with everyone we know, because tyranny is fast approaching.

 

Forget Super Bowl Pat Downs, Big Sis Wants Interrogations And Behavioral Tests Paul Joseph Watson | Anyone attending a public event will be forced to prove to Homeland Security that they are well-behaved slaves

 

Alex Jones Calls DHS to Report Real Terrorists LIVE on Air Infowars.com | The White House has publicly responded to the controversy surrounding the Obama administration’s agenda to bankrupt the coal industry.

 

 

Hypnosis by LCD Becoming Increasingly Rampant Matt Ryan | Many people have become so infatuated with the content displayed on tiny LCD screens that they unconsciously throw their sense of well-being out the window.

 

 

 

Drudgereport: WE'RE ON 'ROAD TO RUIN'

BIG SIS TELLS SUPER BOWL ATTENDEES: 'SEE SOMETHING, SAY SOMETHING'...
Everyone entering stadium to get a patdown...
Saboteurs attack gas pipeline; cuts off flow to Israel, Jordan...

CAIRO DAY 12: Locked in standoff...
Mubarak clings to power as son quits ruling party...
Gov't seeks to ease Mubarak out...
Hopes to ride out protest wave...
Anderson Cooper in 'Undisclosed Location' After Another Attack; Couric, Williams Flee Egypt...
GOOGLE Exec Who Went Missing In Egypt Now Spokesman For Opposition Group...
MOTOROLA AD MOCKS 'APPLE ZOMBIE SOCIETY'...
Mafia 'holds Silvio Berlusconi photos'...
SUPER BOWL MOST-VIEWED TV IN HISTORY...
THE PACK PULLS IT OUT [ Congratulations to the Green Bay Packers! ]

 

 

 

 

 

 

Budget freeze hampers oversight, SEC chair says (Washington Post) [ Well, now we know the real reason behind the spending freeze. It always was a bit of a stretch to say that was because of their seriousness regarding deficit-reduction which is a catch-phrase but myth at best. That said, in light of wobama’s et als’ failure to live up to campaign promises regarding prosecution of the blatant frauds on wall street, it seems that the absence of the $200 million will be interposed as an excuse for planned failure. After all, at every turn, the frauds on wall street were given every opportunity to cover their tracks and keep their booty. The attorney general’s office, u.s. attorneys and wobama the b are the worst offenders concerning the foregoing.  ] Mary L. Schapiro says the freeze is compromising the agency's ability to police the financial markets. Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense  ( http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         )   ]:

CRIME STATISTICS > TOTAL CRIMES (MOST RECENT) BY COUNTRY  SHOWING LATEST AVAILABLE DATA (america’s No. 1).

Rank  

Countries 

Amount 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

The following youtube video is well worth the look and explains how and why the frauds on wall street have gotten away with their devastating fraud thus far.  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed.  ( UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...         CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN BLACK PANTHER CASE... ex-Justice official quit over the handling of a voter intimidation case against the New Black Panther Party accused his former employer of instructing attorneys in the civil rights division to ignore cases that involve black defendants and white victims US v. AZ...    Cases against Wall Street lag despite Holder’s vows to target financial fraud  Obama broke promises ):

‘THE OBAMA DECEPTION’  http://www.youtube.com/watch?v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from=PL&index=0&playnext=1. [ The Obama Deception Number 1 on U.S. Google Trends  ]

‘The Obama Deception’ Censored  ‘The Obama Deception’ has been censored      In light of this development, I provide an archived site version which appears to be complete (but will be compared with earlier version and replaced with same if incomplete)        http://albertpeia.com/obamadeceptionhighqualityversion.flv

Then there is the well researched, produced, and informative ‘ESOTERIC AGENDA’ which explains how we’ve gotten to this forlorn point: http://video.google.com/videoplay?docid=-7052400717834950257# 

For the Same Reason I’ve Included Here a Web Site Archived FLV Version of Esoteric Agenda    http://albertpeia.com/esotericagenda.flv

 ]

 

 

Iran's Khamenei says uprisings represent 'defeat' for U.S. (Washington Post) [  No matter how you slice it, dice it, or euphemise about it, these are indeed substantial, irrevocable losses for the u.s.; but importantly, of america’s own making; self-defeat if you will, compounded by a slew of bad choices. Sadly, Ayatollah Ali Khamenei is quite correct when he states:  "The Israelis and the U.S. are more concerned about what would happen to their interests in a post-Mubarak regime." … and further, ‘He also accused the United States of propping up corrupt leaders in the region to protect its interests and those of its ally israel.’ Unfortunately, as has become crystal clear from america’s perpetual war in the region, the people have invariably figured last in america/israel’s unbalanced equations. ] 

 

Mixed signals about health of labor market (Washington Post) [  Signals? In universal speak, flatline still means ‘dead, deceased, etc.’. I think we should go with a gallup: Gallup Finds U.S. Unemployment Up Slightly in January to 9.9% Unemployment, as measured by Gallup without seasonal adjustment, increased to 9.9% at the end of January — up from 9.6% at the end of December, but down from 10.9% a year ago.      Drudgereport: GALLUP: Unemployment actually at 9.9%...
'Under-employment' at 19.2%...

Labor Force Participation Plunges To Fresh 26 Year Low...

  ]  Drop in jobless rate from 9.4 percent to 9 percent offers little comfort because a separate survey of employers shows that job growth was anemic in January, with employers adding only 36,000 jobs.

 

 

Milbank: Rumsfeld offers no apology on Iraq (Washington Post) [ Well, journalistically speaking, you know Mr. Milbank’s hit the bottom of the barrel when he leads his article with a quote seemingly as a purported standard from war criminal dumbya bush who probably didn’t even understand the words he was regurgitating (see , ie., bushisms from bush the brain-damaged moron http://albertpeia.com/bushisms.htm - sadly, wobama probably understands the words but forgets his prior words contradicting same, campaign promises particularly, and hence, failed presidents both). Who cares about what would be meaningless apologies from these incompetent psychopaths.    (2-3-11)  Rumsfeld Finally Confesses He Was Wrong About WMD In New Autobiography [  Nice to know … a nation’s bankruptcy (america) and another nation’s destruction (Iraq) later. ] Former Defence Secretary Donald Rumsfeld has finally confessed he was wrong to claim America knew where Saddam Hussein had stockpiled weapons of mass destruction in the first days after the Iraq invasion.   Previous: Words are cheap, in america particularly … I don’t believe anything they say and then, as I said, words are cheap. ANALYSIS | Palin's 'blood libel' comment backfires Washington Post) [  God knows I’m no fan of sarah palin’s although I am constrained to admit that as a fan of Saturday Night Live, I do appreciate her contribution to comedic content in the show.  That said, this new ‘tempest in a teapot’ of her own making is a bit overdone. After all, it should be common knowledge by now, to put it mildly, that she is quite dumb; and, like that burnt out, dumb, war criminal and moron, dumbya bush (see , ie., bushisms from bush the brain-damaged moron http://albertpeia.com/bushisms.htm), she also has trouble with words; more specifically, the meanings of words. But it is also true that wobama and his ilk have trouble with words and their meaning, particularly when those spoken words are measured against what he does, his ilk never seeming to discern the glaring difference … wobama the ‘b’ for b*** s***. Lamentably (by her) and unexpectedly for palin was her failure to fully understand ‘that jewish thing’ attached to the phrase and the tender sensibilities of those who previously have been among the ranks of what seems more and more to be a somewhat offbeat fanclub of sorts. Yeah, that ‘never here the end of it’ jewish stereotype of paranoid sensibilities to religious / ethnic prejudice / slur behind some word, phrase, or even a sneeze (spielberg’s childhood memories) can wind up turning around and biting you’re a** ! Previously: Krauthammer: Beyond Ariz., a reckless charge  (Washington Post) [ If it were only that simple; viz., a palin ( I’ve previously said I’m more concerned with her level of stupidity, dumb enough in an infantile way to prove she had gonads by pressing the button – never goin’ to happen, her being in that position), a beck, a bush, a wobama (Drudgereport: OBAMA FLASHBACK: 'If They Bring a Knife to the Fight, We Bring a Gun'... ), etc., there’d be hope for pervasively corrupt defacto bankrupt america. The fact is, the problem is inherent to america / americans themselves as I previously wrote here and reiterate: Will: Half-baked explanations for tragedy (Washington Post) [ Half-baked? Charlatans? The foregoing are in no short supply in defacto bankrupt, meaningfully lawless, pervasively corrupt, fraud prevalent america. See, for example, RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm     . Moreover, Mr. Will as an oftimes apologist for war criminal, pervasively fraud-prone, defacto bankrupt, etc., america, with crime rates exceeding by far those of any other so-called civilized nations, might indeed find himself among those he’s so categorized. Among the last separate page sections to my website will be a somewhat detailed psychoanalytic evolutionary profile of the u.s. (one might ask who am I to do so which is fair comment to which I would reply, read it, or not, your choice). However, for the nonce, let me say that the it is no small coincidence that the 20th century has been dubbed ‘the american century’. That the 20th century has been considered the bloodiest is at once the natural concomitant of the foregoing reality. Keeping in mind the so-called ‘selective’ processes in both insurance (adverse) and evolutionary (Darwinian) terms, and as well, the psychology of it all from a behavioral perspective, america has indeed evolved. From the genocide of indigenous populations, to outlandish propaganda in support of same (ie., that ‘manifest destiny’ balderdash with overtones of religiosity spoonfed since elementary school, etc.), to contrived conflict / war, such, euphemistically bad behavior has been reinforced, some of which conditioning not always purposeful, ie., the ever greater frauds perpetrated on wall street for which there have been in large part no real punitive consequences to the perpetrators; but, to the contrary, great financial rewards though substantially detrimental to the majority. Despite the surface appeal, that oft asserted ‘blue-blood’ distinction doesn’t pass muster. Aside from the few seeking seeking religious freedom (ie., Puritans among some others), most then new americans were such disaffected rejects of their former homelands that desperation at best was motivation for travel to the wilds of the ‘so-called new world’ as opposed to intelligent, rational choice; criminals, mentally ill, the not-so-bright but ruthless populating the new nation in disparate numbers toward the ends consistent with greed and common criminality, corruption, and venality. As of the age of the dinosaurs, the american century has passed into the annals of a history replete with self-generating terrorism within and without (that blowback thing).     DRUDGEREPORT: NATION SHOCKED: CONGRESSWOMAN SHOT IN TUCSON ]
 

 

 

White House mulls Egypt options as protests persist  Pro-democracy demonstrators stage 'Day of Departure' rallies  (Washington Post) [ It truly is difficult to even imagine such a scenario as ‘a transition process that would allow Mubarak to remain as a figure head until new elections’, though the same probably comports with america’s own pervasively corrupt style of politics as usual (wobama a glaring current example of  actions belying words, war criminal dumbya bush, et als) which has spelled intractable decline for america domestically and internationally (probably also comports with israel’s aims at the expense and to the detriment of Egypt and Egypt’s citizens – also gives the cia time to do their deals which could be whatever nefarious money-making / power brokering scheme comes to mind). In corrupt, defacto bankrupt america, facades count more than reality. Egyptian protesters plan new push     Government detains foreigners, says it's willing to open talks  (Washington Post) [ Open talks? ‘bout what? Building a pyramid in mubarak’s honor before stepping down? He’s done … finito … burnt as an over-micro-waved burrito! The following from the Post is indeed the straw that broke the riders with whips he sent on camels’ and horses’ backs!  ‘Wants to die in Egypt? How touching, or the reality, he’s just plain touched as in totally ‘out of it’.   ‘…In what the U.S. State Department called a "concerted campaign to intimidate," several dozen journalists were rounded up by security forces and detained for hours, along with foreigners working as teachers, engineers and human rights researchers. Across the city, angry bands of supporters of President Hosni Mubarak also beat journalists; several reporters said that they were threatened with death…’   ]  Cairo seeks to shift blame for clashes by rounding up journalists; U.S. worries renewed protests could spark more violence from Mubarak supporters.

 

 

 

 

 

Ignored but Important - What Omitted Jobs Data means for Stocks  [ What it means is that when there are no jobs, and everyone has stopped looking, there will be full employment which of course, is rally time for stocks … riiiiight! ] Maierhofer, see entire article infra: ‘…The headline unemployment rate (U-3) reported by the BLS fell to 9%, the lowest level since April 2009. How can the unemployment rate drop 0.4% if only 36,000 jobs were added? (Much worse than the 140,000 expected – stocks still rallied) 36,000 aren't even enough to provide jobs for a quarter of graduates…’ Riiiiight! … that fudge factor/fraud; viz., discouraged / stopped looking … What total b*** s***! How desperate they are! Previous: Initial Claims Drop More Than Expected [ Come on! Who believes anything they say and at what cost with money not really there in pervasively corrupt, defacto bankrupt america, with manipulated programmed suckers’ rally into the close. …‘In the U.S. market, Slothower concludes: “This is a hard one to gauge, given the QE2 manipulations verses skyrocketing food and energy prices, which have now reached prices levels that have choked off growth in the past and caused recessions, as we saw in 2008 when oil prices hit $100 a barrel (in March of that year).” “It is like walking in a mine field. You move very carefully now with your eyes wide open and on every move, knowing that any day something out of the blue could blow thing up, given these extreme risks.” But he’s now only 70% in cash. The balance is split equally between: iPath Dow Jones-AIG Grains Total Return Sub-Index …’   Minyanville's T3 Weekly Recap: Growing Disconnect Between Market and Economy/WorldBernanke said in his comments yesterday that he is responsible for higher stock prices, but not necessarily for sky-rocketing global food prices. Well, you can't have it both ways, Ben. By propping up asset prices when economic data doesn't match the ferocity of the stock market rally, the Fed is potentially creating another bubble of sorts.Just look at today's non-farm payrolls number: There was a gain of only 36,000 jobs when 140,000 were expected. Also, unemployment fell to 9.0% -- a positive sign for the layman, but an ominous sign for the more keen eye. Nine-hundred thousand discouraged job-hunters left the labor force this month, after 500,000 left in the previous month. It's hard to see optimism in the stock market continue unabated while so many Americans remain jobless…’   Kung Hei Fat Choy!: Dave's Daily  …Speaking of the man with printers ink stains up to his neck, Bernanke spoke Thursday to the Press Club stating, among other things, "inflation remains quite low". He continued saying, "Since August, when we announced our policy of reinvesting maturing securities and signaled we were considering more purchases, equity prices have risen significantly...") I believe that sums things up from an investing view. Silly people like me are standing by watching those that can like GS and JPM take this easy money and route it directly to the S&P futures pits, among other similar places, taking on risk the Fed expects. Oh, and speaking of JPM, the Madoff Trustees have sued the bank for complicity in helping steer client funds to Madoff despite complaints from within that his results were "too good to be true"…’  Monthly Market Valuation: Investors Are Too Bullish, Valuations Are Too High   The conclusion of the following detailed, documented analysis: ‘Wolinsky :In conclusion, the market is over-valued based on the above data. Tobin's Q, Shiller P/E and AAII data are all indicating that investors are too bullish and valuations are too high.’   ]
, On Friday February 4, 2011, ‘The monthly employment report has become one of the most anticipated and talked about, but least analyzed ritual on Wall Street.As far as the media is concerned, the Bureau of Labor Statistics (BLS) might as well just publish the headline number, because that's about the only thing anyone talks about.Not only does the core message of the 40+ page report go largely un-deciphered, the correlation between the employment reports is also somewhat deceptive.This article will extract some uncommonly reported information and point towards what is likely to move the marketThe only other Wall Street ritual that tops monthly unemployment reports is earnings season. Like any other ritual, it comes with many myths and fables attached. The most common one is that unemployment directly affects stock prices.

THE HEADLINE NUMBER ... WAIT, THERE IS MORE

The headline unemployment rate (U-3) reported by the BLS fell to 9%, the lowest level since April 2009. How can the unemployment rate drop 0.4% if only 36,000 jobs were added? 36,000 aren't even enough to provide jobs for a quarter of graduates.According to BLS data, the number of unemployed workers (not seasonally adjusted) rose from 14.83 million to 14.94 million. The work force shrunk from 153.89 million to 152.54 million. The workforce didn't actually decline, but statistically more workers are considered discouraged and are no longer considered unemployed.One of the most remarkable BLS data points on the BLS site is the average number of weeks workers are now unemployed. The jobless are unemployed for an average of 36.9 weeks, an all-time high (see chart below).[chart]

A SHRINKING POND WITH BIGGER FISH

It is estimated that about 150,000 'youngsters' enter the work force every year. That's why the work force has steadily increased since 1948. Courtesy of the 2008 bear market, the workforce has actually been shrinking, as discouraged workers drop out of the statistics.Discouraged workers are those who have stopped searching in the last four weeks. Excluding them from the workforce and the unemployment equation artificially lowers the U-3 unemployment rate. The real unemployment rate (U-6), which includes workers who stopped looking for jobs or had to settle for part-time jobs - is at 16.1%.

PLAYING DETECTIVE

Based on U-6 numbers, since December 2006 as many as 13 million Americans have either lost their jobs, or have been downgraded.The lucky few who've found a job have to accept pay cuts. According to Annette Bernhardt, policy co-direction for the National Employment Law Project, high wage sectors - such as financial services (NYSEArca: KBE - News) and construction (NYSEArca: XHB - News) - accounted for nearly half the jobs lost during the recession.Those workers made between $17.43 - $31 an hour. Only 5% of those jobs have been resurrected. 76% of new jobs are in low-to mid-wage industries with earnings between $8.92 - $15 an hour.Nevertheless, stocks have shrugged off an avalanche of bad news and continue plowing ahead towards new highs. Does that make sense?

BIG BROTHER IS HERE

It does when you include the Federal Reserve and its quantitative easing program in this lopsided equation. The Fed has a history of creating and ignoring bubbles.The real estate (NYSEArca: IYR - News) bubble was allowed to get bigger to mop up the damage of the tech (NYSEArca: XLK - News) bubble. The financial sector (NYSEArca VHF) financing bubble was encouraged to mask the damage of the real estate bubble. The new QE bubble is absolutely needed to prevent an economic collapse (based on Bernanke's assessment).How long with the Fed's quantitative easing - labeled QE2 - keep stocks afloat? We don't know for sure, but we can tell when the stock market might enter trouble spots that could lead to (severe) corrections.

A FORK IN THE FINANCIAL ROAD

Imagine a car cruising on the highway. The driver doesn't know it yet, but he's heading in the wrong direction. When will he turn around? We don't know, but the most likely place for a change of direction is the next exit.Based on various measures of historic valuation models, the stock market (NYSEArca: VTI - News) is overpriced (heading in the wrong direction). When will stocks stop rising and start falling? We don't know, but the most likely place for a reversal is the next big resistance level.The Dow Jones (DJI: ^DJI), S&P 500 (SNP: ^GSPC), Nasdaq (Nasdaq: ^IXIC) and Financial Select Sector SPDR (NYSEArca: XLF - News) are simultaneously pushing against major resistance. It is rare to see four major indexes at cross roads at the same time.

A HIGH PROBABILITY TRADING OPPORTUNITY

The beauty of well-documented resistance levels is that they provide a high probability, and a low risk trading opportunity for bulls and bears. A solid break above resistance means hurdle cleared. Resistance becomes support and investors can go or stay long using the prior support level as resistance.If the index (es) stays below resistance, resistance is confirmed and a trend change is likely. Investors/traders can go short using the resistance as a stop-loss level.All four indexes are within 1 - 2 % of their resistance levels, which means that either trade has a potential loss of 1 - 2%, compared to a much higher gain. Investing is about putting the odds in your favor. There is no fail-proof system, but this setup is about as good as it gets…’

 

 

House Republicans propose $32B in budget cuts (Washington Post) [ Well, there you go … all over but the shoutin’ … $14+ trillion debt problem solved … riiiiight! …   Timid Tuesday: Is it Safe?   Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘] The figure represents an unprecedented rollback that would force some agencies to cut spending by as much as 20 percent, analysts say.

 

 

]

 

Home buyers may get less government support (Washington Post) [ Uut, oh! Less help from the pervasively corrupt, defacto bankrupt government? Well, on the bright side, a percentage of near zero is still near zero … I guess that non-wall street addresses just don’t rate!  ]  Administration officials are looking at scaling back the aid provided during the mortgage crisis to help the ailing real estate market. The move could make home loans in high-priced areas such as the Washington region more expensive.

 

 

Fed dismisses inflation concerns (Washington Post) [  If you’re not used to Dave of Dave’s Daily, see infra, ‘he talks with tongue in cheek’; meaning, inflation’s here, including the inflated stock bubble that the frauds on wall street commission and sell into, just as bernanke planned and admitted, with hyperinflation around the corner, and the typical ‘bust’.    Initial Claims Drop More Than Expected [ Come on! Who believes anything they say and at what cost with money not really there in pervasively corrupt, defacto bankrupt america, with manipulated programmed suckers’ rally into the close. …‘In the U.S. market, Slothower concludes: “This is a hard one to gauge, given the QE2 manipulations verses skyrocketing food and energy prices, which have now reached prices levels that have choked off growth in the past and caused recessions, as we saw in 2008 when oil prices hit $100 a barrel (in March of that year).” “It is like walking in a mine field. You move very carefully now with your eyes wide open and on every move, knowing that any day something out of the blue could blow thing up, given these extreme risks.” But he’s now only 70% in cash. The balance is split equally between: iPath Dow Jones-AIG Grains Total Return Sub-Index …’     Kung Hei Fat Choy!: Dave's Daily  …Speaking of the man with printers ink stains up to his neck, Bernanke spoke Thursday to the Press Club stating, among other things, "inflation remains quite low". He continued saying, "Since August, when we announced our policy of reinvesting maturing securities and signaled we were considering more purchases, equity prices have risen significantly...") I believe that sums things up from an investing view. Silly people like me are standing by watching those that can like GS and JPM take this easy money and route it directly to the S&P futures pits, among other similar places, taking on risk the Fed expects. Oh, and speaking of JPM, the Madoff Trustees have sued the bank for complicity in helping steer client funds to Madoff despite complaints from within that his results were "too good to be true"…’  Monthly Market Valuation: Investors Are Too Bullish, Valuations Are Too High   The conclusion of the following detailed, documented analysis: ‘Wolinsky :In conclusion, the market is over-valued based on the above data. Tobin's Q, Shiller P/E and AAII data are all indicating that investors are too bullish and valuations are too high.’   ]

 ]  Bernanke gives a mixed assessment of the nation's economic prospects.  

Kung Hei Fat Choy!: Dave's Daily The above tribute to the "metal rabbit" was not the cheer from Tahrir Square Thursday. But, U.S. investors are ignoring that in favor of making money with some dip buying abetted by focusing on good news (retail results) and ignoring any negative news from Egypt or even MRK's results. The Fed tossed in another round of POMO to the tune of nearly $9 billion which encouraged buying from trading desks. Speaking of the man with printers ink stains up to his neck, Bernanke spoke Thursday to the Press Club stating, among other things, "inflation remains quite low". He continued saying, "Since August, when we announced our policy of reinvesting maturing securities and signaled we were considering more purchases, equity prices have risen significantly...") I believe that sums things up from an investing view. Silly people like me are standing by watching those that can like GS and JPM take this easy money and route it directly to the S&P futures pits, among other similar places, taking on risk the Fed expects. Oh, and speaking of JPM, the Madoff Trustees have sued the bank for complicity in helping steer client funds to Madoff despite complaints from within that his results were "too good to be true".   Again dip buying was dominant with an "Egypt be damned" attitude although it looked like some bought gold perhaps as insurance. Rumors of bank runs throughout North Africa are present. Volume was just average with most coming early and late. Breadth per the WSJ was mixed to positive. (You'll note the Nasdaq share volume data means investors buying the bigger names.) … See also re: bernanke’s folly-If You're Going to Do Economics, Don't Do Macro  [ Truth be told, I find Mr. Falkenstein’s article a bit too subtle and somewhat shy about getting to the point, but have included same here solely for the reprint of William Buckley’s famous quote which comports with my own view of the ivy league vegetable gardens which turn out as you would expect, vegetables; viz., ‘he would prefer the first 100 names in the Boston phonebook to the Harvard faculty‘. The reality is that ‘harvard professor’, ‘no-recession bernanke’ has given an obfuscating, ephemeral feel good but lucrative to the few gift to the frauds on wall street with ultimately devastatingly great cost / pain to come. ]  

 

 

Market Crash on 2/28/11? Technical indicators suggest market collapse may begin by February 28th

 

Regulators shut 3 small banks; 14 failures in 2011

 

World food prices hit record high AFP | World food prices reached their highest level ever recorded in January and are set to keep rising for months.


 

Concerns Over Possible Suez Canal Disruptions New York Times | Concern has turned to the risk of the blocking of the Suez Canal or nearby pipelines, which could pose a threat to world energy supplies.

 

 

The Scariest Jobs Chart Ever Looks Totally Awful There are some weird things going on in this morning’s jobs report, but the headline number was a joke, and as such, the scariest jobs chart ever looks horrid.

 

Argentina Threatens To Fine Analysts Who Predict 30 Percent Inflation All Argentine consulting firms that calculated an inflation rate higher than the official 10.9 percent has received a letter from the government today. They’ve been given 48 hours to explain their calculation or face a $125,000 fine, according to the FT.

 

Newmont CEO: Gold Is Going To $1500 This Year Newmont CEO Richard O’Brien comments on where he thinks the price of gold is head.

 

Must Read: Standard Chartered Issues The Definitive Report On Global Inflation And Its Miscontents Every now and then, Standard Chartered has a knack for coming up with that one report that is miles ahead of the competition and promptly becomes the definitive guidebook for the industry.

 

 

 

William Black Slams Financial Commission For Failing to Use the “F” Word (Fraud) … “Elites Can Now Commit White Collar Crime with Near Impunity” I’ve previously noted that the Financial Crisis Inquiry Commission was a whitewash. Tuesday, senior S&L regulator William K. Black slammed the FCIC for failing to call out fraud.

 

 

 

 

 

 

 

 

National / World

 

 

 

Fury Builds Over Blackouts Caused By De-Industrialization Of America Paul Joseph Watson & Alex Jones | Obama administration’s agenda to block construction of new coal-fired plants triggers nationwide outages.

 

Codex Alimentarius Loves Toxic Fluoride, Part 1 Brandon Turbeville | The goal is to not only treat nutrients as toxins, but treat toxins as nutrients.

 

Millions stage anti-Mubarak protests Press TV | Protesters chant slogans against the Mubarak regime as reports flow in about fierce clashes between plainclothes police and protesters.     Americans are Oppressed, Too

 

Republicans Move to Make PATRIOT Act Permanent Kurt Nimmo | The police state act is set to expire in three weeks and Republicans are eager to make sections of the unconstitutional legislation permanent.

 

 

Rand Paul worries GOP isn’t ‘brave enough’ to balance budget Sahil Kapur | Paul said the GOP’s proposed budget cuts were inadequate and fretted that his party may not have the courage to make a dent in the deficit.

 

 

 

Fury Builds Over Blackouts Caused By De-Industrialization Of America Fury is building over rolling nationwide blackouts triggered by the Obama administration’s deliberate agenda to block the construction of new coal-fired plants, as local energy companies struggle to meet Americans’ power demands amidst some of the coldest weather seen in decades.

 

Major Announcement Imminent From Egypt State TV; There’s A Rumor That Mubarak Will Step Down Al-Arabiya says a rumor spread through Egypt this morning that the president has agreed to step down with certain guarantees. This produced celebrations and a tremendous feeling of relief in the crowd at Tahrir Square, says a commentator on Al-Jazeera.

 

Persons Not In Labor Force Who Want Job Now Jumps To All Time Record; Real Unemployment Rate At 12.8% Probably the last chart to bury any doubt about just how truly horrible today’s employment data was, comes from a little observed data metric: that showing the number of people who are not in the labor force, but who want a job now.

 

Cops Brutally Beat Teen Burglar Lying On Ground

 

Republicans Move to Make PATRIOT Act Permanent Freshly emboldened by their mid-term congressional wins, establishment Republicans are set to extend the unconstitutional police state Patriot Act. It is set to expire in three weeks and Republicans are eager to make sections of the legislation permanent.

 

 

 

US plan: Replace Mubarak with torture-linked ‘CIA point man’ A US plan to see Egyptian President Hosni Mubarak leave office immediately is reportedly in the works and would see a transitional government formed by Mubarak’s vice-president, a former head of Egypt’s spy agency and a “CIA point man” who facilitated the “extraordinary rendition” of terrorism suspects.

 

Blocking Internet cost Egypt at least $90M, says OECD The Egyptian government’s five-day block of Internet services cost the national economy at least US$90 million, the Organization for Economic Cooperation and Development (OECD) said Thursday.

 

 

 

Rumsfeld Finally Confesses He Was Wrong About WMD In New Autobiography [  Nice to know … a nation’s bankruptcy (america) and another nation’s destruction (Iraq) later. ]Former Defence Secretary Donald Rumsfeld has finally confessed he was wrong to claim America knew where Saddam Hussein had stockpiled weapons of mass destruction in the first days after the Iraq invasion.

 

 

 

Drudgereport: UNEMPLOYMENT AT 9.0% +36,000 JOBS...
CANADA +69,200...
GALLUP: Unemployment actually at 9.9%...
'Under-employment' at 19.2%...

Labor Force Participation Plunges To Fresh 26 Year Low...
Santelli Slams CNBC Panelists for Spinning Jobs Report...
VIDEO...

BIG SIS TELLS SUPER BOWL ATTENDEES: 'SEE SOMETHING, SAY SOMETHING'…(If only she really meant that concerning the rest of the nation, and washington particularly – they obsessively cover up almost everything – and saying something is dealt with quite harshly, punitively)...
SECRET DEAL: US AGREES TO TELL RUSSIA UK'S NUKE SECRETS
Gov't Debt Jumped $105.8 Billion in January...
Dems warn of shutdown...
Republicans Propose Spending Cuts...

 

 

Market Crash on 2/28/11? Technical indicators suggest market collapse may begin by February 28th

 

 

 

 

Investment Themes for the Next Decade , February 3, 2011, ‘Calm seas don't make sailors. Bull markets don't make investors. Will the coming years be calm seas or the calm before the storm?Judging by various developments brewing in the pipeline, investors will get a chance to prove their worth in the decade following the 'lost decade.'Investing is not a sprint it's a marathon. So it behooves us to look beyond just the next earnings season, unemployment report, or FOMC meeting and address what could be the biggest opportunities or stumbling blocks of this decade.
Generational Shift
Starting this year, more than 10,000 baby boomers a day will turn 65, a pattern that will continue for the next 19 years. As baby boomers age, the traditional population pyramid is becoming top-heavy with retirees, while the workforce is shrinking.Social Security will be strained by the growing number of baby boomers retiring and applying for benefits. New congressional projections show Social Security running deficits every year until its trust funds are eventually drained around 2037.A debt commission appointed by President Obama recommended a series of changes such as increasing the retirement age and lowering benefits. With the disappearance of pension guarantees, flat 10-year investment returns and upside down mortgages, retirees depend on Social Security more than ever.As a sum total, this generational shift will result in higher taxes for younger generations (generations X and Y) and less income for baby boomers. This in turn will shrink spendable income.A consumer that doesn't consume and/or a shrinking consumer base is bad for business and should provide a steady headwind for the economy and broad indexes a la the Dow Jones (DJI: ^DJI), S&P 500 (SNP: ^GSPC) and Nasdaq (Nasdaq: ^IXIC).Sectors that might be adversely affected include consumer discretionary (NYSEArca: XLY - News) and retail (NYSEArca: XRT - News).
The Full Faith and Credit of the United States - Worth how Much?
If the debt ceiling was a real ceiling and deficit was water, we'd have drowned by now. But since the deficit ceiling is imaginary it's easier to kick the can down the road and raise the ceiling.Investors of U.S. debt have taken note and are demanding more interest to loan their money to the United States government. Interest rates for Treasury bonds have gone up, even though the Federal Reserve's QE2 bond buying program was supposed to do the opposite.The ETF Profit Strategy Newsletter saw the onset of rising interest rates (in the bond world, rising interest means falling prices) and warned subscribers on August 26, 2010:'Our technical analysis, along with fundamentals suggests that T-Bonds are getting ready to roll over. A look at the overall picture suggests that this is more than just a minor correction. The rally in municipal, corporate, and high yield bonds is showing signs of weakness too. Investors should start exiting from those markets.'30-year T-Bonds, along with municipal bonds (NYSEArca: MUB - News), recorded their top tick on that very day and have since erased more than three years worth of gains.A weak economy in need of more government stimulus is likely to keep the pressure on interest rates. It would be prudent to avoid interest sensitive, long-term maturities such as the iShares Barclays 20+ Year Treasury Bond (NYSEArca: TLT - News) and stick with short-term debt such as iShares Barclays 1-3 Year Treasury Bond (NYSEArca: SHY - News).
Valuations
To many, using valuations to determine the stock market's (NYSEArca: VTI - News) real worth is about as antiquated as using smoke signals. Those ancient smoke signals may cloud the perception of most, but they are nevertheless signals for those willing to listen and learn.Valuations have been ignored before. Ideas and promises eclipsed profits at the height of the technology (NYSEArca: XLK - News) boom, but just temporarily. A few years later, real estate tried to defy the notion of fair value.It seems that periods where valuations are out of favor are particularly susceptible to price corrections. So, where are valuations at today?There are three main ways to measure valuations. The first one - P/E ratios - is somewhat flawed because it is subject to financial engineering. Accounting rule changes have made it possible for banks to inflate their earnings by hiding real estate related losses (see June 2010 ETF Profit Strategy Newsletter for details).But even with artificially engineered profits, the current P/E ratio is historically rich.The second valuation measure - the Dow Jones measured in gold - takes the Federal Reserve's money spigot out of the equation and values stocks in real money - gold (NYSEArca: GLD - News). Ever since its 1999 high, the Gold Dow has been declining. Based on historical patterns, the Dollar Dow always catches up with the Gold Dow - eventually.The third valuation measure - dividend yields - is near an all-time low. Unlike P/E ratios, you can't fudge dividend yields. Either a company has cash to spread among investors or it doesn't. Despite dividend increases by some companies, cumulative dividends paid by the 500 S&P constituents are about the same today as in March 2009. In general, low dividend yields coincide with major market tops.
What Valuations Do for You TODAY
Valuations are a long-term indicator, so what can they do for you TODAY?Valuations set the trend. In an overvalued market the larger trend is down. That doesn't mean you have to be out of the market all the time. On March 2, 2009 the ETF Profit Strategy Newsletter foresaw the biggest counter trend rally since the 2007 all-time high.This counter trend rally is still going on. In fact, it has gone much further than initially expected, but the higher prices rally the more dangerous it becomes to hold positions.Knowing that stocks are at least 30% overvalued, it would be prudent to monitor any decline carefully and pull the trigger before a minor correction turns into something financially painful…’

 

 

 

 

 

 

World food prices hit record high AFP | World food prices reached their highest level ever recorded in January and are set to keep rising for months.


 

Concerns Over Possible Suez Canal Disruptions New York Times | Concern has turned to the risk of the blocking of the Suez Canal or nearby pipelines, which could pose a threat to world energy supplies.

 

IMF Board To Discuss Expanded SDR Dow Jones | The board of the International Monetary Fund will discuss a possible expansion of the basket of currencies that compose the Special Drawing Right, IMF deputy managing director John Lipsky said Friday.

 

 

Even mobster / lightweight / scoundrel wrapped in the flag donald trump Is Warning That An Economic Collapse Is Coming In a shocking new interview, Donald Trump has gone farther than he ever has before in discussing an economic collapse in America.

 

Bernanke, BLS Lie About Inflation: Dr. Doom Faber Global inflation is far higher than official statistics reveal, Marc Faber, editor and publisher of the “Gloom, Boom and Doom” report told CNBC on Wednesday, with increases in the cost of living amounting to between five and eight percent in the United States and just below that in Europe.

 

Ron Paul To Ask Fed Why After Trillions In Free Money, Unemployment Is Still Sky High Congressman Ron Paul has announced that the first Monetary Policy subcommittee meeting will focus on one of those two now forgotten Fed mandates, that of creating jobs.

 

Gold:Silver Ratio Falls as Silver Rises On September 26th, 2010, we released a Chart Blog showing a Gold/Silver ratio that was 60.34, and specified that silver has outperformed gold in the market by far. Now, a few months later, we return to the same graph, only to show a different Gold/Silver ratio of 46.96!

 

 

Gallup Finds U.S. Unemployment Up Slightly in January to 9.8% Unemployment, as measured by Gallup without seasonal adjustment, increased to 9.8% at the end of January — up from 9.6% at the end of December, but down from 10.9% a year ago.

 

Rumsfeld Finally Confesses He Was Wrong About WMD In New Autobiography [  Nice to know … a nation’s bankruptcy (america) and another nation’s destruction (Iraq) later. ]Former Defence Secretary Donald Rumsfeld has finally confessed he was wrong to claim America knew where Saddam Hussein had stockpiled weapons of mass destruction in the first days after the Iraq invasion.

 

 

 

 

National / World

 

George Noory & Alex Jones: Egypt Could be “Shot Heard Around The World” to Start WW3 Infowars.com | Weekday host of the late-night radio talk show Coast to Coast AM, George Noory talks with Alex about the conflict in Egypt.

 

“Obama Triggers Blackouts” Hits Number One On Google Trends Paul Joseph Watson | Thanks for all our great listeners for their great effort in helping us get the word out on this vital issue.

 

You Are the Resistance: Great Videos and Posters Continue to Roll In Infowars.com | Act today so there is a tomorrow.

 

Days of Rage, Oil Prices, and the Suez Canal Kurt Nimmo | Concern that oil prices will skyrocket to $250 per barrel on Suez Canal closure mirror predictions by Lindsey Williams.

 

Obama Agenda To Bankrupt Power Plants Triggers Blackouts Paul Joseph Watson | Fury as hospitals hit with outages while post-industrial collapse of America accelerates.

 

 

Rolling Blackouts Fraud: ERCOT Admits Overcapacity Joe Wäges | The Electric Reliability Council of Texas reported an overcapacity of about a 22%,

 

Shots fired inside Alabama courthouse New York Post | Shots were fired inside a municipal courthouse in Goodwater, Ala., on Thursday with reports at least one person being taken away on a stretcher.


 

Mexico supplies electricity to wintry Texas AFP | Mexico’s Federal Electricity Commission “was determined to support Texas with electrical energy faced with the problems the state is suffering due to climatological conditions,” a statement said.

 

 

Egypt army takes on journalists Washington Bangla Radio USA | Authorities on Thursday cracked down on international reporters in Egypt.


 

NYC Council Bans Smoking In Parks, Beaches [ Sinkhole new york has become a national joke! ] Jessica Naziri | The council voted 36 to 12 in favor of the ban, much to the chagrin of those who think the government is overstepping its role into its residents’ lives.


 

Rebranding Big Brother Kurt Nimmo | Say hello to a boot stamping on a human face — forever.

 

 

“Obama Triggers Blackouts” Tops Google Trends The Obama administration’s drive to de-industrialize the US by shutting down and restricting power plants and how this has caused rolling blackouts across the country this week has topped both the “Hot Topics” and “Hot Searches” categories on Google Trends today.

 

Days of Rage, Oil Prices, and the Suez Canal Bloomberg warns today that an act of sabotage or a decision by a new regime – possibly headed up by the Muslim Brotherhood – to close the canal and its oil pipeline to punish supporters of Egyptian dictator Hosni Mubarak could send oil prices through the stratosphere.

 

Obama’s Blocking Of New Power Plants Triggers Nationwide Blackouts The rolling blackouts now being implemented in Texas and across the country as record cold weather grips the United States are a direct consequence of the Obama administration’s agenda to lay siege to the coal industry, launch a takeover of infrastructure under the contrived global warming scam, and help usher in the post-industrial collapse of America.

 

Obama Creates New Global Warming Rules; Exempts GE The proposed Avenal Energy project will be a combined-cycle generating plant consisting of two natural gas-fired General Electric 7FA Gas Turbines with Heat Recovery Steam Generators (HRSG) and one General Electric Steam Turbine.

 

Revealed: “Less Naked” Body Scanners Still Store Unfiltered Naked Images As the Transport Security Agency begins rolling out new “less revealing” body scanners in airports, gaining much media coverage, The Electronic Privacy Information Center (EPIC), a watchdog group that has brought several lawsuits against the TSA over the body imaging program, has warned that the new machines do little to allay privacy violations, indeed, they are still capable of capturing and storing naked images.

 

Big Sis Cites Staged Portland Terror Plot To Expand Domestic Spy Program Homeland Security is gearing up to accelerate the roll out of its domestic spying program by teaming up with the Department of Justice to expand the Nationwide Suspicious Activity Reporting (SAR) Initiative, and in doing so cites the justification of the alleged plot to bomb a Christmas tree lighting ceremony in Portland, a case of entrapment where the would-be bomber was groomed, set-up and even provided with a fake bomb by the FBI.

 

Why Did Mubarak’s Thugs Ride In On Camels? The photos of Mubarak’s thugs riding in on camels to attack the peaceful protesters with whips is getting worldwide attention.

 

Overcoming Shame And Guilt About 9/11 Truth In The Media Nearly a decade after the 9/11 attacks, the media’s continual silence on the worldwide grassroots campaign to launch a new investigation into those attacks demands an explanation.

 

Busted: Pro-Mubarak Thugs Are Police Officers Busted: Pro-Mubarak Thugs Are Police Officers It should surprise no one that some if not all of the violent pro-Mubarak forces are plain clothes police officers.

 

 

 

Drudgereport:'DAY OF DEPARTURE'

White House, Egypt Discuss Plan for Mubarak's Exit...
'If I Resign Today There Will Be Chaos'...
Blames Muslim Brotherhood for violence...
Crackdown Widens to Foreign Observers...
Obama response draws criticism in Israel...
UN to evacuate staff...
LIVE... WIRE... BBC...
Muslim Brotherhood wants end to Egypt-Israeli peace deal...
Kenneth Cole tweets: Egypt is rioting over our spring collection...
Jon Stewart Jokes: 'Hands off Anderson Cooper!'
Speeding Police Truck Runs Over Protesters...
ABCNEWS REPORTER THREATENED WITH BEHEADING...
CBSNEWS Lara Logan, Crew Detained...
FOXNEWS reporter, cameraman beaten, hospitalized...
The Arab revolution and Western decline...
Soros: 'The main stumbling block is Israel'...
GALLUP: Unemployment Up in January to 9.8%...

GOOGLE Gets Record 75,000 Job Applications in One Week...
Bernanke warns on 'wide' deficit; Gold goes up...

...policy 'not to blame for record food prices' [ Can anyone believe the gall of this incompetent, lying vegetable ‘no-recession bernanke’ … this very scenario was predicted as a natural concomitant to his inflation strategy along with his fraudulent wall bubble / wealth effect strategy (remember those same words from senile greenspan. ]
Oil price shoots above $103...

Dems warn of shutdown over debt...
Republicans Propose Spending Cuts...

 

 

Health-care fight shifts to courts (Washington Post) [ Wow! Heck of a way to run a  nation … now in the hands of corrupt, corruptible plushly accoutered lifetime-appointees for whom legal principles, meaningful rules of law are never a problem or impediment nor even a predictable guide … Wall Street firm targets District-based energy practice (Washington Post) [ From one corrupt sinkhole (d.c. / no. virginia) to another, perhaps the largest ( wall street/new york/jersey/ct. metro); ho, hum. The pervasively corrupt american illegal system … corrupt u.s. courts / (lawyers) / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and costly bureaucracies. Rules of law mean nothing to these typically corrupt americans. Most, including sam alito of the u.s. supreme court, concerning  drug money laundering and obstruction of justice in the 3rd circuit ( also maryanne trump barry who covered-up drug money laundering through her brother’s casinos in a civil RICO case) should have gone to or belong in jail. Contrary to popular belief, they do it for the money, personal money, big, cash, untraceable money. The fog of war is great for such things (360 tons $100 bills flown into Iraq and missing, etc.).

 [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ]. america’s just a fraudulent and failed defacto bankrupt nation. ] It's part of a push by law firms to expand their D.C. footprint in an era of increased regulatory scrutiny. ]

spacer

 

The unlikely face of Egypt's protesters (Washington Post) [  Unlikely? … I don’t think so in light of the strength and prevalence of the ‘anyone but mubarak (and his)’ sentiment.   ]  Mohamed ElBaradei, the Nobel Prize-winning former United Nations bureaucrat, has emerged this week as an improbable revolutionary, clamoring for the overthrow of Egypt's President Hosni Mubarak.

 

Milbank: Rand Paul's at odds with his state (Washington Post) [ Mr. Milbank … that perpetual off-key that invariably sounds passable on an old, hopelessly out-of-tune piano. Not even credit to Mr. Rand’s prospective ‘elections be damned’ attitude and putting reality and conscience first (an attitude which got him elected and which he stands by). In case Mr. Milbank hasn’t noticed, pervasively corrupt, defacto bankrupt america has declined substantially, particularly of late, and has strayed quite afar from the laudible principles upon which it was founded. Mr. Milbank, organized crime families, even less organized gangs, and certainly corrupt politicians compromise all of the time … and that’s the nation’s problem … because some things are not compromisable. ]

 

Facebook treads carefully after role in protests  (Washington Post) [ Facebook should show nor have any fear inasmuch as any such nations as would self-destructively limit the free flow of information so limit the tenure of such leadership of said nations. Moreover, historically, such authoritarian, totalitarian regimes never withstand the test of time. Finally, if not facebook, then another (choose) will step up. ] The recent unrest in Egypt and Tunisia is forcing Facebook officials to grapple with the prospect that other governments will grow more cautious of permitting the company to operate in their countries without restrictions or close monitoring.

 

 

Demonstrations in Egypt take bloody turn    In Cairo square, Mubarak backers confront anti-government crowds  (Washington Post) [  Not too difficult for desperate and done mubarak to contrive:   Mubarak Says Egyptians Have to Choose Between “Chaos” and Him … Then Sends In His Thugs to Stir Up Chaos  (Infowars.com) In order to justify staying in power until elections are held in September, President Mubarak said on tv that the people had to choose between him and “chaos”.    ]  The coordinated nature of day's events suggested that Mubarak's supporters were determined to show, as he had warned, that the country faced a "choice between chaos and stability."   [  Previous:    Mubarak's pledge seen as not enough   Egyptian president plans to stay in office to transfer power  (Washington Post) [ Let me put it another way: Mubarak is as done as an over-cooked tamale … He seems to be stalling for time and even in his age impaired mind certainly knows his position is untenable, unsustainable, and even more irrational as each second passes. There is a possibility that he’s using same to move money / treasure for himself and others, literally as well, buying time. See infra …  Previous:  Mubarak seeks dialogue, shows no sign of relenting   Demonstrators call for massive protest but lack leadership  (Washington Post) [ He relented when he resorted to media / internet blackout. Indeed, this lack of sign thing is a testament to how far from reality 30 years has taken him, not to mention the other 52 years that have taken their toll on his cognitive processes. Whether it is plaques ‘on the brain’ or outright senility, that he is so disengaged from the events unfolding around him, one may only wonder how he lasted this long. Nor did his choice of cia standin / shill, new VP Suleiman enhance his now untenable position which leaves him as ‘done as a burnt enchilada’.  Kissinger on Egypt unrest – “This is only the first scene of the first act of a drama that is to be played out”   [ The import of this so-called interview, and it is here that I part company with alex jones, et als (who by the way, censored me for this very thesis, which puts him and his at the top of my hypocrite list), is that the so-called elite have orchestrated these events and ‘are in control’. First, there are no elites in this world; you can’t derive elites from apes, notochordates, and initially single celled organisms. Second, almost by definition and certainly by history, there are no elites in america even if you were to accept the first proposition (though true) as untrue. What you do have, in this world and america particularly (with few exceptions as I’ve discussed elsewhere / comments / my website), are inherent criminals and mentally ill people of varying degrees of unscrupulousness and insanity who do commit crimes, both small and large, to further their interests or fortunes (sociopaths / psychopaths). The ’so-called alpha-dogs’ of the human species at most, but still incompetent vegetables who, if you look at anything they touch (to use a term term of such incompetent vegetables as historically pertains to their role in the mideast – and generally the state of the world) it invariably goes ‘pear shaped’ (english term). What hasn’t zionist kissinger not messed up as appointee or ‘consultant’ – what does he get paid for? No! The fact is, they have absolutely no idea how this unfolds and as with most of their lives, they will predictably choose the most sordid, despicable, and diabolical course at every turn because … that is their inherently criminal, mentally ill / unstable nature to do so. ]

 

 

 

Monthly Market Valuation: Investors Are Too Bullish, Valuations Are Too High  [ The conclusion of the following detailed, documented analysis: ‘In conclusion, the market is over-valued based on the above data. Tobin's Q, Shiller P/E and AAII data are all indicating that investors are too bullish and valuations are too high.’  ] Wolinsky ‘I update market valuations on a monthly basis. The point of this article is to measure the stock market based on seven different metrics. This article does not look at the macro picture and try to predict where the economy is headed. It only uses these several metrics which have been very good past indicators of whether the market is fairly valued.This month I added in GMO’s chart at the bottom. The GMO chart shows what the firm expects different asset classes to return over the next seven years.I collaborate with two colleagues of mine for some of the data in this article, Doug Short of dshort.com and my friend who runs seekingdelta. Both are great sites, and I encourage readers to check them out.As always, I must mention that just because the market is over or undervalued does not mean that future returns will be high or low. From the mid to late 1990s the market was extremely overvalued and equities kept increasing year after year. However, as I note at the end of the article, I expect low returns over the next ten years based on current valuations. In addition, individual stocks can be found that will outperform or underperform the market regardless of current valuations.To see my previous market valuation article from last month, click here.Below are six different market valuation metrics as of February 2nd, 2011:The current P/E TTM is 16.8, which is slightly higher than the TTM P/E of 16.6 from last month (This specific data is from the market close February 1st).click to enlarge[chart]This data comes from my colleague Doug Short of dshort.com.Based on this data the market is fairly valued. However, I do not think this is a fair way of valuing the market since it does not account for cyclical peaks or downturns. To get an accurate picture of whether the market is fair valued based on P/E ratio, it is more accurate to take several years of earnings.
Numbers from Previous Market lows:
Mar 2009 110.37
Mar 2003 27.92
Oct 1990 14.21
Nov 1987 14.45
Aug 1982 7.97
Oct 1974 7.68
Oct 1966 13.96
Oct 1957 12.67
Jun 1949 5.82
Apr 1942 7.69
Mar 1938 10.63
Feb 1933 14.92
July 1932 10.16
Aug 1921 14.02
Dec 1917 5.31
Oct 1914 14.27
Nov 1907 9.35
Nov 1903 11.67

Historic data courtesy of [multpl.com]
Current P/E 10 (Shiller) Year Average 23.94
[chart] http://seekingalpha.com/article/250273-monthly-market-valuation-investors-are-too-bullish-valuations-are-too-high?source=yahoo
The current ten year P/E is 23.94; this is much higher than the P/E of 22.94 from the previous month. This number is based on Robert Shiller’s data evaluating the average inflation-adjusted earnings from the previous 10 years. Robert Shiller stated in an interview last week that he believes the S&P500 will be at 1430 in 2020. Shiller believes that based on his metric the market is overvalued, and will offer subpar returns over the next 10 years.
Based on my colleague, Rob Bennett’s market return calculator, the returns of the market should be as follows:
[chart]
My colleague Doug Short thinks this numbers are a bit inaccurate, because the number I used does not include the past several months of earnings, nor revisions. Doug calculates P/E 10 at 23.3.
[chart]
Mean: 16.39
Median: 15.77
Min: 4.78 (Dec 1920)
Max: 44.20 (Dec 1999)
Numbers from Previous Market lows:
Mar 2009 13.32
Mar 2003 21.32
Oct 1990 14.82
Nov1987 13.59
Aug 1982 6.64
Oct 1974 8.29
Oct 1966 18.83
Oct 1957 14.15
June 1949 9.07
April 1942 8.54
Mar 1938 12.38
Feb 1933 7.83
July 1932 5.84
Aug 1921 5.16
Dec 1917 6.41
Oct 1914 10.61
Nov 1907 10.59
Nov 1903 16.04
Data and chart courtesy of [multpl.com]
This is moderately over valued from the average P/E as shown above.
Current P/BV 2.30
[chart]
The number is obtained using data from the SPY ETF, and updated using the latest change in the price of SPY. This number will therefore not be 100% accurate since the book value has likely changed (slightly) since the numbers were last updated on November 30th, 2010. The current P/BV is 2.30; this is lower than the P/B of 2.20 I measured in my previous article. The average price over book value of the S&P over the past 30 years has been 2.41. This indicates the market is slighlty undervalued. Book value is considered a better measure of valuation than earnings by many investors, including legendary investor Martin Whitman. He states that book value is harder to fudge than earnings. In addition, book value is less affected by economic cycles than one year earnings are. P/BV therefore provides a longer term accurate picture of a company’s value than a TTM P/E.
Current Dividend Yield 1.74  [chart]
The current dividend yield of the S&P is 1.74. This number is lower than the 1.78% yield from last month.It is hard to determine on this basis whether the market is overpriced. The dividend yield for stocks was much higher in the beginning of this century than the later half. The dividend yield on the S&P fell below the yield on Ten-Year treasuries for the first time in 1958. Many analysts at the time argued that the market was overpriced and the dividend yield should be higher than bond yields to compensate for stock market risk.For the next 50 years, the dividend yield remained below the treasury yield and the market rallied significantly. In addition, the dividend yield has been below 3% since the early 1990s. While I personally favor individual stocks with high dividend yields, I must admit that the current tax code makes it far favorable for companies to retain earnings than to pay out dividends. Finally, as I noted above, the current economic environment has zero percent interest rates and low bond yields. During periods where yields are low, it is logical for income oriented investors hungry for yield to bid on the market, and dividend yields to decrease. I think it is hard to claim the market is overbought based on the low dividend yield.

Mean: 4.35%
Median: 4.29%
Min: 1.11% (Aug 2000)
Max: 13.84% (Jun 1932)
Numbers from Previous Market lows:
Mar 2009 3.60
Mar 2003 1.92
Oct 1990 3.88
Nov1987 3.58
Aug 1982 6.24
Oct 1974 5.17
Oct 1966 3.73
Oct 1957 4.29
Jun 1949 7.30
Apr 1942 8.67
Mar 1938 7.57
Feb 1933 7.84
July 1932 12.57
Aug 1921 7.44
Dec 1917 10.15
Oct 1914 5.60
Nov 1907 7.04
Nov 1903 5.57

Data and chart courtesy of [multpl.com]

Market Cap to GDP is currently 92.8%, which is higher than the 91.1% from last month.

Ratio = Total Market Cap / GDP

Valuation

Ratio < 50%

Significantly Undervalued

50% < Ratio < 75%

Modestly Undervalued

75% < Ratio < 90%

Fair Valued

90% < Ratio < 115%

Modestly Overvalued

Ratio > 115%

Significantly Overvalued

Where are we today (02/01/2011)?

Ratio = 92.8%, Modestly Overvalued

Stock Market Capitalization as a percentage of GDP is another metric, albeit less commonly used than other metrics, to value the market. Between 90-115% market capitalization as percentage of GDP is considered modestly overvalued (we are at the low end of the range). Based on Guru Focus data, the market should return about 4.6% per year based on the current value.

GuruFocus calculates the 4.6% returns as follows:

The returns of investing in an individual stock or in the entire stock market are determined by these three factors:

1. Business growth

If we look at a particular business, the value of the business is determined by how much money this business can make. The growth in the value of the business comes from the growth of the earnings of the business growth. This growth in the business value is reflected as the price appreciation of the company stock if the market recognizes the value, which it does, eventually.If we look at the overall economy, the growth in the value of the entire stock market comes from the growth of corporate earnings. As we discussed above, over the long term, corporate earnings grow as fast as the economy itself.

2. Dividends

Dividends are an important portion of the investment return. Dividends come from the cash earning of a business. Everything equal, a higher dividend payout ratio, in principle, should result in a lower growth rate. Therefore, if a company pays out dividends while still growing earnings, the dividend is an additional return for the shareholders besides the appreciation of the business value.

3. Change in the market valuation

Although the value of a business does not change overnight, its stock price often does. The market valuation is usually measured by the well-known ratios such as P/E, P/S, P/B etc. These ratios can be applied to individual businesses, as well as the overall market. The ratio Warren Buffett uses for market valuation, TMC/GNP, is equivalent to the P/S ratio of the economy. What Returns Is the Market Likely to Deliver From This Level? Putting all the three factors together, the return of an investment can be estimated by the following formula:

Investment Return (%) = Dividend Yield (%)+ Business Growth (%)+ Change of Valuation (%)

The first two items of the equation are straightforward. The third item can be calculated if we know the beginning and the ending market ratios of the time period (T) considered. If we assumed the beginning ratio is Rb, and the ending ratio is Re, then the contribution in the change of the valuation can be calculated from this:

(Re/Rb)(1/T)-1

The investment return is thus equal to:

Investment Return (%) = Dividend Yield (%) + Business Growth(%) + (Re/Rb)(1/T)-1

This equation is actually very close to what Dr. John Hussman uses to calculate market valuations. From this equation we can calculate the likely returns an investment in the stock market will generate over a given time period. In the calculation, the time period we used was 8 years, which is about the length of a full economic cycle. The calculated results are shown in the final chart. The green line indicates the expected return if the market trends towards being undervalued (TMC/GNP=40%) over the next 8 years from current levels, the red line indicates the return if the market trends towards being overvalued (TMC/GNP=120%) over the next 8 years. The brown line indicates the return if the market trends towards being fair-valued (TMC/GNP=80%) over the next 8 years.The thick light blue line in the bottom chart is the actual annualized return of the stock market over 8 years. We can see the calculations largely predicted the trend in the returns of the stock market. The swing of the market’s returns is related to the change in interest rates.It has been unfortunate for investors who entered the market after the late 1990s. Since that time, the market has nearly always been overvalued, only dropping to fairly valued since the declines that began in 2008. Since Oct. 2008, for the first time in 15 years, the market has been positioned for meaningful positive returns.As of 02/01/2011, the stock market is likely to return 4.6% a year in the next 8 years.Warren Buffett has stated that market capitalization as a percentage of GNP is “probably the best single measure of where valuations stand at any given moment.”According to Barron’s, the ratio got as low as 40% in the late 1940s, when investors feared another depression, and in the inflationary 1970s.

Historic Data:
Min 35% in 1982
Max 148% in 2000.
Data and charts courtesy of Gurufocus.com
Current Tobin’s Q 1.17

[chart]

Tobin's Q is 1.17 compared to 1.15 from last month.

[chart]

[chart]

As can be seen from the above charts, the market is significantly over-valued based on Tobin's Q.The data comes from Doug Short. This is the most accurate data that is available. It is impossible for the data to be 100% precise because the Federal Reserve releases data related to Tobin’s Q on a quarterly basis. The best that can be done is to extrapolate the data and try to provide the most accurate data possible based on the change in the Willshire 5000. This is what Doug and I did to get the current number. This method has proven extremely accurate for calculating Tobin's Q on any given day.The current level of 1.17 compares with the Tobin's Q average over several decades of data of approximately .72. This would indicate that the market is extremely overvalued.In the past, Tobin’s Q has been a good indicator of future market movements. In 1920, the number was at a low of .30, the next nine years included phenomenal gains for the market. In 2000, Tobin’s Q almost reached a record high of nearly 2, and the market declined subsequently about 50% by 2003.

Historic Tobin's Q:

Market Low 1932 0.30

Market High 1929 1.06(this is not the highest number ever reached, just the number reached before the 1929 crash).

Average historic Tobin's Q .72 (source: Stocks for the Long Run by Jeremy Siegel

In my next monthly article, I will have more Tobin’s Q historical data.

AAII Survey-42.00% Bullish, 23.70% Neutral, and 34.30% Bearish: (Data from January 26th 2011)

With the collaboration of my colleague at seekingdelta, I have now added a seventh metric for valuing the market. This data comes from the survey conducted by the American Association of Individual Investors (AAII) conducted on a weekly basis. According to the AAII:

The AAII Investor Sentiment Survey measures the percentage of individual investors who are bullish, bearish, and neutral on the stock market for the next six months; individuals are polled from the ranks of the AAII membership on a weekly basis. Only one vote per member is accepted in each weekly voting period.

[chart]

[chart]

As mentioned above, the survey results indicate investors are quite bullish. The fact that so many investors are bullish is a contrarian warning signal. Investors tend to get the most bullish at market tops, and bearish at market lows.Below is AAII data from previous market bottoms (the AAII began the survey in 1987).The charts essentially show that on average, returns have been more favorable when bullish sentiment is below 28% vs above 50%. The 1yr avg return when sentiment is above 50% is 1.9% vs 13.6% when sentiment is below 28%.

[chart]

[chart]

Chart and data courtesy of seekingdelta
See GMO chart here (.pdf).
To Recap:

1. P/E (TTM) - Fairly Valued

2. P/E 10 year - Very Overvalued

3. P/BV - Undervalued

4. Dividend Yield - Indeterminate/ overvalued

5. Market value relative to GDP - Moderately Overvalued

6. Tobins Q - Extremely overvalued

7. AAII Sentiment - Too bullish (overvalued)

8. GMO - Overvalued

In conclusion, the market is over-valued based on the above data. Tobin's Q, Shiller P/E and AAII data are all indicating that investors are too bullish and valuations are too high.However, the historical data fails to take into account current record low interest rates. I know not many investors take issue with my inclusion of interest rates in the equation. However, I think that investors should look at the stock/bond alternative. Right now, you can get some blue chip stocks with dividend yields close to the ten year treasury yield.However, eventually the market will likely returns to normal valuation ratios as interest rates reach more normal levels. I believe returns over the next 10 years will be sub-par (far below the 9.5% average market return). I think we will likely see returns equal to inflation over the coming decade.Note: I have received numerous suggestions on how to improve my monthly series. I tried to incorporate these ideas in my current article. Please email me or leave a comment if you would like to provide further suggestions. Stay tuned till the beginning of next month for the next monthly valuation article.’

 

 

 

The Dow at 12,000 is 'Buyer Beware' Territory Meyer ‘Well, we finally hit the 12,000 mark and beyond on the Dow Jones Industrials Average and the end-of-the-year rally is still upon us, as many of us on Seeking Alpha forecast. However, this is now officially a buyer's beware market. Long term investors probably don't need to start selling unless they need the money for short-term purchases and debt reduction. But new investors considering buying into the market now are fulfilling the odd-lot theory, at best, and will have a long wait before those newly purchased shares are increasing in value enough to pay back your broker's fees.Does anyone think we are going to eek out another 5% in the averages this quarter? That would bring the DJIA up by more than 600 points to 12,636.The Dow is now at pre-crash levels of 2008. Yet, we still have high unemployment, near zero job growth, an ongoing foreclosure crisis with home ownership at its lowest level since 1998. This wouldn't be so much of a problem if the vast majority of Americans garnered their wealth from their real estate. They surely do not owe their wealth to their 401k or savings accounts. Remember when home prices were rising and rates were low? What were Americans doing? They were going on a ludicrous shopping spree. We are still the world's largest consumer driven economy, so as long as Main Street isn't spending, company profits will eventually suffer. Even though that doesn't seem to be the case now. One can imagine that companies cannot continue posting solid top line growth if their basic customers are struggling to make ends meet. That problem still exists in this economy, as Robert Reich pointed out his blog Wednesday.We also have a municipal debt bomb the Feds and banks are trying to defuse. The fundamentals are not that sound, and that tells me that this is not the time to buy the market. Stock picking strategies of U.S. equities might work, and certain commodity and some emerging market plays are still favorable. But index and ETF investors looking to buy entire markets like the SPDR S&P 500 ETF (SPY) should definitely wait for a correction before buying at these levels. I don't see any indication now that this market can go much higher, given those aforementioned fundamental restraints.Here are a couple more:
The BDI: Ever Hear of It?
Take a look at the Baltic Dry Index chart. It measures the worldwide price of shipping various bulk items across the ocean. It's trading way below its 50 and 200 day moving averages. The BDI is not a leading indicator, or a lagging indicator, of the U.S. economy. But it warrants some attention when the BDI chart looks like a really bad roller coaster like it has since last summer. BDI topped out in June, bounced in July, and began a serious decline in November. The only thing that tends to track the BDI is the Shanghai Composite Equity Index. China is one of the world's biggest exporters, but with costs of capital rising there, importers of Chinese goods are being asked to pay more for their orders, causing many buyers to slow imports. If this slower growth out of China pans out, then economists will be revising their global GDP numbers downward. This indicator could pose to be quite bad for equities simply because it is telling you the growth story of the economy, which has driven the fundamentals behind the current rally, is not sustainable at these levels. The rally continues to be a liquidity driven momentum rally thanks to QE2. The lynchpin of the whole advance was the theme the global economy was in recovery, but I am concerned that this important trade index is showing us something different for the time being.
DJIA vs. Gold Bull Market Peaks
Is the Dow overbought? I think so, and technically speaking we are now seeing less stocks advancing than we have when we were approaching Dow 12k. Corporations are also busy selling their own stock over the last month and a half. There is an important correlation between the Dow and the price of gold in previous bull market peaks. The Dow, as priced in gold, is losing value as the precious metal bull continues to drive to higher prices. For example, in 1980, one ounce of gold bought the Dow. So the ratio of one ounce of gold to the Dow was simple: 1. Said in another way, we had an 850 Dow Jones Industrials Average and $850.00 per ounce gold. The Dow as priced in gold is not making new recovery highs as most people would want to believe.The first peak in the Dow occurred on January 14, 2000 at 11,723. In late 1999 it took 45 ounces of gold to buy the Dow. Gold bottomed at $255.00 per ounce. Everyone wanted equities and the gold-Dow ratio proved it.The second peak in the Dow occurred on October 9, 2007 at 14,164 points. It took just 19 ounces of gold at $750.00 per ounce to buy the market.The Dow is now trading at the 12,000 level again on Wednesday and gold is currently $1325.00 per ounce. It now takes just 9 ounces of Gold to buy the Dow. I don't think we go to a one to one ratio, but I would say we cut the 9 ounces ratio in half and that would likely single a top in at least one of these markets.If we go on the premise that gold is the ultimate money and both a storage of wealth and a hedge against inflation, then the Dow priced in gold has been eroding in value since late 1999 when you needed at least 45 ounces of gold to have the equivalent of the gains in the Dow. The buying power of the dollar propelling the Dow 12k continues to lose value as reflected in the current price of gold at $1,340.00 per ounce, and expectations are for the euro to rebound a bit. The Dow 12k is also occuring in an economy where job growth remains impressively sluggish. This is a buyer beware market when buying broad based indexes like the Dow and S&P 500. Overall, when this market does correct 5% or more, I believe it will drag a lot of the more liquid assets down with it. I'd recommend a hold for long term investors and a sell at these levels for investors with short-term cash needs. We're not seeing an expansion of volume on the advance. This market is resisting any kind of sell-off. I think the pros are fully invested and this market is up two years in a row from the lows so this market looks to me that it's now setting up for a reversal. Don't add at these prices. Get your shopping list together for your sector favorites and wait for a pull back.’

 

 

 

If You're Going to Do Economics, Don't Do Macro  [ Truth be told, I find Mr. Falkenstein’s article a bit too subtle and somewhat shy about getting to the point, but have included same here solely for the reprint of William Buckley’s famous quote which comports with my own view of the ivy league vegetable gardens which turn out as you would expect, vegetables; viz., ‘he would prefer the first 100 names in the Boston phonebook to the Harvard faculty‘. The reality is that ‘harvard professor’, ‘no-recession bernanke’ has given an obfuscating, ephemeral feel good but lucrative to the few gift to the frauds on wall street with ultimately devastatingly great cost / pain to come. ]  Falkenstein ‘MIT had a celebration of their 150th birthday, a Symposia on Economics and Finance: From Theory to Practice to Policy. Here's Bob Hall's solution to our problems (see around 50:00):

What we really like is for people to perceive that now is a great time to buy stuff instead of later, well there's nothing like inflation to get that mentality going. Normally we don't like to see that, we want to keep inflation under control because it's a sign of an overheated economy, well, we'd like a bit of that overheated economy now ...

When the government buys more stuff, every model agrees that stimulates the economy...any economist who suggests that it doesn't stimulate the economy hasn't looked at a wide range of models, all of which agree ...

Hey, the models all agree! In other words, if you look at the aggregate data, all we have here is a lack of demand. Just replace the missing private sector investment with government purchases, or by confusing investors and hoping they mistake nominal price increases for real demand, and all will be well. Most of the macroeconomists suggested that all we need to do is double down on the stimulus -- only the political will is lacking for this obvious solution.What we had was a misallocation -- too much housing -- and so now must move labor and capital to other areas, which creates temporary unemployment. To try to cover this up via having the government spend more on backfilling teacher's pensions, or have everyone buy an unsustainable amount of everything, would not solve this problem faster. Notice they don't spend any time discussing what government would spend this stimulus on because it doesn't matter to them. It's fun to think a solution to a hangover is more of a different type of alcohol, but I've tried it, and it doesn't work.Unfortunately Keynesians don't have any intuition for this, because everything's all just "aggregate demand," not housing, technology, energy, etc. Aggregation leads to simplifcation, but clearly it has a cost, and I think any macro theory that ignores the fact that an economy is a network of firms and individuals is pointless.Hayek's early work on business cycles focused on misalignments in the structure of production. Alas, this was basically impossible to formalize. Keynes' model, meanwhile, was adopted into the Hansen-Hicks synthesis that looked a lot like the simple Supply/Demand equations economists were used to, so everything seemed copacetic. A bad idea, in a tractable model, has a long life, because everyone forgets about all the hand waiving assumptions that underlie such models.Joshua Bell is a famous violinist, but when he did an experiment, and played his $3.5MM violin at a train station, he made only $32. Reputation matters. In Bell's case, passersby did not realize he was truly a gifted violinist. In this case, while this was supposedly our best and brightest giving insight on the big issue of the day, the audience was treated to standard diagnoses and recommendations you hear everywhere on the left: we had a collapse in demand, so the government needs to spend more, or trick people into spending more via money illusion. If one wanted a better anecdote for William F. Buckley's famous remark that he would prefer the first 100 names in the Boston phonebook to the Harvard faculty, I can't think of one. As Cicero said, the purpose of wisdom is to know the good, in which case these people would have done better with the proverbial dollar fifty in late charges at the public library, rather than attend the esteemed establishment they were celebrating.On the other hand, Google's (GOOG) chief economist, Hal Varian noted that Yahoo! (YHO), Microsoft (MSFT) and the rest are all hiring economists to design services based on game theory and other microeconomic specialties. This is in contrast to banks, that basically all went from having a large economic staffs in the 1970s, but a flak PR guy today for CNBC interviews. Bottom line: if you are going to do economics, don't do macro.’

 

 

 

 

 

Stock Averages Straddle Flat Line, Dow Up for Third Day   [ Note: ‘…The economy added 187,000 private-sector jobs in January, the 12th consecutive month of private-sector employment growth, according to Automatic Data Processing. BUT ADP LOWERED ITS DECEMBER FIGURE TO 247,000 NEW JOBS FROM A PREVIOUS ESTIMATE OF 297,000…’ (That’s near 20%, do you how many upside points were based on that fudged inflated figure?).  ]

 

 

40 Percent Of Egyptians Live On 2 Dollars A Day Or Less And The Global Elite Like It That Way After thousands of years of “progress” and “societal evolution”, how is it possible that most of the world is still living in soul crushing poverty?

 

Here’s The Real Cost Of Food Inflation In America Take a look at the chart we’ve constructed from the Bureau of Labor and Statistics 2009 Consumer Expenditure Survey. It conveys a sense of how Egypt’s poverty combined with the sharp rise in food prices sparked the political revolt against the Mubarek government.

 

US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January, 50% More Than Previous Highest Month As the topic of US Mint silver sales is not new to our readers, after we first brought attention to the record January sales by the Mint, we will not dwell much on it, suffice to say that the final January tally is in.

 

 

National / World

 

 

Resistance is Victory: Check Out the Last Contest Entries Infowars.com | With your creative participation, we will get the message out.

 

Rebranding Big Brother Kurt Nimmo | Say hello to a boot stamping on a human face — forever.

 

Minority Report: Companies Push For Ubiquitous Iris Scanning Steve Watson | Expiring technology patent insures that you will soon have your eyes scanned everywhere you go.

 

Latest Round of Wikileaks Docs Hype Manufactured Terror Kurt Nimmo | It is now obvious Wikileaks is an intelligence operation and its frontman Julian Assange is a useful idiot.

 

Wikileaks Bombshell Points To 9/11 Stand Down Paul Joseph Watson | Able Danger program confirmed hijackers were identified before attack, CIA allowed them to enter America

 

300 reported dead in Egypt protests Haareetz | U.N. human rights chief said on Tuesday she had unconfirmed reports that up to 300 people may have been killed and over 3,000 injured.

 

 

 

Move Over Egypt: Homeland Security Shuts Down Sports Websites The federal government has seized the Web addresses of ten websites that allegedly live stream sporting and pay-per-view events online, shutting them down just days before one of the biggest televised sporting events of the year: the Super Bowl.

 

Minority Report: Companies Push For Ubiquitous Iris Scanning The impending expiration of a key technology patent is paving the way for a scramble amongst scores of biometrics research and development companies, all desperate to make their own brand of iris scanning technology commonplace, effectively creating a real life Minority Report society, where everyone is linked into an identification database.

 

U.S., U.K. Companies Help Egyptian Regime Shut Down Telecommunications and Identify Dissidents Doing the regime’s bidding, British-based Vodafone shut down Egypt’s phone and internet service. The American company called Narus — owned by Boeing — sold Egypt the surveillance technology that helped identify dissident voices.

 

V For Superbowl Victory Activists take the V For Victory campaign to Arlington Texas and the Super Bowl, getting right back in Big Sis’ face after Homeland Security announced that they would be bringing airport-style security harassment and See Something, Say Something snitch programs to sporting arenas.

 

The Father Of Weaponized Weather In this exclusive interview for Prison Planet.tv subscribers, Livingston explains how for decades the US government has had the power to both lessen and increase the severity of adverse weather for their own purposes.

 

Wikileaks Bombshell Points To 9/11 Stand Down Newly released Wikileaks documents concerning the activities of three Qatari men who conducted surveillance of the World Trade Center and boarded flights on the eve of the 9/11 attacks adds to the plethora of evidence that at the very least US authorities were aware of the plot and deliberately stood down.

 

 

Nothing Is Stable Anymore The world is becoming a very unstable place, and the pace at which things are changing all around us has become absolutely mind-numbing. In fact, change has become one of the only constants in today’s world.

 

Revolutionary Fervor to Spread Beyond Arab States; Europe Next When the Tunisian government toppled, the mass media and their stable of experts ­ who were blindsided by these events ­ quickly stepped in to proclaim the obvious: that citizens of other Arab nations would be emboldened to challenge autocratic and corrupt governments.

 

Obama administration issues hundreds of health care exemption waivers to friends If Obamacare is everything the administration claims it to be, then why are government officials secretly handing out exemption waivers to friends and insiders?

 

Internet restored in Cairo after revolt blackout Internet services were at least partially restored in Cairo on Wednesday after a five-day cut aimed at stymieing protests against President Hosni Mubarak’s regime, Internet users said.

 

Violence Flares As Protesters, Mubarak Supporters Fight in Cairo Opponents and supporters of President Hosni Mubarak fought with fists, stones and clubs in Cairo Wednesday in what appeared to be a move by forces loyal to the Egyptian leader to end protests calling for him to quit.

 

Wikileaks Documents Recycle Dirty Bomb Propaganda The corporate media today is chock full of stories about the latest round of supposed diplomatic documents purloined by a low level Army intelligence analyst. According to the documents, the CIA asset al-Qaeda has managed to acquire “workable and efficient” biological and chemical weapons and the West stands on the brink of a “nuclear 9/11.”

 

The Protest Movement in Egypt: “Dictators” do not Dictate, They Obey Orders The Mubarak regime could collapse in the a face of a nationwide protest movement… What prospects for Egypt and the Arab World?

 

Mubarak Says Egyptians Have to Choose Between “Chaos” and Him … Then Sends In His Thugs to Stir Up Chaos In order to justify staying in power until elections are held in September, President Mubarak said on tv that the people had to choose between him and “chaos”.

 

“People All Over The World Who Want Freedom, Somehow Or The Other Feel Connected To Other People Who Are Struggling For Freedom.” Nobel Peace Laureate and leader of Burmese democracy movement, Aung San Suu Kyi, told the Egyptian protesters: “People all over the world who want freedom, somehow or the other feel connected to other people who are struggling for freedom.”

 

 

 

 

Drudgereport: Amanpour: Angry mob surrounded us, shouting they hate America...
WH shuts out media; reporters file complaint...
CNN Anderson Cooper 'punched 10 times in head' by mob in Egypt....
'Camp David made us a slave,' Egyptian protester says...
WIKILEAKS: US threats to China in military standoff over 'Star Wars'...
Student, 14, suspended for 'weapon' -- a plastic pen casing...

WIKILEAKS: FBI hunts the 9/11 gang that got away...
43 Million Use Food Stamps...
Dems object to GOP gov't transparency probe...
JUDGE RULES HEALTH CARE LAW UNCONSTITUTIONAL
Judge cites Obama's own position from 2008 campaign...

Brent crude oil above $100 for 1st time since 2008...
FLASHPOINT

Fighter jets swoop over Cairo in show of force...
Mubarak meets with military commanders...
Generals tell him to quit...
Troops move into Tahrir square as curfew passes...
ElBaradei joins protesters in square...
Says US 'losing credibility by the day'...
Clinton calls for 'orderly transition'...
'We're not advocating any specific outcome'...
Convicts pour out of prisons...
UPDATE: 100+ dead; 2,000 injured...
Flights out halted, tourists trapped...
But 19 private jets get out...
Egypt shuts down Al Jazeera bureau...
LIVE STREAM...
OBAMA CONFUSES IRAQ WITH AFGHANISTAN...

Will be out 'by the end of this year'...
Scientists Discover: Chimpanzees mourn their dead just like humans!

11% of All US Homes Are Now Empty...

 

 

 

Report: U.S. unlikely to reach electric car goal by 2015 (Washington Post) [ I think all benefits of doubt be given to the auto companies in terms of the market and, ultimately,  for the following reason:      {Previous:  S. American mountains hold key to electric car's future: lithium for batteries (Washington Post) [ Well, I don’t know about electric car batteries, but it’s reassuring to know that such american leaders in no short supply, ie., Ted Turner, et als, will have no short supply of lithium to keep them on an even keel (from the ups and downs from, ie., bipolar among other mental conditions). Truth be told, I’ve not followed the ‘adventures of the electric cars’ too closely, but concede that pollution as from gas engine cars is lessened. I know enough about electricity and energy to know that there’s really no net gain in terms of conservation, weening off oil, hydro, nuclear since the same are required to produce the electricity; hence, increases in hydro / nuclear, ie., are necessary to change the reliance on oil (imports). }  ] Obama's goal to have a 1M plug-in cars on the road may be stymied by automaker, consumer uncertainty

 

 

Israel wary of transition in Egypt, concerned about regional stability (Washington Post) [ Who cares what the paranoid, war criminal, illegal nuke totin’, war criminal israelis are wary of. This country has gone down the tubes cow-towing to the paranoid, self-interested concerns of the psycho / sociopathic zionist israelis who are forever projecting their own pathological motives to every turn of history while ignoring their own culpability in producing the very outcomes they purportedly seek to avoid. War, conflict, greed, bloodshed is the historically based israeli way. ]

 

Fresno tackles an unusual problem (Washington Post) [ Oh come on! Let’s call things as they are! Sputnik moment … p l e a s e , spare me the b*** s*** wobama the b. This is not ‘up, up, and away’ to bigger and better things, but rather an industry catering to the long predicted aging baby boom population. The structural deficits, including jobs, will continue owing to prior misguided self-interested policy for the ‘few’.]  This California city is grappling with one of the most troubling contradictions of the new economy: Even as it has one of the nation's highest unemployment rates, it has thousands of job openings.

 

Jobless Recovery?: 25 Unemployment Statistics That Are Almost Too Depressing To Read ‘… Unemployment is up again! That’s right – even though Wall Street is swimming in cash and the Obama administration is declaring that “the recession is over”, the U.S. unemployment rate has gone even higher ... Times are really, really tough and unfortunately the long-term outlook is very bleak. 

#1 U.S. unemployment rate for November was 9.8 percent.  This was up from 9.6 percent in October, and it continues a trend of depressingly high unemployment rates.  The official unemployment number has been at 9.5 percent or higher for well over a year at this point.

#2 In November 2006, the “official” U.S. unemployment rate was just 4.5 percent.

#3 economists had been expecting to add about 150,000 jobs in November.  Instead, it only added 39,000.

#4 In the US there are over 15 million people who are “officially” considered to be unemployed for statistical purposes.  But everyone knows that the “real” number is even much larger than that…

.. biggest debt bubble in the history of the world…our entire economy is based on debt.  Even our money is debt.  …  There is a sea of red ink on every level of American society.  It is only a matter of time before it destroys our economy. IF YOU THINK THAT THINGS ARE BAD NOW, JUST WAIT.  THINGS ARE GOING TO GET A WHOLE LOT WORSE.  A HORRIFIC ECONOMIC COLLAPSE IS COMING, AND IT IS GOING TO BE VERY, VERY PAINFUL.’

 

#5 As 2007 began, there were just over 1 million Americans that had been unemployed for half a year or longer.  Today, there are over 6 million Americans that have been unemployed for half a year or longer.

#6 The number of “persons not in the labor force” in the United States recently set another new all-time record.

#7 It now takes the average unemployed American over 33 weeks to find a job.

#8 When you throw in “discouraged workers” and “underemployed workers”, the “real” unemployment rate in the state of California is actually about 22 percent.

#9 In America today there are not nearly enough jobs for everyone.  In fact, there are now approximately 5 unemployed Americans for every single job opening.

#10 According to The New York Times, Americans that have been unemployed for five weeks or less are three times more likely to find a new job in the coming month than Americans that have been unemployed for over a year.

#11 The U.S. economy would need to create 235,120 new jobs a month to get the unemployment rate down to pre-recession levels by 2016.  Does anyone think that there is even a prayer that is going to happen?

#12 There are 9 million Americans that are working part-time for “economic reasons”.  In other words, those Americans would gladly take full-time jobs if they could get them, but all they have been able to find is part-time work.

#13 In 2009, total wages, median wages, and average wages all declined in the United States.

#14 As of the end of 2009, less than 12 million Americans worked in manufacturing.  The last time that less than 12 million Americans were employed in manufacturing was in 1941.

#15 The United States has lost at least 7.5 million jobs since the recession began.

#16 Today, only about 40 percent of Ford Motor Company’s 178,000 workers are employed in North America, and a big percentage of those jobs are in Canada and Mexico.

#17 In 1959, manufacturing represented 28 percent of U.S. economic output.  In 2008, it represented 11.5 percent.

#18 Earlier this year, one poll found that 28% of all American households had at least one member that was looking for a full-time job.

#19 In the United States today, over 18,000 parking lot attendants have college degrees.

#20 The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

#21 As the employment situation continues to stagnate, millions of American families have decided to cut back on things such as insurance coverage.  For example, the percentage of American households that have life insurance coverage is at its lowest level in 50 years.

#22 Unless Congress acts, and there is no indication that is going to happen, approximately 2 million Americans will stop receiving unemployment checks over the next couple of months.

#23 A poll that was released by the Pew Research Center back in June discovered that an astounding 55 percent of the U.S. labor force has experienced either unemployment, a pay decrease, a reduction in hours or an involuntary move to part-time work since the economic downturn began.

#24 According to Richard McCormack, the United States has lost over 42,000 factories (and counting) since 2001.

#25 In the United States today, 317,000 waiters and waitresses have college degrees.

But this is what we get for creating the biggest debt bubble in the history of the world.  For decades we have been digging a deeper hole for ourselves by going into increasingly larger amounts of debt.  In America today, our entire economy is based on debt.  Even our money is debt.  …  There is a sea of red ink on every level of American society.  It is only a matter of time before it destroys our economy. IF YOU THINK THAT THINGS ARE BAD NOW, JUST WAIT.  THINGS ARE GOING TO GET A WHOLE LOT WORSE.  A HORRIFIC ECONOMIC COLLAPSE IS COMING, AND IT IS GOING TO BE VERY, VERY PAINFUL.’



 

Dow closes above 12,000  (Washington Post) [ Which is a manipulated bubble and which amount is worth far less than even 3 years ago owing to dollar debasement…    Avoid China, short the U.S. market instead Kee ‘…The subject of international investing begs the buy and hold theme as a result, but because that is dead, and because risk controls are more cumbersome in foreign markets, my focus is on proactive strategies in U.S. markets, on risk controls, and my longer term Periodic Oscillator tells me that the economy, thanks to stimulus, is in bubble-like territory not seen since 2000 and 2007…’      Suttmeier … Stocks remain overvalued fundamentally according to ValuEngine with 15 of 16 sectors overvalued

 

 

 

 

 

 

 

New Monthly Value Levels, Pivots, and Risky Levels  Editor's Note: This article was written by Richard Suttmeier, chief market strategist at ValuEngine.com

The US Capital Markets are under the influence of new monthly value levels, pivots and risky levels from my proprietary analytics. Today I add them to my risk / reward statements for the markets that I follow; The US Treasury 10-Year yield, Comex gold, Nymex crude oil, the euro, and the major equity averages focusing on the Dow Jones Industrial Average.

The US Treasury 10-Year Yield -- (3.380) The monthly chart favors higher yields with the 120-month simple moving average at 4.121. The daily chart still shows the trading range set in December between 3.568 and 3.247. Today’s value level is 3.444.

Comex Gold -- ($1331.0) The monthly chart continues to dhow an overbought parabolic bubble. The daily chart shows gold trying to rise out of an oversold condition. This week’s value level is $1319.7 with quarterly and annual pivots at $1331.3 and $1356.5 and new monthly risky level at $1412.4.

Nymex Crude Oil – ($91.91) The monthly chart favors higher oil prices ahead. Oil traded above $92 per barrel again but closed below that chart resistance. My semiannual value level is $87.52 with weekly and monthly pivots at $89.91 and $91.83 and annual risky levels at $99.91 and $101.92.

The Euro -- (1.3685) The monthly chart favors a higher European currency. The daily chart continues to show an overbought condition. Weekly and quarterly value levels are 1.3265 and 1.3227 with a daily risky level at 1.3859 and monthly risky level at 1.4225.

Stocks remain overvalued fundamentally according to ValuEngine with 15 of 16 sectors overvalued and only 38.8% of all stocks undervalued. On December 19th we had a ValuEngine Valuation Warning with 33.3% of all stocks undervalued, below the important 35% threshold, and all 16 sectors were overvalued.

All major averages remain overbought on their weekly charts and my Proprietary Analytics show new monthly value levels and weekly risky levels, which should keep stocks balanced in February.
 


Bank Failure Friday -- The FDIC closed four more banks last Friday and one was publicly traded and on the ValuEngine List of Problem Banks.
 


The publicly traded bank was First Community Bank, Taos, New Mexico (FSNM). This bank is on the ValuEngine List of Problem Banks with overexposures to both C&D and CRE loans: The C&D ratio to risk-based capital at 651.8% versus the 100% maximum guideline, and 1946.4% for CRE loans versus the 300% maximum guideline. The bank’s real estate loan pipeline is stuffed at 96.9% where 60% is a healthy pipeline. It’s amazing to me how slow the FDIC has been in closing banks that no longer deserve to service Main Street, USA.’

 

 

 

Persistent Pattern: Stocks Like Early Days Of The Month [ Everything and anything but fundamentals and value!  ]Harding ‘I call it the “monthly strength period,” the strong tendency for the market to be up for the first few days of each month. It’s a pattern that’s been around for a very long-time. Norman Fosback first pointed it out in his 1976 book, Stock Market Logic. Few investors are aware of its importance. The history is for the market to average almost half of its monthly gains in just the first three or four days of the month. The last day of the month also often participates because savvy traders pile into the market in anticipation of a similar rally in the first few days of the next month.The latest example? The S&P 500 was up 29.4 points or 2.3% for the month of January. But guess what? The gains on just the first four days, and the last day of the month totaled 29.8 points.In 2009, the S&P 500 was up 23.3% for the year, but the gains on the first three days of each month amounted to 9.2% for the year, 40% of the year’s total gains.  In 2010 the tendency for strength over the first three days of the month was even more obvious.The S&P 500 gained 142.5 points, or 12.8% for the year. Its gains on just the first three days of each month totaled 228.9 points, or 20.5%. An investor didn’t actually gain anything in 2010 by being invested on other than those first three days each month.So despite all the time and effort analysts spent last year debating and forecasting the effect on the market that would come from the economic and political changes, the weak economic reports in the summer, the Fed’s QE2 decision, the mid-year elections, corporate earnings, etc., what actually had the most influence; those hotly debated issues, or the Fed, or a simple market pattern?I have no interest in market patterns that have no clear and reasonable explanation. Don’t talk to me of the ‘super bowl’ indicator, or the history of years ending in 5 tending to be positive years, or ‘As goes January so goes the year.’ Not interested.The ‘monthly strength period’, like annual seasonality and the Four-Year Presidential Cycle, has a very clear explanation.Sizable extra chunks of money automatically flow into the market at the end of each month. They come from investors who follow the strategy of dollar-cost averaging into the market on a monthly basis; from the monthly contributions of employees and employers to IRA and 401K plans; monthly dividends on stocks and bonds, most of which are marked for automatic re-investment, etc. (A study some years ago showed that 65% of all preferred-stock dividends and 90% of the interest payments on municipal bonds are paid on either the first or last day of the month, a huge amount of money).Obviously the pattern is useful in short-term trading. But how is it useful in almost any strategy?If you’re going to put money in the market for whatever reason and it’s near the end of a month it will usually pay to do so by the last day of the month in order to pick up the extra gains likely in the first few days of the next month. If you’re planning to sell a holding or take money out of a 401K or IRA plan, and it’s near the end of a month, it usually pays to wait for the fourth day of the next month to do so.Knowledge of the pattern can also be helpful in preventing an emotional reaction to events. I told my subscribers not to react too quickly to the turmoil in Egypt and Friday’s market plunge because “we are now in the period around the end of the month when the market tends to be positive for at least a few days.”This time around, awareness of the pattern might also prevent investors from being overly optimistic that the market reaction to the turmoil in Egypt only lasted one day. It might be wiser to wait and see what happens after the first three or four days of February.’

 

 

 

 

 

 

Is the Market Headed for a Sell-Off? Zaky  [ Yes … I agree, except that fundamentally the longer term prospects are even worse than his bearish outlook suggests (don’t forget the debasement of the dollar, manipulation, and spending / printing money the nation doesn’t have in real terms behind this manipulated uptick) and summarized as follows: ‘I suspect that this rally is on its very last legs. We should see a very healthy 10% or so correction within the next 1-2 week period ... This market is headed for a sell-off. ]

 

 

 

 

2011 Update: Another Lost Decade for Stocks - Are You Prepared?   [ I agree that this is but a (manipulated) bull cycle in a secular bear market with substantially worse to come! ]Kopas ‘In February 2010, we published an article on Seeking Alpha entitled “Another Lost Decade for Stocks - Are You Prepared?,” wherein we argued that the year 2000 marked a secular (long-term) peak for U.S. stocks. A secular bear market is formed when a series of business cycles are linked together, establishing an extended period of stock market under-performance. Our objective here is to bring you up-to-date on the progress of this secular bear market and help you prepare for the next ten years.

The first benchmark we monitor is U.S. stock prices adjusted for inflation. In this chart below, we compare the U.S. stock market to the Shiller 10-year Price/Earnings ratio. This P/E ratio is an indication of investor confidence; a lack of that signals extreme valuation levels. Our conclusion is that investor psychology is still too optimistic and has a long way to go before reaching an undervalued stock market level.

[chart] click to enlarge

Updating our duration and valuation benchmarks, again we find progress, but not yet achieving the truly undervalued levels we expect to see toward the end of a secular bear market. Based upon previous cycles, it appears we are only slightly past the half way mark in terms of years, number of recessions, and valuations. A look at our chart and table comparing this to earlier secular bear markets illustrates our conclusion. We expect that a major bottom for inflation adjusted stock prices is still years away before stocks finally gravitate toward the target area outlined below.

[chart]

New Benchmark: Tobin Q Ratio

In this update we introduce another relative valuation benchmark created by Yale economics professor and Nobel laureate James Tobin, hence the name Tobin’s Q Ratio. The Q ratio is calculated as the total value of the stock market divided by the replacement cost of all its companies. Values greater than 1 indicate stock prices sell above their replacement cost and are therefore “expensive.” A reading below 1 indicates stocks can be bought below replacement cost and therefore indicates that it is cheaper to buy a company than to build one.

A long-term view of the Q ratio gives investors a good understanding of value, information about current risk levels and a method to assess probable returns for the long term. Secular bear markets historically bottom when the Q ratio declines to a bargain level less than .4, meaning stock prices sell for just 40% of replacement value. Today’s reading of 1.03 is above the average reading of .75 and considerably higher than the average secular low reading of .33. Investors beware; stocks have considerable more downside potential before the Q ratio truly reflects a great valuation. Buy and Hold tactics will continue to frustrate investors, just as they have in the past decade.

[chart]

In conclusion, none of the benchmarks we evaluate indicate we are anywhere close to a secular stock market bottom yet. In the meantime, a prudent and profitable investment strategy should be flexible enough to actively adjust portfolio asset allocation, depending on where we are in the business cycle and the direction of the secular trend.’

 

 

 

 

Shiller Ratio Points to U.S. Equities Being Significantly Overvalued   [ Yes they are indeed; so take this especially great opportunity to sell, take profits since there’s much, much worse to come! That computer-programmed spike into the close to keep suckers suckered does not change the aforesaid. This is particularly evident in their attempt to cash in on that superstitious scam known as the ‘January effect’ by way of these manipulated bubble-making buy programs; you know, loosen / soften the suckers up for the coming year’s new fraud / scam. ] The 'January Effect' Is More Market Myth Than Sound Analysis ...  Kumar ‘…January of 1929, for example, was off to a brisk start as the Dow Jones Industrial Average climbed to 317 from 307. But investors would be slammed later in the year by a historic stock market crash that heralded the start of the Great Depression. January of 1987, too, began nicely. The Dow climbed to 2160 at the end of the month after starting out at 1927. But Black Monday would hit investors in October of that year, leading to the sharpest historical stock market decline in percentage terms. More recently, January 2001 had a strong showing when the Dow Jones finished the month at 10,887 after starting at 10,646. Those reading it as an auspicious beginning would be hit first by the further fallout from collapse of the dot-com bubble and then the massive decline following the September 11 terrorist attacks. See full article from DailyFinance: http://srph.it/cyaPDT ‘… Then, more recently there’s ‘The stock market scored a strong gain and locked in its first positive finish for January since 2007 (we all know what happened after that! Crash!) with help from the energy sector, which climbed sharply in response to a spike in oil prices.(Yahoo/Briefing.com) … Higher oil prices … riiiiight! … that sounds bull(s***)ish … on fraudulent wall street. ]

 

 

 

 

 

 

IMF Board To Discuss Expanded SDR Dow Jones | The board of the International Monetary Fund will discuss a possible expansion of the basket of currencies that compose the Special Drawing Right, IMF deputy managing director John Lipsky said Friday.

 

The Road to Madness Is Paved With $100 Bills Zero Hedge | Indeed, all of Bernanke’s monetary policies and actions can be traced to his one core belief: that the US Federal Reserve didn’t do enough to stave off the Great Depression.


 

IMF, warning of war, says ready to help Egypt AFP | Dominique Strauss-Kahn said rising food prices could have “potentially devastating consequences” for poorer nations.

 

 

IMF Vultures Want Into Egypt The International Monetary Fund stands ready to help riot-torn Egypt rebuild its economy, the IMF chief said Tuesday as he warned governments to tackle unemployment and income inequality or risk war.

 

Officials Warn Wall St. About Possible Terror Attacks Security officials are warning the leaders of major Wall Street banks that al Qaeda terrorists in Yemen may be trying to plan attacks against those financial institutions or their leading executives, NBCNewYork has learned.

 

Unemployment Plagues Economy Despite Claims Of Recovery Unemployment continues to plague our economy. In spite of constant claims that we have just turned the corner into recovery, the jobs reports remain grim with no real signs of improvement.

 

The Road to Madness Is Paved With $100 Bills Ben Bernanke is insane. I mean neither insane in a flippant sense, nor in the ordinary sense (as in plain nuts), but an even more insidious form of insanity, namely the insanity of one who cannot see the world as a place outside his own thoughts and beliefs.

 

The Coming Collapse of Commercial Real Estate is Already Here, Says Davidowitz ‘…From Wal-Mart to Sears to Target to Best Buy, if you look at what is happening in the retail space, "it looks pretty scary," says retail expert Howard Davidowitz. Wal-Mart -- the world’s largest retailer – has seen six consecutive quarters of negative same-store sales and is now looking to put the majority of its investment capital towards emerging markets.In the case of Target and Best Buy, they both recently missed major key earnings expectations. Making matters worse, Best Buy “tanked” even without the competition from the now defunct Circuit City, Davidowitz points out.Tale of Two StoresThere is a sea change happening in retail, Davidowitz tells Aaron in the accompanying clip. Consumers are spending more now than during anytime in the last three years, but they are choosing to spend more and more online than in brick-and-mortar stores.Companies like Apple, Amazon, Netflix are doing gangbuster business while the aforementioned struggle to keep pace. Why go to the store – be it record store, book store or movie rental store – when you can buy all you need right from the comfort of your own home and have it delivered to your front door or digital media device?The Walls Are CollapsingA coming collapse in commercial real estate has been looming for the last couple years, but Davidowitz thinks it has already begun. “… there has [already] been a partial collapse in the commercial real estate business,”

 

 

 

 

 

 

National / World

 

 

Neocons Exploit Fear of Muslim Brotherhood to Push War Kurt Nimmo | The Muslim Brotherhood is a vital component of the globalist intelligence conglomerate and its long running and ongoing campaign to create and exploit Islamic terror.

 

TSA Invades Roads & Highways With VIPR Checkpoints Paul Joseph Watson | Roadside inspections to be expanded from rest stops, say TSA officials.

 

Judge Cites Obama Flip-flop in Health Care Ruling Kurt Nimmo | A federal judge in Florida ruled that Obama’s so-called health care reform legislation is unconstitutional.

 

 

Mubarak gives army shoot-to-kill order Press TV | Embattled Egyptian President Hosni Mubarak has reportedly given his armed forces the authority to shoot-to-kill as anti-government protests gain momentum.

 

 

 

TSA Invades Roads & Highways With VIPR Checkpoints The TSA has announced its intention to expand the VIPR program to include roadside inspections of commercial vehicles, setting up a network of internal checkpoints and rolling out security procedures already active in airports, bus terminals and subway stations to roads and highways across the United States.

 

Ron Paul: Middle Eastern Revolt Stems From US Upholding Authoritarian Regimes Congressman Ron Paul outlined his feelings on the uprising in Egypt, noting that violent revolts will continue throughout the middle east so long as there is an unfettered globalist agenda to dominate the region through propping up tinpot dictators and tyrants.

 

Bolton: If Mubarak falls in Egypt, Israel should bomb Iran Former US Ambassador to the United Nations John Bolton said the ouster of embattled Egyptian President Hosni Mubarak would speed the timetable for an attack on Iran’s nuclear facilities.

 

Kissinger on Egypt unrest – “This is only the first scene of the first act of a drama that is to be played out”   [ The import of this so-called interview, and it is here that I part company with alex jones, et als (who by the way, censored me for this very thesis, which puts him and his at the top of my hypocrite list), is that the so-called elite have orchestrated these events and ‘are in control’. First, there are no elites in this world; you can’t derive elites from apes, nordochords, and initially single celled organisms. Second, almost by definition and certainly by history, there are no elites in america even if you were to accept the first proposition (though true) as untrue. What you do have, in this world and america particularly (with few exceptions as I’ve discussed elsewhere / comments / my website), are inherent criminals and mentally ill people of varying degrees of unscrupulousness and insanity who do commit crimes, both small and large, to further their interests or fortunes (sociopaths / psychopaths). The ’so-called alpha-dogs’ of the human species at most, but still incompetent vegetables who, if you look at anything they touch (to use a term term of such incompetent vegetables as historically pertains to their role in the mideast – and generally the state of the world) it invariably goes ‘pear shaped’ (english term). What hasn’t zionist kissinger not messed up as appointee or ‘consultant’ – what does he get paid for? No! The fact is, they have absolutely no idea how this unfolds and as with most of their lives, they will predictably choose the most sordid, despicable, and diabolical course at every turn because … that is their inherently criminal, mentally ill / unstable nature to do so. ] Bilderberg puppet master Kissinger warns that the uprising is a temporary state of affairs, “only the first Scene of the first act of a drama that is to be played out.”

 

Is the end nigh for Mubarak? President’s grip on power shaken as army refuses to fire on million-strong march As many as two million people are expected to take to the streets in Egypt later today in a mass demonstration that could finally topple president Hosni Mubarak after he was dealt a crushing blow by the nation’s military.

 

 

 

The 11 Countries At Risk of Becoming The Next Egypt Egypt has been embroiled in political turmoil since protests, inspired by those that overthrew the regime in Tunisia, started last week.

 

 

Mubarak’s new deputy linked to CIA rendition program The man named by President Hosni Mubarak as his first ever deputy, Egyptian spy chief Omar Suleiman, reportedly orchestrated the brutal interrogation of terror suspects abducted by the CIA in a secret program condemned by rights groups.

 

Former Director of the CIA’s Counter-Terrorism Center: American Policy in the Middle East is Failing Because the U.S. Doesn’t Believe in Democracy The fact that the former head of counter-terrorism laments America’s failure to support democracy in the Middle East proves once again that U.S. policy is not justified by terror concerns.

 

 

 

Corporate US Media’s Woeful, Sanitized Egypt Coverage Amounts To Censorship While the ailing dictatorship government in Egypt is busy rounding up and arresting Al Jazeera journalists in an attempt to control the release of footage and accounts of the mass uprising going on throughout the entirety of the country, the disgraceful corporate American media has once again shown itself to be just as strictly regulated in terms of the content it provides to viewers.

 

 

 

 

Drudgereport: WIKILEAKS: FBI hunts the 9/11 gang that got away...
Student, 14, suspended for 'weapon' -- a plastic pen casing...

JUDGE RULES HEALTH CARE LAW UNCONSTITUTIONAL
Judge cites Obama's own position from 2008 campaign...

Brent crude oil above $100 for 1st time since 2008...
FLASHPOINT

Fighter jets swoop over Cairo in show of force...
Mubarak meets with military commanders...
Generals tell him to quit...
Troops move into Tahrir square as curfew passes...
ElBaradei joins protesters in square...
Says US 'losing credibility by the day'...
Clinton calls for 'orderly transition'...
'We're not advocating any specific outcome'...
Convicts pour out of prisons...
UPDATE: 100+ dead; 2,000 injured...
Flights out halted, tourists trapped...
But 19 private jets get out...
Egypt shuts down Al Jazeera bureau...
LIVE STREAM...
OBAMA CONFUSES IRAQ WITH AFGHANISTAN...

Will be out 'by the end of this year'...
Scientists Discover: Chimpanzees mourn their dead just like humans!

11% of All US Homes Are Now Empty...

 

On economy, Obama takes a new role: cheerleader (Washington Post) [ No! That’s not what he was elected for; besides, he just ain’t pretty enough (though you get the impression that he thinks he is, in a very quiffy kind of way. Thanks, but no thanks; that may sound good, but at this point, too little, too late for america. Action, not words, wobama the b (for b*** s***). While figuratively, ‘nut and bolts’ are okay, it’s really ‘pencils, paper, and magnifying glasses’ for scrutinizing and correcting the structural defects (are you willing to pay twice as much for the same products produced elsewhere, pay for the frauds on wall street, pay for the rich over-compensation packages of corp. execs, pay for the endless wars, pay for the richly accoutered capital hill / lifetime appointee / federal employees (law enforcement excepted), etc.) and a magnifying glass to discern the foregoing.  ] The President has become the host of what feels like a looping infomercial on American innovation.

 

 

Russia's Ryabkov on U.S.-Russia relations: 'We can offer tangible results, and we will do more in the future' (Washington Post) [  Well, I don’t know about diplomatic relations (one can only hope), but if it’s sexual relations, what’s not to like … about Russian girls … They’re total babes! Back to the diplomatic front, I’ve grown a bit partial to the rationality of the Russian leadership based not solely on what they say (defacto bankrupt america talks about peace, but directly and through proxies, ie., israel, etc., is war mongering, war facilitating, war profiteering on multiple fronts and killing many innocent children, women, and men; and of course my own experience with american meaningfully lawlessness, infra, etc.,  ), but what they do (Russia’s engaged in no wars, made the transition from communism to present without violence, finds time to preserve ‘The Siberian Tiger’, etc.,  and is not a hypocrite regarding professing to be a nation of meaningful laws as america disingenuously purports to be, etc.) previous:

Wall Street firm targets District-based energy practice (Washington Post) [ From one corrupt sinkhole (d.c. / no. virginia) to another, perhaps the largest ( wall street/new york/jersey/ct. metro); ho, hum. The pervasively corrupt american illegal system … corrupt u.s. courts / (lawyers) / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and costly bureaucracies. Rules of law mean nothing to these typically corrupt americans. Most, including sam alito of the u.s. supreme court, concerning  drug money laundering and obstruction of justice in the 3rd circuit ( also maryanne trump barry who covered-up drug money laundering through her brother’s casinos in a civil RICO case) should have gone to or belong in jail. Contrary to popular belief, they do it for the money, personal money, big, cash, untraceable money. The fog of war is great for such things (360 tons $100 bills flown into Iraq and missing, etc.).

 [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ]. america’s just a fraudulent and failed defacto bankrupt nation. ] It's part of a push by law firms to expand their D.C. footprint in an era of increased regulatory scrutiny.)

 

CBS declines to run ad submitted by NFL players union (Washington Post) [  As I’ve previously mentioned, I seldom comment on sports matters and don’t for a minute profess to even know the issues involved in this dispute. That said, I feel compelled to emphasize for what it’s worth in terms of this conflict, that like no other time before in the history of football and without any prospect of being less so on the horizon, pro football today is absolutely no joke. Those guys are big, and strong, and powerful and one can only wonder of the aches, pains, long-term injuries ‘the day after’. ]  Union officials suggest the ad was pulled in deference to the networks' financial ties to the NFL.

 

 

Exxon Mobil's profit soars, along with crude oil prices  (Washington Post) [ And, you forgot to mention, along with stock prices; right, in fraudulent wall street speak, the higher oil prices on debased dollar and insurmountable national debt rally. Incredibly, Japan’s debt has been down-graded (before u.s. debt) and compared to defacto bankrupt america, they’re as flush (with liquid reserves) as a over-flushed toilet.  Shiller Ratio Points to U.S. Equities Being Significantly Overvalued   [ Yes they are indeed; so take this especially great opportunity to sell, take profits since there’s much, much worse to come! That computer-programmed spike into the close to keep suckers suckered does not change the aforesaid. This is particularly evident in their attempt to cash in on that superstitious scam known as the ‘January effect’ by way of these manipulated bubble-making buy programs; you know, loosen / soften the suckers up for the coming year’s new fraud / scam. ] The 'January Effect' Is More Market Myth Than Sound Analysis ...  Kumar ‘…January of 1929, for example, was off to a brisk start as the Dow Jones Industrial Average climbed to 317 from 307. But investors would be slammed later in the year by a historic stock market crash that heralded the start of the Great Depression. January of 1987, too, began nicely. The Dow climbed to 2160 at the end of the month after starting out at 1927. But Black Monday would hit investors in October of that year, leading to the sharpest historical stock market decline in percentage terms. More recently, January 2001 had a strong showing when the Dow Jones finished the month at 10,887 after starting at 10,646. Those reading it as an auspicious beginning would be hit first by the further fallout from collapse of the dot-com bubble and then the massive decline following the September 11 terrorist attacks. See full article from DailyFinance: http://srph.it/cyaPDT ‘… Then, more recently there’s ‘The stock market scored a strong gain and locked in its first positive finish for January since 2007 (we all know what happened after that! Crash!) with help from the energy sector, which climbed sharply in response to a spike in oil prices.(Yahoo/Briefing.com) … Higher oil prices … riiiiight! … that sounds bull(s***)ish … on fraudulent wall street. ]    ] Exxon Mobil's fourth-quarter profit soared 53 percent thanks in large part to higher crude oil prices, which jumped Monday to their loftiest levels since 2008.

 

 

Mubarak seeks dialogue, shows no sign of relenting   Demonstrators call for massive protest but lack leadership  (Washington Post) [ He relented when he resorted to media / internet blackout. Indeed, this lack of sign thing is a testament to how far from reality 30 years has taken him, not to mention the other 52 years that have taken their toll on his cognitive processes. Whether it is plaques ‘on the brain’ or outright senility, that he is so disengaged from the events unfolding around him, one may only wonder how he lasted this long. Nor did his choice of cia standin / shill, new VP Suleiman enhance his now untenable position which leaves him as ‘done as a burnt enchilada’. ] Unlike other successful democratic uprisings, this one lacks charismatic personalities and any clear agenda beyond ousting Mubarak, elections.

 



 

 

 

 

 

 

Morgan Stanley: ETFs Post $2.8 Billion Net Outflows Last Week  Coleman ‘With unrest in Egypt and fading technical signals in many key emerging markets, it’s not surprising that Morgan Stanley’s (MS) Smith Barney analysts has found that ETFs attracted net outflows of $2.8 billion last week, the first pullback of a young 2011.

In a new report this afternoon, MSSB listed net outflows in the week were led by emerging markets stocks and commodities ETFs. Investors pulled more than a combined $5 billion from those two categories.

ETFs showing net inflows were: U.S. broad markets stocks ($89 million); U.S. mid-cap stocks ($278 million); U.S. dividend income ($574 million); leveraged/inverse ($125 million); international developed markets ($354 million).

Perhaps just as noteworthy, though, were stock categories that had big outflows:

Bond funds also had a good week, attracting $705 million, according to MSSB.

The biggest net outflows by a single ETF came from the iShares MSCI Emerging Markets Fund (EEM). It had nearly $2.7 billion outflows last week. The ETF now has posted the largest net outflows in one- , four - and 13- week periods.

The biggest gainer in terms of net inflows was the SPDR Dow Jones Industrial Average ETF (DIA). It had $776 million net inflows, says MSSB. The second most popular was the Vanguard Dividend Appreciation ETF (VIG).’

 

 

 

 

 

Don't Blame Egypt for Friday's Sell-Off  Janjigian ‘…many problems remain. The federal budget deficit is too large and the government is carrying too much debt. States and municipalities are drowning in public pension obligations. The unemployment rate is improving, but much too slowly. Mortgage delinquencies and foreclosures remain too high, there are too many homes available for sale, and housing prices remain depressed. Worldwide inflation is on the rise. There are even problems at the corporate level. Yes, corporate profits are strong, but the same cannot be said for sales. Many companies are reporting anemic growth on the top line at best. Others continue to see revenues decline. Corporations are squeezing more profits from fewer sales only by aggressively cutting costs. This kind of cost cutting cannot go on forever. All businesses eventually reach a point where more profits can be produced only from more sales. Most are probably at that point already... A 10 percent correction should not surprise anyone...’

 

 

 

 

Is the Market Headed for a Sell-Off? [ Yes … I agree, except that fundamentally the longer term prospects are even worse than his bearish outlook suggests (don’t forget the debasement of the dollar, manipulation, and spending / printing money the nation doesn’t have in real terms behind this manipulated uptick) and summarized as follows: ‘I suspect that this rally is on its very last legs. We should see a very healthy 10% or so correction within the next 1-2 week period ... This market is headed for a sell-off. ] Zaky ‘As the market scrutinizes President Obama's State of the Union Address, and looks to Bernanke & Co. for any signs as to when the Federal Reserve's inflationary stance toward monetary policy might be coming to an end, the Dow Jones Industrial Average (DJIA) will be attempting its 9th consecutive weekly gain for the first time since 1995.For the past 20 years, the Dow has managed countless 8-week rallies which have tended to almost always end very poorly on the 9th week. The only other time we've seen the Dow rally for 9 straight weeks was in the period between January and March 1995. Before that, we would have to go to the 1980's to find a 9 week period of consecutive gains.So the big question this week will be whether the Dow can buck the 8-week trend or whether we'll see a sell-off to end the week and the Dow streak at 8. What one should notice is how incredibly weak the overall market tends to become after 8 weeks of straight gains.

Below is a list of all the times the Dow gained 8 straight weeks since the mid-1990's, starting with the most recent:

1. March 2001 to April 2001

The Dow gained 8 straight weeks before experiencing a 100% retracement of the gains in a 20% correction which lasted all summer.

2. November 2003 to January 2004

The Dow gained exactly 8 weeks before topping out, trading sideways for 6 weeks and then traded down for nearly 10 months before rallying into year end. That 8-weeks period topped a nearly 9 month which was met with very heavy selling throughout the year.

3. October 2002 to December 2002

The Dow gained 8 straight weeks before putting in a decisive top and losing the entire move over the next 14 week period. The Dow experienced a near 30% slide after putting in a top at 8 consecutive up weeks.

4. January - March 1998

The Dow gained for 8 weeks straight, paused and then rallied a few more weeks before putting in a decisive top which led to a correction that retraced the entire move over the following 15 weeks. The Dow experienced a 25% correction after rallying relentlessly for 5 months.

5. January - March 1995

The Dow rallied 9 straight weeks, had a slight pull-back and then rallied all the way until year end. The market didn't see even a minor correction in all of 1995. The Dow rallied nearly 60% in 1995 alone.This history should outline just how over-extended this rally is becoming. There are only a few occasions in modern history where the Dow closed up for 8 consecutive weeks, and only 1 occasion in the last 16 years where the Dow closed in the green for 9 consecutive weeks.There is almost no profit taking in this market, which suggests that a lot of people and institutions have significant built-in gains. One piece of bad news and we're likely to see everyone heading to the exits at once. Rallies that have pull-backs tend to last significantly longer than those where we have months of consecutive weekly gains such as this one.Without consolidation and profit taking, these rallies tend to end very poorly. It is much healthier to see rallies where the DJIA pulls back every 2-3 weeks than these rallies where the Dow just shoots to the sky for 8 straight weeks. The above cases demonstrate this clearly.I suspect that this rally is on its very last legs. We should see a very healthy 10% or so correction within the next 1-2 week period. In fact, I believe it's quite possible that the highs of this rally can be put in during the next 1-2 trading sessions. Whatever the case may be, good buying opportunities present themselves in February and March. This market is headed for a sell-off.’

 

 

 

2011 Update: Another Lost Decade for Stocks - Are You Prepared?   [ I agree that this is but a (manipulated) bull cycle in a secular bear market with substantially worse to come! ]Kopas ‘In February 2010, we published an article on Seeking Alpha entitled “Another Lost Decade for Stocks - Are You Prepared?,” wherein we argued that the year 2000 marked a secular (long-term) peak for U.S. stocks. A secular bear market is formed when a series of business cycles are linked together, establishing an extended period of stock market under-performance. Our objective here is to bring you up-to-date on the progress of this secular bear market and help you prepare for the next ten years.

The first benchmark we monitor is U.S. stock prices adjusted for inflation. In this chart below, we compare the U.S. stock market to the Shiller 10-year Price/Earnings ratio. This P/E ratio is an indication of investor confidence; a lack of that signals extreme valuation levels. Our conclusion is that investor psychology is still too optimistic and has a long way to go before reaching an undervalued stock market level.

[chart] click to enlarge

Updating our duration and valuation benchmarks, again we find progress, but not yet achieving the truly undervalued levels we expect to see toward the end of a secular bear market. Based upon previous cycles, it appears we are only slightly past the half way mark in terms of years, number of recessions, and valuations. A look at our chart and table comparing this to earlier secular bear markets illustrates our conclusion. We expect that a major bottom for inflation adjusted stock prices is still years away before stocks finally gravitate toward the target area outlined below.

[chart]

New Benchmark: Tobin Q Ratio

In this update we introduce another relative valuation benchmark created by Yale economics professor and Nobel laureate James Tobin, hence the name Tobin’s Q Ratio. The Q ratio is calculated as the total value of the stock market divided by the replacement cost of all its companies. Values greater than 1 indicate stock prices sell above their replacement cost and are therefore “expensive.” A reading below 1 indicates stocks can be bought below replacement cost and therefore indicates that it is cheaper to buy a company than to build one.

A long-term view of the Q ratio gives investors a good understanding of value, information about current risk levels and a method to assess probable returns for the long term. Secular bear markets historically bottom when the Q ratio declines to a bargain level less than .4, meaning stock prices sell for just 40% of replacement value. Today’s reading of 1.03 is above the average reading of .75 and considerably higher than the average secular low reading of .33. Investors beware; stocks have considerable more downside potential before the Q ratio truly reflects a great valuation. Buy and Hold tactics will continue to frustrate investors, just as they have in the past decade.

[chart]

In conclusion, none of the benchmarks we evaluate indicate we are anywhere close to a secular stock market bottom yet. In the meantime, a prudent and profitable investment strategy should be flexible enough to actively adjust portfolio asset allocation, depending on where we are in the business cycle and the direction of the secular trend.’

 

 

 

Home Prices Declining as Expected Minyanville/ Suttmeier ‘Reviewing My No.1 Theme for 2011: Home prices will resume a decline that began in mid-2006. We had the homebuyer tax credits expire in mid-2010, and government-sponsored mortgage modifications provided limited help. In 2011 we face continued foreclosure issues including questionable documentation, and banks have a record high Other Real Estate Owned (OREO). OREO is up to $53.2 billion at the end of the third quarter, up 338.2% since the end of 2007. Depressed home sales are being sold at a 30% to 35% discount, which reduces property appraisals at the county level. Homebuilders will have to compete with these lower prices and we need a mortgage modification program for all Americans, not just those at risk of losing their homes. QE2 (quantitative easing) is not working and US Treasury yields are higher, causing mortgage rates to rise. “The Great Credit Crunch” began with housing, and that foundation needs repair before Main Street can recover with sustainable job creation.

The S&P / Case-Shiller Home Price Index -- Points to lower home prices through November. [chart]

The Federal Housing Finance Agency (FHFA) also shows a year-over-year house price decline of 4.3% in November. [chart] [chart]
House prices will continue to decline as long as the Conference Board’s reading on Consumer Confidence remains weak. The Conference Board's reading on Consumer Confidence jumped to 60.6 in January from 53.3 in December, but keep in mind that the neutral zone for this measure is 90 to 120, so consumer confidence remains extremely weak. Show me readings between 90 and 120 and home prices will stabilize.

Stocks will peak this week, or will confirm recent highs as a peak over the next few weeks

Stocks remain overvalued fundamentally according to ValuEngine with 15 of 16 sectors overvalued and only 38.9% of all stocks undervalued. This follows last week’s ValuEngine Valuation Warning where just 33.3% of all stocks were undervalued. Below 35% is the warning. All major averages are extremely overbought on there weekly charts and my Proprietary Analytics show weekly risky levels at 12,162 Dow, 1333.9 S&P 500, 2805 Nasdaq, 5321 Dow Transports, and 828.86 Russell 2000. There is an 85% chance that the Dow will decline to my annual pivot at 11,491 and the Dow Transports and Russell 2000 ended last week below their annual pivots at 5179 and 784.16 respectively.

10-Year Note -- (3.317) The yield continues to trade in a range set in December -- between 3.568 on December 16 and 3.247 set on December 20.

Comex Gold -- ($1333.3) Gold is now oversold on its daily chart with daily and semiannual value levels at $1316.1 and $1300.6 with quarterly and annual pivots at $1331.3 and $1356.5. Gold is trending below its 50-day simple moving average now at $1378.5.

Nymex Crude Oil -- ($87.82) Crude oil is now trending below its 50-day simple moving average at $87.96 with the 200-day at $80.48. My semiannual pivot remains at $87.52.

The Euro -- (1.3643) This week’s value level is 1.3398 with chart resistance at 1.3786 as the euro becomes overbought on its daily chart.

Daily Dow -- (11,977) The daily chart is overbought after setting a new high for the move at 11,985.97 Tuesday morning. This week’s risky level is 12,162. My annual value level remains at 11,491. There are negative divergences for the S&P 500, Nasdaq, Transports, and Russell 2000. Dow Transports are flirting with a close below its 50-day simple moving average at 5047.’

 

 

 

Economist: United States Worse Off than Greece Dr. Laurence Kotlikoff is an economics professor at Boston University. He says the Treasury and the government are fudging the national debt numbers. Kotlikoff says the United States is bankrupt and we don’t even know it.

 

 

 

Mortgage Finance Overhaul to Raise Costs, Reduce Home-Ownership Bloomberg | In spite of differences between Democrats and Republicans on reforming housing finance, both sides back proposals that would make mortgages more expensive and difficult to obtain.

 

Goldman Sachs Director: Egyptians, Greeks, Tunisians and British Protesting Against Pillaging of Economies Washington’s Blog | When a country relinquishes its financial system and its population’s well-being to the pursuit of ‘good deals’, there is going to be substantial fallout.

 

Afghan Officials Shielded Bank From Scrutiny WSJ | Investigators probing massive fraud that nearly brought down Afghanistan’s largest bank have found the lender avoided scrutiny for years by giving clandestine loans—and sometimes outright bribes—to senior Afghan officials, said Afghan and U.S. officials and former bank insiders.

 

 

AAA Rating Tough to Defend as U.S. Debt Soars Last week, Standard & Poor’s lowered Japan’s bond rating to AA-, the fourth-highest level. By that standard, the U.S. got away with a slap on the wrist from Moody’s Investors Service, which warned merely that “the probability of assigning a negative outlook in the coming two years is rising.”

 

ATMs Running Out Of Cash In Egypt, While Traders Pull Up To $500 Million Per Day From Country Not surprisingly, ATMs have apparently run out of cash — no doubt fueled by aggressive withdrawals and the inability to refill them.

 

China Central Bank Advisor Urges Increase In Official Gold And Silver Reserves And so the long anticipated incursion by the PBOC, whose holdings of gold are behind even those of GLD, begins.

 

Former Managing Director of Goldman Sachs: Egyptians, Greeks, Tunisians and British Are All Protesting Against Pillaging of Their Economies Nomi Prins – former managing director of Goldman Sachs and head of the international analytics group at Bear Stearns in London – notes that the Egyptian people are rebelling against being pillaged by giant, international banks and their own government as much as anything else.

 

 

 

 

National / World

 

 

 

Senator Schumer doesn’t know the three branches of government Infowars.com | Schumer says the three branches of government are the Senate, the House, and the president.

 

 

 

Mubarak May Flee to Israel, Not Saudi Arabia Kurt Nimmo | The Israelis support Mubarak’s war against his own people.

 

Cairo: Anger starting to focus on Israel, US Saturday’s optimism on the streets of Cairo for imminent political change gave way to anger on Sunday, as thousands of demonstrators became increasingly frustrated with the lack of response from major world leaders, especially the US.

 

Obama will go down in history as the president who lost Egypt The street revolts in Tunisia and Egypt show that the United States can do very little to save its friends from the wrath of their citizens.

 

W O R L D W I D E : r E V O L U T I O N Moving video summarizing recent events in Egypt, the wider Middle East and the global fallout. Human beings around the world are speaking out, and the message is clear – WE WILL NOT LIVE ON OUR KNEES.

 

Cashless Society: ‘Facebook Nation’ unveils its new currency Patrick Henningsen | With the introduction of a cashless society, citizens are also likely to lose their identities associated with national currencies like American Dollars, or British Sterling.

 

Kill Switch: Obama Administration Fears Egypt-Style Revolt In U.S. Paul Joseph Watson | Obama decries Internet shut-down in Egypt while his own administration prepares to enact same draconian powers to crush dissent during times of political upheaval in America.

 

Globalist Stooge ElBaradei Prepares To Hijack Egyptian Revolution Paul Joseph Watson | Won’t get fooled again? Zbigniew Brzezinski tells Mubarak to step down.

 

Florida Judge Rules Obamacare Unconstitutional A judge in Florida on Monday became the second judge to declare President Barack Obama’s healthcare reform law unconstitutional, in the biggest legal challenge yet to federal authority to enact the law.

 

Kill Switch: Obama Administration Fears Egypt-Style Revolt In U.S. The Obama administration is busy attempting to pass legislation that would give the President a kill switch for the Internet in the United States while at the same time decrying Egyptian authorities for shutting down the Internet in a bid to deflate the unfolding revolution against Hosni Mubarak. The reason is simple – the government fears an Egypt-style revolt occurring in the U.S. and wants to block access to the world wide web if and when it happens.

 

Mubarak May Flee to Israel, Not Saudi Arabia Aljazeera is reporting that its sources indicate Egyptian dictator Hosni Mubarak will flee to Israel. It was earlier speculated that he would take refuge in Saudi Arabia.

 

Corporate US Media’s Woeful, Sanitized Egypt Coverage Amounts To Censorship While the ailing dictatorship government in Egypt is busy rounding up and arresting Al Jazeera journalists in an attempt to control the release of footage and accounts of the mass uprising going on throughout the entirety of the country, the disgraceful corporate American media has once again shown itself to be just as strictly regulated in terms of the content it provides to viewers.

 

Globalist Stooge ElBaradei Prepares To Hijack Egyptian Revolution Zbigniew Brzezinski has called for Egyptian President Hosni Mubarak to step down as globalist stooge Mohammed ElBaradei prepares to act as the pied piper for a revolution that has been hijacked by the global elite.

 

Egypt protesters call strike, ‘million man march’ Egyptian protesters on Monday called for an indefinite general strike and a “million man march” on Tuesday in Cairo, upping the stakes in their bid to topple President Hosni Mubarak’s creaking regime.

 

 

 

Israel urges world to curb criticism of Egypt’s Mubarak [ War crimes, illegal nukes nation israel’s kiss of death for mubarak. ] Haaretz | Israel called on the United States and a number of European countries over the weekend to curb their criticism of President Hosni Mubarak to preserve stability in the region.

 

 

 

Is the Egyptian Government Using Agents Provocateur to Justify a Crack Down On the Protesters? Washington’s Blog | If intelligence agencies or federal, state or local police commit acts of violence against people or property, and then blame it on peaceful protesters, that is false flag terror.

 

The Evolving Populist Political Rebellion in the Arab World Dave Lefcourt | Our hubris and exceptionalism assumes we control the world.

 

Tarpley: Egypt Uprising is US-UK Destabilization Campaign Russia Today | British speak through Al-Jazeera, Tarpley contends.

 

Omar Suleiman: CIA’s Point Man in Egypt Jane Mayer | Mubarak appointed his intelligence chief and confidant Omar Suleiman to vice-president post on Saturday.

 

150 Dead as Egypt Tilts Toward Lawlessness Sify News | Gangs of armed men helped free thousands of prisoners and looters rampaged malls, banks and jewelery stores.

 

 

Top Egyptian Military Officials Cut Short Meetings in U.S. Marine Gen. James Cartwright, vice chairman of the Joint Chiefs of Staff, said that the talks involving Egyptian military officials have been aborted because of the developments. The discussions had been scheduled to run through next Wednesday, February 2.

 

Alex Jones: Corporations, US Government Run News Media Several huge corporations own networks and newspapers in the US. How much of the content do they control? Radio Host Alex Jones says the old media is too close to not only corporations, but the government too. Many Americans are turning to alternative online sources for the truth, but Google, which Jones alleges was created by the NSA, will soon start to censor alternative news outlets.

 

Inequality In America Is Worse Than In Egypt, Tunisia Or Yemen Egyptian, Tunisian and Yemeni protesters all say that inequality is one of the main reasons they’re protesting.

 

CNBC Host Erin Burnett Implies America Should Support Foreign Dictators To Keep Flow Of Cheap Oil “One more thing,” Burnett remarked. “If this spreads, the United States could take a huge hit because democracy in a place like Saudi Arabia, you’ve talked about who might come in power, what that means for oil prices. They’re going to go stratospheric.”

What Is Globalization? What is globalization? Well, if you ask 100 different Americans you will probably get 100 different answers. Many people view globalization as harmless or even as a good thing. Other Americans believe that the United States will never be integrated into a global economic and political system.

 

Brad Meltzer’s Decoded: Bohemian Grove Best-selling author Brad Meltzer and his team try to penetrate Bohemian Grove, one of America’s most tightly guarded gatherings of the rich and powerful. The Decoded team converges on the group’s hideaway in a northern California redwood forest to pursue rumors of ritual sacrifice and secret agreements that control the lives of everyday Americans.

 

The Egypt Protests in Photos Some breathtaking photos of the anti-government revolution in Egypt. WARNING – some of these images are graphic and disturbing.

 

Middle Britain’s tax rates ‘could rise to 83%’ Nearly a million people will see their tax rates soar as the government’s austerity package kicks in this spring, potentially to as high as 83%.

 

Is the Egyptian Government Using Agents Provocateur to Justify a Crack Down On the Protesters? Ayman Mohyeldin reports that eyewitnesses have said “party thugs” associated with the Egyptian regime’s Central Security Services – in plainclothes but bearing government-issued weapons – have been looting in Cairo. Ayman says the reports started off as isolated accounts but are now growing in number.

 

Death toll in Egypt’s protests tops 100: sources More than 100 people have been killed during anti-government protests that have swept Egypt, according to a Reuters tally of reports from medical sources, hospitals and witnesses.

 

Egypt vigilantes defend homes as police disappear Egyptians armed with sticks and razors have formed vigilante groups to defend their homes from looters after police disappeared from the streets following days of violent protests.

 

‘US’ weapons witnessed in Egypt A lot of anger has shifted to international influences in Egypt as protesters witness “made in USA” labels on the weapons used against them, says Press TV’s correspondent.

 

 

 

Drudgereport: JUDGE RULES HEALTH CARE LAW UNCONSTITUTIONAL
Judge cites Obama's own position from 2008 campaign...

Brent crude oil above $100 for 1st time since 2008...
FLASHPOINT

Fighter jets swoop over Cairo in show of force...
Mubarak meets with military commanders...
Generals tell him to quit...
Troops move into Tahrir square as curfew passes...
ElBaradei joins protesters in square...
Says US 'losing credibility by the day'...
Clinton calls for 'orderly transition'...
'We're not advocating any specific outcome'...
Convicts pour out of prisons...
UPDATE: 100+ dead; 2,000 injured...
Flights out halted, tourists trapped...
But 19 private jets get out...
Egypt shuts down Al Jazeera bureau...
LIVE STREAM...
OBAMA CONFUSES IRAQ WITH AFGHANISTAN...

Will be out 'by the end of this year'...
Scientists Discover: Chimpanzees mourn their dead just like humans!

11% of All US Homes Are Now Empty...

 

 

 

 

 

 

Egyptian capital teeters on anarchy  Mubarak asks cabinet to resign as anti-regime protests intensify  (Washington Post) [ Mubarak should have been looking in the mirror as he asked his cabinet to resign … 30 years is a long time, and coincidentally, time for him to go.   In Egypt: Access denied (Washington Post) [The day part of the Internet died: Egypt goes dark [I disagree! Part of the internet didn’t die, but rather the order to so darken the nation heralded the demise, at 30 years and counting, of the so-called leadership in the persona of Mubarak. Time for him to go! After all, he’s been in a position, with Egypt among the only Mideast nations to have signed a peace treaty with israel, to have stepped up with substantial credibility in taking a strong position against israeli transgressions, violations of international law / u.n. resolutions, war crimes, etc., which beyond soft-touch, he failed to do. And, of all places, he sends his family to Orwellian england; he still loves those colonial masters … how pathetic. I mean, 30 years … how free-flowing does anyone think the election process is at this point … and one could ask the same regarding the entrenched powers that be in pervasively corrupt, defacto bankrupt america, to be fair. Then there’s saudi arabia; talk about do nothing hypocrites. How does one family claim ownership of all the oil reserves of a sovereign nation; I suspect only when foreign corporations say so. The only Mideast nations showing backbone are Turkey, Lebanon, and Syria, and, of course the perennially propaganda painted bad-boy Iran among possibly some of the smaller emirates, ie., Qatar, etc., (I lack sufficient information regarding these other nations).  ] (AP)         Internet cutoff fails to silence Egypt protests (AP) - AP - In its effort to silence protesters, Egypt took a step that's rare even among authoritarian governments: It cut off the Internet across the entire country.       Mubarak fires Cabinet, defends army’s efforts   Sat, 29 Jan 2011 00:20:58 GMT  Egyptian President Hosni Mubarak dismisses his Cabinet, calls on the army to help put down rising potests...     Egypt's Mubarak sends in army, resists demands to quit (Reuters) - 1 hour agoReuters - Egyptian President Hosni Mubarak refused on Saturday to bow to demands that he resign after ordering troops and tanks into cities in an attempt to quell an explosion of street protests again...        ]      Embattled leader's move falls far short of demands that he give up his 30-year authoritarian rule, leave the country and permit fresh elections.

 


Israel watches Arab turmoil closely, but comments cautiously Washington Post) [ Illegal nuke-totin’ war crimes nation israel, watch this closely since the same was a long time coming …   GOP senator favors cutting US aid to Israel (AP)  ( Now this is a great and long overdue idea that might also lead to enhanced peace efforts for the region; b e c a u s e , israel will have less money to waste on provocative and costly (particularly to america financially and geopolitically) war games. ) AP - Tea party-backed Republican Sen. Rand Paul favors cutting U.S. aid to Israel as part of a deficit-driven effort to slash government spending by $500 billion this year, drawing criticism from Dems (and capital hill generally as Buchanan once described as israeli occupied territory, to america’s detriment) ...  Rand Paul: End Aid to Israel Pressed on CNN’s Situation Room about details on his budget cut plans, Sen. Rand Paul (R-Ky.) says end all foreign aid–and when pressed further says that includes to Israel. ]

 

Economic growth strengthened (Washington Post) [  Wow! Mr. Irwin’s back to his glass very much half full ways. The question is, is Mr. Irwin trying to convince himself, or disingenuously trying to convince his readers. After all, in reality, they’re really hasn’t been sufficient  ‘bang for the buck’ (Fed Continues Failed Monetary Policy Suttmeier, chief market strategist at ValuEngine.com

‘Fed Is Continuing a Failed Monetary Policy (And, amazingly, their rationale is the same failed rationale that preceded the last bubble, as now, crash, as will, that was spun by senile greenspan that wall street frauds / insiders sold into; you know, that so called wealth effect which in reality is theirs not yours; viz., their gain, your pain.)
 

Employers remain reluctant to add to payrolls. The housing sector continues to be depressed. Although commodity prices have risen, longer-term inflation expectations have remained stable, and measures of underlying inflation have been trending downward. ) Moreover, and most importantly, those are more than just in short supply; they’re not really there! ( Economist: United States Worse Off than Greece Dr. Laurence Kotlikoff is an economics professor at Boston University. He says the Treasury and the government are fudging the national debt numbers. Kotlikoff says the United States is bankrupt and we don’t even know it.   BRACE YOURSELF: Moody’s Basically Just Threatened To Downgrade The US A day after S&P downgraded Japan’s debt, the attention turns to the US.  )]   Data show that the recovery is becoming deeper and broader.

 

U.S. stocks drop sharply as protests intensify in Egypt (Washington Post) [Egypt riots knock Wall St to biggest drop in 6 months (Reuters) – [ No! That’s not correct! They probably would like you to think that … some unforeseeable problem from out of nowhere deflating their contrived fraudulent bubble that they always manage to sell into. But the fact is the market’s overvalued to a point again beyond the pale … another inflated point that the wall street frauds always seem to find some reason other than the reality of a fraudulently manipulated overvalued bubble to sell into. ] Reuters - Stocks suffered their biggest one-day loss in nearly six months on Friday as anti-government rioting in Egypt prompted investors to flee to less risky assets to ride out the turmoil.  ] U.S. stocks decline as violent clashes in Egypt inject a jolt of anxiety into global financial markets

In Egypt: Access denied (Washington Post) [The day part of the Internet died: Egypt goes dark [I disagree! Part of the internet didn’t die, but rather the order to so darken the nation heralded the demise, at 30 years and counting, of the so-called leadership in the persona of Mubarak. Time for him to go! After all, he’s been in a position, with Egypt among the only Mideast nations to have signed a peace treaty with israel, to have stepped up with substantial credibility in taking a strong position against israeli transgressions, violations of international law / u.n. resolutions, war crimes, etc., which beyond soft-touch, he failed to do. And, of all places, he sends his family to Orwellian england; he still loves those colonial masters … how pathetic. I mean, 30 years … how free-flowing does anyone think the election process is at this point … and one could ask the same regarding the entrenched powers that be in pervasively corrupt, defacto bankrupt america, to be fair. Then there’s saudi arabia; talk about do nothing hypocrites. How does one family claim ownership of all the oil reserves of a sovereign nation; I suspect only when foreign corporations say so. The only Mideast nations showing backbone are Turkey, Lebanon, and Syria, and, of course the perennially propaganda painted bad-boy Iran among possibly some of the smaller emirates, ie., Qatar, etc., (I lack sufficient information regarding these other nations).  ] (AP)         Internet cutoff fails to silence Egypt protests (AP) - AP - In its effort to silence protesters, Egypt took a step that's rare even among authoritarian governments: It cut off the Internet across the entire country.       Mubarak fires Cabinet, defends army’s efforts   Sat, 29 Jan 2011 00:20:58 GMT  Egyptian President Hosni Mubarak dismisses his Cabinet, calls on the army to help put down rising potests...     Egypt's Mubarak sends in army, resists demands to quit (Reuters) - 1 hour agoReuters - Egyptian President Hosni Mubarak refused on Saturday to bow to demands that he resign after ordering troops and tanks into cities in an attempt to quell an explosion of street protests again...        ]

Unrest in Egypt has been ongoing all week, but the Internet only seemed to take notice when it affected the Internet. The chilling aspect of an Internet clampdown is the assumption that lies behind it: If you will not let your people tweet, what else will you not let them do?

 

 

 

 

 

 

Dow Will Find Top With a 12,000 Handle Minyanville ‘Editor's Note: This article was written by Richard Suttmeier, chief market strategist at ValuEngine.com, which is a fundamentally based quant research firm in Princeton, New Jersey, that covers more than 5,000 stocks every day.

The yield on the US Treasury 10-Year note has formed a trading range between 3.568 and 3.247 balanced by supply, fears of inflation, and QE2 buying by the Federal Reserve. Comex gold declined as expected and now faces my semiannual value level at $1300.6. Nymex crude oil failed below its semiannual pivot at $87.52 as the $92.00 a barrel barrier proved to be resistance. The euro has become stronger than expected after holding 1.3225, but faces a daily risky level at 1.3828 today. Stocks are overvalued fundamentally and overbought technically. The Dow Industrial should find a top above 12,000 just as 14,000 was a barrier in October 2007.

10-Year Note -- (3.385) Daily, weekly, annual, and semiannual value levels are 3.438, 3.758, 3.791, and 4.268 with annual, semiannual, and monthly risky levels at 2.690, 2.441, 2.322, and 2.150.

10 Year Note

Source: Thomson / Reuters

Comex Gold -- ($1311.3) Semiannual and annual value levels are $1300.6 and $1187.2 with a daily pivot at $1319.2, quarterly and annual pivots at $1331.3 and $1356.5, and weekly, monthly, quarterly, and semiannual risky levels at $1390.9, $1439.0, $1441.7, and $1452.6.

Comex Gold

Source: Thomson / Reuters

Nymex Crude Oil -- ($85.42) My monthly value level is $75.74 with daily and semiannual pivots at $84.80 and $87.52, and weekly, annual, semiannual, and quarterly risky levels at $95.34, $99.91, $101.92, $107.14, and $110.87.

Nymex Crude Oil

Source: Thomson / Reuters

The Euro -- (1.3725) Weekly, quarterly, and monthly value levels are 1.3398, 1.3227, and 1.2805 with a daily risky level at 1.3828. Semiannual and annual risky levels are 1.4624, 1.4989, 1.6367 and 1.7312.

Euro Chart

Source: Thomson / Reuters

Daily Dow: (11,990) Annual, quarterly, semiannual, monthly, and semiannual value levels are 11,491, 11,395, 10,959, 10,427, and 9,449 with daily, weekly, and annual risky levels at 12,053, 12,162, and 13,890.

Dow Chart

Source: Thomson / Reuters

 

Stocks remain overvalued fundamentally according to ValuEngine with all 16 sectors overvalued and only 35.6% of all stocks undervalued. This follows last week’s ValuEngine Valuation Warning, which will renew if less than 35% of stocks are undervalued.

 

All major averages are extremely overbought on their weekly charts...'

 

 

 

 

U.S. Markets Hit With Sharp Declines on Earnings, Middle East Turmoil Midnight Trader ‘4:10 PM, Jan 28, 2011 --

GLOBAL SENTIMENT

 

 

 

Regulators shut banks (11 so far in 2011)  in Colo, NM, Okla, Wis

 

 

 

 

The day part of the Internet died: Egypt goes dark [I disagree! Part of the internet didn’t die, but rather the order to so darken the nation heralded the demise, at 30 years and counting, of the so-called leadership in the persona of Mubarak. Time for him to go! After all, he’s been in a position, with Egypt among the only Mideast nations to have signed a peace treaty with israel, to have stepped up with substantial credibility in taking a strong position against israeli transgressions, violations of international law / u.n. resolutions, war crimes, etc., which beyond soft-touch, he failed to do. And, of all places, he sends his family to Orwellian england; he still loves those colonial masters … how pathetic. I mean, 30 years … how free-flowing does anyone think the election process is at this point … and one could ask the same regarding the entrenched powers that be in pervasively corrupt, defacto bankrupt america, to be fair. Then there’s saudi arabia; talk about do nothing hypocrites. How does one family claim ownership of all the oil reserves of a sovereign nation; I suspect only when foreign corporations say so. The only Mideast nations showing backbone are Turkey, Lebanon, and Syria, and, of course the perennially propaganda painted bad-boy Iran among possibly some of the smaller emirates, ie., Qatar, etc., (I lack sufficient information regarding these other nations).  ] (AP)         Internet cutoff fails to silence Egypt protests (AP) - AP - In its effort to silence protesters, Egypt took a step that's rare even among authoritarian governments: It cut off the Internet across the entire country.       Mubarak fires Cabinet, defends army’s efforts   Sat, 29 Jan 2011 00:20:58 GMT  Egyptian President Hosni Mubarak dismisses his Cabinet, calls on the army to help put down rising potests...     Egypt's Mubarak sends in army, resists demands to quit (Reuters) - 1 hour agoReuters - Egyptian President Hosni Mubarak refused on Saturday to bow to demands that he resign after ordering troops and tanks into cities in an attempt to quell an explosion of street protests again...      

 

 

 


 

 

 

Egypt riots knock Wall St to biggest drop in 6 months (Reuters) – [ No! That’s not correct! They probably would like you to think that … some unforeseeable problem from out of nowhere deflating their contrived fraudulent bubble that they always manage to sell into. But the fact is the market’s overvalued to a point again beyond the pale … another inflated point that the wall street frauds always seem to find some reason other than the reality of a fraudulently manipulated overvalued bubble to sell into. ] Reuters - Stocks suffered their biggest one-day loss in nearly six months on Friday as anti-government rioting in Egypt prompted investors to flee to less risky assets to ride out the turmoil.

 

 

 

 

GOP senator favors cutting US aid to Israel (AP)  [ Now this is a great and long overdue idea that might also lead to enhanced peace efforts for the region; b e c a u s e , israel will have less money to waste on provocative and costly (particularly to america financially and geopolitically) war games. ]  AP - Tea party-backed Republican Sen. Rand Paul favors cutting U.S. aid to Israel as part of a deficit-driven effort to slash government spending by $500 billion this year, drawing criticism from Dems (and capital hill generally as Buchanan once described as israeli occupied territory, to america’s detriment) ...  Rand Paul: End Aid to Israel Pressed on CNN’s Situation Room about details on his budget cut plans, Sen. Rand Paul (R-Ky.) says end all foreign aid–and when pressed further says that includes to Israel.

 

 

 

 

FCIC Done; Lets Banksters Skate: Dave's Daily ‘The Financial Crisis Inquiry Commission (FCIC), after months of investigation, concluded this entire mortgage crisis was avoidable. Whew! Who knew?!? Bank stocks were up today despite some suggestion from the commission report of some criminal referrals. It must not have been any of Da Boyz at Goldman unless they're going after maintenance staff. Some of the elite are getting steamed as Jamie Dimon lost his cool while sipping Perrier at a panel in Davos. He didn't say he was doing "God's work," just not Satan's. Meanwhile back at Wall & Broad markets did little overall with most excitement centered on NFLX which beat the pants off earnings estimates and rose a modest 15%. Also higher were semi's and GE. More POMO on Thursday which is something we'll just have to get used to until June unless there's QE3. Economic data was disappointing as Jobless Claims soared and Durable Goods orders fell. Pending Home Sales were high but on must wonder how much of these were foreclosure resales as this activity reached new highs last month. Gold was knocked down sharply through what we've estimated as technical support as investors are scrambling out of its safe-haven appeal and into stocks...so it's said. Most commodities were dragged lower by this action. Just at the close MSFT reported disappointing results and after the close AMZN did the same with the stock now down over 10% as this is written. We did an interview with Tony Davidow, Managing Director, Portfolio Strategist, Rydex SGI Investments where we discuss equal weight sectors including their new emerging market equal weights which should prove interesting. Volume was once again quite light but breadth was positive per the WSJ.’

 

 

 

 

 

Paulson's $5 billion payout shocks, raises questions (Reuters) [ Shock? Come on … everyone knows that crime in america pays … and pays well! ]

 

 

 

 

 

Fed Continues Failed Monetary Policy Suttmeier, chief market strategist at ValuEngine.com

‘Fed Is Continuing a Failed Monetary Policy (And, amazingly, their rationale is the same failed rationale that preceded the last bubble, as now, crash, as will, that was spun by senile greenspan that wall street frauds / insiders sold into; you know, that so called wealth effect which in reality is theirs not yours; viz., their gain, your pain.)
 


Fed policy includes the continuation of QE2, which is the purchase of $600 billion of longer-dated US Treasuries to be completed by the end of the second quarter. We are in the midst of this program that is failing to bring down US Treasury yields as intended. The yield on the 10-Year US Treasury was at 2.334 on October 8 in anticipation of QE2 then traded as high as 3.568 on December 16. This keeps the housing market depressed, which is a Fed concern.

Fed Policy has kept the funds rate at 0% to 0.25% since December 16, 2008, and expects to maintain that rate for a continued extended period. I have argued for years that the FOMC should never have pushed the funds rate below 3%. Lower rates hurt citizens living on a fixed income, and invites Wall Street speculation. Monetary policy focuses on creating and popping asset bubbles, which has destroyed consumer confidence and leaves businesses reluctant to create jobs.

New Home Sales rose 17.5% in December to an annual rate of 329,000, but this is skewed by an unexplained 71.9% gain out West. For 2010 as a whole, single-family home sales fell 14.4% to a record low 321,000 units. The Commerce Department began tracking this statistic in 1963. The inventory of new homes is now at the lowest level in more than 40 years as home builders cannot obtain the credit needed to meet potential higher demand in 2011. The National Association of Home Builders indicated that the 71.9% rise in sales in the West may have been caused by contracts signed ahead of costly new building codes going into affect in some states this month.

The Mortgage Bankers Association reported that mortgage loan applications decreased 12.9% on a seasonal basis last week. The Refinance Index decreased 15.3% and reached the lowest level since last January. The Purchase Index fell 8.7%, to its lowest level since October, and 20.8% lower year over year…’


 

 

 

 

Jobless Claims Rise to Highest Level Since October [ Jobless claims much worse than expected … stocks rally. ] NEW YORK (TheStreet) -- The number of Americans filing unemployment claims rose to its highest level since October last week, the Labor Department said early Thursday. The advance figure for seasonally adjusted initial claims increased by 51,000 to 454,000 in the week ended Jan.22 after dropping to 403,000 in the previous week. Economists were expecting initial claims to rise to 410,000, according to consensus estimates from Briefing.com. The number of Americans filing continuing claims -- those who have been receiving unemployment insurance for at least a week -- came in higher than expected as well at 3.99 million for the week ended Jan.15, an increase of 94,000 from the previous week's revised figure of 3.89 million. Consensus estimates projected continuing claims to drop slightly to 3.83 million from 3.86 million reported the previous week…’

 

Earnings Drag Dow Down to Another 12000 Closing Miss…Orders for goods expected to last at least three years fell and a reading of manufacturing activity in the Federal Reserve Bank of Kansas City's district slowed sharply in January…Japan's long-term credit rating to double-A-minus from double-A, citing concerns over the country's high debt levels…better-than-expected reading of pending sales of existing homes (foreclosures / distressed sales – Drudgereport: Foreclosure activity up across metro areas...  ), coupled with a surprisingly large jump in jobless claims didn't add clarity to the economic outlook (dismal) …

 

 

Microsoft's Windows disappoints as PC sales wane (Reuters)

 

 

 

 

Economist: United States Worse Off than Greece Dr. Laurence Kotlikoff is an economics professor at Boston University. He says the Treasury and the government are fudging the national debt numbers. Kotlikoff says the United States is bankrupt and we don’t even know it.

 

Peter Schiff: FCIC is a sham! The Financial Crisis Inquiry Commission report on the 2008 financial crisis will spread the blame all around to everyone from federal regulators to corporate overseers to all kinds of government officials. But is it all for show? Peter Schiff, the president of Euro Pacific Capital argued the entire commission was a $10 million sham designed to conclude the government’s own pre-conceived notions. The report said the crisis was the result too few government regulations, when in fact government regulations caused the problem, he contended.

 

US Crisis Blame & Shame: Banksters still on Easy Street A report on causes of the recent global financial crisis has sparked anger over the authors of the meltdown. The document released by a US investigative commission, points finger at the country’s economic elite. But, as RT’s Lauren Lyster reports, previous experience showed those responsible are likely to go unpunished.

 

BRACE YOURSELF: Moody’s Basically Just Threatened To Downgrade The US A day after S&P downgraded Japan’s debt, the attention turns to the US.

 

 

National / World

 

 

 

 

Egypt: U.S. Puppet Regime On Verge of Collapse Kurt Nimmo | Mubarak and his knuckle-dragging dictatorship are crucial to the foreign policy of the United States.

 

Egypt’s Internet Kill Switch: Coming To America Steve Watson | Internet intelligence authority Renesys has confirmed that “virtually all of Egypt’s Internet addresses are now unreachable, worldwide.”

 

Brzezinski’s Feared “Global Awakening” Has Arrived Paul Joseph Watson | Monumental worldwide rallying cry for freedom threatens to derail new world order agenda.

 

Protesters Storm Government Buildings in Cairo FoxNews.com | Thousands of protesters try to storm the foreign ministry, state TV building in Cairo, defying curfew.

 

Resist the New World Order: V for Victory Campaign Entries Infowars.com | Our campaign to fight against the police state control grid gains momentum

 

Protesters in Egypt Flash ‘V For Victory’ Sign As Dictatorial Regime Nears End The V for Victory sign has become symbolic of the anti-government protests in Egypt, where Egyptians are demonstrating for the end of the 30-year dictatorial Mubarak regime and the institution of political representation, freedom of speech and the right to dissent without being tortured by secret police. Egyptians have also seen their quality of life eviscerated by soaring food inflation as a result of acts of financial terrorism launched by the global banking elite.

 

Are We Witnessing the Start of a Global Revolution? It seems as if the world is entering the beginnings of a new revolutionary era: the era of the ‘Global Political Awakening.’ While this ‘awakening’ is materializing in different regions, different nations and under different circumstances, it is being largely influenced by global conditions.

 

The Smartest President Ever? : Obama Confuses Iraq and Afghanistan The president twice referred to Afghanistan when clearly talking about the situation in Iraq.

 

Brzezinski’s Feared “Global Awakening” Has Arrived Zbigniew Brzezinski’s much feared “global political awakening” is in full swing. Revolts in Egypt, Yemen, Tunisia and other countries represent a truly monumental worldwide rallying cry for freedom that threatens to immeasurably damage the agenda for one world government, but only if the successful revolutionaries can prevent themselves from being co-opted by a paranoid and desperate global elite.

Egypt’s Internet Kill Switch: Coming To America In response to widespread protests and mass unrest, the authoritarian Egyptian government has completely shut down the country’s access to the internet, eliminating the use of social networking websites, other effective tools of communication and organisation, and effectively sealing Egypt off from the rest of the world. The Obama Administration is looking to embrace the exact same internet control mechanism in America.

 

Police members remove uniforms — join protests! A number of police members removed their suits and joined protests against the regime, according to Al Arabiya.

 

Mubarak orders army to back police against unrest Egyptian armed forces backed by armored cars deployed in Cairo and other major cities on Friday to tackle huge popular protests demanding the resignation of President Hosni Mubarak.

 

Obama Administration Expresses Support For Mubarak As Protester Shot Dead In Egypt The Obama administration expressed its support for under fire Egyptian dictator Hosni Mubarak even as footage emerged of a protester being shot dead by Mubarak’s security forces in Cairo, as the government shut down the Internet, land lines and the mobile phone network in a desperate bid to cling on to power amidst widespread rioting.

 

 

Rand Paul: End Aid to Israel Pressed on CNN’s Situation Room about details on his budget cut plans, Sen. Rand Paul (R-Ky.) says end all foreign aid–and when pressed further says that includes to Israel.

 

 

 

 

Drudgereport: USA 'SECRETLY BACKS UPRISING'

Egyptian President Mubarak asks Cabinet to resign...
Tanks Sent Into Cairo...
Explosions, Gunfire Heard as Protesters Defy Curfew...
Cities become battlegrounds...
Police members remove uniforms -- join protests...
Dramatic video as thousands clash...
LIVE STREAM...
Axelrod: Obama Has 'Directly Confronted' Mubarak for Past 2 Years 'To Get Ahead of This'...
Iran Sees Rise of Islamic Hard-Liners in Arab Lands...

Spain jobless rate surges to 20.33%...
GDP 4TH QTR: 3.2%...

Less than expected; stocks slide...
NASDAQ outage leaves traders scrambling...

Egyptian Strife Sends Oil Close To $100 On Suez Canal Closure Fears...

WH: Obama has not tried to talk to Egyptian ruler...
Lobotomy joe biden weighs in with his somewhat stretched political philosophy: Mubarak's no dictator, shouldn't step down...
Egyptian Police Using U.S.-Made Tear Gas AgainstDemonstrators...
Egypt Shows How Easily Internet Can Be Silenced...
PAPER: Events 'moving too fast for Obama administration'...
Iranian Media Hail Egypt 'Revolution'...
Thousands protest in Jordan, demand PM step down...
Huge anti-government protest in Albania...
NY mob task force spends 6 MONTHS probing 50-cent sausage heist...
As with cuomo, you won’t see new york / mob infested new jersey trying too hard if at all to hurt themselves by prosecuting mob which is so integrally a part of both states… ‘On the mobbed-up docks of Bayonne, the six-month probe was known as Operation Missing Link.Its target: A suspect who swiped a $2 bottle of iced tea and used it to wash down a stolen 50-cent piece of sausage - the lost link that left a bad taste in everybody's mouth, sources told the Daily News.An investigation of the penny-ante heist was ordered by the Waterfront Commission, the agency charged with policing the docks for mob corruption, drug smuggling and other major crimes, the sources said.The investigation included scores of interviews over countless hours dating to last August, sources said - even though the victim was reluctant to press charges."It's like Capt. Queeg and the strawberries," said New Jersey state Sen. Raymond Lesniak, a harsh critic of the bistate commission."It's a $2.50 ongoing investigation."One of the sources was more blunt: "The whole investigation is bull----. It's a waste of manpower, money and resources."Waterfront Commission General Counsel Phoebe Soriel, while declining to address specifics, said the case was more complex than it appeared."While the commission does not comment on pending investigations, it takes any theft in the port seriously - especially theft involving extortion," she said without going into detail.The reported value of the stolen goods - a handful of change - is a microfraction of the $200 billion that moves annually through the ports of New York and New Jersey.The overkill began when the commission received an anonymous tip that someone filched the drink and the sausage from a food truck catering to dock workers.According to two sources, the case was quickly wrapped up: The thief confessed to the crime, and the victim said an arrest was unnecessary.The victim "didn't want to see him behind bars...just wanted him to stop," one source said.But top commission officials, convinced its investigators mishandled the case, ordered a second probe with every possible witness reinterviewed, the sources said.Investigators from the 58-year-old agency returned to the docks and conducted about 80 second interviews, all the while cranking out piles of paperwork, the sources said.The commission was blasted in August 2009 - one year before the sausage investigation was launched - as home to corrupt execs barely better than the waterfront's notorious mobsters.Officials were accused in a damning 60-page report of misusing Homeland Security money, keeping a convicted crook in business and surfing the Internet for porn.The iced-tea-and-sausage probe - which has yet to wrap up - is considered an embarrassment among investigators and dock workers."They snicker about it," one of the sources said.’

 

The FBI’s the only serious anti-mob game in town: FBI 'largest' Mafia takedown...
Flowchart...
'Vinny Carwash', 'The Fang', 'Tony Bagels', 'Johnny Pizza', 'Baby Shacks', 'Jack the Wack', 'Junior Lollipops', 'Bobby Glasses'...

 

 

The Mafia family tree: FBI flowchart reveals
127 'mobsters' arrested in biggest ever blitz on New York's crime empires
  [ This is a very big deal!  http://albertpeia.com/mafiafamilytreeflowchartFBIarrests.htm    ]

 

 

 

 

 

Car bomb kills dozens (Washington Post) [  Ah, yes! Signs of american style democratization in the middle east popping out all over. The other turmoil is testament to the fact that other mideast nations have complacently sat back as zionist israel / american ‘adventurism / war / war crimes / war profiteering have taken their toll on the region, their people, and their aspirations which like all such action outside a vacuum, have reactions.   ] At least 48 were killed and 121 wounded when a booby-trapped car exploded outside a funeral tent in a Shiite neighborhood of northern Baghdad, escalating an upsurge of violence across the country.

 

 

New research points to earlier human migration out of Africa (Washington Post) [  This is hardly breakthrough news inasmuch as the same has been reported with authority in as far back as 2005 4th edition Michael Alan Park text; viz., ‘…fossils (of) the first fully modern Homo Sapiens are found in Africa and Southwest Asia beginning around 160,000 years ago.’ Truth be told, I find such fine lines in this truly sad tale of the history of man to be relatively unimportant. Interestingly, coincidentally, the Drudgereport this day includes this headline: DNA: Humans 97% same as orangutans … 98% same as chimps ... ] For decades, the consensus scientific opinion has held that anatomically modern humans first migrated out of Africa some 60,000 years ago, heading north into the eastern Mediterranean region and then on to Europe and Asia.

 

 

Anthropologists adopt a more favorable view of Neanderthals (Washington Post) [ Well, I’m a bit surprised and somewhat disappointed that with a little more effort, rather than rely upon inference, they could have taken a trip to the new york / new jersey / connecticut metropolitan area (etc.) and observed directly these lower italian modern-day archaic humans! Then there are the other modern day archaics / ape-like creatures that warrant greater scrutiny. ]

"What this means is that Neanderthals are not totally extinct. In some of us, they live on," Paabo … With regard to that extinction thing, I’d say they’re still working on it (ultimately, decades, extinction, the distinction, without a difference).  Actually, prior to studying the compelling subject of Biological Anthropology (Michael Park text), I too had some misconceptions about the group known as Neandertals (recent spelling drops the ‘h’) and actually mis-referenced same by the stereotypical image of members of said clade even as the debate continues as to whether they are within the species homo sapiens or a separate species. I believe these to be distinctions without important differences, so humble the origins and evolution of man truly are. Parenthetically, I wonder what that anthropological scientist Heidi Klum thinks on the subject.

Neanderthals, Humans Interbred, DNA Proves

Signs of Neanderthals Mating With Humans - Neanderthals mated with some modern humans after all and left their imprint in the human genome.  Genome hints humans, Neanderthals rolled in prehistoric hay     You're a Neanderthal: Genes say yes — a little bit (AP) Neanderthals and people interbred, fossil analysis finds  For more info on man’s humble beginnings, see here     http://www.albertpeia.com/anthroindex1.htm        [ I’m adding this here, having seen while flipping channels an anthropologist talking up somewhat speciously the brain size of Neanderthals. The important but missed point here was potential ‘brain-power’ unrealized. Think of it this way: In the life-threateningly cold climes they inhabited, pre-occupation with warmth, fire, wood for fire, food, mere survival usurped all their waking moments. Have you ever tried to study, learn, think clearly (and new thoughts / neurogenesis thereby) under such harsh and perilous conditions; successfully? Neither could they. ]


Previously I wrote:

FOUND: MISSING LINK BETWEEN APES AND MAN.... These stories, and the many like it, are old news and I subscribe to the more studied view that there is no “missing link” per se and in my view they are distinctions without significant differences. I previously wrote:

To Learn More About From Whence Man Came, This Link's For You

  [To the Professor at the beginning of the course]    

   10-5-09 Postscript: Professor *****,
I felt compelled to thank you again for the add; not to curry your favor but indeed to express profound thanks inasmuch as this is probably the last formal course at a formal educational institution I'll ever take; and among the most important. While I had bought at discount a library-discarded 1993 Anthropology by Embers text, though meaning to read same never quite got to it. I am astounded by the substantial amount of time involved in the evolutionary process, not that I ever stopped to think about it, and one must come away with the sense of 'and all that...for this?'. This course should be required curriculum along with psychology, sociology, etc., but probably won't be owing to what is, as it should be, a very humbling educational experience for any member of the human race.
             Regards,
                                  Al Peia

[Interestingly, my intuitive (but unstudied) thoughts prior to closer examination of the compelling subject of Biological Anthropology remain what I believe to be the correct scenario. Specifically, very simply stated, for the most part, the more “enlightened” (but not by much; by mutation, accident, luck, intervention, etc.) left the unvarying confines of their Sub-Saharan origins, experienced diverse new environs, challenges, etc., experienced what has been described (by neuroscientists, psychologists, etc.) as neurogenesis in varying degrees and forms thereby over time, which trait was selected for and is consistent with the purported multi-regional evolutionary model which does not overtly contradict ultimately, initial African origins. Races, sub-species, missing links, etc., are subsumed in this very humbling and sorrowful tale of the “dawn of man”.]

 

 

 

U.S. must cut deficit, IMF warns (Washington Post) [ Duuuuuh! Ya’ think? CBO: This year's budget deficit to hit $1.5T  Washington Post (Why the CBO may not believe all its own deficit projections Christian Science Monitor       CBO: Social Security to run permanent deficits (AP)      No stemming red ink: Federal deficit to hit $1.5T (AP)       Deficit Outlook Darkens Wall Street Journal - WASHINGTON—The federal budget deficit will reach a record of nearly $1.5 trillion in 2011 due to the weak economy, higher spending and fresh tax cuts, congressional budget analysts said, ... Social Security now seen to run permanent deficits The Associated Press ) The nonpartisan budget agency predicts the deficit will drop to $1.1 trillion next year.   ]  The IMF warning comes as federal officials grapple with a congressional projection this week that the annual deficit will reach a historic $1.5 trillion this year. This is the latest report to raise concerns about how massive government debts in developed countries could undermine the global economic recovery.

 

 

Report points to U.S. regulators and big banks for economic crisis (Washington Post) [ Come on! Wake up! … ‘failed to restrict their risky activities’ , ‘pivotal failure to stem the flow of toxic mortgages’, etc.,… Of course not! Why? Because this was intentional and an integral part (the bubble) of the largest fraud in the history of this world (still ongoing with those toxic assets / paper / securities now marked to anything as per legislated FASB rule change, cashed out by the perps, and as yet, despite promises by wobama et als, still unprosecuted). Though among the greediest but hardly the brightest bulbs on the planet, the wall street frauds certainly were savy enough to understand all aspects and mechanics of this fraud in real time. Quite simply, they did it for the money, big money. This was a huge orchestrated securities fraud that made huge profits / gains for the perpetrators at great expense / damage to this among other nations. ]

 

Krauthammer: The old Obama in new clothing (Washington Post) [ The truly sad thing is that journalists / commentators as Mr. Krauthammer even waste their time pointing out the obvious; viz., that wobama is an egregiously flawed man, failed president, and a global embarrassment. Previous: Obama, unbending Gerson: The president's tone has changed, but he has not.  (Washington Post) [ Come on! How can anyone discuss ‘wobama the b’ (for b*** s***) as a serious ideologue when the reality is that he’s just utter and total b*** s*** … by what he does, not what he says  … he stands for nothing!  Previous: Grading the SOTU / Robinson (Washington Post) [ I say this sincerely and without even a tinge of sarcasm that anyone who even watched / listened to wobama’s ‘speech’ should be embarrassed / ashamed of themselves (not that I listened to dumbya bush’s either). The grade is ‘f’ as in failure as is his failed presidency, as in ‘f’ himself. Wobama is but a pathetic b*** s*** artist and a total embarrassment! Previous: Gerson: Obama, more deficit hawk than GOP? (Washington Post) [ Come on! Where do they get this stuff? Wobama not only continued war criminal dumbya bush’s perpetual war, fraudulent wall street protectorate, etc., free-spending ways, but added to the deficit in his own profligate ways; and, as I’ve said before, democrats / republicans are but distinctions without significant differences. Moreover, there’s the literal rearrangement of the congressional deck-chair seating in the u.s.s. titanic halls for the non-event state of the union (wobama the ‘b’ for b*** s***, more empty words belied by actions / non-action) … Previous: Topic A: What should be in State of the Union? (Washington Post) [ Well, at the very least, it should be noted that the states of the union are crumbling (see bankruptcy headlines infra), ergo, the state of the union is crumbling and precarious indeed. The problem with and for wobama is that he’s been there, done that, and his words don’t match his actions, as is so regarding his not easily forgotten campaign promises (from perpetual wars, to no pros the frauds on wall street, to new ‘bubble building’ as in last precursor to crash supplanting sound economics. Blame it on the teleprompter … sounds like a plan! All we really know for certain is what definitely will not be in the state of the union; viz., a solution to pervasively corrupt, defacto bankrupt america’s intractable decline. ] ]

 

 

 

 

 

 

Fed's Broken Record: Recovery Too Weak For Job Growth  Schaefer ‘The Federal Reserve left its benchmark federal funds rate unchanged Wednesday and made no change to its plan to purchase $600 billion in longer-term Treasury securities by the end of June.According to the afternoon statement issued by the Federal Open Market Committee, “the economic recovery is continuing, though at a rate insufficient to bring about a significant improvement in labor market conditions.”A confluence of factors continue to constrain household spending, including high unemployment (9.4% at last check), modest income growth, lower housing wealth and tight credit. The central bank addressed the rising prices in commodity markets, chiefly oil and food, noting that “although commodity prices have risen, longer-term inflation expectations have remained stable and measures of underlying inflation have been trending downward.”January’s vote passed without dissent, but that was due more to a change in the makeup of the committee than any shift in the support for the path of Chairman Ben Bernanke. Inflation hawk Thomas Hoenig, who has dissented against the Fed’s easy monetary policy and asset purchase programs, is no longer a voting member after his FOMC term ended at year’s end.Given the lack of anything new in the Fed statement, it came as little surprise that major U.S. equity indexes held their ground after the release. The Dow was up 26 points at 12,003, the S&P 500 7 points to 1,298 and the Nasdaq set the pace rallying 22 points to 2,742. The euro was on hold in the high $1.36 range, while oil prices maintained their earlier advance above $87 a barrel and gold was narrowly positive on the day at $1338 an ounce.’

 

 

 

Goldman Sachs Can’t Say It Didn’t Get Bailed Out Anymore — It Kept Billions From AIG Even though Goldman Sachs execs testified on the Hill that AIG bailout funds it received did not stay with the bank, but were dispersed as compensation to clients and institutions on the other side of a prop trade gone wrong, it actually kept $2.9 billion for itself, according to a report by the FCIC.

 

Audit the Fed Reintroduced Congressman Ron Paul (TX-14) today introduced HR 459, The Audit the Fed Bill to the 112th Congress.

 

While the Financial Crisis Commission Report Looks Impressive At First Glance, It Doesn’t Hit Hard Enough … and Won’t Lead to Any Real Change The Financial Crisis Inquiry Commission largely blames Greenspan, Bernanke, Geithner, Summers, the rating agencies, SEC and big banks for the economic crisis.

 

Gold Usurps Dollar As Safe Haven for Worried Investors During the past few years of global economic turmoil, the securities markets have been driven by fear. When fear drives the market, the result is unusual market behavior and decisions by investors that would normally not occur were fear not in the driver’s seat.

 

 

 

Financial Crisis Inquiry Commission Slams Greenspan, Bernanke, Geithner, Paulson, Summers, SEC, Rating Agencies and Big Banks for Causing Crisis The Financial Crisis Inquiry Commission is releasing its report Thursday.

 

Marc Faber’s Most Provocative Interview Ever: Compares Obama To A Prostitute, Goes Long Treasurys Earlier, Marc Faber appeared on Bloomberg TV, in what may go down in history as his most scandalous interview ever.

 

Paper Money Madness: Inflation-Fueled Economic Growth Does Not Indicate That An Economy Is Getting Stronger If the U.S. economy “grows” by 4 percent in 2011, but by the end of the year we are paying $3.00 for a loaf of bread, $4.00 for a gallon of milk and $5.00 for a gallon of gasoline are the American people going to be better off economically or worse off?

 

 

 

Dollar Jumps Vs Yen After Japan’s Debt Rating Cut ABC | The dollar jumped against the Japanese yen Thursday after ratings agency Standard & Poor’s cut Japan’s credit rating because of the Asian country’s deepening debts, but hit another 2-month low against the euro and lost ground against the British pound.

 

How to Abolish the Fed and Convert to Gold as Money Activist Post | Now that Ron Paul has become Chairman of the House Financial Services Subcommittee, the managers at the Fed are facing the dreaded time when they may have to reveal the secret dealings that they use to help their political and banking friends worldwide.

 

Obama’s Spending Freeze Just ‘Spare Change’: Roubini CNBC.com | Obama proposed a five-year freeze on non-discretionary defense spending for five year to lower the deficit by about $400 billion.

 

 

National / World

 

 

 

 

CBO: Social Security to run permanent deficits (AP)

 

No stemming red ink: Federal deficit to hit $1.5T (AP)

Deficit Outlook Darkens Wall Street Journal - WASHINGTON—The federal budget deficit will reach a record of nearly $1.5 trillion in 2011 due to the weak economy, higher spending and fresh tax cuts, congressional budget analysts said, ... Social Security now seen to run permanent deficits The Associated Press

Why the CBO may not believe all its own deficit projections Christian Science Monitor

 

 

 

 

“Obama Gun Grabbing” Tops Google Trends Infowars | Thanks to our fantastic listeners, more awareness has been raised of the Obama administration’s upcoming assault on the Second Amendment, with “Obama gun grabbing” hitting top spot on Google Trends today.

 

Obama to Deliver Gun-grabbing Speech Soon Kurt Nimmo | White House will unveil a brand spanking new gun control effort designed to strengthen previous anti-Second Amendment laws on the books.

 

Shocker: Citizen Spy Networks to be Given Immunity Paul Joseph Watson | House Homeland Security Chairman Peter King wants to shield “good citizens who report suspicious activity” from the consequences of their actions

 

Police trained that FEMA camps are perfectly normal Milo Nickels | Placing citizens in camps is not normal, it’s not necessary, and it never will be.

 

Journalist Backs Off Obama Birth Certificate Claim Kurt Nimmo | ‘Neil (a close friend of Evans) never told me there was no birth certificate,” he told Fox News. “I never talked to him.”Journalist Mike Evans is backing off a claim that Hawaii governor Neil Abercrombie told him he was unable to find Obama’s original birth certificate after a search of state and hospital archives … A former Hawaii elections clerk, Tim Adams, signed an affidavit swearing he was told by his supervisors in Hawaii that no long-form, hospital-generated birth certificate existed for Obama in Hawaii, according to Jerome R. Corsi and WorldNetDaily. According to Adams, neither Queens Medical Center nor Kapi’olani Medical Center in Honolulu had any record of Obama having been born in their medical facilities. “Senior officers in the City and County of Honolulu Elections Division told me on multiple occasions that no Hawaii long-form, hospital-generated birth certificate existed for Senator Obama in the Hawaii Department of Health,” Adams’ affidavit reads, “and there was no record that any such document had ever been on file in the Hawaii Department of Health or any other branch or department of the Hawaii government.”…’

 

 

 

 

 

Drudgereport: EGYPT ON FIRE

Egypt rounds up Muslim Brotherhood leaders...
Internet shut down; no TWITTER, FACEBOOK...
RAW VIDEO: Unarmed protester shot dead in streets...
Jobless Claims... Rise
Foreclosure activity up across metro areas...
DNA: Humans 97% same as orangutans … 98% same as chimps ...

HE'S BACK: Rahm ruled eligible for mayoral run... [ No surprise here … lots of juice / cash to go around …  Hollywood, Jobs, Trump help Rahm haul in $10.6M … [ No surprise here, mobster trump (how was trump missed in the recent big mafia bust since he too is a corrupt bribe paying/receiving, drug money laundering among other crimes,  mobster), hollywood flakes like magic mushroom eater sorkin, LSD aficionado jobs (I now realize what that premium priced disfunctional though fanciful  pizzazz of apple products that I would refuse to pay extra for stems from-jobs says he owes it all to his LSD use-don’t forget, apple’s protected source code, kernel, and consequent stability existed pre-jobs and I believe, particularly after actually using an iphone, that the same is a way to extract money from an ever increasingly dumbed down / dumb (and I think at the least, eccentric if not obsessively pathological if you witnessed the near compulsive use of these extraneous-rich, in a trivially frivolous way, devices) american public by pandering to their desire for superfluous functionality which requires additional purchases through apple-I do give them credit for the more elaborate interface / touchscreen and the ipad, all of which is currently being duplicated ex-apple and presenting greater values/utility/functionality for the money-so also credit for pioneering), zionists including spielberg, etc.; no small wonder that chicago and the nation are down the tubes. ] ... ]

 

 

 

CBO: This year's budget deficit to hit $1.5T  (Washington Post) [Why the CBO may not believe all its own deficit projections Christian Science Monitor       CBO: Social Security to run permanent deficits (AP)

No stemming red ink: Federal deficit to hit $1.5T (AP)

Deficit Outlook Darkens Wall Street Journal - WASHINGTON—The federal budget deficit will reach a record of nearly $1.5 trillion in 2011 due to the weak economy, higher spending and fresh tax cuts, congressional budget analysts said, ... Social Security now seen to run permanent deficits The Associated Press

  ] The nonpartisan budget agency predicts the deficit will drop to $1.1 trillion next year.

 

 



U.S. seeks balanced approach to Mideast turmoil
(Washington Post) [ Wow! Talkin’ about balance. The response might be, ‘better late than never’, yet it won’t take long for all to figure out that balance means heavily weighted to zionist israel / american interests which of course, ultimately at this rate they will have none of. Indeed, america’s pro-israel stance in the region is now as good as it gets; which ain’t too good and fading fast based on … reality. It’s what they do, not what they say. Then there’s turmoil, and unforgotten turmoil brought to the region courtesy of israel / american / nato ‘adventurism’ / manipulation / conflict / war which animus will linger long after this more parochial turmoil has subsided. For america to believe the old ways will pull through is a dream that will become a nightmare for american aspirations in the region.   ]

 

 

Federal Reserve stays course with bond-buying plan  (Washington Post) [ Plan? Did someone say Plan? Plan for whom?  If you answered fraudulent wall you’d be correct. Anyone else, not so much! 

Fed Can’t Prop Up Stock Market Forever USA Watchdog | From the very beginning of QE2, it was no secret the Federal Reserve wanted the stock market to rise.

“The Fed No Longer Even Denies that the Purpose of Its Latest Blast of Bond Purchases … Is To Drive Up Wall Street  infowars.com   Of course, rather than admit that the Fed is failing at driving down rates, rising rates are now being heralded as a sign of success.     

TrimTabs: “No Amount Of QE Will Be Able To Keep The Current Stock Market Bubble From Bursting” Zero Hedge | If the money to boost stock prices by almost $9 trillion from the March 2009 lows did not come from the traditional players, it had to have come from somewhere else. We believe that place is the Fed. ]   Economic expansion is continuing, a Fed committee said in a statement, but not quickly enough.

 

Obama, unbending Gerson: The president's tone has changed, but he has not.  (Washington Post) [ Come on! How can anyone discuss ‘wobama the b’ (for b*** s***) as a serious ideologue when the reality is that he’s just utter and total b*** s*** … by what he does, not what he says  … he stands for nothing!  Previous: Grading the SOTU / Robinson (Washington Post) [ I say this sincerely and without even a tinge of sarcasm that anyone who even watched / listened to wobama’s ‘speech’ should be embarrassed / ashamed of themselves (not that I listened to dumbya bush’s either). The grade is ‘f’ as in failure as is his failed presidency, as in ‘f’ himself. Wobama is but a pathetic b*** s*** artist and a total embarrassment! Previous: Gerson: Obama, more deficit hawk than GOP? (Washington Post) [ Come on! Where do they get this stuff? Wobama not only continued war criminal dumbya bush’s perpetual war, fraudulent wall street protectorate, etc., free-spending ways, but added to the deficit in his own profligate ways; and, as I’ve said before, democrats / republicans are but distinctions without significant differences. Moreover, there’s the literal rearrangement of the congressional deck-chair seating in the u.s.s. titanic halls for the non-event state of the union (wobama the ‘b’ for b*** s***, more empty words belied by actions / non-action) … Previous: Topic A: What should be in State of the Union? (Washington Post) [ Well, at the very least, it should be noted that the states of the union are crumbling (see bankruptcy headlines infra), ergo, the state of the union is crumbling and precarious indeed. The problem with and for wobama is that he’s been there, done that, and his words don’t match his actions, as is so regarding his not easily forgotten campaign promises (from perpetual wars, to no pros the frauds on wall street, to new ‘bubble building’ as in last precursor to crash supplanting sound economics. Blame it on the teleprompter … sounds like a plan! All we really know for certain is what definitely will not be in the state of the union; viz., a solution to pervasively corrupt, defacto bankrupt america’s intractable decline. ]

 

 

 

Samuelson: Deficit dodgeball (Washington Post) [ In past posts I’ve disagreed with the tenor if not substance of Mr. Samuelson’s articles, even so far, if my memory on this unimportant point serves me, alluding to his need to bone up on basic economics by way of that once ubiquitous Samuelson economics text (is there a familial relation?), gently implying him to be a soft-touch / lightweight with regard to all things economic / business; but, this really takes the cake and I find his article, euphemistically speaking, sorely lacking. Even his dodgeball reference, though I might be accused of nit-picking, is misplaced. This is no game. The literal life or death of the nation is at stake. The insurmountable debt is unsustainable. Yet, nowhere in his article is there even a mention of the perpetual, needless wars abroad which I would argue have worsened the nation’s security position (blowback, ill will, geopolitical antipathy, etc.). Indeed, this huge expenditure on these needless wars is literally frittered away and even stolen (360 tons of $100 bills flown into Iraq disappear, etc.), abroad denying the economic benefits of such if spent domestically.  His lip service in two words, ‘(b) downsizing other programs, including defense’ ( and no mention of the fraudulent wall street computerized high-frequency programmed churn-and-earn / a negative in real economic terms) , falls short and his article is sophomoric at best.

 

 

 

Financial Crisis Inquiry Commission Slams Greenspan, Bernanke, Geithner, Paulson, Summers, SEC, Rating Agencies and Big Banks for Causing Crisis The Financial Crisis Inquiry Commission is releasing its report Thursday.

 

Marc Faber’s Most Provocative Interview Ever: Compares Obama To A Prostitute, Goes Long Treasurys Earlier, Marc Faber appeared on Bloomberg TV, in what may go down in history as his most scandalous interview ever.

 

Paper Money Madness: Inflation-Fueled Economic Growth Does Not Indicate That An Economy Is Getting Stronger If the U.S. economy “grows” by 4 percent in 2011, but by the end of the year we are paying $3.00 for a loaf of bread, $4.00 for a gallon of milk and $5.00 for a gallon of gasoline are the American people going to be better off economically or worse off?

 

Fed to Pursue QE Even as Business Lending Gains The Federal Reserve will probably push forward with $600 billion in securities purchases even as the biggest jump in business loans in more than two years adds to signs the U.S. economy is gaining strength.

 

 

 

Obama’s Spending Freeze Just ‘Spare Change’: Roubini CNBC.com | Obama proposed a five-year freeze on non-discretionary defense spending for five year to lower the deficit by about $400 billion.

 

Bank of England chief Mervyn King: standard of living to plunge at fastest rate since 1920s The Telegraph | Households face the most dramatic squeeze in living standards since the 1920s.

 

 

 

CBO: Social Security to run permanent deficits (AP)

 

No stemming red ink: Federal deficit to hit $1.5T (AP)

Deficit Outlook Darkens Wall Street Journal - WASHINGTON—The federal budget deficit will reach a record of nearly $1.5 trillion in 2011 due to the weak economy, higher spending and fresh tax cuts, congressional budget analysts said, ... Social Security now seen to run permanent deficits The Associated Press

Why the CBO may not believe all its own deficit projections Christian Science Monitor

 

 

Stop Saying 'Mancession'! Unemployment Now Harder On Women

 

 

National / World

 

 

 

 

 

 

Altered States of the Union   Harrison ‘By now, coverage of last night's State of the Union is saturating every orifice of the next-generation media landscape. From Twitter feeds to real-time blogs to traditional outlets and back, everyone has an opinion and it's high time they share it!

We, at Minyanville, sympathize with the information deflation -- trying to consume what's out there is akin to sipping water from a fire hose -- and it's our job to provide a slightly different take on events that in one way or another shape financial markets and those involved in them (not necessarily in that order).

Through that lens, I'll share some top-line vibes as we hike up our weekly Hump:
 

 

 

 

State Of The Union Won't Help State Of The Market Lenzner ‘I was ready to predict that the promise of a  budget freeze, lower corporate taxes and upbeat talk would pay off in higher stock prices, stronger dollar, lower interest rates, rally in the bond market and lower gold, commodity prices. But, when I woke this morning I realized the freeze was only on 10% of the budget, a $40 billion reduction of a $1.5 trillion deficit. I understood that the possibility of a lower corporate tax rate was going to be paid for by getting rid of tax loopholes used by big business. Not very many details either. And then I tried to imagine the cost of high speed rails, clean energy technology and faster internet access–  and just exactly who was going to pay for all this infrastructure over the next 2 or 3 decades.And I realized once again I had gotten hopeful about rhetoric and Democratic Senators sitting next to Republican Senators. Reality’s always less lustrous than rhetoric. Being a musical comedy  fanatic all I could think of was “Promises, Promises.” David Stockman’s stark reality check;; an admonition by Reagan’s former budget chief to Obama for not telling it like it really is last night, startled me out of a momentary reverie. I don’t think the American public could take it. Then, I looked to see what Fed Chairman Ben Bernanke had been saying. Seems he was waxing eloquent  about the S&P 500 index being up 20% plus and the broader  Russell 2000 running up 30% plus–QE2– monetary policy– not fiscal policy– had come through for the investor class. “It’s like a campfire reliant on gasoline to maintain; when you stop pouring it on, it’s over; an absurd way to run an economy,” emailed one of my market gurus.’

 

 

 

 

V for Victory Promo: You Are The Resistance TheAlexJonesChannel | All over the world, defenders of freedom are making their mark. Be victorious and take action.

Republicans Revive Proposed Legislation to Force ISPs to Retain User Data Kurt Nimmo | Rep. Sensenbrenner wants to force ISPs to hold data on customers without probable cause.

 

UN Human Rights Official Under Fire For Describing 9/11 As A Cover Up Steve Watson | The majority of the members of the 9/11 Commission have questioned the official account.

 

V for Victory: Latest Entries Infowars.com | Submissions to Alex Jones’ V For Victory campaign continue to flood in.

 

Abercrombie Admits Failure To Discover Obama Birth Certificate Paul Joseph Watson | Revelations of close friend of Hawaii Governor contradict official claim that privacy laws prompted Abercrombie to abandon search.

 

 

 

 

Hersh: High-ranking members US military part of ‘Knights of Malta,’ ‘Opus Dei,’  Webster ‘ Speaking at a campus operated by Georgetown University’s School of Foreign Service, [Seymour] Hersh said he was working on a new book that details “how eight or nine neoconservative, radicals if you will, overthrew the American government.” “It’s not only that the neocons took it over but how easily they did it — how Congress disappeared, how the press became part of it, how the public acquiesced,” he continued, according to the published quotes. [...] He further claimed that Gen. Stanley McChrystal, Vice Admiral William McRaven and others in the JSOC were members of the “Knights of Malta” and “Opus Dei,” two little known Catholic orders. “They do see what they’re doing — and this is not an atypical attitude among some military — it’s a crusade, literally,” Hersh reportedly continued. “They see themselves as the protectors of the Christians. They’re protecting them from the Muslims [as in] the 13th century. And this is their function.” ‘

 

 

Ron Paul Attacks State Of The Union Theater Congressman Ron Paul dismissed last night’s State of the Union political theater of making Republicans and Democrats sit together as part of a tenuous symbolic gesture in connection with the Tucson shootings as nothing more than “a bunch of fluff”.

 

Global Elite Cite China As Model For Economic New World Order Power in the global economy is shifting from the advanced world to Asia as recovery takes hold, Davos analysts said Wednesday, as political and business elites began their annual meeting.

 

 



Drudgereport: ANALYSIS: Obama's Plan Would Cost Another $20 Billion, Raise Taxes...
Rand Paul proposes $500 billion in federal budget cuts...
OBAMA WARNS AMERICANS: World economic rules have changed...
Address viewership falls from last year...
PAPER: Spaced out speech...
ROUBINI: Spending Freeze Just 'Spare Change'...

SHOCK CLAIM: Hawaii Gov. Admits There Are No Obama Birth Records In Hawaii...
RETRACTION: 'I misspoke and I apologize,' reporter says...

STATE OF THE UNION: 81-Year-Old Man, 75-Year-Old Wife Severely Beaten In $18 Robbery (new york, s.i.)...

 

 

 

 

On public investment, Republicans again show they aren't serious (Washington Post) [  I realize that Mr. Pearlstein means well and as a journalist / columnist / reporter he must write something; but, I take umbrage at any purported distinctions between the two parties when measured against what they do in broader strokes ( perpetual war, over-spending, protection for wall street frauds, etc.) and their dissembling which I find nauseating and beyond the pale.  ] When talking about the federal government and its budget deficit, Republican politicians love to score points by noting that "you'd never run your household or your business that way." Then again, you'd never run your household or your business by ignoring investment.

 

 

IED casualties in Afghanistan spike   (Washington Post) [  Yeah! That progress thing’s a b**ch!  What do you expect them   ( Petraeus optimistic on war ) to say? That the money spent / diverted to these lucrative for the few war profiteers (360 tons of $100 bills flown into Iraq disappear, etc.) has been worth the defacto bankruptcy of the nation. The new military brass as with gates’ cia are without honor, from illegal drugs, to illegal arms, to war crimes, etc.. ]

 

Home prices fall, heightening fears of double dip (Washington Post) [ How ‘bout just one big, continuing dip except for the protected frauds on wall street who precipitated the decline! The debt levels are now insurmountable, the nation’s defacto bankrupt, and the ‘no recession fed’s’ exacerbating all with there new bubble for wall street’s sake that insiders and the frauds on wall street will sell into.   ] Only four areas posted year-over-year gains in November, including Los Angeles, San Diego, San Francisco and the Washington region.

 

 

Meyerson: On doing business (Washington Post) [ Come on! Wake up! There isn’t one industry except entertainment (film particularly, and of course, hands on health care) that can’t be done substantially cheaper (if not better, and some would even argue better) in China. That’s the fact, jack! That’s reality! That’s the structural shift that’s been the source of all that wall street cash including huge, disproportionately ridiculous executive pay packages (along with with wall streets protected frauds) … you know, that great sucking sound that Ross Perot alluded to!

Grading the SOTU / Roboinson (Washington Post) [ I say this sincerely and without even a tinge of sarcasm that anyone who even watched / listened to wobama’s ‘speech’ should be embarrassed / ashamed of themselves (not that I listened to dumbya bush’s either). The grade is ‘f’ as in failure as is his failed presidency, as in ‘f’ himself. Wobama is but a pathetic b*** s*** artist and a total embarrassment! Previous: Gerson: Obama, more deficit hawk than GOP? (Washington Post) [ Come on! Where do they get this stuff? Wobama not only continued war criminal dumbya bush’s perpetual war, fraudulent wall street protectorate, etc., free-spending ways, but added to the deficit in his own profligate ways; and, as I’ve said before, democrats / republicans are but distinctions without significant differences. Moreover, there’s the literal rearrangement of the congressional deck-chair seating in the u.s.s. titanic halls for the non-event state of the union (wobama the ‘b’ for b*** s***, more empty words belied by actions / non-action) … Previous: Topic A: What should be in State of the Union? (Washington Post) [ Well, at the very least, it should be noted that the states of the union are crumbling (see bankruptcy headlines infra), ergo, the state of the union is crumbling and precarious indeed. The problem with and for wobama is that he’s been there, done that, and his words don’t match his actions, as is so regarding his not easily forgotten campaign promises (from perpetual wars, to no pros the frauds on wall street, to new ‘bubble building’ as in last precursor to crash supplanting sound economics. Blame it on the teleprompter … sounds like a plan! All we really know for certain is what definitely will not be in the state of the union; viz., a solution to pervasively corrupt, defacto bankrupt america’s intractable decline. ]

 

Drudgereport: BANKRUPTCY FOR STATES STUDIED
CA DECLARES EMERGENCY
Facing $1.6B shortfall, San Fran pays employees $170 million in bonuses...

What Happened to 15 Million Jobs?
Wall Street's 'Bernanke' rally runs into headwinds...
Home sales hit 13-year low...
UPDATE: Hawaii governor says Obama's birth record 'exists' but can't produce it...

Obama daughter practices Chinese with Hu...
Chinese Tiger ate US Dove for lunch...

FBI 'largest' Mafia takedown...
Flowchart...
'Vinny Carwash', 'The Fang', 'Tony Bagels', 'Johnny Pizza', 'Baby Shacks', 'Jack the Wack', 'Junior Lollipops', 'Bobby Glasses'...

MTV PORN: Parents Television Council Calls for Fed Investigation Into 'SKINS'...
VIACOM PRESENTS: SEX AT 15!
Young Star Defends Show's Racy Content: 'It's What Teens Are Doing'...
TACO BELL Pulls Ads...
Teacher Suspended After 2nd Graders 'Sex Acts In Class'...
Joan Rivers calls Michelle Obama 'Blackie O'... [ ‘Blackie O’ … Very funny! … I like that … but don’t look for joan on ‘The View’ anytime soon, or invites from the whitehouse either … but of course, and ‘Blackie O’ might retort that joan will be too busy anyway, reprising the role of ‘The Joker’ in the next Batman film by the gifted director, Christopher Nolan, with AH new Catwoman … meow! ]

 ]

 Robinson: It's hard to argue with that speech.

 

 

 

Shiller Ratio Points to U.S. Equities Being Significantly Overvalued   [ Yes they are indeed; so take this especially great opportunity to sell, take profits since there’s much, much worse to come! That computer-programmed spike into the close to keep suckers suckered does not change the aforesaid. ]

 

 

 

The Great Debt Shift: No Wonder Currencies Are Under Pressure Browne ‘If one were asked to describe the major global economic changes that have unfolded since the financial crisis began, a good starting place would be the massive shift of debt from the private to the public sector. Attempting to arrest a deepening crisis, governments all around the world have bailed out businesses and companies by transferring bad debts to the public books. Although these moves have provided some current stability (after all, governments are much less likely to default), the long-term consequences may be dire.

Two of the world's largest economies, the EU ($16 trillion) and the US ($14 trillion), have become the leading practitioners of private-to-public debt shifting. The US has assumed the debts of banks, insurers, mortgage holders, and even entire industrial sectors. The European Union has done the same for entire states. The resulting public debt levels are, predictably, placing strains on both the dollar and the euro.

Worse still, the bailouts have created a spirit of apathy toward debt accumulation. Western governments have embarked on a debt binge for the ages. Already, the credit ratings of the United States and some of the EU's core countries, such as France and the UK, are being questioned.

While this socialization of private debt has created deep citizen resentment, it remains to be seen whether political pressure is enough to hold back the tide. In the US, the forces of fiscal restraint appear to have the upper hand at present; but, this late in the game, it is far from certain that the newly elected fiscal hawks will be able to avert civil unrest and debt default.

It is worth noting that the debt shift has offered some near-term benefits. Relieved of repayment anxiety, many companies have posted very promising earnings reports in recent months (one needs to only glance at Detroit). Despite continued demand weakness, these companies have worked hard to improve their balance sheets and raise operating margins. The resulting rally in share prices has given rise to a belief that recovery is at hand.

However, despite buoyant share prices, unemployment continues at dangerously high levels, depressing tax revenues and leading to much greater entitlement spending. This has made public debt levels rise even faster.

Total world direct sovereign debt, excluding guarantees and unfunded medical and pension obligations, is some $41.6 trillion dollars. When the $2.9 trillion owed by global municipalities is included, total direct public sector debt is over $50 trillion. Against this total, even the wealth of cash-rich nations such as China ($2.85 trillion in foreign-exchange reserves) and Japan ($1.1 trillion in reserves) pale into insignificance.

With so little credit to soak up the future financing needs of the US and the EU, it is no wonder that both their currencies are coming under pressure. It should be no surprise that Chinese President Hu began his state visit to the US by warning that the debased dollar was causing much of the world's monetary problems - and was thus no longer credible as the world's reserve. Once unshielded by that great privilege, I forecast that the US dollar will plummet.

In many ways, the euro may fare little better. The EU has organized a $1 trillion rescue package for its smaller members, but, in practice, there is not enough money for all the troubled peripherals, let alone a core state like France or Spain. Last week, the EU suggested that Greece should be allowed to default and restructure much of its debt. The Irish Times reported that the EU has allowed Ireland to print its own euros to settle the debts of its banks. Will it allow Portugal, Spain, Belgium, Italy and France to do the same? If so, what credibility will remain for the euro?

Possible because a major currency collapse is unprecedented in living memory, investors have been slow to react. While the markets are calm at present, we mustn't forget that the nature of panic is that it is sudden. It can erupt quickly and overwhelm the unprepared. When it does, even supposedly rock-solid assets like Treasury bonds may be discounted severely.

In such a climate, gold and silver are as faithful as Old Yeller.’

 

 

 

 

Bad Omens: Stocks Get Bad Breadth, Small Caps Lose Steam Dobosz ‘ “Jump on the bus or get left behind,” shouted Mr. Market last September as stocks began a persistent ascent without much of a pause that has continued into 2011. In recent weeks, however, we’re starting to see slippage under the surface that suggests the overall market has trouble ahead…’

 

 

 

Stick Save Bulls: Dave's Daily - ‘The headline writers couldn't keep up with the late day "stick save" as most had stocks down on the day. But, editors got things changed quickly. Bulls want Dow 12,000 and with another round of POMO the easy money is there. It's not just us stating the obvious, Jeremy Grantham's Pavlov's Dog on QE2 [ ‘But be aware that you are living on borrowed time as a bull; on our data, the market is worth about 910 on the S&P 500, substantially less than current levels, and most risky components are even more overpriced. ‘ ] essay and even MarketWatch discussed this with "Market Addicted to QE." As far as most are concerned, even Bernanke, B still follows A and one goal of QE is to raise stock prices. Commodity prices were lower Tuesday as oil continues to slide while precious metals fell. Remember, it's options expiration at the COMEX Wednesday so caution is advised. Economic data was mixed with home prices falling sharply while Consumer Confidence beat expectations. Earnings rolled in, and with few exceptions, continued to beat analysts' estimates by wide margins (What do they pay these guys?)  Volume improved dramatically from Monday while per the WSJ, breadth mixed to negative.’

 

 

 

 

Can You Hear the Waterfall? Nyaradi  ‘One of the most intriguing aspects of financial writing is the various colorful aphorisms that abound in this business. We enjoy comments like “the trend is your friend,” and we hope to “let our winners run” while we watch “bulls and bears” struggle for control of the hearts and minds of the markets.One of my favorites and I think the one most applicable for today is the concept of the “waterfall” or the “waterfall decline.” It’s certainly a visual image and one that can clearly be seen on charts like the recent Shanghai Composite that we’ll take a look at in a moment. With each passing day, the probability of a waterfall decline in U.S. markets becomes more likely… 

 

 

 

 

 

Greece Default to Trigger Break of European Union by 2016, Bloomberg Poll Shows  A Bloomberg survey shows 48 percent believe one or more nations will drop out of the European Union within the next 2-5 years. Only 23 percent believe a nation will never drop out of the EU. Meanwhile, 74 percent believe it is likely Greece will default on their sovereign debt and 53 percent believe Ireland will default.

 

 

 

U.S. Trade Deficit Exports 1.3M Jobs Hansen ‘In Dr. Michael Pettis Econintersect article - Currency Wars and Trade Woes but China Marches On - he concluded:

So that leaves the U.S. Either it can accept rising trade deficits as it absorbs the employment problems of the rest of the world, or it can move to intervene in trade. I don’t know what it will do, but I am pretty confident that the domestic debate will intensify. One way or the other the crisis in international trade is far from over. In fact the day after I finished this entry the Financial Times, again, had a new headline: “Trade war looming, warns Brazil.”

The burr under my saddle is jobs. I may leave that theme for a time but always return. Trade deficits export jobs. Some think it is only money on balance sheet - but it is jobs that are exported when when a country imports manufactured goods.

Some quick facts using unadjusted data:

 

 

 

 

Fed to Pursue QE Even as Business Lending Gains The Federal Reserve will probably push forward with $600 billion in securities purchases even as the biggest jump in business loans in more than two years adds to signs the U.S. economy is gaining strength.

 

WELCOME TO STAGFLATION: UK Economy Shrinks While Inflation Set To Rise 4% The UK economy seems to be quietly slipping back into recession. UK economy contracted 0.5% in the fourth quarter compared to the consensus of 0.5% growth.

 

Scotia-Mocatta Sells Out Of 1 Kilo Silver Bars It seems that not a day passes by without some major dealer running out of a precious metal in inventory.

 

Russia Imposes Inflation-Driven Price Controls: Will Use Price Caps On “Socially Important” Commodities Russia has just announced it would proceed with price caps on a variety of foodstuffs, from buckwheat, to potatoes, assorted fruits and vegetables and all other commodities it deems “socially important” accoding to Russian newspaper gazeta.ru.

 

 

 

National / World

 

 

 

Naked Body Scanner Blamed For Woman’s Death Steve Watson | Those who pass through the scanners will be at risk of long term health effects, such as cancers, according to some scientists.

 

Ventura Lawsuit To Re-Ignite TSA Revolt? Paul Joseph Watson | Deadline for TSA to respond to Bob Barr FOIA is today.

 

Moscow Attack May Result in Checkpoints Outside of Airports Kurt Nimmo | Less than a day after the fatal suicide bomb attack on Moscow’s Domodedovo airport, pilots and aviation security experts are calling for a reevaluation of airport security.

 

 

Wall Street Partying in Davos as Bankers Escape Culpability for Crisis As Wall Street chief executive officers flock to the World Economic Forum, they’ll be breathing a sigh of relief along with the Swiss mountain air: There are no panels on compensation or redesigning financial regulation.

 

E-mails Suggest Bear Stearns Cheated Clients Out of Billions Lawsuit alleges the bank took extreme measures to defraud investors, and now JPMorgan may be on the hook.

 

Carnegie Touts Green Credentials Of Genghis Khan For Slaughtering 40 Million People Environmentalists are promoting a new historical hero in the fight against global warming, none other than Mongol warlord Genghis Khan, with the Carnegie Institution touting the emperor’s green credentials because his empire slaughtered no less than 40 million people – an act that helped lower carbon emissions and keep the planet cool.

 

 

22 Facts About California That Make You Wonder Why Anyone Would Still Want To Live In That Hellhole Of A State Why in the world would anyone still want to live in the state of California at this point?  The American Dream Saturday, January 22, 2011

Why in the world would anyone still want to live in the state of California at this point?  Residents of California have been forced to endure a brutally oppressive level of taxation for many years, and yet the state of California has still managed to find itself on the verge of bankruptcy.  California Governor Jerry Brown declared a “fiscal emergency” in his state on Thursday, but nobody is even pretending that such a declaration is actually going to help matters.  Brown wants to cut even deeper into the state budget (even after tens of billions have already been slashed out of it in recent years) and he wants to explore ways to raise even more revenue.

Meanwhile, the standard of living in California is going right into the toilet.  Housing values are plummeting.  Unemployment has risen above 20 percent in many areas of the state.  Crime and gang activity is on the rise even as police budgets are being hacked to the bone.  The health care system is an absolute disaster.  At this point California has the fewest emergency rooms per million people out of all 50 states.

While all of this has been going on, the state legislature in Sacramento has been very busy passing hundreds of new laws that are mostly about promoting one radical agenda or another.  The state government has become so radically anti-business that it is a wonder that any businesses have remained in the state.  It seems like the moving vans never stop as an endless parade of businesses and families leave California as quickly as they can.

One of the only things keeping the population of California relatively stable at this point are the massive hordes of illegal immigrants that are constantly pouring into California cities.  There are certain areas of major California cities that you simply do not ever want to go into anymore.  In fact, there are rumors that the police will not even venture into certain areas anymore.

Traffic in California is a bigger nightmare than it ever has been before and the state cannot even keep up with repairing the roads and infrastructure that it already has.  There are a few areas of California where you can still see the promise of greatness and the amazing natural beauty that once attracted tens of millions of Americans to the state, but they are few and far between now.  At this point, most of the state is turning into one gigantic hellhole.

Perhaps the state could have some hope of turning things around if they had some solid leadership, but at this point the vast majority of the politicians in the state are pushing agendas that are so “radical” (not in a good way) and so “anti-American” that it is absolutely frightening.

Of course on top of everything else there is the constant threat of wildfires, mudslides and earthquakes.  One day a really “big earthquake” is going to hit, and once that happens many people believe that the geography of the state of California could be permanently altered forever.

But what most people are focused on right now is the horrific financial condition that the state of California currently is in.  Governor Brown recently summarized his analysis of California’s financial condition with the following statement: “We’ve been living in fantasy land. It is much worse than I thought. I’m shocked.”

Yes, things really are that bad in California.

The following are 22 facts about California that make you wonder why anyone would still want to live in that hellhole of a state….

#1 The California state government is facing a potential state budget deficit of 19 billion dollars this year, and California debt is rapidly approaching junk status.  One way or another the taxpayers of California are going to have to pay for this mess somehow.

#2 California Governor Jerry Brown recently unveiled a “draconian” budget plan for 2011 that includes 12 billion dollars more in spending cuts and that maintains 12 billion dollars in recent tax increases.

#3 The state of California currently has the third highest state income tax in the nation: a 9.55% tax bracket at $47,055 and a 10.55% bracket at $1,000,000.

#4 California has the highest state sales tax rate in the nation by far at 8.25%.  Indiana has the next highest at 7%.

#5 Residents of California pay the highest gasoline taxes (over 67 cents per gallon) in the United States.

#6 California had more foreclosure filings that any other U.S. state in 2010.  The 546,669 total foreclosure filings during the year means that over 4 percent of all the housing units in the state of California received a foreclosure filing at some point during 2010.

#7 Home prices in some areas of California have completely fallen off a cliff.  For example, the average home in Merced, California has declined in value by 63 percent over the past four years.

#8 725 new laws (most of them either completely pointless or completely stupid) went into effect in the state of California on January 1st.

#9 20 percent of the residents of Los Angeles County are now receiving public aid of one kind or another.

#10 The number of people unemployed in the state of California is approximately equal to the populations of Nevada, New Hampshire and Vermont combined.

#11 In some areas of California, the level of unemployment is absolutely nightmarish.  For example, 24.3 percent of the residents of El Centro, California are now unemployed.

#12 Residents of California pay some of the highest electricity prices in the entire nation.

#13 The state of California ranks dead last out of all 50 states in the number of emergency rooms per million people.

#14 According to one survey, approximately 1 out of every 4 Californians under the age of 65 has absolutely no health insurance.

#15 At one point last year it was reported that in the area around Sacramento, California there was one closed business for every six that were still open.

#16 In the late 70s, California was number one in per-pupil spending on education, but now the state has fallen to 48th place.

#17 In one school district in California, children as young as five years old are being forced to watch propaganda films that tout the benefits of “alternative lifestyles”, and parents are being told that no “opting out” will be permitted.

#18 The crime rate in the San Diego school system is escalating out of control. The following is what San Diego School Police Chief Don Braun recently told the press about the current situation….

“Violent crime in schools has risen 31 percent. Property crime has risen 12 percent. Weapons violations (have gone up) almost 8 percent.”

#19 Oakland, California Police Chief Anthony Batts announced last year that due to severe budget cuts there are a number of crimes that his department will simply not be able to respond to any longer.  The crimes that the Oakland police will no longer be responding to include grand theft, burglary, car wrecks, identity theft and vandalism.

#20 Things have gotten so bad in Stockton, California that the police union put up a billboard with the following message: “Welcome to the 2nd most dangerous city in California. Stop laying off cops.”

#21 During one recent 23 year period, the state of California built 23 prisons but just one university.

#22 The farther you look into the future, the worse California’s financial problems become. According to an article in the Wall Street Journal, California’s unfunded pension liability is estimated to be somewhere between $120 billion and $500 billion at this point.

So could the state of California actually go bankrupt?

In Washington D.C., some lawmakers are now working very hard behind the scenes to come up with a way to allow individual U.S. states to declare bankruptcy.

If something like that is worked out in Washington, then certainly the state of California would potentially be one of the first states to take advantage of it.

Unfortunately, the truth is that the state of California is a complete and total mess at this point, and not even bankruptcy is going to fix much.

The state has become a rotting, festering hellhole that is getting worse by the day.  Yes, some really good people still live there, but there are some really, really good reasons why so many people are leaving the state in droves.

But perhaps you disagree.  Does anyone want to state the case in favor of the state of California?  Please feel free to express your opinion below….’

 

 

 

 

Economy News Nightmare: 20 Things That You Should Not Read If You Do Not Want To Become Very Angry The Economic Collapse | Today America is very, very frustrated.
#1 Today, millions of American families are digging deep into their savings and investments in a desperate attempt to stay afloat. Over the past two years, U.S. consumers have withdrawn $311 billion more from savings and investment accounts than they have put into them.
#2 15 billion dollars: the total amount of compensation that Goldman Sachs paid out to its employees for 2010.
#3 The number of American families that were booted out of their homes and into the streets set a new all-time record in 2010.
#4 Dozens of packages that we buy in the supermarket have been reduced in size by up to 20%.  For example, there are now 2 less slices of cheese in a typical package of Kraft American cheese, and there is now 9 percent less toilet paper in a typical package of Scott toilet paper.  So now, you may think that you are paying the same amount for these items that you always have, but the truth is that you have been hit with a large price increase.
#5 One Canadian company is making a ton of money shipping “millions and millions of dollars” worth of manufacturing equipment from factories that are being shut down in the United States over to new factories that are being set up in China.
#6 In America today, the wealthiest 20% own a whopping 93% of all the “financial assets” in the United States.
#7 Only 35 percent of Americans now have enough “emergency savings” to be able to cover three months of living expenses.
#8 47 percent of all Americans now believe that China is the number one economic power in the world.
#9 If the U.S. banking system is healthy, then why does the number of “problem banks” continue to keep increasing?  This past week the number of U.S. banks on the unofficial list of problem banks reached 937.
#10 According to former U.S. Labor Secretary Robert Reich, the wealthiest 0.1% of all Americans make as much money as the poorest 120 million.

#11 U.S. housing prices have now fallen further during this economic downturn than they did during the Great Depression of the 1930s.

#12 According to some very disturbing new research, 45 percent of U.S. college students exhibit “no significant gains in learning” after two years in college.

#13 Americans now owe more than $884 billion on student loans, which is a new all-time record.

#14 The United Nations says that the global price of food hit an all-time record high in December, and the price of oil is surging towards $100 a barrel, but the U.S. government continues to insist that we barely have any inflation at all.

#15 The more Americans that are on food stamps the more profits that JP Morgan makes.  Today, an all-time record of 43.2 million Americans are on food stamps, and JP Morgan is making a lot of money processing millions of those benefit payments.

#16 Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs. Today, only 9 percent of the jobs in the United States are manufacturing jobs.

#17 Dozens of U.S. states are either implementing tax increases in 2011 or are considering proposals to raise taxes.

#18 The United States has had a negative trade deficit every single year since 1976.

#19 The U.S. national debt has crossed the $14 trillion mark for the first time, and at some point during 2011 it will cross the $15 trillion mark.
#20 What the U.S. economy really needs is for the government to get off all of our backs, but instead they continue to tighten their grip on us.  In fact, the Obama administration is proposing a “universal Internet ID” that would watch, track, monitor and potentially control everything that you do on the Internet’

 

 

 

Eisenhower’s Worst Fears Have Been Realized Washington’s Blog | All in all it appears that Eisenhower’s worst fears have been realized and his remarkable and unique warnings given for naught.

 

Wikileaks Is The “Cognitive Infiltration” Operation Demanded by Cass Sunstein [ The following is a very important read. That said, I’m still against the censorship since one always, in the final analysis, must discern truth from falsehood, information from disinformation, reality from propaganda. In truth, I found it somewhat shocking and more than surprising that of all places ‘to escape to’, Assange chose Orwellian england, puppet to the u.s. and guarantor of servility to u.s./zionist interests, such is there own desperate circumstances. ] Webster G. Tarpley | Awareness is growing around the world that the Wikileaks’ theater of the absurd is radically inauthentic — a psyop…’ Tarpley.net

January 22, 2011 Awareness is growing around the world that the Wikileaks-Julian Assange theater of the absurd is radically inauthentic – a psyop. Wikileaks and its impaired boss represent a classic form of limited hangout or self-exposure, a kind of lurid striptease in which the front organization releases doctored and pre-selected materials provided by the intelligence agency with the intent of harming, not the CIA, nor the UK, nor the Israelis, but rather such classic CIA enemies’ list figures as Putin, Berlusconi, Karzai, Qaddafi, Rodriguez de Kirchner, etc. In Tunisia, derogatory material about ex-President Ben Ali leaked by Wikileaks has already brought a windfall for Langley in the form of the rare ouster of an entrenched Arab government.

Obama White House NSC Russia Director Michael McFaul Deploying IMF Shock Therapist Boris Nemtsov as Wheelhorse of Feeble “Stop Putin in 2012″ Bid.

At Foggy Bottom and Langley, a manic fit has been building since the flight of Ben Ali. US imperialist planners now believe they can re-launch their shopworn model of the color revolution, CIA people-power coup, or postmodern putsch against a whole series of countries in the Arab world and far beyond, including Italy. The color revolutions had been looking tarnished lately, as a result of the failure of the Twitter Revolution in Iran back in June 2009. Previously, the Cedars Revolution of 2005 had failed in Lebanon. The Orange Revolution in Ukraine had been rolled back with the ouster of NATO-IMF kleptocrats Yushchenko and Timoshenko. In Georgia, the Roses Revolution was increasingly discredited by the repressive and warmongering regime of fascist madman Saakashvili.

US Seeks to Mobilize a New Generation of Young Nihilists Across the Globe

But now, NSC, State, and CIA believe that the color revolution has a new lease on life, thanks to their estimate that the United States, because of Wikileaks and Assange, has captured the imagination of a new generation of young nihilists across the globe who are described as the post-9/11 generation, estranged from governments and opposition parties, and thus ready to follow Langley’s peroxide Pied Piper.

Assange started his intensive deployment phase this year with video of a Class A US war crime in Iraq, which was very graphic but which dealt with an incident which was already widely known. The second document dump focused on Iraq, but now the targeting had shifted to Prime Minister Maliki, and the Iranian asset whom the US by some strange coincidence was trying to oust as leader of Iraq in favor of the US puppet Allawi. With the third document dump, this time involving State Department cables, we found out much derogatory gossip about such classic CIA targets as Russian prime minister Putin, Italian Prime Minister Berlusconi, the Russian-Italian strategic alliance, President Fernandez de Kirchner of Argentina, and President Karzai of Afghanistan, along with jabs at supposed US allies who need to be kept off-balance and dependent, including the Saudi Arabian royal family, French President Sarkozy, and others. Wikileaks thus directs the vast majority of its fire against figures who are part of the CIA’s enemies list.

No Equal Time for CIA Covert Operations

Assange also provides a splendid pretext for draconian censorship and limitations on the freedom of the internet. The totalitarian liberal Senator Feinstein wants to bring back Woodrow Wilson’s infamous Espionage Act of 1917 in honor of Assange. Assange must be seen not as an activist, not as a journalist, and not as an entertainer, but rather as a spook. John Young of Cryptome, according to some reports, has denounced Wikileaks, to which he formerly belonged, as a CIA front. In a December 29 RT interview, Young described the internet as “a very large-scale spying machine.”1 The internet is indeed a vast battlefield, where the intelligence agencies of the US-UK, China, Israel, Russia, and many others clash every hour of the day, with commercial spies, hackers, anarchists, cultists, mercenary trolls, and psychotics all getting into the act as well. Intelligence agencies deliberately feed real and doctored material to various websites, sometimes using their own disgruntled employees as cutouts, conduits, and go-betweens. This means among other things that Bradley Manning cannot be taken at face value, although it is also clear that he like anyone else should not be tortured.

Assange is now famous, it might be argued. But the Wall Street controlled media can make anyone famous, from Lady Gaga to Justin Bieber to Snooki, and this is what they have done with Assange. It is wrong to capitulate to the demagogic power of these media by making it appear that there might be some legitimate value to Assange. Up to now, the CIA has been organizing color revolutions using Twitter, Facebook, Youtube, and so forth as vehicles. Now they think they have a cult figure whom they can sell to the youth bulge in the Arab world and other developing countries, where most of the population is under 30. This is an operation which must be exposed.

Most recently, Wikileaks has played a role in the CIA’s new “Jasmine Revolution” in Tunisia by publishing some State Department cables about the sybaritic luxury and lavish lifestyle of the Ben Ali clan, leading to the downfall of that regime. The CIA is now gloating that with the help of Wikileaks it can now topple all the Arab regimes at will, from Mubarak to Qaddafi to Bouteflika, and replace them with new and more pliable puppets eager to clash with Iran, Russia, and China

If Assange ever launches his much-touted doomsday machine against the Bank of America or some other financial institutions, we will be justified in asking that the Securities and Exchange Commission make public the extent of short interest in those stocks by certain hedge funds, especially those controlled by George Soros. And as far as Assange’s attacks on the Vatican are concerned, they fit neatly into four centuries of British intelligence warfare against the Holy See, going back to Guy Fawkes and Lord Robert Cecil’s Gunpowder Plot of 1605 and beyond. Not much new or radical here.

Wikileaks: No Serious Derogatory Information about US, UK, Israel

It is illuminating that none of Assange’s document dumps have revealed any notable scandals involving Great Britain or Israel. No US public figures have had to resign because of anything Wikileaks has done. No major ongoing covert operation or highly placed agent of influence has been blown. After all these months, there are still no US indictments against Assange, even though we know that a US grand jury will readily indict a ham sandwich if the US Attorney demands it. If the CIA had wanted to silence Assange, they could have subjected him to the classic kidnapping aka rendition, meaning that he would have been beaten, drugged, and carted off to wake up in a black site prison in Egypt, Poland, or Guantanamo Bay. Otherwise, the CIA could have had recourse to the usual extralegal wetwork. We must also assume that the new US Cybercommand with its vast resources would have little trouble shutting down the Wikileaks mirror sites, no matter how numerous they might be. The same goes for Anonymous and other flanking organizations of Wikileaks. But these considerations are purely fantastic. Assange emerges today as the pampered darling and golden boy of The New York Times, Der Spiegel. The Guardian, El Pais — in short, of the entire Anglo-American official media Wurlitzer. He reclines today in baronial splendor in the country house of a well-connected retired British officer who should be quizzed by the media about his ties to British intelligence. The radical-chic world, from Bianca Jagger to Michael Moore, is at Assange’s feet.

Cass Sunstein Present at the Creation of Wikileaks

Wikileaks was apparently founded in 2006. Originally, the group was programmed to attack China, and its board was heavily larded with fishy Chinese dissidents and “democracy” activists from the orbit of the Soros foundations. Interestingly, the first big publicity breakthrough for Wikileaks in the mainstream US media was provided by an infamous totalitarian liberal today ensconced in the Obama White House – none other than Cass Sunstein. In Sunstein’s op-ed published in the Washington Post of February 24, 2007 under the title “Brave new Wikiworld,” we read: “Wikileaks.org, founded by dissidents in China and other nations, plans to post secret government documents and to protect them from censorship with coded software.” How interesting that Sunstein was present at the creation of the new Wikileaks psywar operation!

This is the same Sunstein who today heads Obama’s White House Office of Information and Regulatory Affairs. In his January 2008 Harvard Law School Working Paper entitled “Conspiracy Theories,” Sunstein infamously demanded that the United States government deploy groups of covert operatives and pseudo-independent agents of influence for the “cognitively infiltration of extremist groups” – meaning organizations, activists and Internet websites who espouse beliefs which Sunstein chooses to classify as “false conspiracy theories.”

Wikileaks = Cass Sunstein’s Program for Cognitive Infiltration In Action

It should be clear that Assange and Wikileaks are precisely the practical realization of Sunstein’s program for “cognitive infiltration” shock troops to counteract and overwhelm any real mass understanding of oligarchical domination in the modern world, and any discussion of what kind of economic policies are needed to secure a recovery from the present world depression.

In line with Sunstein’s recipe, Assange is a self-declared enemy of 9/11 truth. As Assange told Belfast Telegraph reporter Matthew Bell last July, “I’m constantly annoyed that people are distracted by false conspiracies such as 9/11, when all around we provide evidence of real conspiracies, for war or mass financial fraud.” In other words, Assange argues that the truth about 9/11 truth is not nearly as radical as the various scandals which Wikileaks claims to expose. But the scandals Assange is offering target mostly the adversaries of the CIA.

Assange must also be seen as a deeply troubled individual and a possible psychopath. He has the ravaged emotional complexion that we might expect from an alumnus of one of the many MK-Ultra operations. He reportedly spent several years in the menticidal Anne Hamilton-Byrne cult (also known as The Family and Santiniketan) near Melbourne, Australia. Here little children were separated from their parents and made to ingest LSD, Anatensol, Diazepam, Haloperidol, Largactil, Mogadon, Serepax, Stelazine, Tegretol, Tofranil, and other potent psychopharmaca. Dozens of children were told that Hamilton-Byrne was their real mother, and had their hair dyed blond. Anne Hamilton-Byrne reportedly regarded blond hair as a sign of racial superiority. Careful observers will have noted that Assange’s hair is sometimes blond, sometimes more brownish, raising the question of whether his grooming practices are a residue of his time with Hamilton-Byrne, whom he says he does not remember. When other kids were getting cookies and milk, was Assange being lobotomized by LSD and other potent psychopharmaca dished up by Hamilton-Byrne? There is evidence pointing in that direction.

With Assange, we thus have the tragic spectacle of the emotionally mutilated product of a CIA (or MI-6) covert operation of 40 years ago, who has now been given a prominent role in a key counter-insurgency ploy of the present time. Will the youth of the world, already burned by their recent fatuous obsession with Obama, be duped again by such an impaired individual?

The Precedent: Pentagon Papers Whitewashed CIA, Blamed Army, Demonized Kennedy

Assange’s revelations mainly involve communications labeled Confidential or Secret, and which in reality would be over-classified if marked Official Use Only. In other words, Assange is in reality a purveyor of low level cable traffic, not of earth-shattering secrets. This reminds us of an earlier CIA limited hangout operation, the one known as the Pentagon Papers. This was a carefully screened selection of historical documents, supplemented by outright forgeries, relating to the Vietnam War and compiled by Morton Halperin and Leslie Gelb, both of whom have gone on to glittering careers in the imperialist foreign policy establishment – Gelb became president of the Council on Foreign Relations, while Halperin serves today as chief political officer of the Soros wolfpack of foundations. The papers were leaked by former RAND Corporation official Daniel Ellsberg, who had been a very bellicose hawk in Vietnam before a suspicious Damascus Road conversion to pacifism, and then published in the US establishment press – similarly to Assange today. There was nothing in the Pentagon papers which a casual reader of LeMonde or Corriere della Sera did not already know. But, as Mort Sahl later said, left liberals have generally had very few heroes, so they battened on to Ellsberg and lionized him – led by Noam Chomsky, Howard Zinn, and some others. (This is a syndrome which we see again today: at the moment when Obama’s treacherous sellout on the Bush tax cuts was providing a final disillusionment for many gullible left libs, Assange arrived on the scene as their new Savior. Not by chance, Ellsberg has now designated Assange as his own reincarnation, and thus surely the new Messiah.)

The Pentagon papers had been carefully selected by the CIA itself to cover up CIA war crimes in Vietnam, blaming these on the US Army wherever possible, while also obscuring the CIA’s massive program of drug production and narcotics smuggling. The Pentagon Papers systematically hid the salient political fact of the entire Vietnam era, which is that President John F. Kennedy before he was assassinated was preparing to end the de facto US combat role in that country. Instead, Kennedy was systematically demonized and smeared, emerging as the villain of the piece. Needless to say, the Pentagon papers throw no light whatsoever on the CIA role in the Kennedy assassination – in the same way that Assange’s various document dumps tell us nothing of importance about 9/11, the Rabin assassination, Iran-contra, the 1999 bombing of Serbia, the Kursk incident, the various CIA color revolutions, or many of the other truly big covert operations of the past decades.

The limited hangout is not new; it was described in a secret memorandum by Venetian intelligence chief Paolo Sarpi to the Venetian Senate in 1620 as the art of “saying something good about somebody while pretending to be saying something bad.” That is the common denominator of the CIA’s limited hangout operations from Ellsberg to Philip Agee to Assange, with so many other “former” CIA operatives turned “whistleblowers” along the way. ‘

 

 

 

 

 

Drudgereport: CUT! WHAT?!
GOOGLE Comes Under Fire for 'Secret' Relationship with NSA...
IMF: Instability Threatens Recovery...
OH NO: Price Drop Points to Likely Double Dip in Housing Market...

Jobless Rise in 20 States as Workers Still Laid Off...
UK Economy May Be Heading for Double Dip...
Obama will 'have to produce birth certificate' to run again...

NYT: Former Spy With Agenda Operates Own Private CIA... [  Quite serious a problem …  Remember … these people really are quite stupid but self-interested if not greedy; and, if the money’s right, they wrap themselves in the flag and find a reason … remember ollie north who’s an absolute dope … and there are many, many more worse than him. Then there’s their war mongering which of course is the precursor to their war profiteering, etc.. ]
UPDATE: Hawaii governor says Obama's birth record 'exists' but can't produce it...

BACKTRACK: Now Hawaii won't release birth info...
Hollywood, Jobs, Trump help Rahm haul in $10.6M … [ No surprise here, mobster trump (how was trump missed in the recent big mafia bust since he too is a corrupt bribe paying/receiving, drug money laundering among other crimes,  mobster), hollywood flakes like magic mushroom eater sorkin, LSD aficionado jobs (I now realize what that premium priced disfunctional though fanciful  pizzazz of apple products that I would refuse to pay extra for stems from-jobs says he owes it all to his LSD use-don’t forget, apple’s protected source code, kernel, and consequent stability existed pre-jobs and I believe, particularly after actually using an iphone, that the same is a way to extract money from an ever increasingly dumbed down / dumb (and I think at the least, eccentric if not obsessively pathological if you witnessed the near compulsive use of these extraneous-rich, in a trivially frivolous way, devices) american public by pandering to their desire for superfluous functionality which requires additional purchases through apple-I do give them credit for the more elaborate interface / touchscreen and the ipad, all of which is currently being duplicated ex-apple and presenting greater values/utility/functionality for the money-so also credit for pioneering), zionists including spielberg, etc.; no small wonder that chicago and the nation are down the tubes. ] ...
COURT: Candidate 'must have actually resided' in city for 1 year before election...

Plans appeal to Illinois Supreme Court...
CHICAGOLAND SHOCK: RAHM BOOTED OFF BALLOT
China 'on Collision Course' with USA...

Bank Moves to Buy U.S. Branches...
Stealth fighter 'based on crashed American plane'...
Chinese Pianist Played Anti-American Propaganda Tune at White House?

 

 

 

 

 

Emanuel vows to fight ballot ruling  (Washington Post) [ Ill. court rules on Emanuel  OPINION: Rahm got robbed (of his and of those of his prospective booty)  Drudgereport: Hollywood, Jobs, Trump help Rahm haul in $10.6M … [ No surprise here, mobster trump (how was trump missed in the recent big mafia bust since he too is a corrupt bribe paying/receiving, drug money laundering among other crimes,  mobster), hollywood flakes like magic mushroom eater sorkin, LSD aficionado jobs (I now realize what that premium priced disfunctional though fanciful  pizzazz of apple products that I would refuse to pay extra for stems from-jobs says he owes it all to his LSD use-don’t forget, apple’s protected source code, kernel, and consequent stability existed pre-jobs and I believe, particularly after actually using an iphone, that the same is a way to extract money from an ever increasingly dumbed down / dumb (and I think at the least, eccentric if not obsessively pathological if you witnessed the near compulsive use of these extraneous-rich, in a trivially frivolous way, devices) american public by pandering to their desire for superfluous functionality which requires additional purchases through apple-I do give them credit for the more elaborate interface / touchscreen and the ipad, all of which is currently being duplicated ex-apple and presenting greater value/utility/functionality for the money-so also credit for pioneering), zionists including spielberg, etc.; no small wonder that chicago and the nation are down the tubes. ] ...
COURT: Candidate 'must have actually resided' in city for 1 year before election...

Plans appeal to Illinois Supreme Court...
CHICAGOLAND SHOCK: RAHM BOOTED OFF BALLOT
China 'on Collision Course' with USA...

Bank Moves to Buy U.S. Branches...
Stealth fighter 'based on crashed American plane'...
Chinese Pianist Played Anti-American Propaganda Tune at White House?
NYT: Former Spy With Agenda Operates Own Private CIA... [  Quite serious a problem …  Remember … these people really are quite stupid but self-interested if not greedy; and, if the money’s right, they wrap themselves in the flag and find a reason … remember ollie north who’s an absolute dope … and there are many, many more worse than him. Then there’s their war mongering which of course is the precursor to their war profiteering, etc.. ]
UPDATE: Hawaii governor says Obama's birth record 'exists' but can't produce it...

BACKTRACK: Now Hawaii won't release birth info...

The Mafia family tree: FBI flowchart reveals
127 'mobsters' arrested in biggest ever blitz on New York's crime empires
( This is a very big deal!  http://albertpeia.com/mafiafamilytreeflowchartFBIarrests.htm   )
]

 

Hezbollah-backed candidate has votes to become prime minister (Washington Post) [ Now who could possibly deny the rationality of the Lebanese wisdom of a leader that puts not war crimes nations israel / u.s. and nato allies interests, but rather the interests of Lebanon and the Lebanese people first beyond words and propaganda based on what they do; ie., most recent of many in the region:  US-led airstrikes kill Afghan civilians 1-24-11Two separate airstrikes by US-led foreign forces have killed at least five civilians and wounded several others in various parts of Afghanistan. ] BEIRUT - The Shiite armed movement Hezbollah on Monday had the support needed for its candidate to become Lebanon's prime minister, effectively ending the Western-backed rule of U.S. allies who came to power more than five years ago.

 

 

 

Obama won't endorse Social Security cuts (Washington Post) [  Is that written in stone? Does that mean veto? Is this failed presidency pre-election year desperation? Where will the cuts come from for ‘deficit reduction’? What does the teleprompter say? For some, social security is all they have, many corporate pensions underfunded, defunct from bankruptcies, non-existent, etc.. Now there is a very rich pension fund that the citizens have paid for and does have a lot of fat for cutting; viz.,  Wikipedia:  ‘Congressional pension is a pension made available to members of the United States Congress. Members who participated in the congressional pension system are vested after five (5) years of service. A full pension is available to Members 62 years of age with 5 years of service; 50 years or older with 20 years of service; or 25 years of service at any age. A reduced pension is available depending upon which of several different age/service options is chosen. If Members leave Congress before reaching retirement age, they may leave their contributions behind and receive a deferred pension later.[1]  official site: ‘Members of Congress are eligible for a pension at age 62 if they have completed at least five years of service. They are eligible for a pension at age 50 if they have completed 20 years of service, or at any age after completing 25 years of service. The amount of the pension depends on years of service and the average of the highest three years of salary. By law, the starting amount of a member’s retirement annuity may not exceed 80 percent of his or her final salary. As of October 1, 2000, the average annual pension for members of Congress who have retired under CSRS is $52,464, and $46,932 for retirees under FERS-only or both FERS/CSRS. ‘ ]

 

 

Economic policy stuck in reverse (Washington Post) We have seen no real plan, no strong leadership, no apparent willingness to confront the growing danger on the horizon. [ Mr. Sessions is right on target and for me to comment further would only take away time from the ‘must read’ substantive article by Mr. Sessions!  ]

 

 

Gerson: Obama, more deficit hawk than GOP? (Washington Post) [ Come on! Where do they get this stuff? Wobama not only continued war criminal dumbya bush’s perpetual war, fraudulent wall street protectorate, etc., free-spending ways, but added to the deficit in his own profligate ways; and, as I’ve said before, democrats / republicans are but distinctions without significant differences. Moreover, there’s the literal rearrangement of the congressional deck-chair seating in the u.s.s. titanic halls for the non-event state of the union (wobama the ‘b’ for b*** s***, more empty words belied by actions / non-action) … Previous: Topic A: What should be in State of the Union? (Washington Post) [ Well, at the very least, it should be noted that the states of the union are crumbling (see bankruptcy headlines infra), ergo, the state of the union is crumbling and precarious indeed. The problem with and for wobama is that he’s been there, done that, and his words don’t match his actions, as is so regarding his not easily forgotten campaign promises (from perpetual wars, to no pros the frauds on wall street, to new ‘bubble building’ as in last precursor to crash supplanting sound economics. Blame it on the teleprompter … sounds like a plan! All we really know for certain is what definitely will not be in the state of the union; viz., a solution to pervasively corrupt, defacto bankrupt america’s intractable decline. ]

 

Drudgereport: BANKRUPTCY FOR STATES STUDIED
CA DECLARES EMERGENCY
Facing $1.6B shortfall, San Fran pays employees $170 million in bonuses...

What Happened to 15 Million Jobs?
Wall Street's 'Bernanke' rally runs into headwinds...
Home sales hit 13-year low...
UPDATE: Hawaii governor says Obama's birth record 'exists' but can't produce it...

Obama daughter practices Chinese with Hu...
Chinese Tiger ate US Dove for lunch...

FBI 'largest' Mafia takedown...
Flowchart...
'Vinny Carwash', 'The Fang', 'Tony Bagels', 'Johnny Pizza', 'Baby Shacks', 'Jack the Wack', 'Junior Lollipops', 'Bobby Glasses'...

MTV PORN: Parents Television Council Calls for Fed Investigation Into 'SKINS'...
VIACOM PRESENTS: SEX AT 15!
Young Star Defends Show's Racy Content: 'It's What Teens Are Doing'...
TACO BELL Pulls Ads...
Teacher Suspended After 2nd Graders 'Sex Acts In Class'...
Joan Rivers calls Michelle Obama 'Blackie O'... [ ‘Blackie O’ … Very funny! … I like that … but don’t look for joan on ‘The View’ anytime soon, or invites from the whitehouse either … but of course, and ‘Blackie O’ might retort that joan will be too busy anyway, reprising the role of ‘The Joker’ in the next Batman film by the gifted director, Christopher Nolan, with AH new Catwoman … meow! ]

 ]

 

 

Shiller Ratio Points to U.S. Equities Being Significantly Overvalued   [ Yes they are indeed; so take this especially great opportunity to sell, take profits since there’s much, much worse to come!  ]

 

 

 

 

 

Shiller Ratio Points to U.S. Equities Being Significantly Overvalued   [ Yes they are indeed; so take this especially great opportunity to sell, take profits since there’s much, much worse to come!  ]

 

 

Bad Omens: Stocks Get Bad Breadth, Small Caps Lose Steam Dobosz “Jump on the bus or get left behind,” shouted Mr. Market last September as stocks began a persistent ascent without much of a pause that has continued into 2011. In recent weeks, however, we’re starting to see slippage under the surface that suggests the overall market has trouble ahead.

Specifically, the breadth of the market is starting to stink, and the there is an ominous divergence in the performance of small and large capitalization stocks that has preceded weakness each time it’s occurred in the past 31 years.

In 2010, shares of smaller companies in the Russell 2000 Index produced a total return of 26.9%. That was nearly double the 14.1% total return for the biggest of the big in the Dow Jones Industrial Average and the 15.1% return for the S&P 500 Index. When smaller, more speculative stocks outperform the blue chips it’s usually a good sign because it indicates that people are willing to take risks and supports higher stock prices.

Now that trend might be turning as smaller stocks lose ground while a comparatively few large caps roll higher.

“Both the DJIA and Russell 2000 closed at a 52-week high two weeks ago, and then the DJIA closed at another high last week while the Russell 2000 lost more than 1%,” says Jason Goepfert in his Monday SentimenTrader Morning Report. “Going back to 1979, this has occurred only three other times.”

Goepfert’s scan of market history shows that on the three prior occasions when the Dow and Russell diverged like this, the road ahead was a rocky one for stocks: “April 1, 1998, after which the DJIA lost more than 15% during the next six months, while never gaining more than 2.5%; January 7, 2000, after which the DJIA lost more than 14% during the next two months, while never gaining more than 1.8%, and January 19, 2007, after which the DJIA lost more than 4% during the next two months, while never gaining more than 1.8%.”

A rising VIX and CS Fear Barometer (reflecting price of SPX puts), along with a sharp rise in buying climaxes last week (stocks hitting 52-week highs but then closing lower for the week) add to Goepfert’s bearish outlook for the next several weeks.

[chart]

Furious uptrend

“The equity-only put-call ratios and the breadth oscillators are all on sell signals at this time, ” says options guru Larry McMillan in his Monday morning Daily Volume Alert, noting the deteriorating advance-decline ratio within the S&P 500. On the rising VIX, McMillan says a “clear breakout close above 18-1/2 would be a big negative for the stock market.” Watch to see how support holds on the S&P 500 at 1262, he advises.

Some stocks are already showing signs of fresh technical damage or bullish trends under serious pressure. After gapping higher on Friday morning, Google (GOOG) slipped all day with a nearly 30-point intraday reversal to close near the low at $611.83. Also, Buffalo Wild Wings (BWLD) hit a five-month low on Friday with put option volume more than 3.5 times call volume.’

 

 

 

Can You Hear the Waterfall? Nyaradi  ‘One of the most intriguing aspects of financial writing is the various colorful aphorisms that abound in this business. We enjoy comments like “the trend is your friend,” and we hope to “let our winners run” while we watch “bulls and bears” struggle for control of the hearts and minds of the markets.One of my favorites and I think the one most applicable for today is the concept of the “waterfall” or the “waterfall decline.” It’s certainly a visual image and one that can clearly be seen on charts like the recent Shanghai Composite that we’ll take a look at in a moment.

With each passing day, the probability of a waterfall decline in U.S. markets becomes more likely.

On My Radar

On a technical basis, the markets remain overstretched and ripe for a correction, while fundamentally, we saw selling on good news and earnings that are “good” now suddenly don’t appear to be “good enough.” By many analysts’ measurement, the market is overvalued by as much as 50-60% with one of my favorites, Tobin’s Q, developed by Nobel Prize Winner, James Tobin, currently indicating an overvaluation of 63% (Doug Short) [chart]  In this chart of the S&P 500, we can see that we’re still in a definite uptrend with prices above the 20, 50 and 200 day moving averages, however, RSI is in the oversold, “red zone,” and MACD has recently switched to a “sell” signal [chart]  Looking at the chart of the Shanghai Composite, we see it in the red and black candlesticks with the overlay of the S&P 500 in black bars. It’s easy to see how the two have been closely correlated until just early December and the “waterfall declines" last April and more recently since November in the Shanghai are clearly visible. This recent negative divergence between the two indexes is an alarming development and one which most likely will need to be resolved with either a rally in China or a correction in the U.S. market. Finally taking a look at the “health” of the overall market, we see a definite case of “Bad Breadth” which could definitely be worse than bad breath and not easily cured with a breath mint. [chart] Here we see a chart of the NYSE Summation index, and here, too, we see a negative divergence between the S&P in black and the Summation in red. The Summation is a measurement of market breadth, comparing the number of advancing stocks to declining stocks, and here we see that while the S&P has continued its recent climb, the Summation Index has been in decline, indicating that a smaller and smaller number of stocks in the universe of the New York Stock Exchange is participating in the current rally.

The View From 35,000 Feet

Last week’s news was mostly good with existing home sales up 12%, job claims down and building permits advancing 17%, but still from historically moribund levels.Overall, earnings have been positive, particularly in the tech sector, and this week will be the test of earnings seasons with over 100 reports coming from S&P 500 companies.On the bad news side of things, the 10 Year Treasury yield hit a six week high while the 30 year hit an eight month high as the rout in the bond market continued. The spread between the 5 and 10 year notes is extremely steep at current levels and indicates the bond market’s concern about the prospects of future inflation. Of course, rising yields are bad news for stocks in general, for credit, lending and economic growth and for the Fed’s current drive to lower interest rates through their ongoing quantitative easing programs.Further bad news came in the bond market with last week’s TIPS (Treasury Inflation Protected Securities) sale bringing a record dollar amount to market that was met by the lowest demand in almost two years.Four banks failed on Friday, bringing the year’s total to 7 and we could see an ongoing stream of failures as 860 banks currently reside on the FDIC problem bank list.Overseas, Ireland’s government was thrown into turmoil this weekend as the Greens left the government, destroying Brian Cowen’s majority and likely triggering an early election and more uncertainty over the Irish bailout package and attempts to return to fiscal solvency.Whispers abound over the possibility of Greece restructuring its debt while the European Union presses ahead with various ideas to beef up their economic rescue efforts on the Continent.At home, the debate over raising the debt ceiling is sure to heat up as the March target date for reaching the ceiling rapidly approaches and President Obama delivers his State of the Union message on Tuesday. This will come against the backdrop of the debt ceiling, renewed calls for “austerity” in Congress and the not so quiet whispering of Newt Gingrich that Congress will soon be considering a bill to allow states to declare bankruptcy as a way to alleviate their gargantuan credit woes. With California and Illinois in junk status and many other states facing gaping budget deficits, such talk, not to mention action, could be a major earthquake in the supposedly rock solid municipal bond market which has largely been considered to be the ultimate safe haven.

What It All Means

Interesting times indeed as the roar of the waterfall grows louder.

The Week Ahead

This week will see a rash of earnings reports as we previously mentioned, including reports from closely watched corporations like ATT (T), American Express (AXP), Yahoo (YHOO), Boeing (BA), Caterpillar (CAT), D.R. Horton (DHI), Procter & Gamble (PG), Amazon (AMZN) and Microsoft (MSFT). With reports coming from nearly every sector of the economy, we should have a much clearer picture by week’s end about how these companies are faring in the current environment.And on Wednesday we hear from Chairman Bernanke and his colleagues at the Federal Reserve whose every word will be sliced and diced for hints of their outlook on the economy and planned future actions by their august body.

Economic Reports
Tuesday: Case/Shiller Home Price Index, January Consumer Confidence
Wednesday: December New Home Sales, FOMC meeting
Thursday: Initial Unemployment Claims, Continuing Unemployment Claims, December Durable Goods, November Pending Home Sales

Sector Spotlight
Winners: (NYSEArca: EWI) Italy, (NYSEArca: EWP) Spain, (NYSEArca: VXX) CBOE Volatility Index
Losers: (NYSEArca: USO) Oil, (NYSEArca: MOO) Agriculture, (NYSEArca: XLB) Materials’

 

 

 

U.S. Trade Deficit Exports 1.3M Jobs Hansen ‘In Dr. Michael Pettis Econintersect article - Currency Wars and Trade Woes but China Marches On - he concluded:

So that leaves the U.S. Either it can accept rising trade deficits as it absorbs the employment problems of the rest of the world, or it can move to intervene in trade. I don’t know what it will do, but I am pretty confident that the domestic debate will intensify. One way or the other the crisis in international trade is far from over. In fact the day after I finished this entry the Financial Times, again, had a new headline: “Trade war looming, warns Brazil.”

The burr under my saddle is jobs. I may leave that theme for a time but always return. Trade deficits export jobs. Some think it is only money on balance sheet - but it is jobs that are exported when when a country imports manufactured goods.

Some quick facts using unadjusted data:

I will skip raising the 1.3 million job estimate by using the somewhat controversial jobs multipliers (that in theory means a manufacturing job lost likely causes two addition jobs being lost in the service industry). I will even ignore that it is likely the type of jobs being exported are of higher labor content then the current mix of existing manufacturing jobs. The 1.3 million estimate is likely significantly understated - and the real number is probably in excess of 5 million. That is close to half of the full-time jobs lost in The Great Recession.

Trade is not about money - it is about jobs.

Market Recommendations Made This Week

An Alternate View on Housing: 2011 May Be Homebuilders' Time to Shine - Recommended a second look at the homebuilder's sector as the backlog should turn positive in 2011. Regardless of viewpoint on growth potential for this sector, the money bleed caused by downsizing will end this year allowing higher profits.

Economic News this Week

Econintersect economic forecast for January 2010 pointing to a slightly improving economy. This week the Weekly Leading Index (WLI) from ECRI continued to improve from 3.6 to 4.1 implying the business conditions six months from now might be improving. Six months ago, the WLI was negative that December should have been slightly worse then July 2010. This December data has been coming in fairly strong.

click to enlarge images

[chart]

The Conference Board Leading Economic Index® (LEI) for the U.S. increased 1.0 percent in December to 112.4 (2004 = 100). This indicator is also trying to look ahead six months - and has been forecasting six months ahead being better since the end of the Great Recession. Their economists' opinions:

While the LEI points to an economic expansion that is gaining further traction, its components still suggest the expansion path may be uneven. December’s gain was led by housing permits, the interest rate spread, initial claims for unemployment insurance and consumer expectations. The large increases in December and November show that, after a brief pause in the second quarter of 2010, the LEI is resuming the upward trend that began in March 2009.” .......“The four-month rise suggests the economy now has some wind in its sails; however, it still faces some strong headwinds in the medium-term. Overall economic activity is likely to continue to gain momentum in 2011.

Initial unemployment claims in this week’s release decreased slightly. Last week's very large not seasonally adjusted number appears to be just a blip as unadjusted claims fell over 200,000 in the current week's data. The DOL seasonal adjustment methodology appears to have made a good call last week.

[chart]

Most of the data released this week was inconsistent with Econintersect’s December forecast of slow to flat growth - and it more resembles Econintersect's January forecast. Overall most of the December data released this week was strong. However, the transport indicators began their improvement in December which historically foretells economic improvement.

Caveat: one month does not make a trend.

The table below itemizes the major events and analysis this week.

Weekly Economic Release Scorecard

Item

Headline

Analysis

Philly Fed Business Survey

Down Slightly

Big jump in new orders and backlog

Existing Home Sales

Up MoM

Down YoY, Inventories up YoY, home prices remain relatively flat

New Residential Construction

Up 16.7% MoM

The data is an improvement on terrible

Oil Shocks and Economic Recessions

 

Correlates oil prices to USA recessions

Empire State Manufacturing Survey

Up slightly

Still showing manufacturing expanding

Sea Container Counts

Up 16% YoY

Record exports but import's improvements were larger

Inflation Rates

 

Comparing Shadowstat's data to the CPI

China and the Trade Gap

 

Is trade war looming?

J P Morgan

 

Dragons, Haircuts and the Doomsday Machine

Consumer Sentiment

 

Consumer and small business sentiment remains at or near levels associated with the bottoms of other recent recessions

Opinion: Global Economic Chaos 2011

 

Societies on the edge of socio-economic break-up

Opinion: China

 

Trying to guess China's direction and policy responses

Opinion: Belgium

 

Will the seat of the EU leave the Union?

Opinion: 2011

 

Cautiously optimistic on the U.S. and global economy

Opinion: Federal Reserve

 

What would it have been like if the Federal Reserve was not created.

Bankruptcy This Week: None

Bank Failures This Week

[chart]

 

 

 

 

As If The Fed Planned To Do It All Wrong Bob Chapman | Both food and energy prices have risen at double-digit rates.

 

 

Bank of America posts heavy losses Agence France Presse | Bank of America, the biggest US bank, reported Friday a net loss of $1.2 billion for the fourth quarter.

 

The Corporate Elite Have a New Platform for Intervening in the Economy Economic Policy Journal | President Obama will name Jeffrey Immelt, General Electric CEO, to head a new advisory panel.

 

Government Bankruptcy Is a Great Idea LewRockwell.com | Just like the rest of us during financial problems, the government has to get its house in order.

 

22 Facts About California That Make You Wonder Why Anyone Would Still Want To Live In That Hellhole Of A State Why in the world would anyone still want to live in the state of California at this point?

The American Dream
Saturday, January 22, 2011

Why in the world would anyone still want to live in the state of California at this point?  Residents of California have been forced to endure a brutally oppressive level of taxation for many years, and yet the state of California has still managed to find itself on the verge of bankruptcy.  California Governor Jerry Brown declared a “fiscal emergency” in his state on Thursday, but nobody is even pretending that such a declaration is actually going to help matters.  Brown wants to cut even deeper into the state budget (even after tens of billions have already been slashed out of it in recent years) and he wants to explore ways to raise even more revenue.

Meanwhile, the standard of living in California is going right into the toilet.  Housing values are plummeting.  Unemployment has risen above 20 percent in many areas of the state.  Crime and gang activity is on the rise even as police budgets are being hacked to the bone.  The health care system is an absolute disaster.  At this point California has the fewest emergency rooms per million people out of all 50 states.

While all of this has been going on, the state legislature in Sacramento has been very busy passing hundreds of new laws that are mostly about promoting one radical agenda or another.  The state government has become so radically anti-business that it is a wonder that any businesses have remained in the state.  It seems like the moving vans never stop as an endless parade of businesses and families leave California as quickly as they can.

One of the only things keeping the population of California relatively stable at this point are the massive hordes of illegal immigrants that are constantly pouring into California cities.  There are certain areas of major California cities that you simply do not ever want to go into anymore.  In fact, there are rumors that the police will not even venture into certain areas anymore.

Traffic in California is a bigger nightmare than it ever has been before and the state cannot even keep up with repairing the roads and infrastructure that it already has.  There are a few areas of California where you can still see the promise of greatness and the amazing natural beauty that once attracted tens of millions of Americans to the state, but they are few and far between now.  At this point, most of the state is turning into one gigantic hellhole.

Perhaps the state could have some hope of turning things around if they had some solid leadership, but at this point the vast majority of the politicians in the state are pushing agendas that are so “radical” (not in a good way) and so “anti-American” that it is absolutely frightening.

Of course on top of everything else there is the constant threat of wildfires, mudslides and earthquakes.  One day a really “big earthquake” is going to hit, and once that happens many people believe that the geography of the state of California could be permanently altered forever.

But what most people are focused on right now is the horrific financial condition that the state of California currently is in.  Governor Brown recently summarized his analysis of California’s financial condition with the following statement: “We’ve been living in fantasy land. It is much worse than I thought. I’m shocked.”

Yes, things really are that bad in California.

The following are 22 facts about California that make you wonder why anyone would still want to live in that hellhole of a state….

#1 The California state government is facing a potential state budget deficit of 19 billion dollars this year, and California debt is rapidly approaching junk status.  One way or another the taxpayers of California are going to have to pay for this mess somehow.

#2 California Governor Jerry Brown recently unveiled a “draconian” budget plan for 2011 that includes 12 billion dollars more in spending cuts and that maintains 12 billion dollars in recent tax increases.

#3 The state of California currently has the third highest state income tax in the nation: a 9.55% tax bracket at $47,055 and a 10.55% bracket at $1,000,000.

#4 California has the highest state sales tax rate in the nation by far at 8.25%.  Indiana has the next highest at 7%.

#5 Residents of California pay the highest gasoline taxes (over 67 cents per gallon) in the United States.

#6 California had more foreclosure filings that any other U.S. state in 2010.  The 546,669 total foreclosure filings during the year means that over 4 percent of all the housing units in the state of California received a foreclosure filing at some point during 2010.

#7 Home prices in some areas of California have completely fallen off a cliff.  For example, the average home in Merced, California has declined in value by 63 percent over the past four years.

#8 725 new laws (most of them either completely pointless or completely stupid) went into effect in the state of California on January 1st.

#9 20 percent of the residents of Los Angeles County are now receiving public aid of one kind or another.

#10 The number of people unemployed in the state of California is approximately equal to the populations of Nevada, New Hampshire and Vermont combined.

#11 In some areas of California, the level of unemployment is absolutely nightmarish.  For example, 24.3 percent of the residents of El Centro, California are now unemployed.

#12 Residents of California pay some of the highest electricity prices in the entire nation.

#13 The state of California ranks dead last out of all 50 states in the number of emergency rooms per million people.

#14 According to one survey, approximately 1 out of every 4 Californians under the age of 65 has absolutely no health insurance.

#15 At one point last year it was reported that in the area around Sacramento, California there was one closed business for every six that were still open.

#16 In the late 70s, California was number one in per-pupil spending on education, but now the state has fallen to 48th place.

#17 In one school district in California, children as young as five years old are being forced to watch propaganda films that tout the benefits of “alternative lifestyles”, and parents are being told that no “opting out” will be permitted.

#18 The crime rate in the San Diego school system is escalating out of control. The following is what San Diego School Police Chief Don Braun recently told the press about the current situation….

“Violent crime in schools has risen 31 percent. Property crime has risen 12 percent. Weapons violations (have gone up) almost 8 percent.”

#19 Oakland, California Police Chief Anthony Batts announced last year that due to severe budget cuts there are a number of crimes that his department will simply not be able to respond to any longer.  The crimes that the Oakland police will no longer be responding to include grand theft, burglary, car wrecks, identity theft and vandalism.

#20 Things have gotten so bad in Stockton, California that the police union put up a billboard with the following message: “Welcome to the 2nd most dangerous city in California. Stop laying off cops.”

#21 During one recent 23 year period, the state of California built 23 prisons but just one university.

#22 The farther you look into the future, the worse California’s financial problems become. According to an article in the Wall Street Journal, California’s unfunded pension liability is estimated to be somewhere between $120 billion and $500 billion at this point.

So could the state of California actually go bankrupt?

In Washington D.C., some lawmakers are now working very hard behind the scenes to come up with a way to allow individual U.S. states to declare bankruptcy.

If something like that is worked out in Washington, then certainly the state of California would potentially be one of the first states to take advantage of it.

Unfortunately, the truth is that the state of California is a complete and total mess at this point, and not even bankruptcy is going to fix much.

The state has become a rotting, festering hellhole that is getting worse by the day.  Yes, some really good people still live there, but there are some really, really good reasons why so many people are leaving the state in droves.

But perhaps you disagree.  Does anyone want to state the case in favor of the state of California?  Please feel free to express your opinion below….’

 

Quantitative Easing Is Causing Food Prices to Skyrocket As I’ve previously noted, interest rates have risen both times after the Fed implemented quantitative easing.

 

The 25 Countries Whose Governments Could Get Crushed By Food Price Inflation Food inflation is now a reality for much of the world. It contributed to the overthrow of the Tunisian government, has led to riots across the Middle East and North Africa, driven up costs in China and India, and may only be getting started.

 

Accounting Tweak Could Save Fed From Losses Concerns that the Federal Reserve could suffer losses on its massive bond holdings may have driven the central bank to adopt a little-noticed accounting change with huge implications: it makes insolvency much less likely.

 

 

The end of The World: Dubai island development sinks back into sea after being scuppered by financial crisis After the global financial crisis led to the collapse of the emirate’s home-building market, a unique development known as ‘The World’ is reportedly facing Armageddon.

Path Is Sought for States to Escape Debt Burdens Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.

 

“The Vast Majority Of This Contraction Of Credit Availability To American Industry Has Been By The Larger Banks” This once again confirms what I have been saying for years: the giant banks are causing most of the credit contraction.

 

 

Economy News Nightmare: 20 Things That You Should Not Read If You Do Not Want To Become Very Angry The Economic Collapse | Today America is very, very frustrated.
#1 Today, millions of American families are digging deep into their savings and investments in a desperate attempt to stay afloat. Over the past two years, U.S. consumers have withdrawn $311 billion more from savings and investment accounts than they have put into them.
#2 15 billion dollars: the total amount of compensation that Goldman Sachs paid out to its employees for 2010.
#3 The number of American families that were booted out of their homes and into the streets set a new all-time record in 2010.
#4 Dozens of packages that we buy in the supermarket have been reduced in size by up to 20%.  For example, there are now 2 less slices of cheese in a typical package of Kraft American cheese, and there is now 9 percent less toilet paper in a typical package of Scott toilet paper.  So now, you may think that you are paying the same amount for these items that you always have, but the truth is that you have been hit with a large price increase.
#5 One Canadian company is making a ton of money shipping “millions and millions of dollars” worth of manufacturing equipment from factories that are being shut down in the United States over to new factories that are being set up in China.
#6 In America today, the wealthiest 20% own a whopping 93% of all the “financial assets” in the United States.
#7 Only 35 percent of Americans now have enough “emergency savings” to be able to cover three months of living expenses.
#8 47 percent of all Americans now believe that China is the number one economic power in the world.
#9 If the U.S. banking system is healthy, then why does the number of “problem banks” continue to keep increasing?  This past week the number of U.S. banks on the unofficial list of problem banks reached 937.
#10 According to former U.S. Labor Secretary Robert Reich, the wealthiest 0.1% of all Americans make as much money as the poorest 120 million.

#11 U.S. housing prices have now fallen further during this economic downturn than they did during the Great Depression of the 1930s.

#12 According to some very disturbing new research, 45 percent of U.S. college students exhibit “no significant gains in learning” after two years in college.

#13 Americans now owe more than $884 billion on student loans, which is a new all-time record.

#14 The United Nations says that the global price of food hit an all-time record high in December, and the price of oil is surging towards $100 a barrel, but the U.S. government continues to insist that we barely have any inflation at all.

#15 The more Americans that are on food stamps the more profits that JP Morgan makes.  Today, an all-time record of 43.2 million Americans are on food stamps, and JP Morgan is making a lot of money processing millions of those benefit payments.

#16 Back in 1970, 25 percent of all jobs in the United States were manufacturing jobs. Today, only 9 percent of the jobs in the United States are manufacturing jobs.

#17 Dozens of U.S. states are either implementing tax increases in 2011 or are considering proposals to raise taxes.

#18 The United States has had a negative trade deficit every single year since 1976.

#19 The U.S. national debt has crossed the $14 trillion mark for the first time, and at some point during 2011 it will cross the $15 trillion mark.
#20 What the U.S. economy really needs is for the government to get off all of our backs, but instead they continue to tighten their grip on us.  In fact, the Obama administration is proposing a “universal Internet ID” that would watch, track, monitor and potentially control everything that you do on the Internet’

 

 

 

Here Comes $4 Gas, $5 Cups of Coffee Newsweek | The final dam to stopping $150-a-barrel oil and $4-a-gallon gas is being breached, as financial regulation continues its daily erosion into worthlessness.

 

Euro Rises Against Dollar, Extending Two-Week Rally WSJ | The euro rose against the dollar Monday as traders seized on hawkish comments from European Central Bank president Jean-Claude Trichet.

 

 

Only 47% Of Working Age Americans Have Full Time Jobs VK, roving reporter for The Automatic Earth, has been playing with the numbers from the January 7 employment report issued by the U.S. Bureau of Labor Statistics. It seems valuable to look at unemployment from this, a different, angle. Some of it may even surprise you.

 

China taking over US banks The Industrial and Commercial Bank of China (ICBC) has agreed on a deal to take over a US retail bank, at a time when American financial institutions are falling one after another.

 

Greenspan Questions the Need of the Fed Back in August, we wrote a piece called The Maestro and Gold—about Alan Greenspan, the architect of the modern fiat economy, the tech bubble, the housing bubble, and the most recent Financial Crisis.

 

As If The Fed Planned To Do It All Wrong As of Wednesday we have seen the euro rise 7 straight days, which caused the USDX to fall to 78.14, this in spite of having 10-year rates in Spain, Portugal and Ireland rising 3 bps.

 

 

 

 

 

National / World

 

 

 

 

US-led airstrikes kill Afghan civilians Two separate airstrikes by US-led foreign forces have killed at least five civilians and wounded several others in various parts of Afghanistan.

 

Steep Oil Prices, Food Shortages Will Likely Spark Deadly Riots This Year From now on, rising prices, powerful storms, severe droughts and floods, and other unexpected events are likely to play havoc with the fabric of global society.

 

Hitler Hates Infowars.com; Tuscon media hoax backfires You Tube | The powers-that-be who control the mainstream media tried to pin blame for the Loughner shooting on the “rightwing” and on 9/11 truthers, but the hoax backfired.

 

Americans Are Just As Likely to Get Struck By Lightning Than Killed By Terrorists Paul Joseph Watson | Which is why Homeland Security’s anti-American tattle-tale program is about political persecution, not genuine safety.

 

Moscow Airport Blasts: FSB False Flag, Anti-Putin Campaign or Real Separatist Attack? Steve Watson & Paul J. Watson | Previous terrorist attacks in Russia were the dirty work of the security services.

 

The Meaning Of V Paul Joseph Watson | Infowars campaign firmly rooted in spirit of resistance movements that have stood up to tyranny throughout history.

 

Alex Jones: Google’s New Censorship Tool & Chinese Pianist Plays Anti-USA Tune Infowars.com | The Alex Jones Show, Sunday Edition, January 23, 2011.

 

New V for Victory Posters Infowars.com | An example of the awesome posters now rolling in.

 

Operation Mockingbird Asset Olbermann Calls It Quits Kurt Nimmo | The CIA micro-managed media propaganda machine is headed for the rocks as citizen journalists take control of news and information dissemination.

 

Paul Beats Palin James Ostrowski | Ron Paul is busy fighting the Fed, not campaigning.

 

Seattle Activist Wins Case Against TSA Kurt Nimmo | Case represents the first time anyone has successfully challenged the TSA’s assumed authority to question and detain travelers.

 

Google Seeks to Weaken Search Engine Ranking of “Content Farming” Websites Eric Blair | Alternative news sites beware, Google is changing their algorithm to reduce your status to a spammer in an attempt to control the flow of information on the Internet.

 

 

First Entries For V For Victory Campaign Rolling In Infowars.com | It’s all about fighting back against the psychological warfare we are now being subjected to by our new would-be slavemasters.

 

Ron Paul: The Coming 2nd American Revolution & Exposing The Fed Infowars.com | Alex talks with physician and Texas Congressman Ron Paul, author of End The Fed and The Revolution: A Manifesto.

 

Eisenhower’s Worst Fears Have Been Realized Washington’s Blog | All in all it appears that Eisenhower’s worst fears have been realized and his remarkable and unique warnings given for naught.

 

Wikileaks Is The “Cognitive Infiltration” Operation Demanded by Cass Sunstein [ The following is a very important read. That said, I’m still against the censorship since one always, in the final analysis, must discern truth from falsehood, information from disinformation, reality from propaganda. In truth, I found it somewhat shocking and more than surprising that of all places ‘to escape to’, Assange chose Orwellian england, puppet to the u.s. and guarantor of servility to u.s./zionist interests, such is there own desperate circumstances. ] Webster G. Tarpley | Awareness is growing around the world that the Wikileaks’ theater of the absurd is radically inauthentic — a psyop…’ Tarpley.net

January 22, 2011 Awareness is growing around the world that the Wikileaks-Julian Assange theater of the absurd is radically inauthentic – a psyop. Wikileaks and its impaired boss represent a classic form of limited hangout or self-exposure, a kind of lurid striptease in which the front organization releases doctored and pre-selected materials provided by the intelligence agency with the intent of harming, not the CIA, nor the UK, nor the Israelis, but rather such classic CIA enemies’ list figures as Putin, Berlusconi, Karzai, Qaddafi, Rodriguez de Kirchner, etc. In Tunisia, derogatory material about ex-President Ben Ali leaked by Wikileaks has already brought a windfall for Langley in the form of the rare ouster of an entrenched Arab government.

Obama White House NSC Russia Director Michael McFaul Deploying IMF Shock Therapist Boris Nemtsov as Wheelhorse of Feeble “Stop Putin in 2012″ Bid.

At Foggy Bottom and Langley, a manic fit has been building since the flight of Ben Ali. US imperialist planners now believe they can re-launch their shopworn model of the color revolution, CIA people-power coup, or postmodern putsch against a whole series of countries in the Arab world and far beyond, including Italy. The color revolutions had been looking tarnished lately, as a result of the failure of the Twitter Revolution in Iran back in June 2009. Previously, the Cedars Revolution of 2005 had failed in Lebanon. The Orange Revolution in Ukraine had been rolled back with the ouster of NATO-IMF kleptocrats Yushchenko and Timoshenko. In Georgia, the Roses Revolution was increasingly discredited by the repressive and warmongering regime of fascist madman Saakashvili.

US Seeks to Mobilize a New Generation of Young Nihilists Across the Globe

But now, NSC, State, and CIA believe that the color revolution has a new lease on life, thanks to their estimate that the United States, because of Wikileaks and Assange, has captured the imagination of a new generation of young nihilists across the globe who are described as the post-9/11 generation, estranged from governments and opposition parties, and thus ready to follow Langley’s peroxide Pied Piper.

Assange started his intensive deployment phase this year with video of a Class A US war crime in Iraq, which was very graphic but which dealt with an incident which was already widely known. The second document dump focused on Iraq, but now the targeting had shifted to Prime Minister Maliki, and the Iranian asset whom the US by some strange coincidence was trying to oust as leader of Iraq in favor of the US puppet Allawi. With the third document dump, this time involving State Department cables, we found out much derogatory gossip about such classic CIA targets as Russian prime minister Putin, Italian Prime Minister Berlusconi, the Russian-Italian strategic alliance, President Fernandez de Kirchner of Argentina, and President Karzai of Afghanistan, along with jabs at supposed US allies who need to be kept off-balance and dependent, including the Saudi Arabian royal family, French President Sarkozy, and others. Wikileaks thus directs the vast majority of its fire against figures who are part of the CIA’s enemies list.

No Equal Time for CIA Covert Operations

Assange also provides a splendid pretext for draconian censorship and limitations on the freedom of the internet. The totalitarian liberal Senator Feinstein wants to bring back Woodrow Wilson’s infamous Espionage Act of 1917 in honor of Assange. Assange must be seen not as an activist, not as a journalist, and not as an entertainer, but rather as a spook. John Young of Cryptome, according to some reports, has denounced Wikileaks, to which he formerly belonged, as a CIA front. In a December 29 RT interview, Young described the internet as “a very large-scale spying machine.”1 The internet is indeed a vast battlefield, where the intelligence agencies of the US-UK, China, Israel, Russia, and many others clash every hour of the day, with commercial spies, hackers, anarchists, cultists, mercenary trolls, and psychotics all getting into the act as well. Intelligence agencies deliberately feed real and doctored material to various websites, sometimes using their own disgruntled employees as cutouts, conduits, and go-betweens. This means among other things that Bradley Manning cannot be taken at face value, although it is also clear that he like anyone else should not be tortured.

Assange is now famous, it might be argued. But the Wall Street controlled media can make anyone famous, from Lady Gaga to Justin Bieber to Snooki, and this is what they have done with Assange. It is wrong to capitulate to the demagogic power of these media by making it appear that there might be some legitimate value to Assange. Up to now, the CIA has been organizing color revolutions using Twitter, Facebook, Youtube, and so forth as vehicles. Now they think they have a cult figure whom they can sell to the youth bulge in the Arab world and other developing countries, where most of the population is under 30. This is an operation which must be exposed.

Most recently, Wikileaks has played a role in the CIA’s new “Jasmine Revolution” in Tunisia by publishing some State Department cables about the sybaritic luxury and lavish lifestyle of the Ben Ali clan, leading to the downfall of that regime. The CIA is now gloating that with the help of Wikileaks it can now topple all the Arab regimes at will, from Mubarak to Qaddafi to Bouteflika, and replace them with new and more pliable puppets eager to clash with Iran, Russia, and China

If Assange ever launches his much-touted doomsday machine against the Bank of America or some other financial institutions, we will be justified in asking that the Securities and Exchange Commission make public the extent of short interest in those stocks by certain hedge funds, especially those controlled by George Soros. And as far as Assange’s attacks on the Vatican are concerned, they fit neatly into four centuries of British intelligence warfare against the Holy See, going back to Guy Fawkes and Lord Robert Cecil’s Gunpowder Plot of 1605 and beyond. Not much new or radical here.

Wikileaks: No Serious Derogatory Information about US, UK, Israel

It is illuminating that none of Assange’s document dumps have revealed any notable scandals involving Great Britain or Israel. No US public figures have had to resign because of anything Wikileaks has done. No major ongoing covert operation or highly placed agent of influence has been blown. After all these months, there are still no US indictments against Assange, even though we know that a US grand jury will readily indict a ham sandwich if the US Attorney demands it. If the CIA had wanted to silence Assange, they could have subjected him to the classic kidnapping aka rendition, meaning that he would have been beaten, drugged, and carted off to wake up in a black site prison in Egypt, Poland, or Guantanamo Bay. Otherwise, the CIA could have had recourse to the usual extralegal wetwork. We must also assume that the new US Cybercommand with its vast resources would have little trouble shutting down the Wikileaks mirror sites, no matter how numerous they might be. The same goes for Anonymous and other flanking organizations of Wikileaks. But these considerations are purely fantastic. Assange emerges today as the pampered darling and golden boy of The New York Times, Der Spiegel. The Guardian, El Pais — in short, of the entire Anglo-American official media Wurlitzer. He reclines today in baronial splendor in the country house of a well-connected retired British officer who should be quizzed by the media about his ties to British intelligence. The radical-chic world, from Bianca Jagger to Michael Moore, is at Assange’s feet.

Cass Sunstein Present at the Creation of Wikileaks

Wikileaks was apparently founded in 2006. Originally, the group was programmed to attack China, and its board was heavily larded with fishy Chinese dissidents and “democracy” activists from the orbit of the Soros foundations. Interestingly, the first big publicity breakthrough for Wikileaks in the mainstream US media was provided by an infamous totalitarian liberal today ensconced in the Obama White House – none other than Cass Sunstein. In Sunstein’s op-ed published in the Washington Post of February 24, 2007 under the title “Brave new Wikiworld,” we read: “Wikileaks.org, founded by dissidents in China and other nations, plans to post secret government documents and to protect them from censorship with coded software.” How interesting that Sunstein was present at the creation of the new Wikileaks psywar operation!

This is the same Sunstein who today heads Obama’s White House Office of Information and Regulatory Affairs. In his January 2008 Harvard Law School Working Paper entitled “Conspiracy Theories,” Sunstein infamously demanded that the United States government deploy groups of covert operatives and pseudo-independent agents of influence for the “cognitively infiltration of extremist groups” – meaning organizations, activists and Internet websites who espouse beliefs which Sunstein chooses to classify as “false conspiracy theories.”

Wikileaks = Cass Sunstein’s Program for Cognitive Infiltration In Action

It should be clear that Assange and Wikileaks are precisely the practical realization of Sunstein’s program for “cognitive infiltration” shock troops to counteract and overwhelm any real mass understanding of oligarchical domination in the modern world, and any discussion of what kind of economic policies are needed to secure a recovery from the present world depression.

In line with Sunstein’s recipe, Assange is a self-declared enemy of 9/11 truth. As Assange told Belfast Telegraph reporter Matthew Bell last July, “I’m constantly annoyed that people are distracted by false conspiracies such as 9/11, when all around we provide evidence of real conspiracies, for war or mass financial fraud.” In other words, Assange argues that the truth about 9/11 truth is not nearly as radical as the various scandals which Wikileaks claims to expose. But the scandals Assange is offering target mostly the adversaries of the CIA.

Assange must also be seen as a deeply troubled individual and a possible psychopath. He has the ravaged emotional complexion that we might expect from an alumnus of one of the many MK-Ultra operations. He reportedly spent several years in the menticidal Anne Hamilton-Byrne cult (also known as The Family and Santiniketan) near Melbourne, Australia. Here little children were separated from their parents and made to ingest LSD, Anatensol, Diazepam, Haloperidol, Largactil, Mogadon, Serepax, Stelazine, Tegretol, Tofranil, and other potent psychopharmaca. Dozens of children were told that Hamilton-Byrne was their real mother, and had their hair dyed blond. Anne Hamilton-Byrne reportedly regarded blond hair as a sign of racial superiority. Careful observers will have noted that Assange’s hair is sometimes blond, sometimes more brownish, raising the question of whether his grooming practices are a residue of his time with Hamilton-Byrne, whom he says he does not remember. When other kids were getting cookies and milk, was Assange being lobotomized by LSD and other potent psychopharmaca dished up by Hamilton-Byrne? There is evidence pointing in that direction.

With Assange, we thus have the tragic spectacle of the emotionally mutilated product of a CIA (or MI-6) covert operation of 40 years ago, who has now been given a prominent role in a key counter-insurgency ploy of the present time. Will the youth of the world, already burned by their recent fatuous obsession with Obama, be duped again by such an impaired individual?

The Precedent: Pentagon Papers Whitewashed CIA, Blamed Army, Demonized Kennedy

Assange’s revelations mainly involve communications labeled Confidential or Secret, and which in reality would be over-classified if marked Official Use Only. In other words, Assange is in reality a purveyor of low level cable traffic, not of earth-shattering secrets. This reminds us of an earlier CIA limited hangout operation, the one known as the Pentagon Papers. This was a carefully screened selection of historical documents, supplemented by outright forgeries, relating to the Vietnam War and compiled by Morton Halperin and Leslie Gelb, both of whom have gone on to glittering careers in the imperialist foreign policy establishment – Gelb became president of the Council on Foreign Relations, while Halperin serves today as chief political officer of the Soros wolfpack of foundations. The papers were leaked by former RAND Corporation official Daniel Ellsberg, who had been a very bellicose hawk in Vietnam before a suspicious Damascus Road conversion to pacifism, and then published in the US establishment press – similarly to Assange today. There was nothing in the Pentagon papers which a casual reader of LeMonde or Corriere della Sera did not already know. But, as Mort Sahl later said, left liberals have generally had very few heroes, so they battened on to Ellsberg and lionized him – led by Noam Chomsky, Howard Zinn, and some others. (This is a syndrome which we see again today: at the moment when Obama’s treacherous sellout on the Bush tax cuts was providing a final disillusionment for many gullible left libs, Assange arrived on the scene as their new Savior. Not by chance, Ellsberg has now designated Assange as his own reincarnation, and thus surely the new Messiah.)

The Pentagon papers had been carefully selected by the CIA itself to cover up CIA war crimes in Vietnam, blaming these on the US Army wherever possible, while also obscuring the CIA’s massive program of drug production and narcotics smuggling. The Pentagon Papers systematically hid the salient political fact of the entire Vietnam era, which is that President John F. Kennedy before he was assassinated was preparing to end the de facto US combat role in that country. Instead, Kennedy was systematically demonized and smeared, emerging as the villain of the piece. Needless to say, the Pentagon papers throw no light whatsoever on the CIA role in the Kennedy assassination – in the same way that Assange’s various document dumps tell us nothing of importance about 9/11, the Rabin assassination, Iran-contra, the 1999 bombing of Serbia, the Kursk incident, the various CIA color revolutions, or many of the other truly big covert operations of the past decades.

The limited hangout is not new; it was described in a secret memorandum by Venetian intelligence chief Paolo Sarpi to the Venetian Senate in 1620 as the art of “saying something good about somebody while pretending to be saying something bad.” That is the common denominator of the CIA’s limited hangout operations from Ellsberg to Philip Agee to Assange, with so many other “former” CIA operatives turned “whistleblowers” along the way. ‘

 

Former FBI Agent Coleen Rowley Calls For Congress To Begin “Church Committee”-type Hearings Saman Mohammadi | The time to begin thinking about justice is never too late.

 

Perpetual War is Expensive! We’ve been militarily involved in the Persian Gulf region now for 20 years. Experts have predicted that the cost of this continuous and expanding war will reach 6 trillion dollars.

 

China's new stealth fighter may use US technology (AP)

 

 

The Pathology of Facebook and Twitter The way in which people frantically communicate online via Twitter, Facebook and instant messaging can be seen as a form of modern madness, according to a leading American sociologist.

 

 

 

Drudgereport: NYT: Former Spy With Agenda Operates Own Private CIA... [  Quite serious a problem …  Remember … these people really are quite stupid but self-interested if not greedy; and, if the money’s right, they wrap themselves in the flag and find a reason … remember ollie north who’s an absolute dope … and there are many, many more worse than him. Then there’s their war mongering which of course is the precursor to their war profiteering, etc.. ]
UPDATE: Hawaii governor says Obama's birth record 'exists' but can't produce it...

BACKTRACK: Now Hawaii won't release birth info...
Hollywood, Jobs, Trump help Rahm haul in $10.6M … [ No surprise here, mobster trump (how was trump missed in the recent big mafia bust since he too is a corrupt bribe paying/receiving, drug money laundering among other crimes,  mobster), hollywood flakes like magic mushroom eater sorkin, LSD aficionado jobs (I now realize what that premium priced disfunctional though fanciful  pizzazz of apple products that I would refuse to pay extra for stems from-jobs says he owes it all to his LSD use-don’t forget, apple’s protected source code, kernel, and consequent stability existed pre-jobs and I believe, particularly after actually using an iphone, that the same is a way to extract money from an ever increasingly dumbed down / dumb (and I think at the least, eccentric if not obsessively pathological if you witnessed the near compulsive use of these extraneous-rich, in a trivially frivolous way, devices) american public by pandering to their desire for superfluous functionality which requires additional purchases through apple-I do give them credit for the more elaborate interface / touchscreen and the ipad, all of which is currently being duplicated ex-apple and presenting greater values/utility/functionality for the money-so also credit for pioneering), zionists including spielberg, etc.; no small wonder that chicago and the nation are down the tubes. ] ...
COURT: Candidate 'must have actually resided' in city for 1 year before election...

Plans appeal to Illinois Supreme Court...
CHICAGOLAND SHOCK: RAHM BOOTED OFF BALLOT
China 'on Collision Course' with USA...

Bank Moves to Buy U.S. Branches...
Stealth fighter 'based on crashed American plane'...
Chinese Pianist Played Anti-American Propaganda Tune at White House?

 

 

 

 

 

Topic A: What should be in State of the Union? (Washington Post) [ Well, at the very least, it should be noted that the states of the union are crumbling (see bankruptcy headlines infra), ergo, the state of the union is crumbling and precarious indeed. The problem with and for wobama is that he’s been there, done that, and his words don’t match his actions, as is so regarding his not easily forgotten campaign promises (from perpetual wars, to no pros the frauds on wall street, to new ‘bubble building’ as in last precursor to crash supplanting sound economics. Blame it on the teleprompter … sounds like a plan! All we really know for certain is what definitely will not be in the state of the union; viz., a solution to pervasively corrupt, defacto bankrupt america’s intractable decline. ]

 

Drudgereport: BANKRUPTCY FOR STATES STUDIED
CA DECLARES EMERGENCY
Facing $1.6B shortfall, San Fran pays employees $170 million in bonuses...

What Happened to 15 Million Jobs?
Wall Street's 'Bernanke' rally runs into headwinds...
Home sales hit 13-year low...
UPDATE: Hawaii governor says Obama's birth record 'exists' but can't produce it...

Obama daughter practices Chinese with Hu...
Chinese Tiger ate US Dove for lunch...

FBI 'largest' Mafia takedown...
Flowchart...
'Vinny Carwash', 'The Fang', 'Tony Bagels', 'Johnny Pizza', 'Baby Shacks', 'Jack the Wack', 'Junior Lollipops', 'Bobby Glasses'...

MTV PORN: Parents Television Council Calls for Fed Investigation Into 'SKINS'...
VIACOM PRESENTS: SEX AT 15!
Young Star Defends Show's Racy Content: 'It's What Teens Are Doing'...
TACO BELL Pulls Ads...
Teacher Suspended After 2nd Graders 'Sex Acts In Class'...
Joan Rivers calls Michelle Obama 'Blackie O'... [ ‘Blackie O’ … Very funny! … I like that … but don’t look for joan on ‘The View’ anytime soon, or invites from the whitehouse either … but of course, and ‘Blackie O’ might retort that joan will be too busy anyway, reprising the role of ‘The Joker’ in the next Batman film by the gifted director, Christopher Nolan, with AH new Catwoman … meow! ]

 

 

 

 

The Mafia family tree: FBI flowchart reveals
127 'mobsters' arrested in biggest ever blitz on New York's crime empires
[ This is a very big deal!  http://albertpeia.com/mafiafamilytreeflowchartFBIarrests.htm   ]

 

“All In All It Appears That Eisenhower’s Worst Fears Have Been Realized And His Remarkable And Unique Warnings Given For Naught”  [ I personally believe, and the factual, historical realities support that President General Eisenhower is without question the most under-rated president in america’s short-lived history. Is there anyone who foolishly would believe this man of honor, the quintessential General / Commander in Chief would be sacrificing lives (american among many others) and treasury for the sake of war profiteers, greed, fraud, etc., as now? ]  President Eisenhower’s warned us about the growing threat from the powerful military-industrial complex – and it’s threat to our prosperity – 50 years ago.

 

A new culture war Milbank: Are GOP spending cuts about the deficit or settling old scores? (Washington Post) [ What does it matter at this point. Who cares about motives at this too little, too late juncture. Come on! Wake up! Culture wars? Who cares. That should be the least of the wars and worries.The nation is defacto bankrupt. The states are also defacto bankrupt. They’re talking about bankruptcy enabling legislation for the states. There are many cities and municipalities in the states are defacto bankrupt (they can declare bankruptcy as the law currently stands).  NYT Reports States Looking For Ways To File Bankruptcy, Muni Bondholders To Be GMed A few days ago we reported that Newt Gingrich was pushing for legislation to allow states to file for bankruptcy, “allowing Them To Renege On Pension And Benefit Obligations.”   Path Is Sought for States to Escape Debt Burdens Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts. Drudgereport: BANKRUPTCY FOR STATES STUDIED
CA DECLARES EMERGENCY
Facing $1.6B shortfall, San Fran pays employees $170 million in bonuses...From tonight’s NYT: Beyond their short-term budget gaps, some states have deep structural problems, like insolvent pension funds, that are diverting money from essential public services like education and health care. Some members of Congress fear that it is just a matter of time before a state seeks a bailout, say bankruptcy lawyers who have been consulted by Congressional aides…’   ]

 

 

Hezbollah gets support of Druze leader (Washington Post) [ Is this a direct outcome and consequence of israeli belligerence, war crimes, and america’s alliance with and hence, apparent endorsement of such by america which also has bloodstained hands from numerous civilian deaths in the region. Yes! After all, no one would reasonably deny Hezbollah’s a**-kicking of israel in their fairly recent ‘encounter’. ] The armed Shiite movement received a major boost in its efforts to form a new government in Lebanon when a potential kingmaker swung his support behind the group and its allies.

 

 

A dim view of America's ability to compete in global economy (Washington Post) [ Yeah … and I’d say, realistically speaking, that ‘slightly more than a third’ are wrong. It’s a bit late in the game to be lamenting irrevocable choices, decisions made, mostly for money to the interested few and the frauds on wall street who cheered. This and worse coming is what it is and more importantly, the way it is. Fait accomplis, not for better or for worse, but realistically unlike never before in america’s short history, for much worse.  ] Barely more than a third of all Americans rate the country's ability to compete economically in positive terms, according to a new Washington Post poll.

 

Bank of America posts $1.2B loss for fourth quarter of 2010 (Washington Post) [ Today (after the wall street close) : Four U.S. bank failures bring year's total to 7  Could it be … BofA ‘hearing footsteps’? … Naaah … they’re too big to fail.   ] The toll from the housing crisis could continue to drain billions of dollars from nation's largest bank.

 

 

Four U.S. bank failures bring year's total to 7

Do You Believe in the Bernanke Put?   [ Yes! I agree with the dire assessment infra except that it will be more than tears as in that, ‘There Will Be Blood (film name)’ … and not just in the streets.  ] Hui ‘Earlier this week Gluskin Sheff Chief Economist David Rosenberg wrote an article in the Globe and Mail entitled Why this rally will end in tears.
Last week, Rosenberg called the current state of the financial market a Wile E. Coyote market, or a market that seemingly ignores the major macro-economic risks that could blow up the global economy.

We have an incredible bear market rally on our hands. History shows that these spasms can go further than anyone thinks. But after the U.S. market staged a monstrous 80-per-cent-plus rally from its March, 2009, lows (the most pronounced bounce in such a short time since 1955), it has become seriously overextended. Meanwhile, practically every pundit is extrapolating the recent trend into the future because that is the easy thing to do.

Most investors see only the recent returns; they do not see the nearly invisible risks. But the risks are there. I recall all too well the 2003-07 bear market rally – yes, that is what it was. It was no long-term bull run such as 1949-1966 or 1982-2000. It was a classic bear market rally, and it ended in tears because what drove the market upward was phony wealth generated by a non-productive asset called housing alongside widespread financial engineering, which triggered a wave of artificial paper profits. [picture]

 

He went on to detail his concerns about the future (which I paraphrase):

When will it be time for QE3?
While I would tend to agree with many of Rosenberg’s concerns about the macro-economic risks to this upturn, most of the risks in his outline are economic in nature and could be addressed by central bank action. In such a case, the question for investors has to be: Were any of these negative outcomes were to occur, would the Bernanke Fed respond with another round of quantitative easing? In other words, is there a Bernanke Put in the market?

I believe that the future trajectory of the global economy and asset prices are highly policy dependent. While I have my opinion, I am not confident enough in them to be a basis for investment decisions. That’s why I depend on the discipline of the Inflation-Deflation Timer Model, as the underlying philosophy is to allow market prices to tell us the likely direction of policy and price trends, which in turn, allows us to be more tactical and able to capitalize on the intermediate swings in the markets’

 

 



 

Market Outlook: 10 Reasons to Expect a Correction   Seeking Delta ‘The S&P 500 is down a little more than 1% in the last two days despite largely positive economic data. As Cullen Roche so eloquently stated earlier this month:

But the market isn’t the economy. Main Street isn’t Wall Street. And the market is a heartless beast that desires one thing and one thing only- PROFITS!

What follows are the ten reasons (in no particular order) why I am cautious here, as I see the 1% dip over the last two days to be the beginning of a larger correction.

1. Another Earnings Season Sell-Off?

During some point in the past four earnings seasons the S&P 500 has sold off significantly. The trend has been to rally into earning, then to sell the news. Chart, via WSJ.

click to enlarge

[chart]

2. Investor Sentiment

Both individual and professional sentiment remains high, as measured by AAII and NAAIM, respectively. Both readings are currently higher than one standard deviation above historical average bullish readings. Contrary indicator: historically returns are less favorable when sentiment readings are high.

3. Too Far Too Fast?

The current 22 month rally from the March 2009 lows has been 90.1% (click on chart to enlarge). The average 24 month rally to start bull markets is 56.1% with the next closest rally being 65.7% starting in October 1974. Have we come too far too fast? Chart and data via The Big Picture.  [chart]

4. Low and Declining Put/Call Ratio

Since late 2003, when the 20 day rolling average put/call ratio has fallen below .55 (roughly 1 standard deviation from average) the average 30 day returns are -2.2% (-0.7% median) versus a series average of 0.2% (0.8% median). The current 20 day average put/call ratio is .52. The last time the ratio dropped below .55 (April ’10) the market sold-off roughly 14% over the next month-and-a-half. Chart here.

5. Equities Running Out of Breadth?

The ratio of the number of stocks gaining versus the number declining is struggling to regain 2010 levels. Data Diary suggests:

that the market has been gaining ground on the backs of fewer and fewer stocks. We could interpret this as more and more stocks are bumping up against valuation constraints – or put another way, valuation multiples can only move so far ahead of earnings growth.

6. Short Selling of Securities in the S&P 500 at 1 Year Low

Per Data Explorers. Potentially a contrary indicator – have the shorts thrown in the towel?

7. Tom DeMark Says U.S. Stocks Near Significant Decline.

Mr. DeMark, the creator of a set of Market-timing indicator, is calling for a decline of “at least 11%.” The last time his indicators gave a sell signal was mid-2007. Needless to say, the last quarter of '07 and '08 were not a good time to be in equities.

8. Consensus of 11 Strategists Surveyed by Bloomberg Says S&P 500 to Rise by 11% in 2011.

Contrary indicator?

9. QE Ending in June, Maybe earlier?

There is some pressure, as the economy recovers, that QE is no longer needed. I would be surprised if QE2 ends in June, as scheduled, let alone early. But if it does, watch out.

10. Low Volume Rally

Volume has consistently trended down since the beginning of the March 2009 rally (click to enlarge).

[chart]

 

 

 



Freaky Friday - Alpha 2 Says 'Cliff Ahead'    Davis ‘This is fun, right? We had a nice opportunity to buy the effing dip yesterday as well as an interesting opportunity to test the prudishness of the hundreds of web sites that syndicate my articles as I saw every possible variation of "F’ing" popping up in titles that were pinged back to me. Social mores aside, the move was so well telegraphed that we were able to take a non-greedy exit on our QID position – leaving us, thankfully, with just the DIA shorts in our $10,000 Portfolio. That means we are going to be able to start our brand new $25,000-$100,000 Virtual Portfolio right on schedule next week.We began "Turning $10,000 into $50,000 by January 21st" on June 11th and we’re not done yet but we’re well over $30,000 – even looking at our wrong-way (so far) short bet on the Dow. We could have killed that one yesterday as well but, as today’s title says – we just have to give the old Alpha 2 a chance to fully play out as we would just hate ourselves if we get that 500-point drop in the Dow right after we bail on the shorts as that would be our $50K right there!So up only 200% or so in 7 months is a failure but, to be fair, we did take a couple of months off as I didn’t like the market enough in October and November and we already had $26,000 so it didn’t seem worth risking 260% to make another 100%. In the final month, we decided to "go for it" but it was a messy way to make another 20% as our overall premise – that a drop was "right around the corner" – simply did not pan out. Frankly, looking back at the original 5 picks makes me want to cry as we could have just left those on the table and gone on vacation! They were:

So there’s $56,470 in profits for a $66,470 total IF WE HAD JUST LEFT THE DAMNED THING ALONE! [Actually (8:30 update) I realize that the reverse split on YRCW means that it didn't go up that far on an adjusted basis - so maybe we didn't do all that badly compared to leaving it alone.] Oh well, we didn’t leave it alone because when we make a lot of money early (as we did with YRCW) we take it off the table and then we hedge to protect our profits and some of our later plays were not as clever as our first set but $30,000 is nothing to be ashamed of, is it? Still, it’s a very good lesson that we can take with us into the new portfolio and I urge Members to go through the Portfolio tab and review all the moves we made over the past 6 months, as the $25K Portfolio won’t be much different at first since it’s also a small portfolio where we have to manage our small bets very carefully.Aside from today being our target date to close these trades out, I mention the portfolio this morning to remind our Members that we are NOT missing anything by waiting to be sure of the breakout. We waited for a nice dip and what we felt was a solid move up before initiating that $10KP and we had a rocky start as the market did take another 10% dip in late June but that was GOOD news as we hadn’t over-committed and we doubled up on YRCW and pressed some other bets and by October we had $26,000 and decided we’d rather lock in those gains (the purpose of the portfolio was to have a nicer Christmas than planned) than risk our gains right into holiday shopping season. Was our $10KP responsible for America’s strong holiday shopping numbers???We intend to do better in 2011 than we did in 2010, and step one in hitting our $100,000 goal is BEING CAREFUL WITH OUR ENTRIES! As noted in last week’s Stock World Weekly, we have been rolling along this month right in line with the TradeBot’s Alpha 2 pattern that they ran last year, and Elliot sent me an advanced copy of this week’s newsletter where he cleaned up the chart to match out the expiration dates. I believe you will see why I still have a slight concern:[chart] Spooky, isn’t it? Don’t forget, we identified this pattern on the 3rd and we targeted 11,850 on the Dow and 1,285 on the S&P as the adjusted tops of our ranges and, so far, Lloyd and da Boyz have been firing on all cylinders to paint a picture that is just as pretty as the one they painted last January, right into expiration day, when the VIX ran all the way down to 17.50 (from 30 in November) as complacency reached extreme levels. The tip-off at the time, that we were about to drop, was a sudden pop in the VIX on that Friday, back to 17.99, and by the next Tuesday we were back to 18.68 and, by Tuesday the 21st, panic was back in fashion and the VIX finished the day at 22.27 – on the way to 27 the next day. Now THAT’s a sell-off!Is it "different" this time? How much are you willing to bet on that? We’re not betting much, we’re cashing out the $10KP and we’ll see what happens next week, confident that we KNOW that if the market goes down we can make money and if the market goes up we can make money, but we can make so much more if we wait for the right opportunity before placing our bets.As David Fry notes on his DIA chart, POMO does make this time different and it does seem like we are being hard-wired to buy those effing dips. That’s OK, we can accept that if that’s how we have to play it, but please, Lloyd, show us that you are willing to break the pattern first – then we’ll be willing to step a little closer to the edge of the cliff. Forgive us, of course, if the idea of standing next to you at a cliff when we know that you might make a Dollar for pushing us over gives us the creeps – it’s just that, well, we know you!Speaking of people who are willing to sell their country out for a Dollar – GE had excellent earnings and I got my daily "WHUCK?!?" moment this morning when Obama named Jeff Immelt the head of his Economic Advisor Panel, replacing Paul Volcker who quit when he realized this country is totally being controlled by Souless Corporate Interests who are embodied by none other than – Jeff Immelt. Yes, it’s the same Jeff Immelt who just signed a deal to transfer America’s Avionics Technology to China’s State-owned Commercial Aircraft Corp. of China who (and I mean who, not Hu, althogh it’s easy to see how this is confusing) intends to go into direct competition with Boeing (BA), who is not only a top US military supplier but our nation’s largest manufacturing exporter BY A MILE – so much so that Durable Goods have to be measured ex-Aircraft to smooth out their shipping cycle. Boeing sells $68Bn worth of airplanes per year and has over $300Bn worth of orders for the 787 backlogged. The company directly employs 157,000 employees, mainly in the USA and, as they build their planes here and tend to use American parts, they in turn employ roughly 1M more people, accounting for close to 10% of our nation’s total manufacturing employees. As I mentioned when the deal first broke – the technology GE is turning over to China represents 100 years worth of advances in American avionics and, just because GE legally got their hands on the patent rights over the years, that does not give them the right to put a bow around them and hand them to Hu (not "who," this time I literally mean Hu). There’s a word for what GE is doing. It’s right at the tip of my tongue... Oh yes, TREASON!!! Oran’s Dictionary of the Law (1983) defines treason as "…[a]…citizen’s actions to help a foreign government overthrow, make war against, or seriously injure the [parent nation]." Well, the Supreme Court just decided that our Corporations are citizens and have the right to give politicians unlimited bribes contributions as they exercise their right to free speech. Why then do we not hold them to a citizen’s standards when they clearly take actions that are against the best interests of the United States of America? I wonder if a Paulson-like immunity from prosecution comes with Immelt’s job as head of the President’s Economic Council and I also wonder if Hu benefits from having their main man firmly inserted at a desk in the White House? Surely the timing of the appointment to coincide with China’s visit is not a coincidence. As an M&A consultant, I have seen this happen a million times – a company (or country, in this case) is having trouble paying its bills and its balance sheet winds up in breach of loan covenants which prompts a visit from the president of the bank (in this case the PBOC) who wrangles some additional concessions and guarantees and, in extreme cases, the Bank asks that one of their boys be given a seat on the board so they can "keep tabs" on your progress.[picture]That scenario is bad enough when your bank is just a bank but when you borrow money from a competitor and put yourself in that position, you may as well pack it in because you essentially just spilled blood in the shark tank. It’s only a matter of time before all your thrashing around, trying to stay afloat, turns into a selachimorpha version of a piñata game.Is this the beginning of a long and glorious partnership with our Chinese Masters or simply step 2 in the dismantling of America as Immelt presides over the transfer of the rest of America’s Intellectual Property to China so we can cut out the middle (class) man as our Global Corporations expedite their operational shifts more and more overseas? With only two years until the next election – there is the danger that the American people will wake up and demand action so, as happened during the final days of the Soviet empire – we can expect big moves like GE’s partnership with China to come fast and furious over the next 24 months.What are we doing about it? Well, as I told you yesterday, we’re BUYING GE, as well as JPM and, if you can find any more loathsome Corporate bastards who have top-level access to the White House and a pocketful of Congressmen and Judges – we’ll invest in them too because the first step towards working your way up the ladder in a Corporate Kleptocracy is to realize you are living in a Corporate Kleptocracy. Once you accept that – the rest is obvious…So have a great weekend – the news doesn’t matter – we’ll just keep an eye on the Bots and continue to go with the flow, even if we have to hold our noses while we’re riding it out. Be careful out there,- Phil’

 

 

 


Signs the Market Hypnosis Is Wearing Off

 

Punching Out: One Year in a Closing Auto Plant

Here Comes the Dumb Money!

Acrid Smell of Inflation Starting to Spread Through Global Equity Markets Nyaradi ‘The unmistakable smell of inflationary smoke wafted across world markets yesterday as inflationary numbers sprang up in economic reports and global bond markets, spooking investors across the globe.

Starting in China, the red hot economy grew 9.8% in the 4th Quarter, faster than expected, and registered a 4.6% inflation rate, prompting fears of further tightening measures to slow growth and rising prices in that country.

The Shanghai Composite (SSEC) (FXI) continued to respond, dropping -2.9% yesterday and bringing its total decline since early November to approximately -15%.

Food prices (DBA) have been skyrocketing around the world as inflationary pressures grow, particularly in the emerging world where a higher percentage of discretionary spending goes to food and energy than for us in the developed world.

Food riots and inflationary protests have broken out across North Africa.

Yesterday’s Philly Fed report was lackluster on the growth front, coming in at 19.3 versus expected of 20 and prior of 20.8 but it, too, signaled higher prices ahead.

Price increases for inputs as well as firms’ own manufactured goods are more widespread this month. Fifty-four percent of the firms reported higher prices for inputs, compared with 52 percent in the previous month. The prices paid index, which increased 6 points in January, has increased 42 points over the past four months. (Philadelphia Federal Reserve)

The bond market declined sharply yesterday, particularly on the long end, (TLT) with the 30 year rate rising to 4.6%.

Yesterday’s TIPS (Treasury Inflation Protected Securities) auction was lackluster, at best, with the lowest bid to cover ration (demand) in nearly two years.

However, not all was doom and gloom as the tech sector continued showing strength as Google (GOOG) and Advanced Micro Devices (AMD) beat earnings expectations.

New unemployment claims declined, leading economic indicators advanced 1% and existing home sales improved, although they’re still living in a deep, dark basement of deflationary pricing.

Just take a look around your neighborhood for confirmation.

So as of yesterday we find ourselves entering a treacherous zone where the Federal Reserve continues its bond buying program in an effort to lower interest rates but instead we see interest rates rising both at home and around the world.

The acrid smell of inflation is starting to spread around the world and likely is behind these rate increases as the “bond vigilantes” flex their muscles.

Combined with a still extremely fragile recovery, at least in the developed world, one can smell the whiff of smoke in the overcrowded theatre of global equities markets. We all know that inflation is bad news for equities and for economic growth, and one can only hope that nobody yells “fire” in this overcrowded and nervous room.’

 

 

 

 

Bank of America posts Q4 loss on mortgage problems (Reuters)

 

Stock Market Becomes Short Attention Span Theater Of Trading

 

Bank of America posts heavy losses Agence France Presse | Bank of America, the biggest US bank, reported Friday a net loss of $1.2 billion for the fourth quarter.

 

The Corporate Elite Have a New Platform for Intervening in the Economy Economic Policy Journal | President Obama will name Jeffrey Immelt, General Electric CEO, to head a new advisory panel.

 

Government Bankruptcy Is a Great Idea LewRockwell.com | Just like the rest of us during financial problems, the government has to get its house in order.

 

 

Path Is Sought for States to Escape Debt Burdens Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts,

 

“The Vast Majority Of This Contraction Of Credit Availability To American Industry Has Been By The Larger Banks” This once again confirms what I have been saying for years: the giant banks are causing most of the credit contraction.

 

Tunisia Central Bank Admits It Is Missing 1.5 Tons Of Gold When we first reported on the rumored “confiscation” of 1.5 tons (or is that tonnes?) of gold by deposed Tunisian surging food inflation beneficiary Ben Ali we joked that the next WGC update of Tunisian gold assets would be strangely lower by 23%.

 

Drudgereport: BANKRUPTCY FOR STATES STUDIED
CA DECLARES EMERGENCY
Facing $1.6B shortfall, San Fran pays employees $170 million in bonuses...From tonight’s NYT: Beyond their short-term budget gaps, some states have deep structural problems, like insolvent pension funds, that are diverting money from essential public services like education and health care. Some members of Congress fear that it is just a matter of time before a state seeks a bailout, say bankruptcy lawyers who have been consulted by Congressional aides…’

 

NYT Reports States Looking For Ways To File Bankruptcy, Muni Bondholders To Be GMed A few days ago we reported that Newt Gingrich was pushing for legislation to allow states to file for bankruptcy, “allowing Them To Renege On Pension And Benefit Obligations.”

 

 

 

 

 

National / World

 

 

 

3 Terms Top Google Trends as Resistance Campaign Launches Aaron Dykes | The first small victory in the campaign to counteract the takeover of America by DHS has been a success with three related Google trends search terms.

 

Oklahoma First Grader Suspended For ‘Offensive’ Hand Gesture Jason Douglass | Oklahoma first grader suspended for ‘offensive’ hand gesture.

 

The Answer to 1984 is 1776 Contest Infowars.com | We have realized victories against the TSA and on other fronts. We can do it again.

 

You Are The Resistance Against The DHS Occupation Of America Paul Joseph Watson & Alex Jones | V for Victory campaign a mark of defiance against Homeland Security’s takeover of society.

 

EXPOSED: Rahm Emanuel and the Chicago Political Syndicate Who is Rahm Emanuel? How did he get into politics? The Emanuel family; just how powerful are they? What influence do they have on lobbying, and power politics? His workings with the Chicago Democratic Machine, how did he get started, is there a shady past he is trying to hide?

 

 

Blogger Has Second Amendment Nullified for Insensitive Giffords Comment Kurt Nimmo | Massachusetts authorities contact feds after Libertarian makes comment about Congress.

 

 

 

Jerome Corsi: "Hawaii Governor Can't Find Obama's Long Form Birth Certificate.". See the rest on the Alex Jones YouTube channel.

 

 

Blair Uses Iraq War Inquiry To Push Anti-Iran Propaganda Keelan Balderson | War criminal Tony Blair has used the second session of the Iraq War Inquiry to once again promulgate an anti-Iran message.

 

Secret Tony Blair and George Bush Iraq letters were kept out of official records The Telegraph | Private letters between Tony Blair and President George W Bush ahead of the war in Iraq were kept so secret that they did not officially exist.

 

 

Bilderberg Owned Publication The Economist: Yes, Powerful “Globocrat” Elites Are Running Things, It’s Not A Conspiracy We have referred many times to the push for a centralized world government control system as the “open conspiracy”. Groups such as Bilderberg, The Trilateral Commission and The Council on Foreign Relations are kingpins of this agenda, shaping the policies of the politicians and power brokers that they have effectively bought.

 

 

Ron Paul on Morning Joe Roundtable Ron Paul joins a roundtable discussion on MSNBC’s Morning Joe to discuss spending cuts and elimination of the national debt.

 

Which Of The Currencies Of The World Is Going To Crash First? Last year was an absolutely fascinating time for world currency markets. The yen, the dollar and the euro all took their turns in the spotlight.

 

The downfall of science and the rise of intellectual tyranny The very reputation of so-called “science” has been irreparably damaged by the invocation of the term “science” by GMO lackeys, pesticide pushers, mercury advocates and fluoride poisoners who all claim to have science on their side. It seems that every toxin, contamination and chemical disaster that now infects our planet has been evangelized in the name of “science.”

 

“All In All It Appears That Eisenhower’s Worst Fears Have Been Realized And His Remarkable And Unique Warnings Given For Naught”  [ I personally believe, and the factual, historical realities support that President General Eisenhower is without question the most under-rated president in america’s short-lived history. Is there anyone who foolishly would believe this man of honor, the quintessential General / Commander in Chief would be sacrificing lives (american among many others) and treasury for the sake of war profiteers, greed, fraud, etc., as now? ]  President Eisenhower’s warned us about the growing threat from the powerful military-industrial complex – and it’s threat to our prosperity – 50 years ago.

 

 

 

 

 

Drudgereport: BANKRUPTCY FOR STATES STUDIED
CA DECLARES EMERGENCY
Facing $1.6B shortfall, San Fran pays employees $170 million in bonuses...

What Happened to 15 Million Jobs?
Wall Street's 'Bernanke' rally runs into headwinds...
Home sales hit 13-year low...
UPDATE: Hawaii governor says Obama's birth record 'exists' but can't produce it...

Obama daughter practices Chinese with Hu...
Chinese Tiger ate US Dove for lunch...

FBI 'largest' Mafia takedown...
Flowchart...
'Vinny Carwash', 'The Fang', 'Tony Bagels', 'Johnny Pizza', 'Baby Shacks', 'Jack the Wack', 'Junior Lollipops', 'Bobby Glasses'...

MTV PORN: Parents Television Council Calls for Fed Investigation Into 'SKINS'...
VIACOM PRESENTS: SEX AT 15!
Young Star Defends Show's Racy Content: 'It's What Teens Are Doing'...
TACO BELL Pulls Ads...
Teacher Suspended After 2nd Graders 'Sex Acts In Class'...
Joan Rivers calls Michelle Obama 'Blackie O'... [ ‘Blackie O’ … Very funny! … I like that … but don’t look for joan on ‘The View’ anytime soon, or invites from the whitehouse either … but of course, and ‘Blackie O’ might retort that joan will be too busy anyway, reprising the role of ‘The Joker’ in the next Batman film by the gifted director, Christopher Nolan, with AH new Catwoman … meow! ]

 

 

 

 

The Mafia family tree: FBI flowchart reveals
127 'mobsters' arrested in biggest ever blitz on New York's crime empires
[ This is a very big deal! ]

 

 

Largest-ever Mafia sweep makes nearly 120 arrests (Washington Post) [ Geeh! Who woulda’ thunk it … still mafia in new york ( jersey )? Why, with all the prosecutions by gov. elect cuomo as n.y. attorney general (aught, naught, nil, nought, none, nada, null, zilch) one might have thought there was almost no such thing of mafia in new york (/ new jersey – same no pros scenario) anymore. Then again, former n.y. gov. mario cuomo’s primary sole law practice client(s), cement and concrete … well, if only the name was vito corleone and as with 1 client tom hagen of ‘godfather’ fame … well, you get the picture.  Drudgereport: FBI Rounds Up 127 Mobsters in Biggest Mafia Bust in New York History…( This is great news and music to my ears! I really hate the mob … I really do! Hats off to the FBI! ) ...
MOB Bust So BIG they're being held at ARMY Fort...]  Federal and state agents arrested nearly 130 reputed mafia members from seven East Coast organized crime families on Thursday, the largest coordinated arrest in the FBI's quarter-century crackdown on the mafia, the Justice Department said.

 

Karzai delays parliament's inauguration as court investigates electoral fraud (Washington Post) [ Pervasively corrupt, defacto bankrupt american-style democracies and heroin production breakin’ out all over the american mideast war zone. ]

 

Fed sees mixed picture (Washington Post) [ ‘Mixed picture’ … there you go … kind of covers all bases … not like their absolute ‘no recession’ prognostication (which great recession / depression continues in real terms when you take out, look through the worthless paper (currency, assets, securities, etc.), obfuscation and b*** s***. Unnerving? Well, the grim reality does bite; but, I’m not so sure they even see it, or more likely, they choose not to look. Nerve? Yes, I’d say they’ve got nerve … as in gall, audacity, chutzpah, etc., for foisting off on america (and the world) this ultimately disasterous wall street welfare program. ] As the Fed gears up for its first meeting of 2011, policymakers are trying to make sense of an economic picture that is encouraging yet unnerving.

 

 

First lady, Wal-Mart partner on healthy foods program (Washington Post) [ Of wal-mart’s (and wall street’s) rise, and main street’s (and america’s) demise; the story goes something like this. As China’s american based seminal sales agent / distributor of Chinese goods (cheered by fraudulent wall street), wal-mart is well positioned to assist in american dietary matters; as, for example, the less to no food diet, as in increasingly impoverished, defacto bankrupt america eating less because they no longer can afford more (on bushes, clintons, wobamas, etc.).  ] As the world's largest retailer, Wal-Mart is in a unique position to influence the practices of suppliers.

 

 

Hu offers assurances to U.S. business leaders (Washington Post) [‘Chinese leader presses Congress to do more to lift U.S. controls on exports to China’. Yeah! Sounds like a plan! After all, they’ve gotten everything else, including some of that top-level-security stuff (remember that missile guidance tech, etc.), and not surreptitiously. All out in the spankin’ wide open as america (n execs, political and corporate) ‘took the dive for that short-end money (but lots) and a one-way ticket to palooka-ville’!  ] In a speech, Chinese leader presses Congress to do more to lift U.S. controls on exports to China.

 

 

Equities Have Come Very Far Very Fast - Some Conservatism Is Warranted ‘With nothing but bullish news and earnings releases prompting the biggest fall rally since 2006, it is timely and conservative to be cautious in equities going forward, according to many market participants with good long term track records. Valuations are showing signs of divergence, where high P/E ratio stocks are rising without a follow through from statistically cheap stocks in many industries.This “reach for yield” has engendered a new ethos in the stock market where taking greater risk is more important in equity selection than corporate net worth, earnings, discounted cash flow analysis, and net asset values. Many times in the past this tendency has led to large market declines, as valuations on the major averages become extended. Shares of technology firms, and especially small cap technology stocks, have risen on metrics we have not seen since the heady days of 1999 and 2000 – things like eyeballs, mouse clicks, and 70 P/E ratios are back in fashion.In the latest public interview with Ben Bernanke, the Fed Chief played down the notion that rising food and energy prices outweighed the economic gains that QE has created, saying with a smile that “the Russell 2000 is up 30% plus" since the announcement of additional stimulus at Jackson Hole last summer. What bothers many fundamental investors about this statement is the fact that the valuation and earnings for the Russell were not mentioned by Mr. Bernanke (does he actually believe in efficient market theory?), but simply that the nominal price of the index fund is up. We all remember when price got ahead of fundamentals in the housing market. While the Fed Chief is excited about the stock market, no mention of the benefits to private business or the unemployed was given.

[chart]/

Whether or not this possibly short lived rise in nominal stock prices actually helps small business owners over the long haul, I am obviously pulling for a full economic recovery and believe in US capital markets over the longer term. If the markets are now 30% more overvalued then they were last summer, many putting capital to work here after the 90% rally could be badly hurt when Ron Paul begins his scrutiny over the Fed’s actions. If QE is eventually wound down (or the expectation of the wind down begins hitting stock prices), stocks could be badly hurt going forward. Many feel the rise in the Russell 2000 was from an already expensive base for many issues, and that risks of another flash crash are now greatly heightened even if the overall benefit to the market means such action was warranted.The last time oil prices rose from $40 to $91 we had major stock market problems, and a continued rise in commodity prices could threaten the global recovery and our stock market returns, at least when measured in Swiss Francs or Norwegian Kroner. Greater leverage and money issuance could exacerbate these issues and the short term gains may not be worth the longer term damage overvalued markets could create when everyone runs for the exits at the same time.

click to enlarge [chart]

In addition to the high valuations of many stock indicies, the latest news about Steve Jobs is disconcerting when you factor in Apple’s 20% position in the QQQQ (Nasdaq 100). Experienced Investors know that the QQQQ generally leads technology shares, and technology shares generally lead the broader markets. A fall in AAPL to $300 could easily start a 3-7% correction in the overall equity markets based on the weighting of Apple in the QQQQ, and the past behavior of Apple stock when Jobs has been in the headlines for medical reasons.The man is truly a genius, crediting a large part of his success to experiences with LSD in the 1970s and his belief in making each customer more creatively effective. Of course, I am pulling for Jobs (wishing him well, as he has a fantastic passion to make the world a better place) and for the markets overall here, but I am cautious on these developments from an investment perspective. Whether more stimulus and forward earnings growth mean “any correction is a buying opportunity” is for the reader to decide, but taking your cues from Mr. Market and being fearful when others are greedy seems to make a lot of sense here.Just last year, the US equity markets declined over 10% in less than three hours on May 6, 2010 and many believe this decline was more than just a glitch. The same type of decline hit equities on September 29, 2008 and more of these market jolting events could be looming in our future. So, in light of the fact that we have come very far, very fast in equities, I believe some degree of conservatism is likely well worth the opportunity cost. Corrections never come when people expect them to, and stocks don’t go straight up forever.’

[chart]




Parallel Universe DIA vs. QQQQ: Dave's Daily The big names just don't want to break down. Remembering the DJIA is a price weighted index -- companies like IBM keep things well-propped. In the meantime, tech struggles over the past few days especially with the breakdown in "cloud" sectors. Commodity markets were hit hard on worries China's inflation situation will warrant more tightening. This, should it happen, is never friendly for commodity markets and precious metals as we posted earlier with GLD (SPDR Gold ETF). Economic data was mixed with better Jobless Claims and Housing data while the Philly Fed report was disappointing with current report and the previous report adjusted lower. Earnings continue to flow and most beat expectations handily once again reminding us of the ineptitude of most analysts. It's a hard job, but somebody has to do it at least making sure companies "beat" for the M&A goodwill. Through the first half of the day stocks stayed lower but crept higher abetted by more POMO and a recovery in some financial stocks. It may be very difficult for any meaningful sell-off or correction as long as Ben is printing. Volume improved significantly today which is typical on down days. Breadth, per the WSJ, was decidedly negative.

 

 

Retreat Unfolding? Inflation Trader ‘Markets recently have been reversing Mackay’s classic observation that “Men…think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.” Instead, the slow march of stocks higher has meant that people have been going mad one by one, and joining the crowd. Does the maxim hold true in reverse? Will they recover their senses in herds?This would be a bad thing, and I am relieved to observe that while the 1% decline in equities yesterday was the largest single-day selloff since November 23rd, the volume was not appreciably different from Tuesday’s volume. A bear might growl that this shows how much lower even a little selling might push prices, but classic technical analysis would expect to see a swelling of volume to confirm a trend change.My suspicion, techies or no, is that this is more than a one-day respite in a relentless march. The negative earnings surprises and/or downbeat announcements from Goldman (GS), Wells Fargo (WFC), Northern Trust (NTRS), Citigroup (C), and American Express (AXP) (cutting 550 jobs) helped drive the NASDAQ Bank Index down 2.6%. Barclays (BCS) just laid off a number of people, many of them very senior, with essentially no warning. Anecdotally, I can report friends at other dealers who are starting to size up their options/escape hatch as well. This is all very strange if you read the economic headlines, or even the earnings reports which, while downbeat, weren’t exactly the big losses of 2008-09. Is there some signal here about the economy, or is the financial reform bill just damaging prospects for financial institutions? Or am I reading too much into narrow anecdotal evidence? I will just say the state of the banking sector just feels less bumptious than it did just a couple of months ago.Homebuilders were also down, some 3.5% as measured by the S&P 500 Homebuilding Index. Surely this cannot be simply a reaction to the weak New Home Sales number (529k vs 550k expected). After all, the inventory of new homes (which isn’t in the Housing Starts report, but is relevant here) is at the lowest level since 1968 (see Chart, click to enlarge), and adjusted for population it is probably at the lowest level ever.[chart] Inventory of New Homes. Yes, they compete with the high inventories of EXISTING homes, but this picture is reasonably upbeat for the home building industry in the long-term.Both banking and homebuilding, of course, were sectors that cratered and were bailed out in the housing crisis. Could they be canaries in the coal mine now? I doubt it on the homebuilder side, but I have long held that the mega-bank is going to be an expensive use of capital now that the social costs of being big have resulted in legislation that will have the effect of lower volumes, lower margins, and lower leverage. All three legs of the ROE formula, in other words, will be under pressure; the future should belong to the boutiques and partnerships…just as the past once belonged to Merrill, Lynch, Pierce, Fenner, and Smith instead of Merrill/BOA.The tiny tremor in stocks yesterday – which, granted, feels like a massive earthquake since it has been so long since the last tiny tremor – is only a warning. But it is a warning echoed in the breakdown of the dollar below its trading range for the last two months (see Chart, click to enlarge).[chart] Dollar is looking soggy again.None of these little hints and wiggles would matter much in the normal course of events. They’re not big news. The problem is that there are a lot of people waiting for a Sign to Get Out. Several of these things could be construed to be enough of a warning for a nervous investor to flee. The question is whether these investors regain their senses one by one, or in herds.It is far too early to make this suggestion, but I think a reasonably gentle 2.5% further selloff to 1250 on the S&P would be welcomed by many. A more-rapid decline, say if yesterday’s 1% turns into today’s 1.5% and Friday’s 2%, would cause more concern and widen the range of possible outcomes thereafter. In this circumstance I think it isn’t whether you wake up the giant, or when you wake up the giant, but how you wake him up, and jumping on his chest is unlikely to produce the results you would like.I am not sure that economic data will have anything to do with the unfolding retreat, but if Initial Claims (Consensus: 420k from 445k) fails to drop back onto the improving trend or if Existing Home Sales (Consensus: 4.87mm versus 4.68mm last) goes down instead of up, those will be additional irritants for the investing public. Today also brings the Philly Fed Index (Consensus: 20.8, unchanged), which is expected to stay near the 2010 highs. There is plenty of scope for disappointment, in my view.By the way, I am not terribly sanguine about bonds, either. Yields are very low, and although weak economic data is typically good for bonds I think that is less clear when the government plainly needs growth in order to be able to redeem those bonds some day (at least, in the absence of debt monetization). Given that we are still struggling with the deficit from the 2008-09 crisis, is it good for bonds if we enter another recession or even a period of choppy near-zero growth? I think the answer there is unclear. Commodity indices for me still look like the best medium-term bet although they have certainly come far themselves in the last few months.However, the Treasury is going to issue $13bln of a new 10y TIPS bond today, with a real yield that will be near 1%. That is pretty uninteresting unless your alternative is the 10y nominal note at 3.33%. I am not fond of the duration, even in real bonds, but I suspect the auction will go fine. The TIPS market continues to be in a zero-net-supply situation with the Fed essentially providing all the new cash that the Treasury raises through the TIPS auctions. It is hard to be bearish on auction results in that situation.’

 

 

 

Is the Up Trend Broken? , On Thursday January 20, 2011, ‘We published this article a few days ago and decided to re-run it because it answers today's most-asked question: Is the up trend broken? Since the article first ran, we offered this conclusion in the January 14th ETF Profit Strategy Newsletter: 'Based on the confluence of overhead resistance, optimistic sentiment extremes, short-term bearish seasonality and waning breadth, the end of this rally seems near. According to resistance levels, the odds for a reversal at S&P 1,300 +/- 10 points are high.' Whether the final top is in place remains to be seen, but here is what might be expected over the coming weeks. Original article starts here:What the market's rally lacks in charisma, it has made up in persistence. The stair-step, creeping type of an up grind is lulling investors to sleep as we speak. Steady and seemingly risk-free gains have rekindled optimism and created a state of euphoria not seen in years ... since late 2007 to be exact.The irony of this article is that few investors will feel compelled to read anything that resembles a warning or contains a bearish message. The few that read this piece will probably scoff at it. That's how bear market rallies work and that's why they are effective.The soothing rhythm of the VIX has lulled investors into a state of complacency. If you had to describe investor's alertness in sleep lingo, a state of REM sleep would probably be the closest comparison.History tells us that the (bear) market only strikes when least expected.Based on analyst polls by Bloomberg, Barron's, USA Today and a variety of sentiment measures, a stock market (NYSEArca: VTI - News) decline is as remote today as it was in 2000 or 2007.
Hedging Activity Drops
Investors and traders are content to hold on to massive long positions without hedge. One of the easiest ways to hedge your stock portfolio is via put options. Last week the CBOE Equity Put/Call Ratio dropped to 0.4, the lowest reading since April 15, 2010.The lack of hedging is dangerous for prices because the market is without a safety net. The only option for spooked investors without hedge is to sell. Selling causes prices to drop.On April 16, 2010, the ETF Profit Strategy Newsletter warned of the consequences of a low put/call ratio: 'Selling results in more selling. This negative feedback loop usually results in rapidly falling prices. The pieces are in place for a major decline. We are simply waiting for the proverbial first domino to fall over and set off a chain reaction.'The first domino dropped just a few days later, setting off the May 6 'Flash Crash' and ultimately resulted in a swift 15% correction for the Dow (DJI: ^DJI), 17% correction for the S&P (SNP: ^GSPC), 19% for the Nasdaq (Nasdaq: ^IXIC), and 21% for the Russell 2000 (NYSEArca: IWM - News).A different measure of complacency is the premium traders willingness to pay for call options (bullish bets). Based on a three-month average, the price for put options (bearish bets) is near a 10-year low. The only other time that rivals current readings was in 2007.
This Time is Different

The spirit of 'this time is different' is one of the most fascinating phenomenons known to Wall Street. Investors' sentiment follows the ebb and flow of stock prices. When prices are up, the future is expected to be bright. When prices are down, the future is supposedly bleak (just think of the 2007 peak and 2009 bottom).This approach of linear extrapolations feeds the herding mentality, which contrarians use as effective indicators. This approach is not foolproof but, nevertheless, is one of the most accurate, if not the most accurate timing tool known to underground Wall Street aficionados.The chart below (taken from the January 2011 ETF Profit Strategy Newsletter) illustrates the four most prominent occurrences of extreme optimism, or the 'this time is different' effect. The green line connects the price of the S&P with the timeline and various sentiment gauges.[chart]Investors thought 'this time is different' at the 2007 peak, in May 2008, in January 2010, and again in April 2010. The only thing different at all four times was the velocity of the descent, but each period of euphoria was greeted by despair.

History Rhymes

History doesn't repeat itself but it often rhymes. In 2007, Merrill Lynch's Global Economics Report foresaw a bright future: 'The Merrill Lynch global economics team believes that the economy will continue to grow in 2007 - with no sign of a significant cyclical slowdown.'According to J.P. Morgan, Barclays Capital and Goldman Sachs (Merrill Lynch failed to foresee its own demise in 2007 and is no more), the S&P will gain between 15 - 20% in 2011 and the 'economy will continue to grow in 2011.'Perhaps this time will be different, but based on history, now is the time to at least be cautious and protect your investments. An ounce of protection is worth more than a pound of cure. Based on long-term valuation metrics the stock market is priced to deliver pain, not gain (see November 2011 ETF Profit Strategy Newsletter for a detailed analysis).Based on sentiment, the market is overheated and due for a correction at the very least, and how often have we seen a correction turn into something more? Timing a top is tricky, but based on support and resistance levels and seasonal patterns it is possible to narrow down when the market is ready to roll over. End of original article.We don't make up structurally important support/resistance levels, the market does, so it behooves us to listen. The ETF Profit Strategy Newsletter monitors the market's vital signs and highlights important support/resistance levels. If the next important support fails, we might be looking at an April-like decline.’

 

 

Relevance of EU’s new ESRB watchdog questioned Reuters | Europe’s proposed solution to avoid a repeat of the financial crisis holds its first meeting on Thursday with some analysts questioning its relevance.

 

Europe faces a new crisis The Voice of Russia | UN depressing forecast was made in report on the World Economic Situation and Prospects-2011.

 

Bank giant Goldman rewards staff with €11.4bn Independent.ie | Wall Street banking giant Goldman Sachs revealed today that staff earned a total of $15.4bn (€11.4bn) in pay and bonuses last year.

 

Debt Continues To Accumulate As The Economic Climate Worsens When you stop and think about it, the Fed’s main instrument of monetary policy, the manipulation of interest rates has been lost to it. That is two years with the same rate. What has become very obvious is that an official rise in rates would create all kinds of havoc.

 

The Great Depression II One basis for deciding whether we are in a “recession” or a “depression” is distinguishing how recessions become depressions. With the hindsight of history, we already know.

 

China’s Inflation Problem Looms Large The global economy has become so unbalanced that even government ministers who would normally have trouble explaining supply or demand clearly recognize that something has to give.

 

 

National / World

 

Obama May Call For Gun Control During State Of The Union Steve Watson | Democratic Party donors, Congressmen and gun control groups are lobbying the president to speak on gun control laws during the upcoming state of the union address.

 

DHS Launches Takeover of Sports Stadiums, Malls and Hotels Infowars.com | DHS continues to hype program bent on turning citizens against each other.

 

Health Authorities Want Depression-Causing Drugs Added To Water Supply Paul Joseph Watson | Mass medication of population part of drive to make people obediently accept “dictatorship without tears,” Aldous Huxley warned in 1962 Berkeley speech

 

Rep. Cohen: Ventura’s Show Promotes Terrorism Kurt Nimmo | According to Cohen and Cooper, investigative journalism and unrestricted exercise of the First Amendment leads inexorably to terrorism and murder.

 

Russell Means: Welcome To The Reservation Infowars.com | American Indian Russell Means gives an eye-opening 90 minute interview in which he explains how Native Americans and Americans in general are all imprisoned within one huge reservation.

 

U.S. Supreme Court Issues Landmark Decision: Constitution is Void PRNewswire-USNewswire | Landmark decision that serves to allow judges to void the Constitution in their courtrooms. ’ The U.S. Supreme Court issued a landmark decision that serves to allow judges to void the Constitution in their courtrooms. The decision was issued on January 18, 2011, and the Court did not even explain the decision (Docket No. 10-632, 10-633, and 10-690). One word decisions: DENIED.Presented with this information and massive proof that was not contested in any manner by the accused judges, at least six of the justices voted to deny the petitions:“There is no legal or factual basis whatsoever for the decisions of the lower courts in this matter. These rulings were issued for corrupt reasons. Many of the judges in the Northern District of Georgia and the Eleventh Circuit are corrupt and violate laws and rules, as they have done in this case. The Supreme Court must recognize this Petition as one of the most serious matters ever presented to this Court.” ‘The key questions answered negatively by the U.S. Supreme Court was: “Whether federal courts must be stopped from operating corruptly and ignoring all laws, rules, and facts.” Windsor says: "I have discovered that the federal judges in Atlanta, Georgia, Washington, DC, and the justices of the United States Supreme Court function like common criminals intentionally making bogus rulings against honest people while covering up the crimes of their fellow judges.  I have been contacted by people from all over the country and around the world with their stories of judicial corruption with judges all over the U.S."My charges have been totally ignored by the United States Attorney's Office, the FBI, and Congress. I do not believe there is a shred of decency, honesty, or Constitutional rights in our federal courts.  In my opinion, we now live in a police state.  Judges are free to do absolutely anything they want.  Our laws are meaningless.  Your life savings can be stolen by a federal judge, and they have no risk in violating every law in the books."In my opinion, this is the most serious issue that our country has ever faced.  Our rights have been stolen.  And the mainstream media refuses to cover this story because they are afraid of the judges.  Heaven help us."I believe our only hope in America is if the masses become aware of what is taking place.  I am writing an expose, and my book will be available at Borders, Barnes & Noble, and on amazon.com soon.  The publisher will decide if the title is Lawless America or Screwed, Glued, and Tattooed." For more information, see www.LawlessAmerica.com.’

 

China Boasts: ‘We Are The World Number 1′ The Chinese communists are taking the occasion of their first visit to the Obama White House – not to show humility, as Mr. Obama did to them – but to openly show their clear intention to dominate the world from the Middle Kingdom.

 

Chinese leader disingenuous about Tibetan issues, improving human rights As President Obama grovels before Chinese President Hu Jintao this week during the (to quote Sen. Harry Reid) dictator’s U.S. visit, the Communist Chinese government continues to crackdown on dissidents, Tibetan activists and anyone who gets in the way of Chinese dominance in the world.

 

WIKILEAKS: China Could Ask U.S. To Get Out Of South Korea How could Chinese-American military tensions ratchet higher? What if China told America to get out of Korea.

 

S. Korea, US mull boosting missile range: reports Seoul and Washington have started talks on extending the range of South Korea’s missiles to help deter North Korea, news reports said Wednesday.

 

Swiss re-arrest ex-banker for giving data to WikiLeaks Swiss police on Wednesday arrested former banker Rudolf Elmer on fresh charges of breaching Swiss bank secrecy law for giving data to WikiLeaks, hours after he was found guilty of another secrecy offense.

 

Major Agro-Chemical Company Says Removal Of Toxic Fluoride From Foods Actually Threatens Americans’ Health A major agricultural chemical company says it is not in the best interests of Americans for the EPA to ban the use of a toxic fluoride compound in the processing of food supplies

 

The Fourth American Revolution The mass murder in Tucson is another brick in the wall of this Fourth Turning Crisis. The importance of this tragic event is not what happened in that Safeway parking lot, but the reaction in the aftermath of the shooting. Turnings are not about specific events, but how generations react to the events based on their stages of life.

 

Are You Ready For The Universal Internet ID That Barack Obama Wants To Impose On All Of Us? The Obama administration is developing a “universal Internet ID” program that would watch, track, monitor and potentially control your activity on the Internet. These”trusted identities” are being touted as a way to increase safety and security on the Internet and as a way to eliminate the need for dozens of different usernames and passwords.

 

Does Joe Lieberman’s Resignation Signal Imminent Collapse?  Joe Lieberman is announcing his retirement today which would seem like a victory for the liberty movement. Throughout his career the Senator from Connecticut has been the consummate insider. [ No matter how you slice it, dice it, splice it, this news (of zionist zelig lieberman’s retirement) is all good!  ]

 

 

Ireland responsible for its problems – Barroso RTE.com | A visibly angry European Commission President has rejected suggestions that terms of Ireland’s EU bailout would make vassals of Irish taxpayers.

 



Drudgereport: FBI Rounds Up 127 Mobsters in Biggest Mafia Bust in New York History…( This is great news and music to my ears! I really hate the mob … I really do! Hats off to the FBI! ) ...
MOB Bust So BIG they're being held at ARMY Fort...

Tucson restaurant to offer African lion tacos…..( Which pretty much helps explain the mass shooting there! )...

House GOP Lists $2.5 Trillion in Spending Cuts...
China: USA #1 no more...

GE CEO: China one day will be world's biggest economy...
A day after cutting $19B deal with China, Boeing slashes 1,100 US jobs...
US Stocks slide on fears of Chinese rate hike...

Obama: 'We Welcome China's Rise'...

Zimbabwe mulls treason charges over WIKILEAKS … (Now what nation would want to be on the same side of an issue as mugabe’s zimbabwe?)...

Currency system 'product of the past'...
HU QUESTIONS FUTURE OF DOLLAR
RISING DRAGON: China on equal footing with USA as Hu visits Washington...
GE CEO: China one day will be world's biggest economy… daaaaah! ...
Obama: 'We Welcome China's Rise'...

Careful to avoid criticism...
HOUSE VOTES TO REPEAL HEALTHCARE LAW...

Dem Compares Republicans to Nazis during debate...
26 states join suit against law...
SHOCK CLAIM: World needs $100 TRILLION more credit, says World Economic Forum...

Japan hits 'critical point' on state debt...
APPLE faces pollution storm in China... ‘A group of 36 Chinese environmental groups has accused Apple of failing to address concerns over pollution and worker health issues in factories supplying components for its gadgets…’  
Home building stuck near 50 year lows...
CASHOUT: Daley Files to Sell $8.3 Million JPMORGAN Shares After Joining Obama Team...

Taiwanese mock meeting w/ video cartoon...
Missiles off target in major Taiwan drill...
China 'got stealth tech from Russia'...
GE to sign slew of China deals...
'Experience China' takes over NYC's Times Square...
PEW: 65% see China as an 'adversary' or 'serious problem'...
STUXNET WORM USED AGAINST IRAN WAS TESTED IN ISRAEL...
Three U.S. Soldiers Killed in Iraq...
GALLUP: U.S. Satisfaction Remains Near 12-Month Low...
CBS POLL: 77% say cut spending; only 9% say raise taxes...
States Warned of $2.5 Trillion Pensions Shortfall...
Schwarzenegger: I Was 'Addicted' To Being Governor...
Comprehensive List of Tax Hikes in Obamacare...
 Republican senator sees bipartisan agreement on debt ceiling … (no surprise here; after all, they have to get paid…for what?…more and more people are asking the question -  all three branches including the toy soldiers for perpetual war and illegal drugs / arms ops) ...
Obama Gives Communist Leader Lavish State Dinner...

China lending hits new heights; Funding to poor states (that includes defacto bankrupt america) tops World Bank...
RISE OF RED DRAGON: CHINA SHAPES WORLD
Jobs Takes Medical Leave...
House panel wants Homeland Security documents...
GALLUP: U.S. Satisfaction Remains Near 12-Month Low...
Ahmadinejad, Medvedev agree to boost ties...

Moscow reaffirms Soviet recognition of Palestine...
Camden, NJ braces for deep police, fire cuts...
 

 

 

 

 

 

Israeli human rights groups sound alarm (Washington Post) [ As indeed they should! As a war crimes nation along with pervasively corrupt, defacto bankrupt america, israel has much to lose by exposure of their pervasive crimes though the entire world is aware of same including illegal nukes! … Ie., Accountability is unclear in israeli probe of flotilla raid (Washington Post) Oh, come on! An israeli probe of an israeli massacre of civilians. Time for israel to pay; for illegal nukes, for violations of international law, for continued violations of u.n. resolutions, for provocations as pretexts to sabotage peace talks, and on and on ad nauseum. Why does america among other nations feel compelled to sacrifice themselves for the sake of a global criminal nation with an insatiable greed and blood-thirst as israel?    ] An initiative in the Israeli parliament this month to investigate the funding of local human rights organizations has intensified debate here about the role of the groups, which critics have accused of harming Israel.

 

 

Business leaders meet with Hu, Obama to address trade issue (Washington Post) [  Oooooh! … Sounds like a plan! … For Chinese regression … I don’t think so … Trade With China?: 25 Facts That Prove That China Is Kicking Our Rear Ends Do you believe that trade with China is a good thing? Well, you might not be so sure after you read the 25 facts listed below. The truth is that China is kicking our rear ends all over the planet … Drudgereport:  GE CEO: China one day will be world's biggest economy… daaaaah! ...
Obama: 'We Welcome China's Rise'...

Careful to avoid criticism... ] The show of corporate might reflects the intense focus on the economic relationship between both nations.

 

 

Goldman Sachs's profit drops by 52% in Q4  (Washington Post) [ Before everyone starts shedding tears, let’s realize that those bonuses and compensation packages come off the top… Bank giant Goldman rewards staff with €11.4bn Independent.ie | Wall Street banking giant Goldman Sachs revealed today that staff earned a total of $15.4bn (€11.4bn) in pay and bonuses last year.      ]    The decline in Goldman's bottom line is all the more striking because it contrasts with huge gains at other financial firms. As the financial sector continues to climb out of a historic hole, the numbers reflect a divide between Wall Street and Main Street.  [Previous:   Jobless rate jumps as hiring slows (Washington Post) [  The reality is not a mystery! The nation’s been thrown under the bus for the greater good (wealth) of the very few (frauds on wall street, etc.);  wall street giving out record bonuses from their accomplished fraud (with no-recession b.s. bernanke help) of $144 BILLION: Come on! This is gettin’ even more downright ridiculous (if that’s even possible)! Pending home foreclosure / distress sales up, oil prices (and oil stocks) up, debased dollar down, plus a little familiar ‘better than expected’ thrown in along with prospects of a ‘no-recession bernanke’ market-frothing bull session on 60 minutes and, voila, suckers’ rally into the close to keep the suckers suckered! What’s good for the frauds on wall street is bad for just about everyone else which includes the vast majority of people and businesses, domestically and globally, as current dollar manipulation / debasement ultimately results in higher costs and loss of purchasing power (ie., oil, etc.). Clearly, this is one of those fraudulent wealth transfers to the frauds on wall street et als which will ultimately be paid for by those who least are in a position to afford it, courtesy of the ever more worthless Weimar dollar, etc., inflating earnings, eps, lowering p/e multiples, etc., see infra. This is an especially great time to sell / take profits while you can since there's much worse to come! Previous: Rosy numbers on consumer sentiment, unemployment (far better than private forecasts) from the government prior to the holiday so-called ‘shop till you drop’? How can anyone believe anything they say? Najerian interviewed by Motek chimes in with the reason for good retail cheer; viz., people have stopped paying their mortgages and are using the funds to purchase retail goods; while Davidowitz adds that with record numbers of americans on food stamps, real unemployment at 17+, and wall street giving out record bonuses from their accomplished fraud (with no-recession b.s. bernanke help) of $144 BILLION …  the high end stores / jewelers will do well … daaaaah! And, with insiders and wall street frauds selling into the bubble as preceded last crash, this is an especially great opportunity to sell / take profits!  ]

 

 

Obama presses (as in pressing Mr. Hu’s pants) Chinese leader on rights     At summit, Hu admits his nation needs to make more progress  (Washington Post) [ Riiiiight! … Mr. Hu says with utmost sarcasm to continued perpetual war president, in the mold of dumbya bush though national u.s. defacto bankruptcy, viz., ‘wobama the b (for b*** s***)’. White House more hard-nosed about Chinese government / Hu to face a tougher Obama administration (Washington Post) [ Please … don’t make me laugh … and, are you sure you didn’t mean more ‘brown-nosed’ about the Chinese government. This is starting to sound like seed material for the Weekend Update SNL skit segment, ‘REALLY’. I mean, really. Does anybody believe this? Come on … I don’t think so! ] Analysts say President Hu Jintao is eager to burnish his legacy, but he will find a White House that views his government with misgivings.]  [Drudgereport: Currency system 'product of the past'...
HU QUESTIONS FUTURE OF DOLLAR
RISING DRAGON: China on equal footing with USA as Hu visits Washington...
GE CEO: China one day will be world's biggest economy… daaaaah! ...
Obama: 'We Welcome China's Rise'...

Careful to avoid criticism... ]   President urges counterpart to allow more freedom and open a real dialogue with the Dalai Lama, and raises the case of imprisoned Nobel winner.

 

 

 

Possible Earnings Season Potholes  , On Wednesday January 19, 2011, 6:58 pm EST  ‘Earnings season is upon us and according to 10 strategists and investment managers polled by Barron's, there's no cloud in the sky. The future's looking bright.If you've followed Wall Street forecasts for a few years, you must have discerned a pattern: Forecasts are always rosy. If Wall Street analysts were meteorologists, their outlook would always be 'sunny' unless it is actually raining.Therein lies the problem; Wall Street never sees hard rain coming and only offers an umbrella after investors have gotten trenched. The purpose of this article is to provide an out of the box forecast with analysis you won't hear on the Street.

Insiders vs. Analysts

Analysts have their optimistic disposition implanted by the companies they cover. Corporate managers have every incentive to stay positive for as long as they can.Ironically, as CEOs project record high earnings, insider selling has picked up. In December, Investors Intelligence reports that: 'there was a sharp acceleration in the pace of insider selling over the last week, as if they suddenly all received word that the index highs would end.'Who would you rather believe - analysts (and their sources) with an agenda or the action of insiders with skin in the game? Something doesn't seem right if insiders want you to do as they say but not as they do.

Unbridled Enthusiasm

Mark Twain said that: 'When I find myself on the side of the majority, I know it's time to find a new place to side.' The majority of investors (and analysts) now believe in rising stock prices.Sentiment gauges have recorded readings not registered since the 2007 all-time highs, or before the May 'Flash Crash.' This is usually a sign of a market that's getting ready to roll over.

Trap #1

This brings us to the first investment trap for Q1 2011 - equities. After rallying more some 90%, the major indexes a la Dow (DJI: ^DJI), S&P (SNP: ^GSPC) and Nasdaq (Nasdaq: ^IXIC) are simply overbought, over loved and overvalued. This doesn't mean that they have to crumble tomorrow, but NOW is the time to think about protection.In each of the past three years, January trading has delivered a surprise shot of reality. Don't be surprised if it happens again in 2011.Sectors with the biggest gains include retail (NYSEArca: XRT - News), consumer discretionary (NYSEArca: XLY - News), materials (NYSEArca: XLB - News), and technology and these are also the most vulnerable to correction.Even though it defies Wall Street's approach of linear extrapolation, sectors that do well one year, rarely top the list the following year. It would make sense to either buy put protection - which is historically cheap due to a low VIX - or set mental stop-loss safety levels to avoid suffering through a painful correction.In an effort to keep this article brief, we won't delve into the Europe crisis. One of the ETF Profit Strategy Newsletter's predictions for 2010 was an increase in sovereign debt defaults. The Europe crisis will be with us for a while and will turn into a big drag for developed markets (NYSEArca: EFA - News) eventually.

Trap #2

A rush for tax-free yield drove investors into municipal bonds. Chasing yields can be a pricey mistake. If you plot dividend yields against stock prices over the past 100 years, you'll quickly notice that periods of low yields are generally a good time to sell, not buy stocks.The muni bond market has been an obvious, but ignored, house of cards. California is nearly bankrupt and every other state or municipality has seen their tax revenue dwindle. Loaning money to municipalities is like giving a car loan to someone who just lost their job. The default risk is high.On August 26, the very day Treasuries and muni bonds topped - the ETF Profit Strategy Newsletter told its subscribers to get out of muni bonds, corporate bonds and Treasuries. Prices for bonds have tumbled since and the danger isn't over. The three trillion muni bond market is in serious danger. Now is the time to worry about return of your money, not return on your money.

Trap #3

Not all is as it seems and if you put your trust in the Fed, you may soon be disappointed. Quantitative easing in general, and QE2 in particular, was supposed to stimulate the economy, increase inflation and the money supply.[chart]As the chart above shows, it didn't do any of the above. QE2 also was intended to lower interest rates to increase lending and make mortgages more affordable. The chart below shows what the interest of the 10-Yr Treasury has done since QE2 was launched.[chart]The Fed is treating the previous indulgence in debt by taking on even more debt. This is like taking more heroin to kick a drug addiction. It will keep you functioning for a while, but eventually your system will shut down. The only chance of success is to detox.

The Minefield Looks Pretty

To sum up, we are looking at a minefield covered by a beautiful blanket of flowers. The Fed - although it's failed to jolt the economy - has succeeded in inflating stocks (NYSEArca: VTI - News) and commodities (NYSEArca: DBA - News). It has served as fertilizer for fake growth.But sentiment is indicative of a market ready to roll over. Similar sentiment readings and warnings by the ETF Profit Strategy Newsletter in December 2008, January 2010, and April 2010 led to declines from 9 - 29%. Aside from Fed induced liquidity, there's not been much reason to believe this time will be different. The market's internal strength has been waning as various breadth indicators failed to confirmed the recent price highs.

Enjoy the Sight, Mind the Feel

Creeping up trends like the current one can go on for weeks. But take a look at the price action leading to the April highs and it becomes clear that such stair stepping up trends tend to end very abruptly and without warning.That doesn't mean that a correction has to turn into a meltdown, but if you maneuver through trap-infested territory, it pays to be careful and protect yourself.’

 

 

Financials Lay an Egg: Dave's Daily If I don't post every day it's easy to forget how the routine goes, but that's not your problem. Anyway, most disappointment Wednesday surrounded financials and perhaps materials. Investors were pretty energized regarding bank prospects but were disappointed with GS and AXP reports. The DJIA was propped higher by IBM's earnings keeping in mind it's a "price weighted" index with the company being the big dog there. Oddly, the rest of the tech sector saw sharp declines led by semis and networking. Commodity markets were mixed to down on the day while the dollar sold-off. Bonds rallied some as stocks were lower and home building data was weak. Volume continues to be incredibly light and it's hard to put your finger on why. Connected obliquely was news that hedge fund assets reached and exceeded their prior highs now at $1.9 trillion. With an unknown percentage of these assets involved in HFT (High Frequency Trading) it only enhances the impact of this activity. As some may know we utilize DeMark indicators to assess timing exits from long or short positions. DeMark is usually quiet but today he posted a note suggesting an "imminent" decline in markets was at hand. With POMO ongoing (more today) it's the wind behind bulls' sails that could defeat many technical indicators. In any event, volume picked up on selling while breadth was decidedly negative per the WSJ.’

 


Europe faces a new crisis The Voice of Russia | UN depressing forecast was made in report on the World Economic Situation and Prospects-2011.

 

Bank giant Goldman rewards staff with €11.4bn Independent.ie | Wall Street banking giant Goldman Sachs revealed today that staff earned a total of $15.4bn (€11.4bn) in pay and bonuses last year.

 

Home Construction Declines WSJ | Home construction in the U.S. fell to its lowest level in more than a year in December as builders cut back on new single-family homes, the latest sign of a moribund market.

 

China ‘logs double-digit growth in 2010′ China’s economy grew 10.3 percent last year but inflation exceeded the government’s full-year target, Hong Kong-based Phoenix Television said on its website Wednesday.

 

Housing Starts in U.S. Decreased in December to One-Year Low Builders began work on fewer homes than projected in December, a sign the industry that triggered the recession continued to struggle more than a year into the U.S. economic recovery.

Trade With China?: 25 Facts That Prove That China Is Kicking Our Rear Ends Do you believe that trade with China is a good thing? Well, you might not be so sure after you read the 25 facts listed below. The truth is that China is kicking our rear ends all over the planet.

 

US Mint Reports January Silver Sales Hit 26 Year High When we had last checked on the total silver sales by the US Mint earlier today, the amount given was 3,407,000 ounces, a number which we had earlier speculated would be a monthly record if sales were maintained at the current pace.

 

 

 

National / World

 

Statement by Secretary Napolitano on Senator Lieberman’s Retirement [ Good riddens … Connecticut should be jumping for joy!  ]Jason Douglass | After Sen. Lieberman’s retirement announcement, Napolitano makes statement.

 

Man Dies After House Fumigated With Same Fluoride Compound Sprayed On Food Steve Watson | Known insecticide toxin was approved for use on fruits, nuts sold to Americans.

 

10 Ways In Which China Humiliates The United States Paul Joseph Watson | Globalists are using China as the vehicle through which to complete the total deindustrialization of a decaying America.

 

Terrormania Grips US: PSYOPs Justify Bloated Budgets Jason Douglass | Around the country ‘regular people’ are coming face to face with terror!

 

Will Corporate Media Blame Spokane MLK Bomb on Tea Party? Kurt Nimmo | Incident follows Arizona shooting by less than two weeks.

 

Doping Up the Troops EconomicPolicyJournal.com | U.S. Central Command policy allows troops a 90- or 180-day supply of highly addictive psychotropic drugs before they deploy to combat, reports Nextgov.

 

China Moves Troops Into North Korea Salem-News.com | South Korea’s daily newspaper is reporting that what Western analysts have feared has happened: Chinese troops have been deployed into North Korea.

 

Poll: US support for Afghan war drops Press TV | A recent poll shows the American people’s support for the Afghan war has dropped to the lowest level since President Barack Obama took office.

 

10 Ways In Which China Humiliates The United States Rolling out the red carpet, lining Constitution Avenue with Communist flags, and treating unelected Chinese dictator Hu Jintao to lavish White House dinners while he badmouths the U.S. dollar is hard enough to stomach, but there are a plethora of ways in which China is humiliating the United States as the globalists get ready to use China as the vehicle through which to complete the deindustrialization of the decaying American banana republic.

 

China Plants Flag on Constitution Avenue On Tuesday night, Obama followed the script closely. He sat down to what the corporate media describes as “an unusual and intimate dinner” with Hu Jintao, the CEO of the sprawling slave labor gulag and globalist dream come true in China.

 

 

Man Dies After House Fumigated With Same Fluoride Compound Sprayed On Food A man found dead in a house in San Jose, California, Monday was believed to have been killed by a toxic fluoride compound used to fumigate the residence, the same fluoride compound that has found its way into many foods with government approval.

 

Will Corporate Media Blame Spokane MLK Bomb on Tea Party? Rachel Maddow has yet to pin blame for a bomb left along a Martin Luther King parade route in Spokane, Washington, on the Tea Party, but NPR suggests white supremacists may be responsible.

 

Meet The New Boss: China Owns The United States The flags along Constitution Avenue tell you everything you need to know – America has been sold out and our new Chinese slavemasters are now leading the sheep to slaughter. Even as Barack Obama bows and fawns to President Hu Jintao, the globalists for whom he fronts are sharpening the knives and preparing to unleash the bloodletting as the dying carcass of America is dragged into line to facilitate the global management of the planet.

 

“Experience China” debuts at NYC’s Times Square A video show about Chinese people made its debut on screens at Times Square on Monday, presenting Americans a multi-dimensional and vivid image of Chinese people.

 

Arlington Man Loses Gun License Due To Blog About Tucson Shooting A blog threatening members of Congress in the wake of the Tucson, Arizona shooting has prompted Arlington police to temporarily suspend the firearms license of an Arlington man.

 

MSFT, Goldman Sachs CEOs to Meet Obama, Hu at White House Chief executive officers from Microsoft Corp. and Goldman Sachs Group Inc. will be among the corporate leaders the Obama administration is bringing together today for a meeting with Chinese President Hu Jintao aimed at expanding U.S. business interests in China.

 

 

 

 

 

 

 

White House more hard-nosed about Chinese government / Hu to face a tougher Obama administration (Washington Post) [ Please … don’t make me laugh … and, are you sure you didn’t mean more ‘brown-nosed’ about the Chinese government. This is starting to sound like seed material for the Weekend Update SNL skit segment, ‘REALLY’. I mean, really. Does anybody believe this? Come on … I don’t think so! ] Analysts say President Hu Jintao is eager to burnish his legacy, but he will find a White House that views his government with misgivings.

 

Concerns rise over Afghan forces (Washington Post) [ Well, to their credit, at least the Afghans purport to know how to count which of course is something lost on defacto bankrupt america and so-called ‘coalition’ members. After all, there will come a time when this military apparatus will say, pay / feed me, at which point the reply will be, with what, at which point, obfuscated or not, all hell breaks loose.  ]

 

 

Proposed sale of land stokes anti-Chinese views    Job creation seen as key to China's investment in U.S. (Washington Post) [ Boy, you can’t make this stuff up! Talk about coming full circle. I think Japan and the u.s. are constrained to start getting used to it. From scourge for taking jobs to now prospective savior for potentially creating them, I’d say communist China’s in the catbird’s seat as defacto bankrupt america pounds salt and fritters away money she doesn’t have in perpetual needless wars in the mideast, etc.. ]

 

Obama to feds: Cut the red tape (Washington Post) [ Riiiiight! That red tape thing … you know, as in laws, regulations that rein in corrupt, illegal, fraudulent behavior … Heck, we all know they’re not enforced anyway; ie., still no pros of the frauds on wall street, plus legislative help to cover-up their gargantuan past (and ongoing) crimes by way of mark to anything FASB rule change for those worthless toxic paper assets from the last fraud, etc.. Yes … change, as in change change by the man of change, changer wobama the ‘b’ for b*** s***!. After all, the next election cycle will be gearing up and those campaign funds need replenishin’. Sounds like a plan. ]

 

Steve Jobs  Your Take: Apple without Steve Jobs  (Washington Post) [ Yeah! It’s quite difficult to imagine in any positive sense. Indeed, there was a feeding frenzy among the dinosaurs (ie., microsoft, et als) purportedly owing to the absence of the 800 pound gorilla (Apple – far advanced in evolutionary terms) which according to the frauds on wall street should benefit the dinosaurs, spiking their share prices (unlike when gates, who just loved that archaic BASIC programming language to death, etc., left; and then the notorious problems with that ‘ms kernel’ that only people who know, KNOW). Jobs indeed will be sorely missed! ]

 

[  It should be noted that the paranoid american criminals have once again, this time by way of hack via microsoft  (willing accomplice as was att of jersey / dumbya bushland – deleted / I caught the problem and have also installed opensource.org which I strongly recommend (at least a look – won’t disappoint – I used same for the archived PDF post files) is free and a breeze to use and though compatible with word and a multitude of other formats, for now on these specific web site documents (I have image folders already linked which would require at least a look) it’s easier and faster for the time-being for me to add to the existing documents with word; but as is so of america, microsoft’s a dinosaur) gave me a few problems, serious enough to require a redo, which I have corrected / overcome; but believe me, I won’t forget it! They will be sorry! ]

 

 

 [  It should be noted that the paranoid american criminals have once again, this time by way of hack via microsoft  (willing accomplice as was att of jersey / dumbya bushland – deleted / I caught the problem and have also installed opensource.org which I strongly recommend (at least a look – won’t disappoint – I used same for the archived PDF post files) is free and a breeze to use and though compatible with word and a multitude of other formats, for now on these specific web site documents (I have image folders already linked which would require at least a look) it’s easier and faster for the time-being for me to add to the existing documents with word; but as is so of america, microsoft’s a dinosaur) gave me a few problems, serious enough to require a redo, which I have corrected / overcome; but believe me, I won’t forget it! They will be sorry! ]

 

Self Correcting Market Poses Unique Situation Pierce ‘There is quite a danger premium built into this market as the market continues to grind higher. Here are a few thoughts as to what the look of a correction could look like from user AlbertaRocks on Seeking Alpha referencing the Hindenburg Omen, Goldman Sacks, and market makers.

Sources are saying that the vast majority of investors are now in the market “with no hedge”, meaning with no puts. But you can bet that the institutional managers have some protection of some sort. If they don’t have puts in place, you can be pretty sure that they have trailing stops in place. And we can rest assured that they’re tightening those trailing stops with each passing day. The more wacky and contrived this melt-up becomes, the tighter they’ll move them. Wouldn’t you just love to know how tight those stops are, and how many shares are for sale at each price level just below the market? You can bet the farm that Goldman knows.

That’s most likely why there’s been no sell-off allowed. And that’s why there’s little likelihood of there being any sell-off that they can control. I’ve been speculating on this for damned near a year now. I thought they’d lost control at the August correction, but I was wrong. But the further this Fed induced insanity has gone, the more likely it is that the xxxxxxx (the Fed, GS and their minions) are probably finally trapped. This is why we “need” to see if 1130 holds. If it does, I’d bet that it would be “barely”. If it doesn’t, then 900 might not hold either. Anyway, that’s why I’m expecting violence in the markets. I don’t even know whether to expect a nice, tidy slow melt-down that accelerates (if that’s even possible), or a 40 handle gap lower one of these days. But whatever it is, when those stops begin triggering, there won’t be a damned thing GS can do about it other than buy them all up… or just let ‘em go and throw all their own shares into the pot as well. If the bankers ever want out, the question we’ve all be asking is “who they gonna sell to?”. Now we can add the fact that not only do they have nobody to sell to, but they have billions of shares of competition who’ll want out at the same time as the banks do. Man…. I can’t see how it could be anything other than a violent crash.’

 

 

Gauging Economic Activity: It Takes Money to Make Money Hansen ‘It appears that most people focus on money flows as the gauge of economic activity. Non-monetary measures are generally ignored. GDP measures money flows.

Consider that the majority of people (aka "consumers") in the USA (and the world for that matter) account for a small portion of the money movements. Looking at incomes (and not expenditures), the reality comes into focus.

[chart]

click to enlarge images

The above graph shows the breakdown of the economy by income - not selected expenditure like GDP. The sum of this income pie is several times GDP as money moves around the economy. The relationship between the incomes of people, business and government (as shown on the above pie chart) has remained fairly constant since 1948.

What has changed is the income distribution of people (totaling 43% of total USA income) in the yellow and green pie slices. The yellow pie slice of Joe Sixpack has been getting smaller while the green pie slice for the richer Americans has been getting larger.

[chart]

Average income becomes larger than median income as the number of high earners increases.

When we use money flows as a metric to understand how well an economy is doing, the majority of the population (the yellow pie slice) becomes insignificant. Joe Sixpack does not have enough money to be a factor in this economy where money flows are the squeaky wheel which gets the grease. As the economic controllers are graded by how much money flows grow, natural gravity (not conspiracy or lobbyists) would cause laws and regulations to favor groups (business and high worth people) which will make the "money flow" economy expand.

In the case of the USA, 80% of the people amount to 40% of personal income, while 20% of the people make 60% of personal income. This fixation on money movements as a metric to understand economic growth favors the elements of the economy which most easily can generate faster monetary expansion.

You remember the saying "It takes money to make money".

For the richest people of the economy, this has translated into long term wealth building (chart complements of Wikipedia).

[chart]

If economic progress was based on counting jobs, or living conditions, or life expectancy - attention would be directed towards that metric instead of GDP which has little in common with Joe Sixpack, or the majority of Americans. The GDP metric is now discriminating against Joe Sixpack.

GDP in chained dollars keeps rising. Joe is getting further behind.

Economic News This Week:

Econintersect economic forecast for January 2010 pointing to a slightly improving economy. This week the Weekly Leading Index (WLI) from ECRI continued to improve from 3.4 to 3.7 implying the business conditions six months from now might be improving. Six monts ago, the WLI was declining indicating that December should have been slightly worse then July 2010. This December data is coming in fairly strong.

[chart]

Initial unemployment claims in this week’s release increased slightly. If you look at the not seasonally adjusted claims - they rose to an eye popping 770,413.

[chart]

Here is a comparison to prior years non-seasonally adjusted initial claims with the approximate gain over the previous week:

It is likely that the seasonal adjustment factors are a little off this week, and is one more reason to follow the four week moving average with smooths out the inconsistencies in the data. The unadjusted increase for the first week of the year in 2011 is similar to the two preceeding years (2009 and 2010). All three are obviously much larger than the preceeding three years (2006,2007 and 2008). One is tempted to ascribe this difference to the institution of a New Normal. However, 2005 (153,000) is close to the range observed for 2009-2011 so maybe the distribution of data 2006-2011 is a circumstantial arrangement of random data.

Moral: Exercize caution when casually attributing observations to a "New" Normal.

Most of the data released this week was inconsistent with Econintersect’s December forecast of slow growth - and it more resembles Econintersect's January forecast. Overall the December data released this week was strong. However, the transport indicators began their improvement in December which historically foretells economic improvement. Warning: one month does not make a trend. The table below itemizes the major events and analysis this week.

Weekly Economic Release Scorecard:

Item

Headline

Analysis

CPI

Up 0.5%

Energy price surge a concern to Econintersect for 2011 economic expansion

Retail Sales

Up 0.8%

This is a gross understatement. This is record sales up 8% YoY.

Industrial Production

Up 0.8%

Agree that Industrial Production increased

Manufacturing & Trade Sales

Up 1.2%

This is November Data - but the increase is confirmed by the unadjusted data

PPI

Up 1.1% MoM

Energy surged 7.7%. Likely to show up in CPI in the following months

Trade Balance

Shrunk $100 million

Historically high exports but surplus likely grew $3.5 billion

Consumer Metrics Index

 

Consumer Contraction is now 270 days old

Diesel Consumption

Up 2.4%

Diesel use at December historical highs

Rail Traffic

Up 7.3%

Positive trend lines going into 2011

Small Business Sentiment

Down 0.6%

Both consumer sentiment and small business are in the same relative negative positions

Wholesale Sales

Up 1.9%

November sales are at historical highs for November

Blueprint for Disinflation

 

Avoid owning fixed assets

Bond Vigilantes

 

Historically major bond holders dump at first sign of inflation

Inflation Chupacabra

 

Chupacabra is not coming to eat our goats

Opinion: Headwinds for 2011

 

There is far more risk then realized

Opinion: Currency, Newton and the Gardener

 

The underlying economic driver is jobs.

Opinion: Yellen Says QE Saved the Economy

 

This entire economic policy morass is encumbered with lack of experimental control.

Bankruptcy this week: Constar International Inc.

Bank Failures This Week: [chart]

 

 

On Unemployment, Inflation and Flawed Fed Logic  [ Hasner has omitted a very crucial fact: america’s defacto bankrupt and saddled with insurmountable record level debt!  ] Hasner ‘The sum total of Fed actions over the past 3 years can probably be summed up as the central bank attempting to create its own reality. They have committed to the following :

All of these actions are the result of a single fact: They are compensating for failing to do the job they were tasked with from 2000 to 2008. They failed and we pay and pay.

I think we have to first explore why inflation is so important to the Fed to make sense of this mess.

The banks are still in a big hole (of their own digging) and need housing prices to stay elevated to keep their losses in check. These same banks need to recapitalize at low interest rates (via bond issuance) and to profit from the rate spread to keep their salary game intact. The wealthiest individuals in America stand to lose the most from deflation, even though housing price devaluation would enable an entire new generation of hard working Americans to participate in the housing market.

The influence of the wealthy on Fed policy is not hard to understand. Keep the status quo and you are safe from congressional inquiry as a Fed governor; do what's in the best long term best interest of the American citizenry at large and you are not. Congress by and large will continue to go along with this charade for as long as we let them. It should be "one man, one vote", but these days it’s how many dollars you can pony up that determines how many "votes" you can muster.

Why does inflation serve the largest banks and corporations disproportionately while hurting the average working citizen?

Greater Inflation is desired because the largest banks still hold massive amounts of "bad" loans on their books that simply cannot be justified under any scenario except elevated housing prices. Greater inflation is desired by large multinational businesses so that they may increase current pricing levels and continue to grow profitability for shareholders. Greater inflation is sought so that the Fed can regain credibility and maintain the illusion of being in control of the markets. Inflation in basic necessities such as food, energy, health care and educational expenses have the potential to drain the resources of anyone below the upper strata of society. Making life harder for those on the margin to protect those at the top is not only bad economic policy, it's immoral.

What might the potential long term effects of a near zero Fed funds rate be?

The longer the Fed keeps rates at zero, the longer the banks have to develop strategies for operating in a "risk" free capital environment. Given past history, it's only a matter of time (when, not if) until the banks blow the economy up yet again. Low rates directly benefit the banks and large corporate sectors of the economy. They can borrow at historic low rates whereas the average citizen has no capability of obtaining such funding. While mortgage rates have moved to levels we have not seen in a decades, the corresponding tightening in loan qualification standards means that many cannot take advantage of them. Profits to the largest businesses and no tangible benefit to the American citizen - can you see a pattern developing?

The Fed will eventually be faced with a quandary of enormous proportions. Either raise rates and suffer the wrath of a capital allocation system that has spent the better part of 5 years devising the most profitable ways to game that system, or keep rates at or near zero and continue favoring the largest and wealthiest businesses in America over the working class. I fear the Fed may be secretly planning to permanently lower rates because I cannot frankly see any other way out of their dilemma.

Let's talk about employment in America, or more correctly, the problem with employment in America.

The latest government report shows a 9.4% rate of unemployment. While that statistic is down from 9.8% from the previous month, it probably reflects people actually dropping out of the labor force and not gains in employment. They drop out when their discouragement level becomes so high it is unbearable for them to keep trying. Unbearable for them to keep trying to seek gainful employment. Is this the America we really want?

The latest report shows that 103,000 jobs were created. This is not even near enough to take up the new workers entering the work force, let alone put back to work the tens of millions (yes that's right....tens of millions) of people who have lost their jobs and are seeking work. I can't believe this is happening in America. It's sickening. Record profits and cash balances for America's biggest businesses and no employment opportunities for the working class.

Unemployment compensation was extended to 99 weeks for those seeking work. But what was missing was any sort of connection between these benefits and actually re-training these folks for careers that may be in demand. If a worker is laid off due to economic circumstances, chances are his line of work or skillset is not in demand anymore. Why in the world are we not getting these folks into new careers? I know for some it is a stretch to think that an educated IT worker may now have to re-train as a health care worker or a nursing home assistant, but at some point in this vicious cycle you have to let the free market work.

We currently 'import' people from all over the world to staff our hospitals and nursing homes and I sometimes wonder why we are not putting able bodied Americans to work instead of just sending them 99 weeks of unemployment checks while they go through the futile exercise of trying to re-live their past glories. The reason, of course, is that these jobs pay much less than their former occupations and then they wouldn't be able to afford that damn McMansion anymore. You do see it all goes back to the banks and their bad loans. When does it all end? The Fed believes that more inflation is the answer to unemployment in America. How about you?

To be constructive in my final analysis, I recommend we do the following things NOW to get this country back on the path to economic opportunity for all, and not just those who already have it:

  1. Stop trying to keep housing prices inflated. Houses are overpriced now and the market laws of supply and demand should be allowed to set the price level.
  2. Force the banks to clean up the bad loans. I frankly don't care how much it would hurt profitability. Enough is enough. If we force them to take losses on their bad loans and clear their balance sheets, we can finally get back to the business of growing America for all citizens. The one benefit is the huge Wall Street salary and bonus scam will have to come to an end. Someone in government has got to have enough backbone to take them on - I just don't know who that is.
  3. Instead of spending taxpayer resources on efforts to keep housing price levels inflated, we should use that money to create a “What's needed now” job clearance engine that will be a government/private industry partnership. When someone loses their job, they would be required to utilize the services of this job clearing facility and be prepared to be re-trained, if necessary. If they don't want to, fine, but the unemployment checks would soon stop. Incentive enough, I would hope. We have become a society of pampered “I want it now” consumers and it's time we realized that our economic competitors in the global scheme are working harder at jobs we would not consider "worthy". We need to wise up before they overtake us and become the ones who determine our economic destiny instead of the other way around. Any work is good work, period.
  4. We need to get interest rates to a level 3.5 to 5%, where seniors and other people who cannot afford risk taking in any form can still provide for themselves after a lifetime of hard work and savings. What we are doing to these people is surely a crime, and for what? To keep the banks in the salary and bonus business?
  5. Finally, we absolutely need to question the way we have allowed the largest banks to get bigger during the crisis without regard to solving the "too big to fail" problem. I know that nobody in Congress wants to take them on, but the banks need to be broken up. It's the only way America can get back on sound footing and prevent future disasters.’

 

 

 

Chinese Yuan; A new world reserve currency? Economic Assassin | Twelve days into the New Year (2011) and China has already set the wheels in motion to use their most powerful weapon, the Yuan, in order to combat inflation.

 

China Says the End of the Dollar is Near WSJ & AFP | Chinese President Hu Jintao emphasized the need for cooperation with the U.S. in areas from new energy to space ahead of his visit to Washington this week, but he called the present U.S. dollar-dominated currency system a “product of the past” and highlighted moves to turn the yuan into a global currency.

 

 

BullionVault.com Runs Out Of Silver In Germany With the US Mint selling silver at an unprecedented pace, it was only a matter of time before the silver shortage would be spotted across the Atlantic, where distributors ran out of both gold and silver on a daily basis during the first time Europe became insolvent some time in early May 2010.

 

“The Fed No Longer Even Denies that the Purpose of Its Latest Blast of Bond Purchases … Is To Drive Up Wall Street Of course, rather than admit that the Fed is failing at driving down rates, rising rates are now being heralded as a sign of success.

 

Home Building, Sales Probably Languished as Market Lagged Behind Recovery Bloomberg | Homebuilding probably dropped in December and sales of existing houses struggled to rebound from a post-tax credit slump, reflecting a market trying to regain its footing more than a year into the economic recovery, economists said before reports this week.

 

BP’s Rosneft Deal Replaces Reserves Lost in Post-Spill Sales at Half Price Bloomberg | BP Plc’s $7.8 billion share swap with OAO Rosneft will replace almost all the reserves it sold to pay for the Gulf of Mexico spill at less than half price.

 

 

UK: Oil Prices May Kill The Economy NICK Clegg earlier this week made a pitch for the hearts of “alarm clock Britain”: those who “come rain or shine are busy making Britain tick”. He was right to identify working people as being in need of support, having been taken for granted during the Labour years.

 

Rising gasoline prices sour U.S. consumer mood Rising gasoline prices beat down U.S. consumer sentiment in early January, overshadowing an improved job outlook and passage of temporary federal tax breaks, a survey released on Friday showed.

 

Silver: From $30/oz to over $500 by 2020 And from $500 to $5000 by 2030!

 

The Outlook for Inflation Inflation Trader ‘Retail Sales was softer-than-expected (+0.6%, +0.5% ex-auto, plus downward revisions, versus 0.8%/0.7% expected), Industrial Production stronger-than-expected (+0.8% versus +0.5%), and CPI a smidge above expectations (maintaining 0.8% y/y on core, and rising to 1.5% y/y on headline). More on CPI later.

“Close enough!” cried the equity traders, who subsequently put up prices 0.7% on the day, to 28-month highs in the S&P. Bond traders also felt the balance favored a stronger economy and faster price increases, but moved yields only a few basis points higher with the 10y note to 3.33%. Inflation swaps curiously softened 2-5bps despite the reasonably sunny outlook for carry; some traders and investors feel the inflation market is a bit frothy right now – which it is, but supply is tight and I am not sure I’d be very aggressive about shorting inflation-linked bonds even at these valuations.

With Friday’s trading, the Jan-2011 TIPS have matured. The yield of the bond over its lifetime is a picture of the economy of the 2000s (see Chart, click to enlarge, source MorganMarkets). The recession of the early part of the decade shows up clearly, as does the expansion from 2004-07; the dip in late 2007 as the developing recession became apparent was followed by the spike as Lehman collapsed and balance sheets became allergic to anything except TBills. It was clearly the buying opportunity of the last few decades in fixed-income, as the ongoing crisis was more consistent with sub-zero real yields, and the issue subsequently rallied nearly 700 basis points in 15 months from December 2008 to March 2010.

[chart]

Jan 11s, we'll miss ye.

So now, let’s talk about CPI.

Core CPI was +0.092% month-on-month; the annual rate of change rose slightly to +0.804%. I’d mentioned Friday the potential for a surprise higher in the monthly change because of the reversal of last month’s seasonal adjustment quirk (which, in November, held the monthly change down). This didn’t happen, and my suspicion is that the main part of the effect will actually be seen in this month: January 2010’s seasonally-adjusted change in core CPI was a rather surprising -0.14%, which accounts for most of the difference in the seasonally-adjusted and non-seasonally-adjusted year-on-year series. We will have to wait a month to see.

But that is just sharp-pencil trivia for the bow-tied set. The bottom line is that the year-on-year change in core CPI is now rising. The headline figure did surprise on the upside, printing +0.505% to put the year-on-year rise at +1.496%. This was accomplished mostly through the rise in commodities (gasoline contributed 0.37% to the headline number, so with core+gasoline you have almost all of the month’s change), and more of that is to come over the next few months.

Perhaps more surprising is that the second-largest contribution came from housing, which added 0.08% to the overall figure and therefore accounts for just about all of the rise in core CPI. This is remarkable – it was the largest such contribution in years. This is probably a reasonable time for a step back and a re-think about the overall outlook for inflation.

The Outlook For Inflation

Current Conditions:

The basic pricing conditions in the United States at present are:

[chart]

Surprisingly, housing is now contributing to inflation.

[chart]

To my surprise - although anticipated by my models - core ex-housing has regressed to the core number rather than the other way around.

Base Forecast:

Aggregated models of core inflation and one which separately forecasts housing inflation both project rising inflation going forward. The average of the models is 1.5% for 2011 core inflation. Interestingly, the model that separates out housing inflation projects 1.8%, but then converges in 2012.

The main influences on the 2011 inflation outlook are the late-2008 spike in money supply, the decline in the dollar over 2009, and the level of core inflation in late 2010. It is important to realize that there are long lags in the pass-through of monetary policy to inflation. Most of the broad currents of 2011 inflation have long since been formed. Policymakers are right now working on policies that will influence 2012 and 2013 inflation, but not much will drastically change the outlook for core inflation in 2011.

Risks to the Outlook:

However, the model is not “fully specified.” That is, not every possible influence on inflation is included in the model – mostly because there are all kinds of influences that I can’t imagine, or because some influences operate with variable lags. For example, my models do not include consumer expectations of inflation. Partly, this is because I don’t think they have a lot to do with inflation, but the Federal Reserve thinks they are very important and if they’re right, my model will miss inflation zigzags that are caused by changes in consumer expectations and not captured in other variables. I also do not model changes in money velocity directly, but this can be as important or even more important than the level of the money stock itself.

The risks to the outlook have been generally to the upside over the last year or so, but seem to be somewhat more balanced now that core ex-housing has decelerated. Of course, when we are near the lows we should expect that inflation feels saggy and that the risks seem more balanced. Here are what I see as the main risks to the outlook.

Downward Risks

  1. My models do not have a role for the output gap. In my econometric work, I haven’t found that the output gap adds any explanatory power to a model that already includes monetary variables (and I’m not the first person to notice this: Fama in 1982 is the first person I’m aware of to show it). But this may have happened if I looked for a linear influence, while the influence is actually nonlinear – that is, maybe small output gaps don’t matter but large output gaps, about which there is limited experience in the data sets, matter. If this is the case, then the large output gap we currently have will dampen inflation more than I expect it to.
  2. In my models, leverage plays an important role. High levels of private leverage tends to dampen inflation; moreover, since leverage is related to the velocity of money, stable leverage tends to imply stable money velocity and thus a stable quantity of money. After signs in 2008-09 that an important deleveraging trend was underway, that trend slowed in late 2010 as the Federal Reserve has worked hard to maintain the degree of systemic leverage. I think this is a really bad long-term idea, but in the short-term there’s no question that a collapse of leverage could lead to extremely bad growth outcomes. From an inflation perspective, though, high levels of private debt relative to public debt tends to dampen inflation, so by encouraging leverage the Fed is somewhat inhibiting medium-term inflation. If the deleveraging trend turns back into releveraging, it will tend to truncate some of the more bullish inflation scenarios.

Upward Risks

  1. Money supply growth has remained tepid although it is accelerating, but the Federal Reserve is clearly trying to increase money growth. As I noted before, normal money supply growth passes into inflation with a long lag but if there was sharp money growth then some of that increase would likely pass through into inflation in a shorter time-frame (quantitatively, my models assumed fixed lags but in reality the lags ought to be distributed…that is, the pass-through happens over time. When the changes are small this is not terribly important but for large changes we could feel some effects sooner). Now, the Fed doesn’t want a sharp increase in transactional money (e.g., M2) even though it is pumping massive amounts of liquidity onto bank balance sheets. As I wrote several months ago (see comment here), we don’t know how or if that money multiplier will return to normal. If it doesn’t happen until the Fed withdraws the M0, that produces one outcome; if it suddenly snaps back then that could cause a massive, uncontrolled rise in M2. That isn’t my null hypothesis, but we really don’t know how this will work (no matter how confident the Chairman is about it) and the direction of the risk is quite clear.
  2. The Fed, despite protestations to the contrary, has no way to unwind liquidity provisions in a rapid, yet orderly way and likely would be slow to do so even if inflation began to rise. This doesn’t affect 2011 inflation, but it implies that the medium-term trajectory for inflation probably needs to take into account the fact that the Fed will not be leaning against the wind in its normal fashion.
  3. Majority political preferences all favor higher inflation because it seems to solve some problems (at least at moderate levels of inflation) at a low cost. Therefore, most political decisions are likely to be made without particular concern for the effect on the pricing dynamic.
  4. The dollar is unlikely to rise sharply (although it may rise), but conceivably could fall sharply if public debt grows too onerous. See Iceland, whose currency fell 50% against the dollar in 2008. There is little doubt that Greece’s and Ireland’s currencies would have been similarly penalized had they not been on the Euro (incidentally, this is also the reason that Iceland will recover long before Greece or Ireland – the latter countries lack one crucial automatic stabilizer). It isn’t likely to happen here, but it could.
  5. I mentioned above the risk that private leverage reasserts itself, but the flip side of that risk is the risk that public debt simply explodes. What really matters to inflation is actually less the amount of debt but whether that debt is largely private (which is disinflationary) or public (which tends to be inflationary). For a long period of time, the ratio of Federal, State, and Local debt as a proportion of total debt has been fairly stable between 22% and 37%, but the huge deficits of the last couple years combined with whatever private deleveraging there was has pushed that ratio to the upper end of that range (as of Q3. When the Q4 numbers come out it will be shocking if we aren’t at new multi-generational highs of that ratio). Even if deleveraging stops, the increase of the public debt creates ever-larger incentives to inflate it away. This wouldn’t likely manifest as a 2011 risk except through a currency collapse as mentioned above, but it is a very large problem for the medium term. I’ve run charts before but the Financial Times had an excellent article on the debt problem on Thursday. Below (click to enlarge) you can see the key illustration from that article.

[chart]

Source: Financial Times, Jan 13, 2011

I’ll end there. The bottom line is that the 2011 trajectory will be to roughly a doubling of core inflation with a good chance of headline figures outpacing the rise in core (and perhaps significantly). The less-stable pricing environment will also likely produce a larger jump in perceived inflation. There are both upward and downward risks to this forecast, but the upward risks in my view predominate – especially in the medium- and long-term outlooks.

The bond market is closed today, Monday for the Martin Luther King Jr. Day holiday, but on Tuesday the Empire Manufacturing (Consensus: 13.00 from 10.57) report is due out. The next regular installment of this comment will be on Wednesday morning.’

 

Lindsey Williams: Insider Source Says Food, Gas Prices to Soar The Alex Jones Channel | Williams told Jones the price of crude oil is slated to move to $150-200 per barrel.

 

Is the Fed Broke? Economic Policy Journal | Former Fed official says Fed would be almost broke if assets were marked to market.

 

And Now For My Next Magic Trick… NO Inflation! And now for my next trick… I will now show you how the government steals our entire life’s work through the manipulation of the inflation numbers. These statistics/lies, may seem like “little white lies,” but they are at the core of the massive global corruption.

 

Kappa Beta Phi, Wall Street’s Secret Society, Elects New Members This weekend a tight-lipped group of power brokers elected two new members into Kappa Beta Phi, Wall Street’s secret society founded in 1929, Bloomberg reported.

 

Swiss Whistleblower to Hand Bank Data to WikiLeaks A former Swiss private banker says he plans to hand over data on hundreds of offshore bank account holders to the WikiLeaks website at a London news conference on Monday.

 

Strong Indications of Gold & Silver Shortages Since reaching new highs at the end of 2010 gold and silver have been sold off, and the selling has been particularly intense in the last few days. The news on the economy is almost exclusively bullish for the precious metals.

 

John Hussman: Borrowing Returns Hussman ‘As a reminder of how we approach market valuation, we strongly believe that securities are a claim to a stream of future cash flows that can actually be expected to be delivered to investors over time. As a result, we have little sympathy (and history demonstrates little sympathy) for the popular but misguided practice of applying arbitrary valuation multiples to forward analyst estimates of earnings. Generally, these "forward earnings" estimates fail to normalize for fluctuations in profit margins, return on equity, and other factors that have historically driven short-term earnings temporarily above and below levels that that would have a stable, proportional relationship with the present value of subsequent cash flows. Forward operating earnings estimates are more volatile and more influenced by recent short-term behavior than can properly be used as a basis for valuation, and the resulting earnings "misses" can be particularly extreme at turning points.In the graph below, you'll notice that the prior peak for S&P 500 trailing net earnings has often been a reasonable "rule of thumb" estimate of normalized earnings, but in recent years, temporary spikes in profit margins have periodically driven peak earnings briefly above properly normalized levels. For that reason, as I wrote several years ago, prior peak earnings have become increasingly unreliable. This is particularly true given the actual destruction of book value and revenue in recent years. It's certainly possible to debate the precise level of normalized earnings here, but somewhere in the $70-$75 range, which is where we are at present, is roughly accurate on a trailing net basis. Our estimates also assume continued future long-term growth of slightly more than 6% annually, as reflected by the red channels.
[chart]
Importantly, since our normalized figure tends to run with earnings peaks rather than earnings troughs, the corresponding multiple applicable to these earnings has historically been less than 14 (and was actually closer to 12 in pre-bubble data, which was typically associated with long-term total returns near 10% annually). Since "forward operating" earnings are typically about 20% higher than trailing net, the resulting historical P/E "norms" should also be adjusted accordingly (which analysts rarely do). None of this is to say that the earnings peak during the current economic cycle has to be limited to the present level of normalized earnings - just that more elevated earnings would not be an appropriate basis on which to compute the long-term value of stocks.’

 

States Warned of $2 Trillion Pensions Shortfall [ This is a very big deal! ] US public pensions face a shortfall of $2,500 billion that will force state and local governments to sell assets and make deep cuts to services, according to the former chairman of New Jersey’s pension fund.

 

Niall Ferguson On Whether The Financial Crisis Will Lead To America’s Decline And A Glimpse Of The “Post-Pax Americana” Dark Ages Two weeks after we presented Niall Ferguson’s video lecture – “Empires On The Verge Of Chaos” to tremendous reader response and almost 30,000 views, we follow up with another must watch video presentation, this time highlighting the intellectual rigor of Ferguson, David Gergen and Mort Zuckerman.

 

Food Price Inflation Threatens Global Security A few weeks ago, we highlighted the United Nations Food and Agriculture Organization (FAO’s) food index, which has risen to new record heights, and wondered aloud if crises were coming. Our question has been answered; it has come… the only question now is whether or not it will be spreading.

 

Debt Bondage From The Economic Treason of Banks Between now and the end of the year, most likely in the fall, we’ll see major financial and economic problems in Greece, Ireland, Portugal, Belgium, Spain and Italy. Those events will sorely test Germany, France, Holland and Austria.

 

 

Nigel Farage on ‘Monster’ Eurozone: Bailout Reinforcing Failure In Brussels, Eurozone finance ministers are meeting to discuss whether to boost the EU bailout fund which was only set up last year.

 

 

 

National / World

 

Russia’s Medvedev backs independent Palestine  [ Medvedev is correct and courageous in his position which, though previously shared by ie., clinton, wobama, etc., has been back/soft peddled of late in bending to political / zionist contraindicated pressures. ] Reuters | Russian President Dmitry Medvedev endorsed a Palestinian state on Tuesday.

 

China Says the End of the Dollar is Near WSJ & AFP | Chinese President Hu Jintao emphasized the need for cooperation with the U.S. in areas from new energy to space ahead of his visit to Washington this week, but he called the present U.S. dollar-dominated currency system a “product of the past” and highlighted moves to turn the yuan into a global currency.

 

Confirmed: Stuxnet Was False Flag Launched by Israel and U.S. Kurt Nimmo | New York Times report confirms what we knew all along.

 

Israel used Stuxnet against Iran with US help AsiaNetIndia | US and Israeli intelligence services collaborated to develop a destructive computer worm to sabotage Iran.

 

Confirmed: Stuxnet Was False Flag Launched by Israel and U.S. On Saturday, the Gray Lady of establishment propaganda, the New York Times, passively admitted that the Stuxnet virus responsible for crippling Iran’s nuclear energy program was engineered by Israeli and U.S. intelligence.

 

In Tucson, thousands attend gun show one week after mass shooting “The events at the Safeway store were tragic and unprecedented, but they weren’t about lawful gun ownership,” said Bob Templeton, the president of Crossroads. “It was about a mentally ill person who gained access to a firearm he shouldn’t have.”

 

MSNBC Host: ObamaCare Opponents a Bunch of ‘Crackers’ ‘Hardball’ host lets one slip in describing outspoken opponents of the president.

 

TSA Now Forcing Opt-Outs To Walk Through Body Scanners Paul Joseph Watson | Agency claims machines are “switched off,” traveler says policy is part of psychological ploy to coerce subservience from other passengers.

 

TSA Continues to Deny Scanners Store Images Jason Douglass | TSA asserts their body scanners cannot store images even though technical specifications suggest otherwise.

 

On Gun Control and Violence Ron Paul | Our constitutional right to bear arms does not create a society without risks of violent crime, and neither would the strictest gun control laws.

 

NASA’s Hansen: Impose Chinese Totalitarianism on America Kurt Nimmo | According to Hansen, only brutal authoritarianism is capable of forcing the climate change agenda on the American people.

 

Stuxnet: Another “Conspiracy Theory” Turns Out To Be True Paul Joseph Watson | Debunkers attacked claim that US and Israel were behind worm attack – now it’s admitted

 

Sudan Next To Succumb To Bernanke’s Inflationary Experiment, As Country Threatens Revolution Over Surging Food Prices About a month ago, some took offense at our characterization of the Chair-hewlettpackard-man as a “bearded mutant-cum-supreme genocidal overlord” after we predicted to the dot that his monetary policy would eventually lead to a global, well, genocide, presumably first in the developing world.

 

Schwarzenegger: ‘I Was Addicted To Power’  [ And steroids too, at one time, taking its toll on the former male model / actor / pretender’s brain. Fortunately, it’s cold turkey for the turkey terminator. What an abject failure in office he turned out to be. ] Arnold Schwarzenegger is pulling no punches in his first formal interview since leaving office, claiming that the highest office in the state left him “addicted” to its power.

 

NASA’s Hansen: Impose Chinese Totalitarianism on America Totalitarian thugs love China. They love its authoritarian government and absolute political power. One such thug is the climatologist James Hansen of NASA. Hansen thinks America needs to adapt Chinese authoritarianism in order to force climate change down the throats of the American people.

 

Global food chain stretched to the limit Strained by rising demand and battered by bad weather, the global food supply chain is stretched to the limit, sending prices soaring and sparking concerns about a repeat of food riots last seen three years ago.

 

Bombshell: How Fluoride Is Killing You and Your Children A significant milestone in the fight against fluoride emerged quietly and without major notice from the mainstream news last week. After decades of ignoring the research about the dangers and hailing water fluoridation as one of the 10 greatest health achievements of the 20th Century (CDC), the government is calling for a reduction in the amount of fluoride it adds to public water supplies, citing its negative effect on teeth (dental fluorosis). For the first time since 1962, the standard for fluoride will be lowered from 1.2 to 0.7 milligrams per liter.

 

Peter Schiff: Washington a parasite to economy US foreclosures hit record highs in 2010, but that may not be the worst of it. 2011 may be even worse. Meanwhile, JP Morgan Chase exceeded market expectations, announcing a 47% rise in quarterly profits and released details on a $28.1 billion pay and bonus pool. Peter Schiff, the President of Euro Pacific Capital said Washington and Wall Street are becoming one force and are sucking the underlying American dry like a parasite.

 

U.S. Bills States $1.3 Billion in Interest Amid Tight Budgets As if states did not have enough on their plates getting their shaky finances in order, a new bill is coming due — from the federal government, which will charge them $1.3 billion in interest this fall on the billions they have borrowed from Washington to pay unemployment benefits during the downturn.

 

Biden Urges Pakistan To Intensify Fight Against Terrorism  [ Careful what you say, ‘lobomy joe’ (biden-those uncontrollable outbursts), because they may just figure out who in fact the real terrorists are; viz., pervasively corrupt war criminal nation america and friends (ie., illegal nuke-toting, war crimes nation israel, nato allies, et als). ]RTT | United States Vice-President Joseph Biden has urged the Pakistani government to intensify the fight against terror outfits, especially al-Qaeda, which he said continued to plot attacks against America from remote areas of the country.

 

 

Fire to the Fuel: More NATO tankers torched in latest Pakistan attack A driver was wounded in Pakistan’s south-west on Saturday when gunmen set ablaze 14 tankers carrying fuel for US and NATO troops in Afghanistan, officials said. The latest attack occurred in the Dera Murad Jamali area in Baluchistan province. Islamist militants and criminals in Pakistan frequently attack trucks carrying supplies for US and NATO troops. The attacks in Pakistan have led the US to rely more on other supply routes, including through countries north of Afghanistan.

 

Chuck Baldwin: Restoring The Republic PrisonPlanet.tv | Chuck Baldwin, former Constitution Party candidate for President, breaks down the left-right paradigm and how the globalists are in control of both major political parties.

 

Rockefeller Owned: Chileans tell him he will fail You Tube | An activist confronts David Rockefeller during his vacation to Chile, alongside with Chilean media magnate Agustin Edwards Eastman, head of El Mercurio, outside the airport.

 

Lindsey Williams: Insider Source Says Food, Gas Prices to Soar The Alex Jones Channel | Williams told Jones the price of crude oil is slated to move to $150-200 per barrel.

 

Tunisian Wikileaks Putsch: CIA Touts Mediterranean Tsunami of Coups Webster Tarpley | Arab governments must immediately expel all officials of the International Monetary Fund, World Bank, and their subset of lending institutions.

 

 

Stuxnet Worm Used Against Iran Was Tested in Israel The Dimona complex in the Negev desert is famous as the heavily guarded heart of Israel’s never-acknowledged nuclear arms program, where neat rows of factories make atomic fuel for the arsenal.

 

The First WikiLeaks Revolution? Tunisians didn’t need any more reasons to protest when they took to the streets these past weeks — food prices were rising, corruption was rampant, and unemployment was staggering. But we might also count Tunisia as the first time that WikiLeaks pushed people over the brink.

 

 

Global warming researchers says eating bugs better for environment than eating meat Ethan A. Huff | Researchers say that insects produce far less greenhouse gases than cattle and pigs do, and would thus be a viable alternative to eating meat.

 

The Witch Hunt Begins: Citizen Spy Network Targets Political Speech and Gun Owners Infowars.com | Tyrannical campaigns have been initiated and designed to break up communities and turn citizens against one another.

 

 

The Witch Hunt Begins: Citizen Spy Network Targets Political Speech and Gun Owners Infowars.com | Tyrannical campaigns have been initiated and designed to break up communities and turn citizens against one another.

 

Rachael Maddow’s Faulty Gun-Control Argument A.J. MacDonald, Jr. | I believe that an armed citizenry prevents tyranny, which is exactly why the Founders gave us the Second Amendment to the US Constitution.

 

Video: The ‘Opportunity of Crisis’: Nixon blamed the left for ’72 shooting of George Wallace Aaron Dykes | Recordings show that President Nixon attempted to plant evidence that would frame assassin Arthur Bremer as a Leftist McGovern/Kennedy supporter before Bremer’s background or affiliation was known, just as in Tuscon.

 

Reactionary Gun Laws Proposed in South Carolina After Arizona Shooting Brandon Turbeville | Those who support the Constitution and ending the private Federal Reserve are considered fringe fanatics in the eyes of the mainstream media.

 

Rachel Maddow: Enemy of Liberty and the Bill of Rights Kurt Nimmo | The limousine liberal Rachel Maddow used her MSNBC show Thursday to call for a renewed gun-grabbing effort by the government.

 

Bombshell: Government Admits Fluoride Hurting Children A significant milestone in the fight against fluoride emerged quietly and without major notice from the mainstream news last week. After decades of ignoring the research about the dangers and hailing water fluoridation as one of the 10 greatest health achievements of the 20th Century (CDC), the government is calling for a reduction in the amount of fluoride it adds to public water supplies, citing its negative effect on teeth (dental fluorosis). For the first time since 1962, the standard for fluoride will be lowered from 1.2 to 0.7 milligrams per liter.

 

Study reveals top ten violence-inducing prescription drugs The Institute for Safe Medication Practices (ISMP) recently published a study in the journal PLoS One highlighting the worst prescription drug offenders that cause patients to become violent. Among the top-ten most dangerous are the antidepressants Pristiq (desvenlafaxine), Paxil (paroxetine) and Prozac (fluoxetine).

 

‘Bush, Reagan let drugs flow free to US from Nicaragua’ – ex-dealer “Freeway” Ricky Ross, a former US street legend, who as a drug dealer was once responsible for flooding California’s streets with most of its hard drugs, spoke with RT about his activism against drugs. After making up to US$2 million a day and then spending 20 years in prison, Ross started from scratch and is now trying to make a difference by keeping kids from following into his footsteps.

 

 

Israel Tests on Worm Called Crucial in Iran Nuclear Delay New York Times - The Dimona complex in the Negev desert is famous as the heavily guarded heart of Israel's never-acknowledged nuclear arms program, where neat rows of factories make atomic fuel for the arsenal.   RT Video:  Atomic Mystery Tour: Russia says no to Iran's nuke site invite RT Iran touts tour of nuclear sites, despite absence of key critics CNN

 

 

 

Afghan drug war stumbles (Washington Post) [ Stumbles? As in ‘accidently on purpose’? Or, alternatively, among the few american wars that never was. After all, the Taliban had all but eradicated the heroin trade. Moreover, post-invasion, bush’s order to destroy the poppy fields was countermanded by the pentagon and of course, not by chance, the heroin production / trade in Afghanistan has been reinvigorated, resurgent, and never been greater (the substantial raison d’etre for u.s. war / occupation there – that ‘benefiting the few’ thang – as in Vietnam where body bags of dead u.s. soldiers were used by u.s. ops, cia, etc., to smuggle the heroin out). The tenor of this article is an insult to intelligence everywhere.  ]

  Rendition: Where the War on Terror Meets the War on Drugs Patrick Henningsen | It’s time to ditch the policies we have come to tolerate for decades before they consume what is left of our moral core. I’ve experienced the corrupt inter-relationship of the government (all 3 corrupt branches) and the illegal drug trade / obstruction of justice / bribery first hand, particularly the courts / u.s. attorneys offices (ie., alito – now u.s. supreme court justice – quid pro quo for his complicity / cover-up), feds; see immediately after article excerpt for links / summary.

…“Evidence points to aircraft – familiarly known as “torture taxis” – used by the CIA to move captives seized in its kidnapping or “extraordinary rendition” operations through Gatwick and other airports in the EU being simultaneously used for drug distribution in the Western hemisphere. A Gulfstream II jet aircraft N9875A identified by the British Government and the European Parliament as being involved in this traffic crashed in Mexico…” In 2004, another torture taxi crashed in a field in Nicaragua with a ton of cocaine aboard… Mexican soldiers found ..132 bags containing 3.3 metric tons of cocaine. The origination of the Gulfstream’s flight is unknown but it was destined for Cancun when it crash landed. Again, here is the important point: that same Gulf Stream II was one of the very same planes chartered to the CIA for the rendition of suspected terrorists prisoners. Gulf Stream II crashed in Mexico with 3 tons of cocaine on board ..it should not be surprising that this illegal practice of rendition has in some part, been used as a well-run smokescreen for another borderless illegal operation- an extremely lucrative international transfer and delivery of cash and narcotics.,,These flights are not subject to regular customs checks, inspections or normal regulations as they move seamlessly between destinations in the US, Britain, Europe, Middle East, Central Asia, Cuba and possibly through US bases in Turkey, Greece and Morocco…

Corrupt u.s. courts / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and costly bureaucracies. Rules of law mean nothing to these typically corrupt americans. Most, including sam alito of the u.s. supreme court, concerning  drug money laundering and obstruction of justice in the 3rd circuit ( also maryanne trump barry who covered-up drug money laundering through her brother’s casinos in a civil RICO case) should have gone to or belong in jail. Contrary to popular belief, they do it for the money, personal money, big, cash, untraceable money. The fog of war is great for such things (360 tons $100 bills flown into Iraq and missing, etc.).

 [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ]. america’s just a fraudulent and failed defacto bankrupt nation.

NSA beats warrantless wiretap rap A Federal judge has dismissed a complaint against the National Security Agency’s (NSA)

Corrupt u.s. courts / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and corrupt costly bureaucracies.

There must be such things as parallel universes (I don’t really believe that, because there isn’t) or how else do you explain the disconnect between reality, current and prospective, and the wet dreams posited to keep the war funding / corporate welfare programs alive in collectively what has already become a trillion dollar boondoggle (not counting prospective medical costs, etc.) and promises to go much higher. Even israel apologist Cohen of The Washington Post alludes to the Vietnam analogy. However, even if there were real goals beyond the poppy / heroin trade which the Taliban had all but eradicated (there isn’t); even if america wasn’t defacto bankrupt (america is); even if america wasn’t killing innocent civilians in large numbers (war criminal nation america is); even if america’s allies haven’t similarly helped to bankrupt themselves by way of this war (they have); even if I hadn’t told you so (I did) ….. this war still was, is, and remains a very bad idea!

Afghan war overtakes Vietnam to become the longest conflict in U.S. history  Mail Online | The war entered its 104th month yesterday, with 30,000 American troops being deployed in the first half of this year alone.



Consumer spending rises, but less than expected (Washington Post) [ Almost all the economic news has been worse than expected yet the stock market has continued its rationality/gravity-defying ascent. That ominous disconnect between wall street and main street among other current and prospective victims of the current bubble / fraud which the frauds on wall street and insiders commission, churn-and-earn at lightning computerized high-frequency trading speed and ultimately sell into. It’s the now familiar story on fraudulent but apparently immune from prosecution wall street. Moreover, all that pomo / fiat paper currency printing has just begun to take its toll (see infra)] . Giving retailers the gift of sales growth for the sixth consecutive month, consumers flex their spending power in December. Nations seek to keep lid on food prices (Washington Post) [ It’s not just food prices and one thing is certain; there’s much worse to come and resisting the insurmountable record deficit ridden, pervasively corrupt, defacto bankrupt american propaganda is a first step to understanding how bad, as in unprecedented. Drudgereport: $100 OIL: DEAL WITH IT
Rising Gasoline Prices Put Consumers in Sour Mood...
UK WARNING: OIL PRICES MAY KILL ECONOMY AND THE COALITION... [ No! It’s the debased, over-printed u.s. et als fiat currency which is killing the economies though masked by the fraudulent wall street feel good, for them, bubble and which lends credence to the calls for a new world reserve currency, ie., juan, etc. ]

EYES ON OPEC...[ Beyond the propaganda, the eyes should be on the complicit, fraudulent fed and the ‘printing presses’ of and for the debased currencies. This is not OPEC’s doing but rather an economic axiom which requires that a precious commodity increase in price when the debased paper currency in which it is measured decreases in value (as now with over-printing, over-creating for ultimately the exclusive benefit of the frauds on wall street). ]
Feds threaten to sue states over union laws … [ but hands off the frauds on wall street they say ] ...
Comprehensive List of Tax Hikes in Obamacare...
FT: What chance a US default?
   ]  Faced with rising international food prices, governments around the world are cooking up measures to protect domestic supplies and keep prices from rising at home.  Related News

 

 

The Teflon Market Is Here [ Just ask the ‘Teflon Don’ … oh, right … he’s dead …The pervasively corrupt frauds on wall street, the fed, and the u.s. government are desperate to evade their unequivocal responsibility and overdue punishment (prosecution, fines, jail, disgorgement) for the  last and ongoing (toxic, worthless paper assets now marked to anything) fraud diverting attention from their own culpability for the prior bubble/crash and on-going financial / economic crisis, america’s worst economy and prospects in america’s relatively short history with this contrived bubble exceeding that precursor to the last crash; “this has never happened before, in 82 years of history”, and a crash is what’s a-coming. This is nothing short of pathetic desperation that typifies the last gasp of the dead and dying, figuratively of course.  ] Roche ‘Calling this a “bullish” run might be a bit of an understatement. There has been an unprecedented bid under the market since August 2010. The Bernanke Put is well entrenched in everyone’s minds. This week ’s spike in jobless claims was not enough to cause risk appetite to temper as it likely just reminds investors that rising claims are what led to QE2 to begin with. Indeed, this is a Federal Reserve that will not allow equity prices to falter to any substantial degree. Nominal wealth creation has become the rally cry of a group of economic thinkers who truly have no idea how to create sustainable economic growth.

The stats behind this bull market are even more remarkable than the rally itself appears. As I noted in December the market literally could not decline. But the data since then shows an even more untouchable market (via ZeroHedge):

“As a point of reference the S&P has been above the 10 day average for 30 days straight, and above the 50 day average for 92 days straight. What is remarkable are some statistical findings that pertain to the average’s movement with respect to the SMAs. Sentiment Trader points out that while as part of the recent surge in the S&P, the market has gone for “92 days without closing below its 50-day average, which has been matched only 17 other times since 1928.” Where it gets scary, is that as pointed out, during this time the market has not closed below the 10 DMA once during the past 30 days. And as Sentiment Trader notes, “this has never happened before, in 82 years of history.”

Not much else needs to be said. The teflon market is here.

Update: Some additional thoughts from Jeff Saut:

Herb Stein once remarked, “If something can’t go on forever, it won’t!” And, the current “buying stampede” is now 90 sessions long, making it the longest one ever recorded in my notes of more than 40 years. Combine that with many other “finger to wallet” indicators suggesting caution and I am currently just sitting. Indeed, sometimes me sits and thinks and sometimes me just sits. As the astute Lowry’s organization opines, “Our last short term sell-signal for aggressive traders was triggered on December 30th, when the 14-day Stochastic indicator dropped from overbought levels and crossed below its moving average. A conventional short term sell-signal, for culling selective stocks [from portfolios], was registered as of today’s market close (last Friday), when our Short Term Index dropped a total of more than 6 points from its recent high of 104.” ‘

 

 

Lawmakers consider slowing Virginia foreclosure process (Washington Post) [  Yeah, and you really have to take them seriously when they say that because in alphabet soup kitchen (ie., cia, nsa, dod, doj, etc.) country (which I’ve directly experienced along with the corrupt process in at least 4 other states, see infra, the law is as malleable and arbitrarily enforced or not as they want it to be as in any defacto bankrupt banana republic as pervasively corrupt america certainly is today …Previous: Judges rule without title, lenders can't foreclose (Washington Post) [ Rules of law? I didn’t think they cared. That’s certainly the direct experience I’ve had with the pervasively corrupt american legal / judicial system (along with the other two branches of the u.s. government and defact bankrupt america generally). Court decisions could call into doubt the ownership of mortgages, raising urgent challenges for both the real estate market, wider financial system.     Connecticut, California join probe of Ally (Washington Post)  [I’d be much more impressed if they initiated a probe of more readily discernible criminal offenses in violation of the RICO Act   (Other newark / new jersey and new york, n.y. metro, viz., ie., connecticut, and of course, d.c., d.c. metro, viz., ie., virginia experience … corrupt federal judges as maryanne trump barry, sam alito, shiff, matz (california), hall, underhill, dorsey, etc.. Defacto bankrupt america’s so-called system is pervasively corrupt and broken (AP)   Abolish the corrupt, costly, economically wasteful lifetime extravagantly appointed federal courts - see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )  ]   http://albertpeia.com    Frauds/Liars (sic-lawyers)Covering Up for Other Frauds/Liars (sic-lawyers). In Productive Societies as China, Japan, etc., Fraudulent Liars (sic-lawyers) and the Fraudulent u.s. System They're a Part of Are Unheard Of/Non-existent. List of Files Regarding Filed Attorney Grievance Against Fraud coan et als  Or Here For A Clearer View Of  Filed Grievance Complaint, Response, Exhibits, and Related RICO Filings  Note the Committee of Frauds/Liars (sic-lawyers). Included are DOJ Rep., State Court Rep., State Atty. General Office Rep., and even a Vegetable Garden yale law prof who probably never practiced law in his life. How Pathetic!   http://albertpeia.com/fbiofficela91310 ]   Justice: FBI improperly opened probes   (Washington Post)  [ I just hope they’re as zealous (in probing readily discernible crime) with regard to my RICO matters and the corruption in the (judicial / legal) process since, in the final analysis, it will have been the corruption within that will have brought the nation down irrevocably and totally.] Homeowners, who now face one of the fastest foreclosure processes in the country, would be given more time to defend themselves under one proposal.

 

 

 

Don't Fight the Fed: Dave's Daily  ‘To be sure, companies like Apple and Intel are doing well overall. But some companies are doing well due to ongoing Fed financial support like banks and some auto companies. QE policies are designed to prop stock markets higher, and with volume light, the job is made easier. Therefore, when worse than expected economic data is released (Jobless Claims, Consumer Confidence, Retail Sales, CPI, Chinese tightening and etc) investors toss that information aside aided by more POMO. More maddening to more thoughtful people are the lies being bandied about particularly with inflation data. Food and energy prices are much higher and eliminating them from the data due to imagined "volatility" is beyond mere spin. When I was a young college student, my statistics professor gave to each student a book: "How to Lie with Statistics." I think it must remain required reading for BLS, Treasury and Fed officials among others. Let's remember, the government has a huge entitlement liability geared to inflation statistics. They're conflicted…The Fed is just repeating what's worked for them before--another bubble…’

 

 

Bullish Sentiment Dips, But Optimism Is Still High Rotblut ‘Bullish sentiment declined 3.5 percentage points to 52.3% in the latest AAII Sentiment Survey. Despite the dip, optimism that stock prices will rise stayed above its historical average of 39% for the 19th consecutive week, matching the streak set in the second half of 2004.

Neutral sentiment, expectations that stock prices will be essentially flat over the next six months, slipped 1.6 percentage points to 24.2%. This was the 23rd consecutive week that neutral sentiment has been below its historical average of 31%.

Bearish sentiment, expectations that stock prices will fall over the next six months, rose 5.2 percentage points to 23.4%. Though this is a four-week high for pessimism, pessimism is below its historical average for the 16th time in the past 18 weeks.

Though there was a decline this week, bullish sentiment remains in the range that has largely held over the past six weeks. This has resulted in the eight-week moving average reaching 53%, its highest level since January 6, 2005. High levels of bullish sentiment have been correlated with market reversals, but other indicators should be considered before making a market forecast.

As noted above, bullish sentiment has been above its historical average for 19 consecutive weeks, matching the streak set during the period of August 26 through December 30, 2004. A record streak of 42 consecutive weeks occurred during the period of May 29, 2003, through March 11, 2004, when investors realized that a recovery from the decade’s first bear market was fully underway.

This week’s special question asked AAII members about their expectations for fourth-quarter earnings. Most respondents expected profits to be good with companies continuing to experience growth. There was not a consensus on how much profits would be up, however.

{ Special Offer: Gary Shilling called the housing crash in 2006 and his readers have made a killing in bonds. Click here for his latest advice…in Gary Shilling’s Insight newsletter.  [  Gary Shilling Says Housing Will Get Much Worse - Intelligent ...

After seeing the price of gold continue to climb and reading all the ...http://blogs.forbes.com/.../gary-shilling-says-housing-will-get-much-worse     Gary Shilling Sees `Significant' Stock Selloff Within 12 Months ...Nov 12, 2010 ... Gary Shilling , who predicted the U.S. housing collapse, says the stock market is overvalued and foresees a “significant” selloff within a ...  ]   Early in 2008, in his monthly Insight report, Shilling laid out 13 investment themes for the year ahead that proved to be 100% dead-on accurate--a perfect 13-for-13--and they proved extremely profitable for his Insight readers.

Here's a scorecard to show how Shilling's forecast from 2008 has panned out:

1. Sell or sell short homebuilder stocks and bonds.

2. If you plan to sell your home, second home or investment home anytime soon, do so yesterday.

3. Sell short subprime mortgages.

4. Sell or sell short housing-related stocks.

5. Sell or sell short consumer discretionary spending companies.

6. Sell low-grade fixed-income securities.

7. Sell or avoid most commercial real estate.

8. Short commodities.

9. Sell or sell short emerging market equities.

10. Sell emerging country bonds.

11. Buy the dollar before long.

12. Sell or sell short U.S. stocks in general.

13. Buy long Treasury bonds.

Gary Shilling released 12 New Strategies for thriving during the market melt-down. We call it his "Bear Market Tool Kit." You can access his recommendations when you subscribe to Gary Shilling's Insight. And by subscribing now, you’ll ensure that you will receive Gary Shilling’s investment strategies for 2011 and beyond.

Are the brokers and television analysts who constantly parrot the "conventional wisdom" paying serious attention to any of Shilling's predictions? Probably not. Gary looks for hidden investment opportunities, which often means going against the conventional wisdom. And when you learn more about Gary's credentials and his track record, you will realize that everyone who doesn't pay attention to what he says might end up with some serious egg on their faces.

Gary has twice been ranked as Wall Street’s top economist by polls in Institutional Investor; he was also named the country’s number one Commodity Trader Advisor by Futures magazine. And in 2003, MoneySense ranked him as the 3rd best stock market forecaster, right behind Warren Buffett. He also challenges the consensus in appearances on CNBC.

Gary also has a long-standing reputation for independent thought...and for getting it right. Back in 1969, he correctly predicted, to the surprise of many, the 1969-1970 recession. In the early 1970s, he stood alone in predicting the severe 1973-1975 global recession. In the late 1970s, when double-digit inflation was raging, Gary was nearly unique in forecasting dwindling inflation rates as well as the wonderful stock and bond markets that lay ahead.

Gary has been running away from the herd for years, and he’s been nearly alone in making some early, and accurate, calls:

•In early 1999, in the midst of the Internet stock boom, Gary Shilling was nearly alone in warning of a collapse in tech stocks. In January 2000, with stocks still strong, Gary Shilling said a major bear market was at hand. In November 2000, he foresaw total declines of 30%-40% in the Dow Industrials, 40%-50% in the S&P 500 and 70%-80% in the Nasdaq—right on target with the overall decline of 35% in the Dow, 49% in the S&P and 78% in the Nasdaq.

•While bulls were talking up housing, Gary was nearly alone for years in warning of a collapse well before the rest of the crowd saw any signs that something was amiss.

Wouldn’t you have benefited from such insights? Gary Shilling's Insight readers were not only well-prepared when the bad news began to unfold, but were also equipped to make money while others suffered.

 }

Rotblut cont’d

Here is a sampling of the responses:

Historical Averages:

The AAII Sentiment Survey has been conducted weekly since July 1987 and asks AAII members whether they think stock prices will rise, remain essentially flat, or fall over the next six months. The survey period runs from Thursday (12:01 a.m.) to Wednesday (11:59 p.m.). The survey and its results are available online.’

 

 

Just One Bank Failure Today There was only one closure today which brings the total number of bank failures for 2011 to three. Oglethorpe Bank in Brunswick, Georgia was closed by ...

 

Chinese Yuan; A new world reserve currency? Economic Assassin | Twelve days into the New Year (2011) and China has already set the wheels in motion to use their most powerful weapon, the Yuan, in order to combat inflation.

 

Rising gasoline prices sour U.S. consumer mood Reuters | Rising gasoline prices beat down U.S. consumer sentiment in early January.

 

Dimon, Gorman, Moynihan pitch for AIG share sale Reuters | Some of the United States’ top bankers descended on a law firm in midtown Manhattan on Thursday to make a pitch for managing what could be one of the largest share sales in history.

 

Jobless claims jump, wholesale food costs surge Reuters | U.S. jobless claims jumped to their highest level since October last week while food and energy costs lifted producer prices in December.

Rising gasoline prices sour U.S. consumer mood Rising gasoline prices beat down U.S. consumer sentiment in early January, overshadowing an improved job outlook and passage of temporary federal tax breaks, a survey released on Friday showed.

 

Silver: From $30/oz to over $500 by 2020 And from $500 to $5000 by 2030!

 

Who, How and Why: $140 Oil and $5 Gas According to a loosely-organized apocalyptic Christian movement, May 21, 2011 will be the “end of days.” On or about that same date, the price of oil in the United States will begin to climb to $4 a gallon, according to two savants of the oil industry.

 

National / World

 

Bombshell: Government Admits Fluoride Hurting Children Alex Jones & Aaron Dykes | A significant milestone in the fight against fluoride emerged without notice last week, as the government called for a reduction in the amount of fluoride added to public drinking water.

 

‘Witch Hunt FBI’ tops google trends as gov’t critics targeted Infowars | ‘Witch Hunt FBI’ has reached #1 on Google Trends, as the feds have actually begun visiting the homes of dissenters who criticize members of Congress in the wake of the Tuscon tragedy.

 

The Witch Hunt Begins: Citizen Spy Network Targets Political Speech and Gun Owners Infowars.com | Tyrannical campaigns have been initiated and designed to break up communities and turn citizens against one another.

 

Rachel Maddow: Enemy of Liberty and the Bill of Rights Kurt Nimmo | The limousine liberal Rachel Maddow used her MSNBC show Thursday to call for a renewed gun-grabbing effort by the government.

 

Chinese Company Sinomach Poised To Takeover Boise Jason Douglass | In an effort to save themselves from ‘economic downturn’ Idaho leaves itself wide open to opportunistic foreign interests.

 

Chinese Yuan; A new world reserve currency? Economic Assassin | Twelve days into the New Year (2011) and China has already set the wheels in motion to use their most powerful weapon, the Yuan, in order to combat inflation.

 

 

Rachel Maddow: Enemy of Liberty and the Bill of Rights The limousine liberal Rachel Maddow used her MSNBC show Thursday to call for a renewed gun-grabbing effort by the government. After running an emotionally charged video segment of Barry Obama paying tribute to nine-year-old mass shooting victim Christina Taylor Green, Maddow read an anti-Second Amendment screed from her teleprompter.

 

Court Rules Government Can Keep Naked Body Scanner Images Secret A federal judge has ruled that the Department of Homeland Security can keep images produced by x-ray body scanners out of the public domain, in a blow to privacy group The Electronic Privacy Information Center’ s (EPIC) efforts to release more than 2000 of the images that show intimate details of airport travelers’ bodies.

 

The Witch Hunt Begins: Citizen Spy Network Targets Political Speech and Gun Owners A plethora of tyrannical campaigns have been initiated and designed to break up communities and turn citizens against one another. The justifications for these fascist programs are always a matter of national security. The real reason for these programs and even the events that brought them into existence is to set up a police control grid.

 

Congress, Once Again, Looks To Extend Patriot Act With Little Or No Debate So here we are in 2011, and where’s the debate and the promised effort to sunset the worst aspects of the Patriot Act?

 

Drudgereport: $100 OIL: DEAL WITH IT
Rising Gasoline Prices Put Consumers in Sour Mood...
UK WARNING: OIL PRICES MAY KILL ECONOMY AND THE COALITION... [ No! It’s the debased, over-printed u.s. et als fiat currency which is killing the economies though masked by the fraudulent wall street feel good, for them, bubble and which lends credence to the calls for a new world reserve currency, ie., juan, etc. ]

EYES ON OPEC...[ Beyond the propaganda, the eyes should be on the complicit, fraudulent fed and the ‘printing presses’ of and for the debased currencies. This is not OPEC’s doing but rather an economic axiom which requires that a precious commodity increase in price when the debased paper currency in which it is measured decreases in value (as now with over-printing, over-creating for ultimately the exclusive benefit of the frauds on wall street). ]
Feds threaten to sue states over union laws … [ but hands off the frauds on wall street they say ] ...
Comprehensive List of Tax Hikes in Obamacare...
FT: What chance a US default?

 



Downwardly mobile in D.C. area (Washington Post) [ Well said, I love this … except, not so limited to the d.c. area, but rather applicable to 21st century america in general … the ‘downwardly mobile thang’ … except as to the relatively few as to whom no laws nor rules of civilized behavior apply in any meaningful way … you know, the ones who’ve plundered this nation, this nation’s treasury, this nation’s people, and all the while plundering other peoples in other nations to facilitate the schemes used in plundering the people of this nation (wall street, the 3 strikes branches of government, war profiteers, etc.).  ] For millions of Americans, the recession has knocked them down the socioeconomic ladder. ANALYSIS | Palin's 'blood libel' comment backfires Washington Post) [  God knows I’m no fan of sarah palin’s although I am constrained to admit that as a fan of Saturday Night Live, I do appreciate her contribution to comedic content in the show.  That said, this new ‘tempest in a teapot’ of her own making is a bit overdone. After all, it should be common knowledge by now, to put it mildly, that she is quite dumb; and, like that burnt out, dumb, war criminal and moron, dumbya bush (see , ie., bushisms from bush the brain-damaged moron http://albertpeia.com/bushisms.htm), she also has trouble with words; more specifically, the meanings of words. But it is also true that wobama and his ilk have trouble with words and their meaning, particularly when those spoken words are measured against what he does, his ilk never seeming to discern the glaring difference … wobama the ‘b’ for b*** s***. Lamentably (by her) and unexpectedly for palin was her failure to fully understand ‘that jewish thing’ attached to the phrase and the tender sensibilities of those who previously have been among the ranks of what seems more and more to be a somewhat offbeat fanclub of sorts. Yeah, that ‘never hear the end of it’ jewish stereotype of paranoid sensibilities to religious / ethnic prejudice / slur behind some word, phrase, or even a sneeze (spielberg’s childhood memories) can wind up turning around and biting you in you’re a** ! Previously: Krauthammer: Beyond Ariz., a reckless charge  (Washington Post) [ If it were only that simple; viz., a palin ( I’ve previously said I’m more concerned with her level of stupidity, dumb enough in an infantile way to prove she had gonads by pressing the button – never goin’ to happen, her being in that position), a beck, a bush, a wobama (Drudgereport: OBAMA FLASHBACK: 'If They Bring a Knife to the Fight, We Bring a Gun'... ), etc., there’d be hope for pervasively corrupt defacto bankrupt america. The fact is, the problem is inherent to america / americans themselves as I previously wrote here and reiterate: Will: Half-baked explanations for tragedy (Washington Post) [ Half-baked? Charlatans? The foregoing are in no short supply in defacto bankrupt, meaningfully lawless, pervasively corrupt, fraud prevalent america. See, for example, RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm     . Moreover, Mr. Will as an oftimes apologist for war criminal, pervasively fraud-prone, defacto bankrupt, etc., america, with crime rates exceeding by far those of any other so-called civilized nations, might indeed find himself among those he’s so categorized. Among the last separate page sections to my website will be a somewhat detailed psychoanalytic evolutionary profile of the u.s. (one might ask who am I to do so which is fair comment to which I would reply, read it, or not, your choice). However, for the nonce, let me say that the it is no small coincidence that the 20th century has been dubbed ‘the american century’. That the 20th century has been considered the bloodiest is at once the natural concomitant of the foregoing reality. Keeping in mind the so-called ‘selective’ processes in both insurance (adverse) and evolutionary (Darwinian) terms, and as well, the psychology of it all from a behavioral perspective, america has indeed evolved. From the genocide of indigenous populations, to outlandish propaganda in support of same (ie., that ‘manifest destiny’ balderdash with overtones of religiosity spoonfed since elementary school, etc.), to contrived conflict / war, such, euphemistically bad behavior has been reinforced, some of which conditioning not always purposeful, ie., the ever greater frauds perpetrated on wall street for which there have been in large part no real punitive consequences to the perpetrators; but, to the contrary, great financial rewards though substantially detrimental to the majority. Despite the surface appeal, that oft asserted ‘blue-blood’ distinction doesn’t pass muster. Aside from the few seeking seeking religious freedom (ie., Puritans among some others), most then new americans were such disaffected rejects of their former homelands that desperation at best was motivation for travel to the wilds of the ‘so-called new world’ as opposed to intelligent, rational choice; criminals, mentally ill, the not-so-bright but ruthless populating the new nation in disparate numbers toward the ends consistent with greed and common criminality, corruption, and venality. As of the age of the dinosaurs, the american century has passed into the annals of a history replete with self-generating terrorism within and without (that blowback thing).     DRUDGEREPORT: NATION SHOCKED: CONGRESSWOMAN SHOT IN TUCSON
]

 

 

Clinton pushes for economic and political reforms in tour of Middle East (Post, January 13, 2011)  Clinton expresses solidarity with Arabs on Mideast tour (Post, January 13, 2011; 4:05 PM) Diehl: Mideast threats that can't be ignored (Washington Post) [ Amazing what not running for prospective office can do for balanced thinking, but still not quite. After all, who doesn’t know outside of america / israel that the biggest Mideast threats are … america / israel and those nato allies that are but lapdogs of the former. Moreover, some real scrutiny of and self-analysis by the aforesaid is in order before purporting to be advisors to any nation at all. ]

 

Tax cuts hinder Obama's plans (Washington Post) [ Plans? What plans? Wobama’s become the proverbial gumball machine; viz., put a nickel in, get a gumball of your choosing. Even his teleprompter has more integrity / credibility than he. Campaign promises, words, plans based on both, are nowhere to be found in the failed presidency of wobama in wobamaland.   ] Without deeper budget cuts or fresh revenue, officials will have a tough time meeting the president's targets for tax-code overhaul and deficit reduction.

 

U.S. urges China to open market, heed intellectual property laws (Washington Post) [ Pretty please,with a cherry on top, and lots of sugar … that’ll work … riiiiight! After all, based upon realities, economic, financial, geo-political (– that perpetual war thing and america’s pervasive corruption / fraud from wall street to all three brances of the u.s. government and ops, see, for example, RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm     ) who should be giving whom advice.  ] Commerce secretary says Beijing's policies of protecting domestic industries will no longer suffice.

 

 

Henry Kissinger: Our challenge with China (Washington Post) [ Boy … talk about playing both sides of the fence … H.A.K. as in hack … as in a blood-sucking leach of a political hack! To the point, kissinger is a self-interested, greedy zionist whose professional advice to war crimes nation israel has included cordoning off illegal israeli occupied Palestinian territories and massacreing indiscriminantly and completely the people, innocent men, woman, and children, therein. That China’s rising and pervasively corrupt, defacto bankrupt america’s in ineluctable decline is a foregone conclusion; and, even more to the point, in no small part owing to kissinger’s efforts / policies on his patrons’ (that economic shift to China cheered enthusiastically by ceos and wall street alike) and particularly his own behalf. Little late to the party, mr. hak … after all, what precisely did he do … that kissinger associates thing … for the money … worse than those ‘run-of-the-mill’ lobbyists in d.c. (among the other alphabet soup kitchens, cia, nsa, et als, think stink tanks, etc.). That america will try to stop China’s rise is almost the natural concomitant to perpetual war / pervasively corrupt / defacto bankrupt america’s intractable decline is also a foregone conclusion. That either nation would be dumb enough to embark upon a collision course of self-immolation is not (although america’s self-destructive, in addition to destructive tendencies is a reality lost on no one). ]

 

Bond Panic to Weigh on Stocks Cadora ‘Despite the stock market's seemingly inexorable rise, clues to a coming crisis continue to build, promising not only to bring down equity prices sooner rather than later, but also to make the correction much more severe than most expect. As readers of my Member Letter know, I have been anticipating a dollar crisis to visit markets sometime in the first half of 2011, spurred by an exodus from bonds as the Federal Reserve continues its malfeasant policies. In now seems the dollar crisis will be paired with a panic in the municipal bond market.
[chart](Click to enlarge)
The Illinois legislature's decision to raise taxes as a means to fill its budget gap sets an ominous tone for the municipal bond market. The message is clear: politicians will attempt to drain taxpayer resources rather than control outrageous spending habits. In other words, the root of the budget problem will be ignored. This direction is bearish not only for munis, but also for the economy.

A muni bond meltdown will be detrimental to the dollar in more than one way, not the least of which comes from the dollar's chief persecutor, Ben Bernanke. Despite Bernanke's persistent denials that the Fed would step in to bail out a state government, pressure will grow on him to do so as the crisis worsens. It will be interesting to see if his political will fails him again.

Higher interest rates from bond markets ... both municipal and Federal ... will do no favors for the stock market. In fact, a sense of crisis will exacerbate an equity decline. I have proposed to readers that when this crisis hits, stocks will fall in tandem with the dollar rather than being supported by its decline. That period of positive correlation may be just in front of us.

The stock market itself is looking quite exhausted. According to my cycle analysis, equities are due for a dive into a yearly low. Several market indicators also suggest the time is ripe for stocks to roll over.

[chart]
(Click to enlarge)
[chart]
(Click to enlarge)
[chart]
(Click to enlarge)

Consider also that the respectable work performed over at sentimentrader.com shows several sentiment extremes ... all bearish for the equity outlook ... including a very large gap between smart money and dumb money confidence. The stage is set for a significant stock market correction and this week's breakdown in the muni bond market may provide the needed catalyst.’

 

 

Merck Hurts, Stocks Stagger After Jobless Claims

 

Tech-Heavy ETF Hits Short-Term Extreme - High Probability of Reverting to Mean? Cowder ‘It was just another day in the park for the bulls. The continued push since the gap became higher on Jan. 3 has managed to push the tech-heavy QQQQ into a short-term “very overbought” extreme with an RSI (2) at 98.4. As I always state, when an ETF typically reaches an extreme of this manner, the market fades over the short-term (1-3 days). A move that pushes QQQQ lower would likely close the gap at $54.62, which would mean a 3.5% loss for the QQQQ.

A move like this would certainly be advantageous for my current open positions in both the High-Probability and Mean-Reversion strategy. Yes, I took a position later in the afternoon in the tech-heavy index and so far I like the probability on this one. All of the short-term technical indicators that I follow are reading extremes, so I had no choice but to take a position.

Intel (INTC) comes out after the bell tomorrow and should be quite the catalyst for the QQQQ’s next move. I would love to say that the next move is definitely going to be bearish over the short-term, but as we all know in trading, even when M-R probability is leaning heavily towards your side, there are no guarantees.

Short-Term High-Probability, Mean-Reversion Indicator – as of close 1/11/10

Benchmark ETFs

Sector ETFs

International ETFs

Commodity ETFs

Ultra Extremes

Disclosure: I am short QQQQ.

 

 


Initial Jobless Claims Rise 35,000 ‘NEW YORK (TheStreet) -- The number of Americans filing unemployment claims unexpectedly rose last week, the Labor Department said early Thursday. The advance figure for seasonally adjusted initial claims increased by 35,000 to 445,000 in the week ended Jan.8, the highest level since October. Economists were expecting initial claims to drop to 405,000, according to consensus estimates from Bloomberg. Estimates ranged from 400,000 to 415,000…’

 

An Amazing Statistic About Our Abnormal Market [ The only thing amazing is that no one has come forth to state how preposterous this ‘modern day miracle of computerized programming technology’ can make unreality so appealingly and seemingly real that all are swept away with this tsunami of b*** s*** until it’s too late, which as preceding other crashes, seems furthest from thoughts, mind, and plausibility until invariably, grim reality comes a-calling and this scenario as before will end as before especially quite badly. ] ‘Rev Shark at Realmoney.com posted an amazing statistic which I believe he found at sentimenttrader.com.

According to Sentimentrader.com, the S&P 500 has now gone 92 days without closing below its 50-day moving average. That has only happened 17 times since 1928. But what is really amazing is that over the past 30 days, we haven't closed below the 10-day moving average even once. That has never happened in the last 82 years of market history.

As I've stated multiple times, it is not the rally we are experiencing that is strange, it is the total inability to pullback at any point that is boggling to anyone who has more than 6 months of market history under their belt.

[chart]

Don't forget in September and October we did not close below the 13 day moving average for 2 months in a row. Indeed other than a hiccup caused by Ireland, we might be working on the 5th month of no pullbacks.

This is an abnormal market. Anyone using historical context to trade is lost at sea. Congratulations to Mr. Brian Sack, the Bernank, and his POMO crew for making a mockery of traditional somewhat 'free' markets

Nevertheless, balance sheet policy can still lower longer-term borrowing costs for many households and businesses, and it adds to household wealth by keeping asset prices higher than they otherwise would be.

Amen Brian. In the future I'd just eliminate the middle man (primary dealers) and just buy SPY futures directly on a daily basis, much more efficient than our current charade. Granted that removes the Wizard of Oz effect (don't look behind the curtain - it's magic), but at least it would be intellectually honest. (I know, I know - primary dealers don't "buy stock directly" blah blah)

[Jan 6, 2010: Charles Biderman of TrimTabs Claims US Government Supporting Stock Market]

 


13% Thursday - When Will You Capitulate? Davis ‘It’s starting! [chart] The last of the bears are now capitulating. We’re hearing it in Member Chat and we’re reading it in analyst reports and we’re seeing the fund managers on TV – it is very out of vogue to be a bear.

Just a few weeks ago, I pointed out to Members how few bears remained by saying "Look to your left, look to your right, look in front of you and look behind you – you would be the only bear." That was way back when "only" 20% of investors were bearish – as of yesterday, we lost 1/3 of those poor creatures and now only 13% of the market is bearish. Now you can look diagonally as well and you’ll STILL be the only bear!

Certainly the market seems to be proving the primary axiom of "You can’t fight the Fed." Pretty much no matter what happens, the market goes up. Bryan Leighton from Traddr! makes a good point saying: "It’s a neutral to positive market and the only thing that can change that is some sort of surprise event out of Europe or out of Asia or something major out of the US that the Fed is not ready for or prepared for. If they are prepared for it – it will not happen – it will not have a major effect on the markets."

That’s the reality we’re dealing with out there. As long as the Fed and their pet IBanks are running the markets and as long as volume is at 3-year lows, allowing the TradeBots to control each move – then it is wrong to be a bear. But, is it 87% wrong? 87% bullish sentiment isn’t just "very" bullish – it’s a new, historic high. It’s like going to a fight where the entire crowd only cheers for one guy which, like professional wrestling, would be an automatic indication that the game must be fake, Fake, FAKE!

[chart]

As you can see from this longer-term chart, we are as extremely bullish now as we were extremely bearish in the two worst market events of the past quarter-century. Much the way that Black Monday of 1987 and the Crashes of 2008/9 were unique buying opportunities at 15% bullish, this may be a unique shorting opportunity at 15% bearish that you are not likely to see again for decades.

As an optimist, it was easy for me to say 'buy' when I was one of the 15% still bullish in March of 2009 – don’t expect the same conviction from me about selling in January of 2011. We are generally bullish. We are long-term bullish. BUT – and it’s a Big But (not to mention blasphemy) – I don’t think The Bernank is either all powerful or infallible and I do believe that "some sort of surprise event out of Europe or out of Asia or something major out of the US" could happen at any moment so, as I said yesterday – we remain short-term cautious between now and April, even as the rest of the market marches towards 99% bullish around us.

This does not stop us from making some bullish plays – in fact Scott of Sabrient just reviewed the 4 Dark Horse Trader’s Hedge plays we’ve been tracking in a virtual portfolio since the fall and the only problem we’ve been having is they are too successful as the stocks have been outpacing our expectations and we have to let go of both Veeco Instruments (VECO) (with a 36% profit in 5 months) and World Acceptance Corp. (WRLD) (with a 25% profit in 3 months) because the stocks performed so well that they’re not worth adjusting our hedges anymore. That’s why we like our bullish to neutral Buy/Write Strategy, we can’t be harmed to the upside, only forced to take our profits off the table and find anther partner to dance with – which isn’t a bad forced discipline on stocks that are running ahead of 100% annual gains.

Could we make more money by just "going for it" and being 100% bullish? Sure we could, and once inflation takes hold and begins to snowball the markets higher, that is exactly what we’re going to do but, as I have pointed out before – missing the first 100% move up in the Zimbabwe Stock Exchange wasn’t a big deal since it was followed by moves of 1,000%, 1,000,000%, 1,000,000,000% and 1,000,000,000,000% before the markets finally calmed down. On the other hand, people who participated in Brazil’s 100% run in 8 months that began in October of 2007 found themselves right back where they started just 4 months later.

We participated 100% bullishly since our June 26th Buy List, which was followed by July 7th’s "9 Fabulous Dow Plays Plus a Chip Shot," July 26th's "Turning $10K to $50K by Jan 21st" (halfway there), August 29th’s "Defending Your Portfolio With Dividends" and September 3rd’s "September’s Dozen." That’s how we played the rally from S&P 1,030 to 1,160 (10%).

On October 3rd, I put up "October’s Overbought Eight" and they were AMZN, BIDU, CMG, FSLR, MOS, NFLX, PCLN and TLT. Needless to say, we got stopped out of most of those pretty quickly and that led to a Q4 version of "Defending Your Portfolio With Dividends" on October 23rd (S&P 1,180) and we rode those out through December 11th, when we got tired of waiting for a correction and (at S&P 1,240) went with "Breakout Defense – 5,000% in 5 Trades or Less" and those were followed with December 25th’s (S&P 1,256) "Secret Santa’s Inflation Hedges for 2011" also with a few trades aimed at making around 500% should the rally continue.

So why is it, with only one bearish Member Portfolio in 7 months, that I feel like I might be too bearish? Well, for one thing – I’m getting lonely. I work on the Web and my colleagues in the MSM and the Blogosphere have pretty much all found religion and developed an almost unshakable faith in The Bernank, in China, in Corporate America, in Commodities – you name it, they think it can’t go wrong. So much so that the VIX, which measures the market’s expectation of stock market volatility over the next 30 day period, has dropped all the way to 16.

Now 16 isn’t "low" for the VIX, it’s actually about the historic average. It is, however a far cry from 89 in 2008 and 48 as recently as May and if you tell me I now have less to worry about today than I did in 2007 when we were still in the middle of a major rally and 60% of investors were bullish and the VIX was in the mid-20s, I have to ask you why? 10% more people are unemployed than in 2007, the World is $18Tn more in debt than it was then, Inflation has tripled (although you can argue that playing inflation IS the bullish premise), Global GDP projections are 1/2 of what they were, Banks are unstable, States are unstable and Nations are unstable yet I am supposed to buy Netflix (NFLX) (we are short) with a p/e multiple of 71.50 or AMZN with a p/e of 74.50 (we want to be short) based primarily on my faith that the Great Bernanke in the sky would not let anything bad happen to my investments?

Well sorry, call me an atheist, call it blasphemy, but I do not have 100% faith in the Great Bernanke in the sky. I may have had 60% faith and I may have even had 70% faith but I DO NOT have 87% faith that Bernanke will overcome all those MASSIVE, SCARY, DANGEROUS Global obstacles that are still littering the investing landscape and take us to the promised land of S&P 1,500. Does that make me bearish or sensibly cautious? When 87% of the market is bullish, then sensibly cautious looks a lot like bearish, doesn’t it?

Perhaps that’s why people like the right Reverend Jim Cramer and his Cult of the MoMo Stocks irritate me lately. That man has FAITH! Well, either faith or he’s being paid off by fund managers to pimp their stocks so they can dump them on Jimmy’s fanatical followers while they pick up whatever he’s chasing people out of on the cheap – it’s hard to tell….

I was the lone bullish preacher in the wilderness in March of 2009 so I have seen the promised land of recovery and, unlike Dr. King, who said "I may not get there with you" and was, unfortunately, right, I fully intend to get there and I want us all to get there with our portfolios intact so we will continue to hedge the market following the sound policy advocated by Ronald Reagan when dealing with the Russians, which was: "Trust — but verify."

I pointed out on the first trading day of 2011 that we expected January to be heavily manipulated right up to expiration. Assuming Lloyd and Co. were lazy and using the same Alpha 2 Bot program they ran last January, we were looking for a 300 point run that tops out at 11,850 on the Dow and 1,285 on the S&P and we hit goal on the S&P yesterday, to the penny of where I said we’d be on Jan 3rd – trusted and verified. Now we will see how the next 7 market sessions play out into expiration day. If we pop higher – we’re off the pattern and we’ll have to consider leaving the 13%, shouting hallelujah and joining the crowd but, if we flatline or fail to hold – then you can expect the first Member Portfolio of 2011 to be a bearish one!’



Jobless claims jump, wholesale food costs surge Reuters | U.S. jobless claims jumped to their highest level since October last week while food and energy costs lifted producer prices in December.

 

S&P, Moody’s Warn On U.S. Credit Rating Two leading credit rating companies have cautioned the U.S. on its credit rating, expressing concern over a deteriorating fiscal situation that they say needs correction.

 

‘Burst banks flood world as banksters sell water to people’ Max Keiser looks at all the scandal behind the financial news headlines.

 

Corporate Media Portrays Loughner as Gold and Silver Advocate Chadwick Matlin, a guest contributor writing for Reuters, attempts to connect Jared Lee Loughner to the growing movement for sound money in the United States.

 

The Looming Threat of National Debt As the United States hurtles closer to the 100% debt to GDP mark—95.5% as of today—it becomes important to assess whether unsustainable national debt will be a chronic problem to plague the United States for generations to come.

 

 

 

National / World

 

Rand Paul: Reaction To Arizona Shooting Manufactured Out Of Rahm Emanuel Playbook Steve Watson | A serious crisis should never be allowed to go to waste.

 

The Tea Party Deception Paul Joseph Watson | Political scientist Joel Skousen lifts the lid on the hidden power that controls both parties.

 

Oklahoma Homeland Security’s Says ‘Controversial Debate’ Suspicious Behavior Jason Douglass | Oklahoma Office of Homeland Security has started a new initiative ‘Red Dirt Ready’ to induct neighbors into a neighborhood spy program.

 

Attempt by Obama Operatives to Turn Memorial Into Political Rally Backfires Kurt Nimmo | The creepy zombie-like Obama supporters we endured during the election returned in force and completely overshadowed any solemnity intended for the dead.

 

‘Stop. Think. Connect’ DHS Announces New Fear Agenda Jason Douglass | Cyber Security Coordinator announces a new PSA video challenge from Department of Homeland Security for the ‘Stop. Think. Connect’ campaign.

 

Rand Paul: Reaction To Arizona Shooting Manufactured Out Of Rahm Emanuel Playbook Kentucky Senator Rand Paul has hit out at politicians and those in the media that have attempted to use the tragic shooting in Arizona as a political point scoring exercise.

 

See Something, Say Something: Loughner Bought Bullets at Walmart In December of last year, DHS boss Janet Napolitano announced a government program with the participation of the slave goods trader Walmart to report terrorists and other miscreants.

 

Attempt by Obama Operatives to Turn Memorial Into Political Rally Backfires On Wednesday night in Tucson, Arizona, Obama and the Democrats disrespected the dead and turned a memorial into a cheap and tawdry political rally for the re-election campaign of Barry Obama.

 

Third gun control bill proposed since Tucson shootings High-profile gun violence has historically renewed legislative interest in the cause of gun control, and the shootings of twenty people in Tucson, Arizona is no exception — only this time, the measures face steeper hurdles than before.

 

The Tea Party Deception Joel Skousen, editor of World Affairs Brief, was the chairman of the Conservative National Committee in the 1980′s. In this exclusive video interview for Prison Planet.tv members, Skousen talks about the hidden power structure that controls politicians of both parties from behind the scenes, the nature of the manipulated press, the reality behind the tea party, and the ongoing conspiracy to create a one world dictatorship.

 

Political Hacks Still Seek To Exploit Shootings Before Bodies Are Buried Even a broken clock is right twice a day, and just for a change President Obama got was correct in his speech last night when he said that people should stop exploiting the Tucson tragedy as a political opportunity to point the finger.

 

New Jersey Congressman Calls for Federal Reserve Audit  [ They should audit corrupt, mob infested jersey as well. ] Recently while visiting Washington D.C., members of the South New Jersey Tyranny Response Team had the opportunity to interview the Congressman for New Jersey’s 2nd District, Frank A. LoBiondo.

 

Housing Slump Worse than the Great Depression The Zillow Home Value Index has now fallen 26% since its peak in June 2006. That’s more than the 25.9% decline in the Depression-era years between 1928 and 1933.


Mexico drug wars have killed 35,000 people in four years A total of 34,612 people have died in drug-related killings in Mexico in the four years since President Felipe Calderón declared an offensive against cartels shortly after taking office, officials said tonight.

 

Riots rage in Chile as gas price hike fuels flames of anger Riots are raging in southern Chile with two women killed and four others injured. Protesters are out in anger at gas price increases, which are reportedly due to troubles experienced by the state-owned petroleum company. 21 people have been arrested. With gas one of the country’s main imports, the price rise counters promises made by the country’s President Pinera.

 

US military chief predicts ‘more violence’ in Afghanistan in 2011 The top US military officer said Wednesday he sees an increase in bloodshed in Afghanistan as allied forces step up their offensive against the Taliban.

 

New Chinese arms aimed at US: military chief China’s new weapons programs, including the J-20 stealth aircraft, appear to be directed against the UnitedStates, the highest-ranking USmilitary officer said Wednesday.

 

Drudgereport: Jobless Claims Jump, Wholesale Food Costs Surge...
EYES ON OPEC AS OIL NEARS $100
House set to vote on healthcare repeal...
Tunisian Rioters Overwhelm Police Near Capital...

FT: What chance a US default?
S&P, MOODY'S Warn On Credit Rating...
CITI still too big after 'ad hoc' bailout...
WILL THE FED NEED A BAILOUT?
Banks repossess 1 million homes in 2010...

May Jump 20% in 2011...
Biden arrives in Baghdad 'to celebrate'...
  Lobotomy Joe’s arrival as Violence kills 3, wounds 14...
Wrestling Coach Put on Leave for Insulting Obama, Challenging Him to Fight...
Politician Wants License Plates -- For Bikes…
School Hands Out Misdemeanor Tickets To Elementary School Students... [
Data shows the tickets can cost a family as much as $500. ]
81-Year-Old Woman Bodyslammed, Mugged Inside NYC Subway Station -- By Another Woman...

CHICAGOLAND: Gang rape of girl, 14, recorded on cellphone...



Contours of a large and lasting American presence in Iraq starting to take shape (Washington Post) [  Wow! Sounds like a plan … though hardly embraced by all; viz; the vast majorities in Iraq, Afghanistan, and defacto bankrupt america are against this with dire prospective consequences to follow.   U.S. Promises to be in Afghanistan Beyond 2014 [ Defacto bankrupt america can afford it! Riiiiight! Sounds like a plan … for enhanced heroin production, war profiteering, etc., benefiting the few to the detriment of the many. ]New York Times | Biden met with Karzai and promised a lasting American commitment to the country well beyond 2014, when NATO forces are scheduled to turn over security of the nation to Afghan forces.  ]

 

Treasury secretary urges China to accelerate currency reform  (Washington Post) [ Riiiiight! Well that sounds like something the Chinese will buy into, coming from defacto bankrupt america … sounds like a plan … for fantasyland! ] Beijing’s policy is hampering U.S. competitiveness and harming the Chinese economy, Geithner says.

 

 

Economic recovery is on track (Washington Post) [ What? That (as per fed) no-recession recession (depression) thing’s over. Certainly for the frauds on wall street who caused the thing in the first place that’s true with the new bubble and at what now insurmountable cost  (record $14 trillion plus debt – Faber: US will be using 30% of total tax revenues just to pay interest on the national debt within a few years … see, infra … )Fed's beige book reports gains in manufacturing and retail sectors. Housing industry remains weak.

 

 

E.U. seeks to expand bailout fund to calm markets (Washington Post) [Nyaradi  The Sick Man Tries to Save the Terminally Ill ( I can’t recall the specific phrase, but applied here it goes something like this, ‘Japan with a debt to GDP ratio of 200% is going to save Europe, but who’s going to save Japan’. Let’s get real here as the u.s. house-building with decks, as in Titanics and reshuffled / rearranged deck chairs, of cards, as in ‘houses of cards’, becomes insanely ubiquitous worldwide and will systemically (now globally) end quite badly. This is an especially great opportunity to sell / take profits since there is much, much worse to come.  ) Nyaradi  ‘It was a quiet day yesterday for ETFs and stocks in world markets as most exchange traded funds recovered recent losses amid reduced tensions in Europe.Incredibly, Japan’s intent to buy European bonds was the catalyst for the more positive atmosphere in Europe, and as the title of this article suggests, this is truly the sick man trying to save the terminally ill…see infra… ’ ] Nations expand the scope of the euro-zone bailout fund, saying more support is necessary as investors worry about the prospects of Portugal and Spain.

 

 



The Sick Man Tries to Save the Terminally Ill [  I can’t recall the specific phrase, but applied here it goes something like this, ‘Japan with a debt to GDP ratio of 200% is going to save Europe, but who’s going to save Japan’. Let’s get real here as the u.s. house-building with decks, as in Titanics and reshuffled / rearranged deck chairs, of cards, as in ‘houses of cards’, becomes insanely ubiquitous worldwide and will systemically (now globally) end quite badly. This is an especially great opportunity to sell / take profits since there is much, much worse to come.  ] Nyaradi  ‘It was a quiet day yesterday for ETFs and stocks in world markets as most exchange traded funds recovered recent losses amid reduced tensions in Europe.

Incredibly, Japan’s intent to buy European bonds was the catalyst for the more positive atmosphere in Europe, and as the title of this article suggests, this is truly the sick man trying to save the terminally ill.

The soap opera in Europe, like every soap opera, is getting boring. It starts with rising interest rates and credit default swap rates which is met by the concerned government proclaiming that they’re totally solvent and will never need a bailout which ends up to be exactly what happens.

Portugal will be selling 10 year notes today, Wednesday, and its ten year debt has stood largely above 7% in recent days. When rates in Greece and Ireland hit these levels, bailouts came within days in both cases. Italy and Spain go to the bond trough this week, as well, and so it will be an active few days in Europe.

Bottom line; get ready for an ECB bailout of Portugal coming soon, possibly this week.

At home, we move into earnings season, Illinois is moving towards an income tax increase to deal with its budget deficit while Governor Brown in California begins to sell his austerity plans.

Daily Moves for Major ETFs:

Dow Jones Industrials: (NYSEArca: DIA) +0.30%

Russell 2000: (NYSEArca: IWM) -0.47%

NASDAQ 100: (NasdaqGM: QQQQ) +0.41%

S&P 500 Index: (NYSEArca: SPY) +0.37%

MSCI Emerging Markets:(NYSEArca: EEM) +1.06%

MSCI China (NYSEArca: FXI) +1.13%

Gold (NYSEArca: GLD) +0.59%

7-10 Year Treasuries: (NYSEArca: IEF) -0.39%

20+ Year Treasuries: (NYSEArca: TLT) -0.56%

VIX -3.71%

U.S. Dollar (NYSE:Arca: (NYSE:Arca: UUP) -0.08%

The major indexes remain overvalued and overbought on a technical and fundamental basis and so Wall Street Sector Selector remains in “Yellow Flag” status, expecting choppy to lower prices ahead.’

 

 

Lunch with Marc Faber: Predictions and Insights  Sinn – ‘Tuesday I had the pleasure of meeting Marc Faber for the first time and I thoroughly enjoyed his detailed, logical, and smooth-flowing presentation. Faber is good on television, but he is much better live as he is more open with regard to his disdain for Bernanke, Greenspan, Krugman et al. He even ended the Q&A portion by saying ‘I hope you have a better idea of what to do with your wealth, but what you do with your client’s wealth is another story’. Below I have listed the main concepts that Faber’s presentation impressed on my thinking:

Key takeaways from Marc Faber Luncheon- January 11, 2011

The Eurozone is worse off than even the U.S. at this point because they lack a single fiscal authority. It is difficult to implement a federal/super-sovereign approach in the Eurozone due to challenge of implementing a single taxing authority with supervisory and enforcement powers.

When asked about the possibility of dividing the Eurozone into a north and south euro, he dismissed this idea as being very unlikely.

The most likely path forward for the Eurozone will be for the ECB to continue to monetize the sovereign debt of the weaker Member States. He also stressed the point that the ultimate solution will be highly political and unpredictable and that there will be plenty of ‘noise’ on the way to the final outcome.

Faber is concerned about a slowdown in China and India over the next 3-6 months. China currently has negative real interest rates and may need to raise rates over 100 basis points in order to bring the real interest rate back near zero. He also mentioned that he had recently reduced his investment exposure to China and India.

Faber seemed most bullish on the price of oil and pointed out that Chinese consumers consume only 2 barrels of oil per capita/year while US consumers consume over 20 barrels of oil per capita/year.

Faber pointed out how under leveraged Asian consumers are compared to Western European/ US consumers. He cited that only 10% of Vietnamese have a bank account which demonstrates how much room there is for leveraging in Asia.

·He was VERY bearish on U.S. government debt long term and even pointed to a chart of US 10-year note yields over the past 60 years. He then waved the laser pointer to indicate that yields will eventually go past the early 1980s highs.

·He illustrated the performance of Mexican government bonds and the peso currency from the late 1970s to 1988. The peso lost 98% of its value vs. the US dollar and Mexican bonds performed horribly while Mexican equities priced in US dollars ended the 10-year period slightly positive.

Finally, Faber pointed out that there is potential for geopolitical tensions between China and India as they compete for natural resources (oil, water). He pointed out that China and India share the Brahmaputra River. There has been continued speculation that China plans to build a dam on the river in order to divert water to the North of the country (Doug Kass also mentioned the possibility of a military conflict between China and India over this river in his year end predictions for 2011). In addition, Faber explained that China isn’t happy about the US recommendation that India join the UN Security Council.

Oddly enough, I agree with almost everything Dr. Faber discussed. However, I doubt that gold will undergo a 20% correction this year (I would say 10-15% is the maximum unless there were to be a complete paradigm shift in monetary policy from the ECB/Fed). The crowd was most amused by Dr. Faber’s disdainful comments about Messieurs Bernanke, Greenspan, and Krugman.

While I agree with the latter two, I believe Chairman Bernanke is doing the only thing he can do with the terrible hand he has been dealt. I also believe the possibility of a military confrontation between China and India is extremely remote due to the potential magnitude of the consequences. Dr. Faber managed to cause me to be even more concerned about the state of the US fiscal situation than I already was. I didn’t think that was possible, but when he explained the US would be using 30% of total tax revenues just to pay interest on the national debt within a few years, I realized the situation was more serious than even I had realized.  Disclosure: I am long GLD.’

 

 

Cupcake Capitalism Offers Hope for New Bubble: Jonathan Weil  Weil ‘The first thing every prospective investor should know about Crumbs Holdings LLC, which operates 34 cupcake shops, is that there was an error in the first sentence of its Jan. 10 press release announcing the New York retailer’s planned public listing on the Nasdaq Stock Market.

Crumbs called itself the “creator of the gourmet cupcake.” The claim is false. Crumbs didn’t create the gourmet cupcake. I did, or at least that’s how I choose to remember it.

It was a glorious Sunday morning in October 1976. I was six years old. My mom helped me follow the instructions on a box of Duncan Hines cake mix. I added Frosted Flakes to the icing, spread the sugary goo on top of my creations, and dubbed them Jonny’s Chocolate Crunchcakes. They were Gr-r-reat!

Crumbs executives say they plan to expand to 200 locations within four years, a sixfold increase. They’ll have no need for a traditional initial public offering, though. Crumbs plans to do a reverse merger with a publicly traded shell company called 57th Street General Acquisition Corp.

It’s easy to dismiss the cupcake craze’s arrival on Wall Street as just another indicator of a world gone mad, because it is. Yet there’s a serious point here, too. This may be one of the most hopeful signs in a long time that the economic boom-to- bust cycle may be returning to boom again.

Think about it. Would a chain of stores selling outsourced $4.50 cupcakes have stood a chance at luring stock-market investors three years ago, when the banking crisis was driving the world into a global recession? No way. Yet now the red velvet carpet is out for the likes of Crumbs Bake Shop. The opportunities for other entrepreneurs seem endless.

Master Plan

Before long, sophisticated investors may once again line up to throw money at sure-fire concepts like iron-on T-shirts and collectible plush toys. This must be good news, whether you’re a central banker or a maxed-out office worker buying a caramel apple on credit. It’s evidence that our global economic leaders’ master plan is working. That would be to spend our way out of the last bubble’s wreckage with money we don’t have, until we can create a new bubble to wealth-effect our troubles away.

To be sure, the news from Crumbs doesn’t signal an actual bubble, only the promise of one. But it does tempt us to consider that there may be real bubbles, even monstrous ones, soon. To accomplish this, we’ll need the titans of industry and finance to remain united in pressing for the common good. And there’s positive news on this front.

Remorse-Free Zone

This week Barclays Plc’s chief executive, Robert Diamond, told British parliamentarians it’s time for banks to stop apologizing and start rebuilding confidence. “There was a period of remorse and apology for banks. That period needs to be over,” he told a House of Commons committee in London.

When this period of remorse supposedly occurred, I’m not sure. What matters, though, is that the world now appears to be coming around to Diamond’s way of thinking, which is that we must all agree to be confident.

Similarly, last week President Barack Obama picked a top JPMorgan Chase & Co. banker and former Fannie Mae board member, William Daley, to be his new chief of staff. Amazingly, hardly anyone complained. It seems Americans are too busy trying to figure out how to buy pre-IPO shares of Facebook and Twitter. Distrust of Wall Street is so 2009.

You also can see the seeds of this new era in our corporate leaders’ math. The same day Crumbs said it would go public, Groupon Inc., which claims to have been called “the fastest growing company ever” by Forbes magazine, issued a press release under this headline: “Groupon Raises, Like, A Billion Dollars.” Actually the amount was $950 million. But we can all agree that a billion grabs more attention.

All of which shows there’s hope for the world’s economy to return quickly to rapid growth, as long as we work together to figure out how we can get in all these new bubbles and sell at just the right time, before everyone else figures out when that is. Then we can be rich again. That is, until the next bust, by which time we’ll have moved on to even bigger booms.

All we have to do is believe. Jonathan Weil is a Bloomberg News columnist. The opinions expressed are his own.) To contact the writer of this column: Jonathan Weil in New York at [email protected]

 

 

Bernanke to Broke States: Go Suck an Egg Infowars.com | Trillions for international banksters, nothing for the states.

 

Could the U.S. central bank go broke? Reuters | The U.S. Federal Reserve’s journey to the outer limits of monetary policy is raising concerns about how hard it will be to withdraw trillions of dollars in stimulus from the banking system when the time is right.

 

Gold prices at record amid reports of dollar’s demise Guardian.co.uk | Reports of secret talks over ending the dollar pricing of oil and money flows into commodities as fears of inflation grow.

 

Sanders Says Bernanke Ducks Request for Details on Fed Loans Vermont Senator Bernard Sanders, whose legislative provision forced the Federal Reserve to disclose last month the recipients of $3.3 trillion in financial-crisis aid, said Chairman Ben S. Bernanke ducked his request for more details about the loans.

 

Home price drops exceed Great Depression Home prices fell for the 53rd consecutive month in November, taking the decline past that of the Great Depression for the first time in the prolonged housing slump, according to Zillow.

 

Downturn’s Ugly Trademark: Steep, Lasting Drop in Wages In California, former auto worker Maria Gregg was out of work five months last year before landing a new job—at a nearly 20% pay cut.

 

Primary Dealers Leech Off Fed’s Currency Destruction While Estonia is burning its currency to keep warm and celebrate joining the Euro, the United States is defiling its currency in a wholly American way—by giving it to Wall Street.

 

National / World

 

 

Corporate Media Portrays Loughner as Gold and Silver Advocate Kurt Nimmo | Loughner’s irrational currency ramblings offer the establishment a chance to tarnish a growing movement calling for the elimination of the Federal Reserve.

 

Arizona Shooter Was On Powerful Hallucinogens Steve Watson | Friend says “He would admit to seeing the sky as orange and the grass as blue”.

 

Welcome To The Reservation Paul Joseph Watson | American Indian activist Russell Means explains how history has come full circle.

 

Was Loughner In Love With Congresswoman Giffords? Paul Joseph Watson | Gunman’s disinterest in politics fails to explain dangerous obsession that began several years ago.

 

Palin: “When was it less heated? Back in those “calm days” when political figures literally settled their differences with dueling pistols?” Sarah Palin | President Reagan said, “We must reject the idea that every time a law’s broken, society is guilty rather than the lawbreaker. It is time to restore the American precept that each individual is accountable for his actions.”

 

Arizona Shooter Was On Powerful Hallucinogens As with practically every other high profile shooting case in recent memory, it appears that the suspect was using psychotropic drugs, substances that significantly alter areas of the brain associated with perception, mood, consciousness, cognition, and behavior.

 

Was Loughner In Love With Congresswoman Giffords? Now that the contrived idea that heated political rhetoric from conservatives has been rejected as a motivation behind Jared Lee Loughner’s tragic rampage in which Congresswoman Gabrielle Giffords was targeted, Loughner’s documented obsession with Giffords indicates that he may have been infatuated with the Arizona Democrat.

 

Welcome To The Reservation American Indian Russell Means gives an eye-opening 90 minute interview in which he explains how Native Americans and Americans in general are all imprisoned within one huge reservation. “The history of the American and the history of the Indian have now come full circle and are intertwined in the dictatorial policies of those that control the monetary system of America,” remarks Means.

 

He did not watch TV. He disliked the news. He didn’t listen to political radio Regarding the high-pitched talk radio and cable news political rhetoric, Osler says his friend didn’t even watch the news.

 

Officers stopped suspect on day of Ariz. shooting; Police Say They Visited Tucson Suspect’s Home Even Before Rampage TUCSON — The police were sent to the home where Jared L. Loughner lived with his family on more than one occasion before the attack here on Saturday that left a congresswoman fighting for her life and six others dead, the Pima County Sheriff’s Department said on Tuesday.

 

Arizona Shooting Suspect Wrote `Die Bitch’ on Giffords Letter Jared Loughner, accused of shooting U.S. Representative Gabrielle Giffords in the Tucson, Arizona attack that killed six people and wounded 14, wrote “die b*****” and “die cops” on a letter he received from the lawmaker in 2007, officials said.

 

U.S. Promises to be in Afghanistan Beyond 2014 [ Defacto bankrupt america can afford it! Riiiiight! Sounds like a plan … for enhanced heroin production, war profiteering, etc., benefiting the few to the detriment of the many. ]New York Times | Biden met with Karzai and promised a lasting American commitment to the country well beyond 2014, when NATO forces are scheduled to turn over security of the nation to Afghan forces.

 

‘US behind instability in Lebanon’ Press TV | Iran’s ambassador to Beirut says Washington’s interferences resulted in the failure of Saudi Arabian and Syrian efforts to stabilize Lebanon.

 

China stealth jet upstages US defence chief’s visit US Defense Secretary Robert Gates on Wednesday toured China’s nuclear command centre to end what he called a “very successful” visit — one upstaged by a bold display of Beijing’s advanced weaponry

 

 

Drudgereport: World moves closer to food price shock...
OIL NEARS $100...
Soaring commodities...
PALIN CALLS OUT MEDIA 'BLOOD LIBEL'...

VIDEO...
Death Threats at 'Unprecedented Level,' Aides Say...
ABCNEWS: She 'once again has found a way to become part of the story'...
CBSNEWS: 'Plays the victim card'...
NBCNEWS: 'Ignorant' for using 'blood libel' term...
Assange claims 'insurance' files on Rupert Murdoch; Says China Top Threat to WIKILEAKS...
 ‘In this week's New Statesman, WikiLeaks founder Julian Assange talks to John Pilger about Bradley Manning, his "insurance" files on Rupert Murdoch and Newscorp - and which country is the real enemy of WikiLeaks. To read the entire feature, pick up a copy of this week's New Statesman available on newsstands from tomorrow. Some highlights of the piece are below: The "technological enemy" of WikiLeaks is not the US - but China, according to Assange. "China is the worst offender," when it comes to censorship, says the controversial whistleblower. "China has aggressive and sophisticated interception technology that places itself between every reader inside China and every information source outside China. We've been fighting a running battle to make sure we can get information through, and there are now all sorts of ways Chinese readers can get on to our site." On Bradley Manning - the US soldier accused of leaking the diplomatic cables to WikiLeaks - Assange says: "I'd never heard his name before it was published in the press." He argues that the US is trying to use Manning - currently stuck in solitary confinement in the US - to build a case against the WikiLeaks founder: "Cracking Bradley Manning is the first step," says the Australian hacker. "The aim clearly is to break him and force a confession that he somehow conspired with me to harm the national security of the United States." Such conspiracy would be impossible, according to Assange. "WikiLeaks technology was designed from the very beginning to make sure that we never knew the identities or names of people sub¬mitting material. We are as untraceable as we are uncensorable. That's the only way to assure sources they are protected." Yesterday, Assange's lawyers warned that if he is extradited to America, he could face the death penalty - for embarrassing the leaders of the US government. "They don't want the public to know these things and scapegoats must be found," says Assange. And despite the pressure the website has been under, reports of trouble at WikiLeaks are greatly exaggerated, claims Assange. "There is no 'fall'. We have never published as much as we are now. WikiLeaks is now mirrored on more than 2,000 websites. I can't keep track of the spin-off sites - those who are doing their own WikiLeaks... If something happens to me or to WikiLeaks, 'insurance' files will be released." The contents of these files are unknown, but, according to Assange, "[t]hey speak more of the same truth to power." It is not just government that should be worried about the content of these files, however. "There are 504 US embassy cables on one broadcasting organisation and there are cables on Murdoch and News Corp," says Assange. The attempts by the US to indict Assange should worrying the mainstream press, he adds. "I think what's emerging in the mainstream media is the awareness that if I can be indicted, other journalists can, too," says Assange. "Even the New York Times is worried. This used not to be the case. If a whistleblower was prosecuted, publishers and reporters were protected by the First Amendment, which journalists took for granted. That's being lost."

 

 

Goldman Sachs self-eval calls for disclosure of operations (Washington Post) [  Self-evaluation? Goldman-sachs? Don’t make me laugh! … Oh, right … they don’t cheat, they just steal / defraud!    ] Goldman is trying to turn the page on a bad year (as in huge bonuses … that bad … riiiight!) .



Chinese military tests fighter jet ahead of Hu's meeting with Gates (Washington Post) [  China tests stealth aircraft before Gates, Hu meet (Post, January 11, 2011; 6:12 PM)  Chinese general to visit U.S. base in small sign of thawing military ties (Post, January 12, 2011; 1:21 AM)  Small sign of thawing? Yeah, maybe … so small you’d need a electron microscope to see it … as gates melted at the prospect of China’s latest new addition to their defensive arsenal, which they can afford, as defacto bankrupt america drowns in perpetual, contrived / self-created / self-destructive wars. ]

 

 

China's exchange reserves hit record level (Washington Post) [  Relations, relationship, reserves. I’d say proportional … as in terms of, ie., rationality … as in, ie., relative abundance; viz., China having substantially greater reserves and rationality than irrationally, pervasively corrupt, meaningfully lawless, perpetual war despite defacto bankrupt america.  ]  The thorniest problem in economic relations between the United States and China is getting worse, just as the world's two biggest economies prepare for a summit next week in Washington.

 

 

Meyerson: Culture of paranoia (Washington Post) [ That ‘for us or again’ us’ dichotomy that flourished with unbridled enthusiasm and encouragement by lesser brains typified by burnt out war criminal and moron dumbya bush & co certainly gained traction with the bushlander failed regimes; but, truth be told, to the surprise of many, the same mindless approach to all things domestic and international has under wobama’s failed regime proved to be the coup de grace, the ‘straw that broke the camel’s back, etc.. Indeed, the continuation of the perpetual war policy despite the defacto bankruptcy of the nation has made wobama’s failed presidency merely icing on what has become the american upside down cake. From no pros of the frauds on wall street to increased war spending and runaway deficits, wobama the ‘b’ for b*** s*** has proven the more america ‘changes’ the more america stays the same … in rate of decline, that is. Talk radio … all b*** s*** with a few convenient facts interspersed for relevance. I’d say liberal talk radio is worse in that if they’re not comin’ down hard on wobama (I presume they’re not), then all their rhetoric in the bush years was hot air. And hot air is what they are which is the reason d’etre for that little on/off switch which is all the censorship that’s needed. That’s what I use for the blowhards … and it works extremely well! ]

 

 

Four Financial Farces That Will End in Disaster  Summers ‘At this point the news out of the financial world is more insane than … well, just about anything.

Farce #1: Japan Can Bail Out Anything.

First off, Japan, which has a debt to GDP ratio of 200%, is bailing out Europe, which has a smaller but equally disturbing debt problem. Yes, one broke country (Japan) is now trying to bail out an entire economic union, despite the fact that it hasn't succeeded in managing its own finances or economy in over 20 years.Indeed, the idea that Japan could bail out anyone when it’s failed to create any substantial economic growth despite spending trillions of yen should give you an idea of just how out of control the entire financial system has become. We are literally in the end game now. Unless Martians come down and start bailing out Earth, the Great Sovereign Default will be in full effect within the next six months.

Farce #2: Inflation Is at 1%.

Meanwhile, Ben Bernanke claims that inflation in the U.S. is at 1%. President Obama has to maintain that this is a fact with a straight face next week when he meets with French President Nicolas Sarkozy, who is witnessing food riots in Algeria due to soaring food prices.The Fed has claimed inflation is under control for months now, proving that its members must not eat food, drive cars, or know how to read. Indeed, in order to ignore rising prices in the U.S., you would literally have to not shop for groceries, not pump gas into your car, not read the newspaper, and not have access to the Internet or any financial news outlet.I sincerely hope that the Fed is not run by folks who fit this description, but after reading the next two farces, I’m not so sure.

Farce #3: QE Is Working.

Various Fed officials have stepped forward to claim that its Quantitative Easing program has worked. Correct me if I’m wrong, but I thought the whole purpose of QE was to lower interest rates.How then do you explain the following? [chart]As you can see, interest rates have soared since the Fed implemented QE 2. It’s not like QE has helped the U.S. economy either; food stamp usage has hit new records since it began.And yet the Fed claims that QE is not only working, but we need more of it. However, even that farce pales compared to the next and final financial farce of today’s essay.

Farce #4: The Folks Managing the Fed’s QE Efforts Have No Investing Experience.

Then, of course, there’s the recent revelation that the Fed’s monetary policies involving the purchasing of trillions of U.S. Treasuries are in the hands of folks aged 26, 29, and 34, none of whom have any investing experience whatsoever.And they’re in charge of buying up trillions in U.S. debt.If, at this point, it’s not clear that the entire financial system is not a disaster waiting to happen, then I don’t know what else to say. Indeed, our entire system is built on fraud and managed by folks who don’t know what they’re doing. And if you think they’ll steer us to safety, consider that around the globe we’re already beginning to see signs of systemic collapse.Indeed, I believe we are in fact on the verge of another round of deflation which will take prices down across the board as the U.S. dollar rallies. However, this period will be short-lived as it will be followed by a U.S. dollar collapse soon after.At that point, the next stage is the paper currency collapse, the stage at which inflation accelerates as the U.S. dollar collapses, destroying purchasing power while inflation hedges explode higher.Some, like the most popular picks (gold and silver bullion), will record strong gains. However, others (the ones that 99.9% of the investment world are currently clueless about), will go absolutely parabolic.’

 

 

Volume Still Incredibly Weak: Dave's Daily - ‘Words fail me frankly, but I'll attempt a posting here knowing volume remains incredibly weak as markets are supported primarily by Ben's POMO activities. As the Fed was buying 5-year bonds, the Treasury was selling 3-year notes--um, left hand, right hand. Markets did get a boost early by an upgrade of HPQ by UBS combined with easing tensions in the habitually troubled euro zone. To the latter, the Japanese said they'd be buyers of euro zone debt to show support for the region. Trouble is, will the EU reciprocate? Alcoa's earnings report, complex as always, was greeted by some selling. Verizon announced it would feature the iPhone which led to some light selling of VZ and AAPL--such is the level of conviction currently…’

 

 

 

Janney Technical Analyst Sees 3-5% Correction In S&P 500 'Looming'  Coleman ‘Janney Capital Markets’ technical analyst Dan Wantrobski sent a note to clients Tuesday afternoon saying that he’s moved into the bear’s camp.A 3-5% correction on the S&P 500 index is “looming,” he added, with the first stop being the benchmark’s 50-day moving average.The S&P 500’s 50-day moving average, an often-mentioned short-term indicator, is currently sitting at 1228, says the analyst.

His main points include:

“The VIX has hit levels that in the past two years accompanied corrections in the market. True, the VIX could actually breakdown and head even lower from here- but if it holds support at 15 (currently it’s 17.06), it would suggestive of a market turn, in our opinion,” Wantrobski wrote.

The worst positioned sectors, he finds, are (with a representative ETF): Retail (XRT), Consumer Staples (XLP), Telecom (IYZ) and Gold (GLD).Of course, a close proxy for the blue chip benchmark is the SPDR S&P 500 (SPY).’

 


Sam Stovall: Extreme Bullishness a Concern - Stocks Will Probably Correct Levy ‘Sam Stovall is chief investment strategist at Standard & Poor’s Equity Research as well as the author of The Seven Rules of Wall Street and the column Stovall's Sector Watch, a page on Spoutlook.com.

Harlan Levy: How do you rate the jobs situation, and what are the implications for this year?

Sam Stovall: I was disappointed from a payroll perspective but was encouraged from an unemployment rate standpoint. What’s more I was encouraged to see a decline in the number of the underemployed, because it implies that the drop in the unemployment rate was not due to job seekers giving up in frustration.

However, the jobs situation is still the biggest impediment to the stock market’s performance in 2011. S&P Chief Econoist David Wyss continues to believe that unemployment will likely remain above 9 percent for all of 2011 and that this will remain a jobless economic and stock market recovery.

If, however, we find that the payroll picture improves more rapidly than anticipated, we believe the upward trajectory in economic and market performance will accelerate.

H.L.: The level of investor optimism about the stock market seems extreme these days. How bullish are you on stocks?

S.S.: I do think that the extreme level of investor optimism is something to be concerned about in the near term, but it does not stop me from being optimistic for the longer term. The recent spate of better-than-expected economic reports combined with the still strong forecasted increase in earnings supports the seasonal tendency for the S&P 500 to be strong in both the January and the first-quarter of a president’s third year in office.

That said, the stock market usually gives investors a second opportunity to get back in at lower prices. By that I mean since World War II 89 percent of the time the S&P 500 has been lower at some point in the new year as compared with the closing level of the prior year. Of course, past performance is no guarantee of future results, and this year’s market action might fail to take a breather, but I doubt it. So I don’t think it’s wise to be chasing returns right now, because nearly nine times out of every 10 the market in the new year trades about 9 percent below the closing level of the prior year.

H.L.: Has the stock market priced in the massive debts of the states and cities and towns?

S.S.: That’s a very good question. I’m not really sure. The market seems to go back and forth between fear and complacency as it relates to debt on a variety of levels, be it sovereign, state, local, or personal. When it comes to the states’ debts, they’re facing monumental obligations that they may have a very hard time fulfilling. California is certainly substantially larger than the economies of Greece and Ireland, and if you add Illinois to the equation, there would be substantial reason to be worried should these states default on their obligations.

Based on the absence of meaningful discussion of a potential default, that leads me to believe that the market does not expect default to be a likely outcome. I’m worried that we’re putting it on the back burner, but it’s obviously not affecting the market. It’s the outlook of the bears versus the outlook of the bulls. Bears focus on structural problems , things that take years to materialize, whereas bulls tend to look at nearer term events and basically say the trend is my friend until it ends. Chances are the bears will eventually be proved correct, but people ignore the bears because it takes so long. By then a lot of people have just stopped listening. I don’t know that they should not be ignoring it. The market tends to evaluate everything and attempts to put it in perspective. Sometimes they’re wrong -- like when it came to housing and the financial crisis -- and they might be ignoring it currently at their own peril later on.

That’s why I always think it’s wise to use both fundamental and technical analysis, since fundamentals tell you what and technicals tell you when. Right now the fundamentals are positive from a mainstream Gross Domestic Product perspective as well as a corporate earnings standpoint, but there are a lot of potential pitfalls from housing, unemployment, and debt that may yet materialize. Technically speaking, however, the trend is still our friend and implies further upside. Should these worries be moved from the back burner to the front burner once again, the charts will likely give us advanced warning.

H.L.: What sectors of the economy look healthy and which don’t?

S.S.: All sectors of the S&P 500 are expected to post positive year-over year results in the fourth quarter of 2010 as well as the full year of 2010 and in 2011. The strongest earnings increases in 2011 are likely to be seen in the cyclical areas of the economy, such as industrials, technology, energy, and materials.

The defensive areas, which are also typically slow-growth areas, are likely to be just that, the laggards in corporate profit growth this year.

H.L.: Will the dollar stay strong, and if so is that bad for stocks, the way it recently has been?

S.S.: The dollar may decline from a technical perspective in the near term as it undulates between support and resistance, yet should the U.S. economy continue to improve and interest rates gradually work their way higher, that would likely cause the dollar to remain firm rather than force it into a renewed downward direction. It’s neither good nor bad, because investors will look at the firmer dollar as a confirmation that our economy is improving.

H.L.: Now that the Republicans are in control of the House of Representatives, will their promises of massive spending cuts and elimination of business regulations end up killing the recovery?

S.S.: We believe that because the Democrats still control the Senate that we probably won’t see the steamrolling effect of the Republican-controlled House and its impact on spending cuts that people worry about materializing in 2011. They will still have to get a buy-in from the Democrats. So it may curtail increased spending, but it probably won’t lead to draconian spending cuts.’



The Three Biggest Risks in Today's Market  Leeb ‘Last week I sat down with some fellow market players for an extended conversation about the opportunities and risks investors face today. The most productive questions we asked ourselves were “What could go wrong in 2011 and beyond?” and “What can we do about it?” Of the many possible disasters that emerged, here are my top three candidates.

This is more than just a case of “the bigger they are, the harder they fall.” We’ve said before that Germany's greatest advantage today is its participation in the euro. Having its currency tied to many smaller and weaker European nations effectively gives Germany the most undervalued currency among developed nations. In terms of the German economy, the euro is more undervalued than even the Chinese yuan. Such a cheap currency gives Germany an edge in selling exports to other nations.

Of course, whenever you take advantage of a situation, you become vulnerable to any change in it. Germany has certainly taken advantage of the weak euro: Exports now make up 40% of the German economy and virtually all of its growth is export-driven.

If the euro were to break up, Germany would be forced to adopt a new currency that would be valued fairly on the world stage. Its exports would plunge, sending its economy into a deep recession. Such an event could provoke disharmony if not separatist movements among the 16 states that make up the German republic. (Let's recall that economic illness in Germany once led to the rise of Hitler and World War II.) The risk is that a serious German recession could cause a return of the pre-Bismarck era when competition among states made war commonplace within Europe.

Equally worrying is Germany's trade balance with China. Before 2009, China was the only significant country with which Germany ran a deficit. Now that deficit has become a surplus, but the change is not a positive, since it is the result of Germany's decision to sell high-tech goods to China.

As has happened before, China will likely seize upon the opportunity to re-engineer Germany's technology, create its own high-tech product lines, and export them at cheaper prices. Germany could then lose another big advantage.

Of course, neither of these potential events would be worse for Germany than the break-up of the EU itself. We doubt this will happen, at least not for some time, because it would take a policy mistake of gigantic proportions. The member states have a strong motivation to keep the EU together and avoid the depression that would surely follow. Nonetheless, mistakes have been made before.

For instance, today we have a short-term interruption of the Trans-Alaskan oil pipeline which affects less than 1% of the world's oil supply. Yet it has resulted in a 1.5% jump in oil prices.

Any unexpected increase in oil demand from China or the other developing nations, or another unexpected drop in production, could send oil prices to the moon. It would be a replay of 2008, with an equally disastrous deflationary end.

We assume you are well enough off to withstand a jump in gasoline prices without a serious decline in your lifestyle. However, there are millions of Americans with incomes under $60,000 a year who could not tolerate $5 a gallon gasoline without cutting back spending in other areas. Falling consumer spending could spell curtains for the recovery.

The first article discussed how much easier it is for a young person to get into a top U.S. college if one of their parents went there. In fact, the legacy advantage gives people a 7X greater likelihood of admission.

We need not remind you that the American Dream was that anyone, regardless of their background, could achieve success through hard work and/or natural talent. It was the dream of creating a meritocracy, where the biggest rewards go to the individuals who most deserve them. By contrast, the legacy advantage rewards people for simply having the right parents. It is a step towards creating a hereditary upper class, or a plutocracy – exactly the opposite of what America is all about.

China, on the other hand, doles out opportunities to young people according to how well they score on tests. The second NYT article, written by Nicholas Kristof, discussed Hou Yifan, a 16-year-old Chinese girl from a poor background who is now the top female chess player in the world. Hou's talent was supported by training and financing from the Chinese government. Kristof's point, which we agree with, is that China invests in talent, regardless of its origins.

China's government may not be democratic, but it is built upon the principles of a meritocracy. It recruits and nurtures the brightest and the best. Consequently, Xi Jinping, China's heir apparent to current leader Hu Jintao, started his career as a farm laborer. His father was a poor tea trader who spent 16 years in prison for his politics. (Offhand, we don't recall the last U.S. President who came from such humble beginnings. Certainly, there have been very few since Andrew Jackson.) Suffice it to say that fewer U.S. leaders today have come from poor backgrounds than ever before - which suggests that many highly talented young people are finding the doorway to the American Dream barred against them.

If the U.S. is to retain its standing in the world, we need to get our act together. We need to make sure the best talent is nurtured and rewarded, not wasted. We need to maintain leadership in vital technologies. We need to rethink political correctness (that is, we need to embrace ideas that are true regardless whether they serve vested interests).

As Defense Secretary Gates learned on his recent visit to China, the country has the flexibility to expand its military while the U.S. is now looking at cutbacks. China is also planning to spend $1.5 trillion on new high-tech industries that will increase its energy supplies and efficiency. The only solution the U.S. seems willing to consider is more offshore drilling. We must stop being so complacent.

Meanwhile, so long as we are looking at convex curves in not only oil prices but also copper and other commodities, we will continue to invest for the next exponential advance. Gold remains the safest long-term investment you can make today as a hedge against deflation and inflation. Buy either gold stocks or bullion ETFs.’



Could the U.S. central bank go broke? Reuters | The U.S. Federal Reserve’s journey to the outer limits of monetary policy is raising concerns about how hard it will be to withdraw trillions of dollars in stimulus from the banking system when the time is right.

 

Fed’s bond-buying could soon backfire: Plosser The U.S. Federal Reserve’s aggressive bond-buying plan could soon backfire unless the central bank gradually changes course to head off inflation, a top Fed official known for his hawkish stance said on Tuesday.

 

Toward Sensible Monetary Policy Last week the 112th Congress was sworn in. I am pleased that I will be chairing the Monetary Policy Subcommittee of the Financial Services Committee, which has oversight of the Federal Reserve. Obviously, this position will facilitate my efforts to ensure the Fed provides the American people with more information about what they have been doing with and to our money

 

‘Not Owning Gold is a Form of Insanity’: Chartist Gold will eventually rally exponentially and investors who don’t own the precious metal are “insane,” and may be showing “masochistic tendencies,” Robin Griffiths, technical strategist at Cazenove Capital, told CNBC.

 

Virginia Creates Subcommittee To Study Monetary Alternatives In Case Of Terminal Fed “Breakdown”, Considers Gold As Option In what may one day be heralded as the formal proposal that proverbially started it all, the Commonwealth of Virginia introduced House Resolution No. 557 to establish a joint subcommittee to “to study whether the Commonwealth should adopt a currency to serve as an alternative to the currency distributed by the Federal Reserve System in the event of a major breakdown of the Federal Reserve System.”

 

 

Gold prices at record amid reports of dollar’s demise Guardian.co.uk | Reports of secret talks over ending the dollar pricing of oil and money flows into commodities as fears of inflation grow.

 

America’s housing bubble still deflating Guardian.co.uk| As they failed to spot the bubble, most economists seem oblivious of the threat of further market falls to come.

 

National / World

 

DHS Ties Arizona Attack to “Lone Wolf” Terrorism Kurt Nimmo | DHS and the FBI sent bulletin to local law enforcement after Rep. Giffords and others were shot in Arizona.

 

 

Liberal Media was Already Prepared for Violence in Tucson Matt Ryan | The terrible shooting in Tucson, Arizona was the act of a 22-year-old that was immediately profiled as a tea party member.

 

Another Mass Animal Die-off Jason Douglass | Thousand of gizzard shad dying along the Chicago lakefront.

 

Gun Grabbing Congress Critters Come Out of Woodwork After Giffords Shooting Kurt Nimmo | Statist gun-grabbers will not rest until the Second Amendment is stricken from the Bill of Rights.

 

Tone Down The Rhetoric… Mr President The use of words and phrases like “take aim”, “reload” and “shoot down”, despite their metaphorical intention, is to blame for the random act of violence committed by one psychopath in Arizona on Sunday, according to scores of frothing media hacks and political lawmakers. If this is so why not highlight a speech given by then presidential candidate Obama in 2008, in which he triumphantly stated “If They Bring a Knife to the Fight, We Bring a Gun”?

 

WikiLeaks chief: Charge Palin, Huckabee with ‘incitements to kill’ The editor-in-chief of WikiLeaks called on US authorities to seek charges against high-profile Republicans Sarah Palin and Mike Huckabee for “incitements to kill” by the use of “violent rhetoric” against the anti- secrecy outlet.

 

Arizona Sheriff Dever Says Killer Alone Is Responsible for Shooting; ‘Frightening’ to ‘Lay Blame on Anyone Else’s Doorstep’ Cochise County Sheriff Larry Dever said he does not understand why his friend and colleague, Pima County Sheriff Clarence Dupnik, would suggest at a news conference following Saturday’s shooting in Tucson that political ideology played a role in the tragedy.

 

Pima County Sheriff Dupnik Blamed Right Wing for Slaughter But Details Emerge of Multiple Contacts between Jared Loughner and the Sheriffs office over Multiple Death Threats Only the left can get away with pointing their bloody fingers at everyone else.

 

Backup Communications System Was ‘Miraculously’ Switched on for ‘Exercise Mode’ and Ready for Use on 9/11  [ It is also especially noteworthy that NORAD was ordered to stand down that day! ] ]A special backup network that allows communications between government and military agencies to continue during emergencies was “miraculously” switched on the day before 9/11, and so was already operational when the terrorist attacks in New York and at the Pentagon took place.

 

 

Establishment Ignores Violent Rhetoric From Eco-Leftists While the establishment has invoked the supposed threat of vitriolic “right-wing rhetoric” as a tool with which to bludgeon freedom of speech in response to the Tucson shootings, it has conspired to sweep under the carpet far more extreme and threatening language and images used by leftists in the context of the climate change debate, rhetoric that has led directly to crimes and murders.

 

WikiLeaks: Julian Assange ‘faces execution or Guantánamo detention’ Julian Assange, the founder of WikiLeaks, could be at “real risk” of the death penalty or detention in Guantánamo Bay if he is extradited to Sweden on accusations of rape and sexual assault, his lawyers claim.

 

US could be in Afghanistan after 2014, says Biden US Vice President Joe Biden said Tuesday that the United States will not withdraw its troops from Afghanistan completely in 2014 if Afghans did not want his country to do so.

 

Judge Sides With GATA, Orders Fed To Present Her With Its Classified Gold Records For Private Review Our friends at GATA report an interesting development in its multi-year confrontation with the Fed, namely that the organization has “scored a small but perhaps auspicious victory over the Federal Reserve in our lawsuit seeking access to the Fed’s secret gold files.

 

Gerald Celente: Internet nuke bomb waiting to go off Gerald Celente, the founder of the Trends Research Institute, believes that the Internet will empower the youth of the world to unite to start a revolution that will overthrow the existing deadlocked elitist establishment. He predicts that in 2011 every citizen is going to realize that the Great Recession the world has been living through is actually a Great Depression, because the American establishment is “running out of schemes.”

 

William Daley’s JP Morgan Stock: Obama’s Next Chief Of Staff Has Millions Invested President Barack Obama’s next chief of staff holds more than $7.6 million worth of stock in JPMorgan Chase, according to a regulatory filing.

 

‘CIA-created Frankenstein’: US turns blind eye on terrorist? A former CIA operative, who’s wanted in Venezuela and Cuba for terrorist attacks throughout Latin America, has gone on trial in the U.S. But that’s not why Luis Posada Carriles is in court. Instead, he’s being charged with lying to immigration officers. RT’s Jihan Hafiz looks at why the U.S. is turning a blind eye to an alleged terrorist.

 

Islamic group is CIA front, ex-Turkish intel chief says Washington Post | A memoir by a top former Turkish intelligence official claims that a worldwide moderate Islamic movement based in Pennsylvania has been providing cover for the CIA since the mid-1990s.

 

 

WikiLeaks: Julian Assange ‘faces execution or Guantánamo detention’ Guardian | Skeleton argument outlined by Australian’s defence team claims he could face rendition to US if extradited to Sweden.

 

Iran claims to have smashed ‘Mossad spy ring’ The Telegraph UK | Iran claims it has broken up a ‘Mossad ring’ allegedly behind the murder of an Iranian nuclear scientist in Tehran last year.

 

U.S. Embassy Turned a Blind Eye as Suspected CIA Banker Allen Stanford Bilked Investors, Secret Cables Reveal IntelDaily.com | Secret Cables Reveals U.S. Embassy Provided Political Cover to Suspected CIA Banker Allen Stanford while he expanded his empire.

 

israeli warplanes in fresh strikes on Gaza killing freedom seeking civilians: witnesses (AFP) yet amazingly, the Christ-killers say as per netanayahu: Palestinians 'walking away' from peace (AFP)

 

Drudgereport: SILENCE: RI Gov. bans state employees from speaking on talkradio...
Dem Congressman: If Violent Rhetoric Didn't Cause This Shooting -- It Will Cause Next One!
BILL CLINTON: 'WE NEED TO BE CAREFUL ABOUT THINGS WE SAY' … [ How about, OR DO! ] ...
OBAMA FLASHBACK: 'If They Bring a Knife to the Fight, We Bring a Gun'...
Dem rep urging 'civility' had called for FL guv candidate to be shot...

NEW PUSH FOR 'FAIRNESS DOCTRINE'...
MSNBC Matthews Cites Radio Stars Mark Levin, Michael Savage As Reason For AZ Shooting...
Dem Senator Fundraises Off Murders...
PISTOL SALES SURGE AFTER AZ SHOOTING

Snow in 49 states including Hawaii…[Sounds like that ‘Global Warming Thing’…Riiiiight!] ...
Bank of China Brings Yuan Trading to USA...

China Stealth Test Upstages Gates, Hu...
France our biggest ally, declares Obama: President's blow to Special Relationship with Britain...

Sarkozy to be subject of 'hugely embarrassing' film...

 

 

 

Merger would create largest U.S. utility (Washington Post) [ Well, sounds like a plan. That trend to ‘bigger the better’ / too big to fail thing. Down only a penny in today’s trading. I’d call that a vote of confidence by fraudulent wall street. Why, you can almost hear the wall street frauds cheering to the tune of that familiar cheer, ‘We must, we must … increase the nation’s potential economic bust … the bigger the better, the lesser the vetter … the better the government boys will like us.!  ]  Duke Energy announces a $13.7 billion merger deal with Raleigh, N.C.-based Progress Energy.

 

 

Watchdog over Afghan reconstruction resigns (Washington Post) [ Wow! Sounds like he really meant business … which also meant, congress ‘hearing footsteps’ so to speak, that he had to go. After all, applying a stringent standard that promises to do something about fraud and corruption is a standard that would threaten the entire u.s. government … all three branches.  ] Arnold Fields, the head of the office charged with investigating corruption in the multibillion-dollar effort to rebuild Afghanistan has resigned, the White House said, following congressional demands that he be replaced.

 

 

Government contractor ATS shifts gears (Washington Post) [  Now granted … this is northern virginia, alphabet soup kitchen territory (part of the Washington d.c. governement mob)… rivaled in corruption only by such other pervasively mob infested states as jersey (multi-ethnic mob), new york (Italian, jewish, irish, wall street), Connecticut (whatever new york and d.c. says, mob), California (multi-ethnic mob, young gangs movin’ up, local government / bureaucracies mob), and of course the corrupt courts in all 5, but there’s somethin’ strange in the neighborhood here. I mean, 1 weak or I mean 1 week tenure and probably want to just give him some money.  "We need to do something to get those shareholders replaced by other shareholders - whether it be one big shareholder or several smaller ones," said Bersoff, ‘who was the company's previous chief executive.’ This is the first statement of its kind I’ve ever encountered in modern day finance, such as it is. Then there’s that ‘government contractor thing’. Could it be that the michael corleones of the cia want to ‘legitimize’ their enterprises which have included illicit drugs, arms, etc.? All we really know is that Sidney … Fuchs. ] CEO Sidney E. Fuchs resigns as the company announces its intention to pursue strategic alternatives, including a possible sale.

 

 

 

China as Europe's white knight?  (Washington Post) [  White knight? I don’t think so. Yellow night and day, I think yes. Not to impugn their motives, but the Book of Ecclesiastes said it well: "What has been is what will be, and what has been done is what will be done; and there is nothing new under the sun"

·  Heartland Diary of Betty B.: Confessions of an Economic Hit Man

Jun 18, 2007 ... John Perkins' career as an economic hit man (EHM) has taken him all over the globe. He details his activities as an EHM in his best-seller ...
heartlanddiaryofbettyb.blogspot.com/.../confessions-of-economic-hit-man.html   - Cached - Similar

·  Confessions of an Economic Hit Man - Cobb

Mar 23, 2007 ... Confessions of an Economic Hitman by John Perkins is an exclamation point riddled history of a few financial manipulations of the Cold War ...
cobb.typepad.com/cobb/2007/03/confessions_of_.html - Cached - Similar

·  Daily Kos: NPR: Confessions of an Economic Hit Man

Aug 9, 2006 ... rustydude's diary :: :: The reason I bring it up within the ..... I am thrilled to hear all this support for the Economic Hit Man book since ...
www.dailykos.com/story/2006/8/10/04532/7753 - Cached - Similar

·  Cinema Libre Acquires 'Economic Hit Man' | TheWrap.com

Jul 13, 2010 ... In 2008, Greek writer/director Stelios Koul made a documentary about Perkins entitled “Diary of an Economic Hit Man.” ...
www.thewrap.com/.../cinema-libre-acquires-economic-hit-man-19179 - Cached

 

 

] Traders are speculating that cash-rich China may step in and buy hard-hit European bonds.

 

 

Will: Half-baked explanations for tragedy (Washington Post) [ Half-baked? Charlatans? The foregoing are in no short supply in defacto bankrupt, meaningfully lawless, pervasively corrupt, fraud prevalent america. See, for example, RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm     . Moreover, Mr. Will as an oftimes apologist for war criminal, pervasively fraud-prone, defacto bankrupt, etc., america, with crime rates exceeding by far those of any other so-called civilized nations, might indeed find himself among those he’s so categorized. Among the last separate page sections to my website will be a somewhat detailed psychoanalytic evolutionary profile of the u.s. (one might ask who am I to do so which is fair comment to which I would reply, read it, or not, your choice). However, for the nonce, let me say that the it is no small coincidence that the 20th century has been dubbed ‘the american century’. That the 20th century has been considered the bloodiest is at once the natural concomitant of the foregoing reality. Keeping in mind the so-called ‘selective’ processes in both insurance (adverse) and evolutionary (Darwinian) terms, and as well, the psychology of it all from a behavioral perspective, america has indeed evolved. From the genocide of indigenous populations, to outlandish propaganda in support of same (ie., that ‘manifest destiny’ balderdash with overtones of religiosity spoonfed since elementary school, etc.), to contrived conflict / war, such, euphemistically bad behavior has been reinforced, some of which conditioning not always purposeful, ie., the ever greater frauds perpetrated on wall street for which there have been in large part no real punitive consequences to the perpetrators; but, to the contrary, great financial rewards though substantially detrimental to the majority. Despite the surface appeal, that oft asserted ‘blue-blood’ distinction doesn’t pass muster. Aside from the few seeking seeking religious freedom (ie., Puritans among some others), most then new americans were such disaffected rejects of their former homelands that desperation at best was motivation for travel to the wilds of the ‘so-called new world’ as opposed to intelligent, rational choice; criminals, mentally ill, the not-so-bright but ruthless populating the new nation in disparate numbers toward the ends consistent with greed and common criminality, corruption, and venality. As of the age of the dinosaurs, the american century has passed into the annals of a history replete with self-generating terrorism within and without (that blowback thing).     DRUDGEREPORT: NATION SHOCKED: CONGRESSWOMAN SHOT IN TUCSON
SCARY FREAK!
THE DEVIL MADE HIM DO IT: TUCSON SHOOTER'S TWISTED SKULL SHRINE...
Described by Classmate as 'Left-Wing Pothead'...
Family of suspect blocks FBI access to house...
Shooter Smirks in Court, Smiles for Mug Shot...
Was registered independent; Didn't vote in Nov. '10 election...
'SHERIFF' BLAMES RUSH LIMBAUGH FOR MASSACRE?
CONGRESSWOMAN READIES GUN CONTROL BILL...
Dem planning bill that would outlaw 'threatening' lawmakers...
...'use language or symbols that could be perceived as inciting violence'

OBAMA FLASHBACK: 'If They Bring a Knife to the Fight, We Bring a Gun'...
SAFEWAY MASSACRE...
   UPDATE...
SLAIN JUDGE WANTED TO TALK TO REP. ABOUT SURGE IN BORDER CRIME...
WIRE...
Suspect scrawled: 'I planned ahead'...
Obsessed With Mind Control...
Described by Classmate as 'Left-Wing Pothead'...
Trade war looming, warns Brazil...

Tensions rise in currency wars...
Pressure on Portugal heightens...

GLOBAL ORDER: Sarkozy takes case to Obama as food prices soar...
Greece borrowing rates hit new record...
Pentagon concerned over China's rapid development of new weapons...

Economists foretell of U.S. decline, China's ascension...
SAFEWAY MASSACRE...
VIDEO...
6 Dead, 12 injured...
Dem Rep. Gabrielle Giffords shot through brain; critical after surgery, doctors 'optimistic'...
Federal Judge Killed...
WIRE...
CAPITOL POLICE URGES CONGRESS TO TAKE PRECAUTIONS...
BOEHNER: 'An attack on one who serves is an attack on all who serve'...

OBAMA: 'UNSPEAKABLE TRAGEDY'...
Gunman ID'ed as Jared Loughner, 22... YOUTUBE...PHOTOS...
Obsessed With Mind Control...
MYSPACE GENERATION: Suspect Says Goodbye Online: 'Please don't be mad at me -- I cannot rest'...
14 decapitated bodies found in Mexico resort city...
NUMBER OF COMBAT INJURIES IN AFGHANISTAN APPROACHES IRAQ-WAR LEVELS...
WIKILEAKS: US demanding our TWITTER account info...

WIKILEAKS demands GOOGLE and FACEBOOK unseal US subpoenas...
New data collected from sensors left on moon in 1971 [ Riiiiight! … and if you’ve seen the beginning of 2001:Space Odyssey (the monolith), you’ve already seen it!  ] ...
Euro Crisis Roars to Forefront...
Portugal's debt worries worsen...
UN warns Greece on anti-migrant fence...
NJ police: Man seeking 'portal to hell' stabbed 2...

 

 

 

Unprincipled Liberals Exploit an Insane Loughner to Condemn Political Opposition Kurt Nimmo | So called progressives are not opposed to the state’s monopoly on power and violence, so long as they are part of the state or its propaganda apparatus.

 

Washington Post Concedes: Gunman Acted On Mental Illness, Not Political Rhetoric Tucson shooter Jared Lee Loughner was not affiliated with any political party and failed to vote in the 2010 election, further bolstering the fact that his rampage was borne out of a deranged mental illness and had nothing to do with him reacting to vitriolic rhetoric put out by anti-government activists, as the establishment media and their liberal attack dog blogs have ceaselessly claimed in an effort to eviscerate the First Amendment.

 

Eyewitness “Shooter Was Ready For War!” He Had More Magazines & Attempted To Load One Joe Zamudio was one of the eyewitnesses that helped pin down the gunman. He reports that Loughner had several more magazines and was trying to reload. Another fact that the establishment media are loathe to report is that Zamudio was a responsible gun owner who was carrying his firearm and was prepared to use it to stop the carnage if necessary.

 

Leftists Attack Parents Of Murdered 9-Year-Old How low will some people stoop to play at partisan politics by exploiting the weekend’s tragic events? We’ve already seen the bar set pretty damn low by elements of the media and some public officials, yet its hard to imagine how much further anyone can go than to verbally attack the parents of the slain 9 year old Christina Taylor Green.

 

Vultures May Exploit Tragedy To Push “Subversives” Legislation Every single day, crazed lunatics claim the lives of innocent people; sometimes it’s a premeditated crime, sometimes it’s a crime of passion, sometimes it’s a complete accident, sometimes it’s an act of terror, and sometimes people are just in the wrong place at the wrong time when a 500 pound bomb is dropped over Afghanistan.

 

Another Tragedy Vulture Exploits Victims To Push Political Agenda To Kill Free Speech U.S. Rep. Jim Clyburn, the third-ranking Democrat in Congress, said Sunday the deadly shooting in Arizona should get the country thinking about what’s acceptable to say publicly and when people should keep their mouths shut.

 

Threatening To “Kick The Bums Out” Could Be Outlawed Under New Legislation Rep. Robert Brady (D-Pa.) reportedly plans to introduce legislation that would make it a federal crime to use language or symbols that could be perceived as threatening or inciting violence against a federal official or member of Congress.

 

Leftists Attack Parents Of Murdered 9-Year-Old Steve Watson | The dignity and class of the parents of Christina Taylor Green does not fit neatly into the partisan political script.

 

Washington Post Concedes: Gunman Acted On Mental Illness, Not Political Rhetoric Paul Joseph Watson | Loughner was not affiliated with Tea Party or conservatives.

 

Bombshell: Arizona Killer “Very Liberal” Kurt Nimmo | Democrats and liberal talking heads have taken Rahm Emanuel’s maxim to heart – never let good crisis go to waste – and are

Liberal Smear Machine Backfires After Gunman Found To Be Occultist, Pot-Smoking Left Winger Alex Jones & Paul Joseph Watson | Effort to conflate killer with anti-big government conservatives falls apart.

 

Establishment Media Demonizes Tea Party and Constitutionalists After Giffords Shooting Kurt Nimmo | Propaganda campaign begins with faux Tea Party queen Palin, will spread to the real movement in days ahead.

 

Arizona Assassin Obsessed With Mind Control Paul Joseph Watson | Loughner was a US military recruit who was obsessed with mind control, mirroring the circumstances of many other mass shooters in history.

 

Political Hacks Waste No Time In Shamelessly Exploiting Giffords Shooting To Demonize Political Oppositon Paul Joseph Watson | Before it’s even been confirmed that Giffords is dead, neo-lib statists are already shamelessly milking the shocking events for political gain.

 

Who’s Behind the Congresswoman’s shooting in Arizona? Infowars | Will the tragic shooting stoke anti-gun legislation, fuel the flames of War on Terror or signal random violence amid a chaotic political climate?

 

 

 

Arizona Assassin Obsessed With Mind Control Jared Loughner, the gunman who shot Congresswoman Gabrielle Giffords and numerous other victims including a Federal Judge and a nine-year-old girl during a political event in Tuscon today, was a US military recruit who was obsessed with mind control, mirroring the circumstances of many other mass shooters in history.

 

Political Hacks Waste No Time In Shamelessly Exploiting Giffords Shooting To Demonize Political Oppositon Political hacks have wasted little time in exploiting the tragic shooting of Democratic Congresswoman Gabrielle Giffords to demonize their political opposition despite the gunman’s motivation being completely unknown at this time.

 

Who’s Behind the Congresswoman’s Shooting in Arizona? With so many other psuedo-events in the War on Terror lately, including package bombs, FBI stings and set-ups and the like, it is entirely possible this was a false-flag event designed to clampdown on gun ownership or simply stoke the fear of radical Muslim or homegrown terrorists.

 

 

The New York Times Is One to Talk About Rhetoric and Violence Kurt Nimmo | The New York Times and Judith Miller sold mass murder to America.

 

SPLC blames Ayn Rand, David Icke and Others for Arizona Shooting Aaron Dykes | Who is to blame for Jared Loughner’s bizarre shooting yesterday? According to Mark Potok, anyone with even the vaguest links to his bizarre and disjointed online ramblings. ]

 

14 Eye Opening Statistics Which Reveal Just How Dramatically The U.S. Economy Has Collapsed Since 2007 Most Americans have become so accustomed to the “new normal” of continual economic decline that they don’t even remember how good things were just a few short years ago. ‘The Economic Collapse Jan 10, 2011

’Most Americans have become so accustomed to the “new normal” of continual economic decline that they don’t even remember how good things were just a few short years ago.  Back in 2007, unemployment was very low, good jobs were much easier to get, far fewer Americans were living in poverty or enrolled in welfare programs and government finances were in much better shape.  Of course most of this prosperity was fueled by massive amounts of debt, but at least times were better.  Unfortunately, things have really deteriorated over the last several years.  Since 2007, unemployment has skyrocketed, foreclosures have set new all-time records, personal bankruptcies have soared and U.S. government debt has gotten completely and totally out of control.  Poll after poll has shown that Americans are now far less optimistic about the future than they were in 2007.  It is almost as if the past few years have literally sucked the hope out of millions upon millions of Americans.

Sadly, our economic situation is continually getting worse.  Every month the United States loses more factories.  Every month the United States loses more jobs.  Every month the collective wealth of U.S. citizens continues to decline.  Every month the federal government goes into even more debt.  Every month state and local governments go into even more debt.

Unfortunately, things are going to get even worse in the years ahead.  Right now we look back on 2005, 2006 and 2007 as “good times”, but in a few years we will look back on 2010 and 2011 as “good times”.

We are in the midst of a long-term economic decline, and the very bad economic choices that we have been making as a nation for decades are now starting to really catch up with us.

So as horrible as you may think that things are now, just keep in mind that things are going to continue to deteriorate in the years ahead.

But for the moment, let us remember how far we have fallen over the past few years.  The following are 14 eye opening statistics which reveal just how dramatically the U.S. economy has collapsed since 2007….

#1 In November 2007, the official U.S. unemployment rate was just 4.7 percent.  Today, the official U.S. unemployment rate is 9.4 percent.

#2 In November 2007, 18.8% of unemployed Americans had been out of work for 27 weeks or longer.  Today that percentage is up to 41.9%.

#3 As 2007 began, there were just over 1 million Americans that had been unemployed for half a year or longer.  Today, there are over 6 million Americans that have been unemployed for half a year or longer.

#4 Nearly 10 million Americans now receive unemployment insurance, whichis almost four times as many as were receiving it back in 2007.

#5 More than half of the U.S. labor force (55 percent) has “suffered a spell of unemployment, a cut in pay, a reduction in hours or have become involuntary part-time workers” since the “recession” began in December 2007.

#6 According to one analysis, the United States has lost a total of approximately 10.5 million jobs since 2007.

#7 As 2007 began, only 26 million Americans were on food stamps.  Today, an all-time record of 43.2 million Americans are enrolled in the food stamp program.

#8 In 2007, the U.S. government held a total of $725 billion in mortgage debt.  As of the middle of 2010, the U.S. government held a total of $5.148 trillion in mortgage debt.

#9 In the year prior to the “official” beginning of the most recent recession in 2007, the IRS filed just 684,000 tax liens against U.S. taxpayers.  During 2010, the IRS filed over a million tax liens against U.S. taxpayers.

#10 From the year 2000 through the year 2007, there were 27 bank failures in the United States.  From 2008 through 2010, there were 314 bank failures in the United States.

#11 According to the U.S. Department of Housing and Urban Development, the number of U.S. families with children living in homeless sheltersincreased from 131,000 to 170,000 between 2007 and 2009.

#12 In 2007, one poll found that 43 percent of Americans were living “paycheck to paycheck”.  Sadly, according to a survey released very close to the end of 2010, approximately 55 percent of all Americans are now living paycheck to paycheck.

#13 In 2007, the “official” federal budget deficit was just 161 billion dollars.  In 2010, the “official” federal budget deficit was approximately 1.3 trillion dollars.

#14 As 2007 began, the U.S. national debt was just under 8.7 trillion dollars.  Today, the U.S. national debt has just surpassed 14 trillion dollars and it continues to soar into the stratosphere.

So is there any hope that we can turn all of this around?

Unfortunately, the massive amount of debt that we have piled up as a society over the last several decades has made that impossible.

If you add up all forms of debt (government debt, business debt, individual debt), it comes to approximately 360 percent of GDP.  It is the biggest debt bubble in the history of the world.

If the federal government and our state governments stop borrowing and spending so much money, our economy would collapse.  But if they keep borrowing and spending so much money they will continually make the eventual economic collapse even worse.

We are in the terminal stages of the most horrific debt spiral the world has ever seen, and when the debt spiral gets stopped the house of cards is going to finally come down for good.

So enjoy these times while you still have them.  Yes, today is not nearly as prosperous as 2007 was, but today is most definitely a whole lot better than 2015 or 2020 is going to be.

Sadly, we could have avoided this financial disaster completely if only we had listened more carefully to those that founded this nation.  Once upon a time, Thomas Jefferson said the following….

I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing.’

 

 

Options Data Suggests Topping Action - ‘What the market's rally lacks in charisma, it has made up in persistence. The stair-step, creeping type of an up grind is lulling investors to sleep as we speak. Steady and seemingly risk-free gains have rekindled optimism and created a state of euphoria not seen in years ... since late 2007 to be exact.The irony of this article is that few investors will feel compelled to read anything that resembles a warning or contains a bearish message. The few that read this piece will probably scoff at it. That's how bear market rallies work and that's why they are effective.The soothing rhythm of the VIX (NYSEArca: VXX - News) has lulled investors into a state of complacency. If you had to describe investor's alertness in sleep lingo, a state of REM sleep would probably be the closest comparison.History tells us that the (bear) market only strikes when least expected.Based on analyst polls by Bloomberg, Barron's, USA Today and a variety of sentiment measures, a stock market (NYSEArca: VTI - News) decline is as remote today as it was in 2000 or 2007.

Hedging Activity Drops

Investors and traders are content to hold on to massive long positions without hedge. One of the easiest ways to hedge your stock portfolio is via put options. Last week the CBOE Equity Put/Call Ratio dropped to 0.4, the lowest reading since April 15, 2010.The lack of hedging is dangerous for prices because the market is without a safety net. The only option for spooked investors without hedge is to sell. Selling causes prices to drop.On April 16, 2010, the ETF Profit Strategy Newsletter warned of the consequences of a low put/call ratio: 'Selling results in more selling. This negative feedback loop usually results in rapidly falling prices. The pieces are in place for a major decline. We are simply waiting for the proverbial first domino to fall over and set off a chain reaction.'The first domino dropped just a few days later, setting off the May 6 'Flash Crash' and ultimately resulted in a swift 15% correction for the Dow (DJI: ^DJI), 17% correction for the S&P (SNP: ^GSPC), 19% for the Nasdaq (Nasdaq: ^IXIC), and 21% for the Russell 2000 (NYSEArca: IWM - News).A different measure of complacency is the premium traders willingness to pay for call options (bullish bets). Based on a three-month average, the price for put options (bearish bets) is near a 10-year low. The only other time that rivals current readings was in 2007.

This Time is Different

The spirit of 'this time is different' is one of the most fascinating phenomenons known to Wall Street. Investors' sentiment follows the ebb and flow of stock prices. When prices are up, the future is expected to be bright. When prices are down, the future is supposedly bleak (just think of the 2007 peak and 2009 bottom).This approach of linear extrapolations feeds the herding mentality, which contrarians use as effective indicators. This approach is not foolproof but, nevertheless, is one of the most accurate, if not the most accurate timing tool known to underground Wall Street aficionadosThe chart below (taken from the January 2011 ETF Profit Strategy Newsletter) illustrates the four most prominent occurrences of extreme optimism, or the 'this time is different' effect. The green line connects the price of the S&P with the timeline and various sentiment gauges. [chart] Investors thought 'this time is different' at the 2007 peak, in May 2008, in January 2010, and again in April 2010. The only thing different at all four times was the velocity of the descent, but each period of euphoria was greeted by despair.

Optimism and Bad News

If you had a chance to watch CNBC's 60 Minutes over the past two weeks, you are aware of some possible 'Black Swan' events.Scott Pelley's introduction to Ben Bernanke's interview couldn't have been more sobering: 'That is the worst recovery we've ever seen. Ben Bernanke is concerned. Chairmen of the Fed rarely do interviews, but this week Bernanke feels he has to speak out because he believes his critics may not understand how much trouble the economy is in.'The financial media, however, ignored Ben Bernanke's sobering assessment of the economy and focused on the silver lining: A bad economy may lead to QE3 and its cousins QE4 and QE5. What's better, an improving economy or more QE? Apparently QE is just as good as more jobs.Another 60 Minutes focused on the next big thing; Municipal and state defaults. In the two years since the 'Great Recession,' states have collectively spent nearly half a trillion dollars more than they collected. There's a trillion dollar hole in their public pension fund and according to New Jersey's Governor, the day of reckoning is near.Meredith Whitney, one of the few analysts who foresaw the bubble building in banks (NYSEArca: KBE - News) and financials (NYSEArca: XLF - News) believes at least part of the three trillion municipal bond market will unravel within the next year.For much of 2010 municipal bonds were brewing their own little bubble. As it is common with bubbles, they are rarely foreseen by the public eye. In the case of muni bonds, yield hungry investors ignored the red flags.On August 26, the ETF Profit Strategy Newsletter warned that it is time to get out of muni bonds, corporate bonds and Treasuries. Muni-bonds topped on August 26 and have since given up more than two years worth of gains.

History Rhymes

Yes, history doesn't repeat itself but it often rhymes. In 2007, Merrill Lynch's Global Economics Report foresaw a bright future: 'The Merrill Lynch global economics team believes that the economy will continue to grow in 2007 - with no sign of a significant cyclical slowdown.'According to J.P. Morgan, Barclays Capital and Goldman Sachs (Merrill Lynch failed to foresee its own demise in 2007 and is no more), the S&P will gain between 15 - 20% in 2011 and the 'economy will continue to grow in 2011.'Perhaps this time will be different, but based on history, now is the time to at least be cautious and protect your investments. An ounce of protection is worth more than a pound of cure. Based on long-term valuation metrics the stock market is priced to deliver pain, not gain (see November 2011 ETF Profit Strategy Newsletter for a detailed analysis).Based on sentiment, the market is overheated and due for a correction at the very least, and how often have we seen a correction turn into something more? Timing a top is tricky, but based on support and resistance levels and seasonal patterns it is possible to narrow down when the market is ready to roll over.The ETF Profit Strategy Newsletter includes the next resistance likely to mark the end of this rally and important structural support. A close below this important support level will probably break the bulls' spirit and the market's streak.’

 

 

Can the Unshortable Market Be Shorted? [ I do not consider short-selling an investment strategy, but rather a speculation that is only for the extremely few, lucky  and hence successful speculators who are also capable and prepared to lose more than their investment principal.] TraderMark ‘I have called this the unshortable market for many months as it acts very strangely. Again it is not so much the move up that is strange as the total inability for even short-term pitstops in the months of September, October, December and thus far January. November was an outlier event due to Ireland ...save for those headline events, I am sure November would have acted similar to the other months. Frankly, as a contrarian, when you hear people talking about unshortable markets you want to fade that...but doing so the past many months would have ripped your face off. So do we just give up until Jul 1 and QE2 ends? I doubt it will be that convenient. During QE1, there were at least a few pullbacks...summer 09 comes to mind. Further, almost every strategist now thinks SP 1400 to 1425 is in the bag for year end 2011. The problem is, we are about 10% away from that target just days into the year. Considering there are 11 more first days of the month this year (which are now almost always up) and 51 more Mondays (which lead to morning gap ups about 80% of the time nowadays) that does not leave much leeway for Monday afternoons through Friday for price appreciation. Unless we are headed to a repeat of fed-induced bubble mania circa 1999…’



New Ponzi Scheme: Blame Bernie [ Which one? Which ‘weak end at bernie’s’? Bernie bernanke or madoff? As usual, where’s the DOJ? ‘The SEC seeks an injunction, DISGORGEMENT and civil penalties’. Now note that that disgorgement thing has yet to be applied to the gargantuan frauds on wall street. Indeed, now flush with cash from legislative (mark to anything change in FASB rules) and fed (new bubble) help, the frauds on wall street are cashing out bonuses exceeding $144 billion. For those who think there’s no economic damage attendant to such frauds as those perpetrated by the frauds on wall street which the computer-programmed high-frequencey churn-and-earn continuing as we speak, take further note of this disaster called the defacto bankrupt u.s. economy that the slicker, though less blatant than the fraud that follows which pales in comparison to that bailed out by the u.s. taxpayers at great long-term cost to the nation. ] Singer ‘Frankly, it’s becoming a bit of a broken record. According to a Securities and Exchange Commission (SEC) Complaint filed on January 6, 2010, a number of Defendants perpetrated a Ponzi scheme – yet another such allegation against another group of alleged fraudsters.  Securities and Exchange Commission, Plaintiff, vs. Raymond P. Morris, E & R Holdings, LLC, Wise Financial Holdings, LLC, Momentum Leasing, LLC, James L. Haley, Cornerstone Capital Fund, LLC, Vantage Point Capital, LLC, Jay J. Linford Freedom Group, LLC, and Luc D. Nguyen, Defendants (11CV00021, Utah District Court, January 6, 20100) NOTE: The SEC Complaint contains only allegations. The Defendants are presumed innocent of the charges and it will be the government’s burden to prove the Defendants’ guilt at trial. 

Get Yer Scorecards!

In the Beginning

The Complaint alleges that Morris first approached Haley (who was in a real estate investment group with Morris), about an exclusive investment that was allegdly started by the owner of the Houston Astros and had generated 20% returns per month for nearly eight years.

Wow, that’s too good to pass up, if you ask me – I mean, geez, the Houston Astros owner started it. And, even more compelling, 20% returns for eight years. Hey, no reason to really check any of that out, right?  I mean the Houston Astros are in baseball, and baseball is as American as apple pie, and any deal offering 20% returns that’s so all-American has to be the real thing.  Batter up!Morris allegedly told Haley that this hot investment opportunity is based on a capital leasing concept (the “Fund”).  Once money is invested in the Fund, Morris purportedly represented that the money would be deposited into an account under Morris’s sole control and would never leave the account.Odd how the investors’ cash never quite seems to get directly deposited into these troubled investments but always seems to wind up offshore, in a conduit, or in some account under someone else’s control.  Sort of like when you open a brokerage account and decide to buy 1,000 shares of stock and your stockbroker insists that you write the check for the purchase price made payable to him — why?  Oh, well, if you really have to ask, it’s not for you, he says.  If you must know, he reluctantly confides in you, it’s so that the brokerage firm can first verify that you have the dollars to buy the stock. I’m doing you a favor, he says, by allowing you to first give me the money. That way you don’t have to worry about getting cleared to buy the stock. You can trust me, I’m your stockbroker.

It all sounds a bit more fishy when I put it like that, doesn’t it?

And what supposedly was the point of depositing the investors’ funds into the Morris-controlled account? 

The Complaint alleges that Morris explained to Haley that once investor capital was verified, private traders would obtain large lines of credit and then would invest the proceeds in bonds, hard money lending and small businesses. Morris advised Haley that the return from these investments would be sufficient to guarantee investors a return of 20% per month or more.

Did you get that?

Private traders are out there waiting for those ever-so-urgent phone calls that assure them that cash has been legitimately invested in some account, and once that assurance is given to the private traders, well, you know, they obtain humongous lines of credit. What do the traders do with all that credit? Well, they invest in “bonds, hard money lending and small businesses.” Again, you’d think that investors would do some hardcore homework and confirm all of those representations.  However, we would not have these stories and lawsuits if folks went through the trouble of keeping other folks honest – would we?Still – for some reason there are a lot of folks out there – I’ll call them pigeons, if you don’t mind – who seem to have a fire in their wallets and can’t wait to send dollars into yet another Fund that guarantees 20% once some supposed group of private traders obtains verification of deposit and then goes out and leverages the sums on deposit into impressive sounding investments. Apparently, Haley was hot to trot.  You understand why, don’t you? The Houston Astros connection. The 20%. The verified funds in someone else’s account. Tough to ask questions or demand proof about something so enticing. (Yes, that’s sarcasm — dripping and heavy).

Ashes to Ashes

Only one problem.Morris  told Haley they could not join the Fund unless an existing investor died.My, isn’t that too bad?  Clearly this deal is for real because folks are literally dying for other investors to get in. I mean, you know, seriously, no one would possibly make up such a precondition. Course not. You’d have to kill some investor off just to make way for another investor. That’s just nuts.

Eureka!Haley was really, really, really lucky because  Morris called Haley with the wonderful news (albeit, quite sad) that one of the few investors in the Fund just dropped dead less than a week after Morris told Haley about this amazing investment opportunity.  The Complaint asserts that Morris indicated that if Haley could raise $500,000 in three to five days, they could invest in the Fund.

Happy days!

Getting the Bucks

The Complaint alleges that without conducting any due diligence into Morris or the Fund, Haley began soliciting investments from friends and neighbors and raised $500,000, which he gave to Morris.What did Haley tell his acquaintances? Oh, the Complaint says that he simply repeated Morris’s  representations about the whole set-up and further assured the investors that their funds would only be used for “verification of deposit” purposes. I like the sound of that, don’t you?  Verifcation of deposit purposes.  Me?  I’ve only been on Wall Street for about thirty years and although I’m not sure what the hell “verification of deposit purposes” means, I must admit that it sounds pretty impressive. Of course, silly me, I would never write out a check to anyone for something like “verification of deposit purposes” without reviewing all the source documents and confirming the bona fides of the supposed traders and the trades but, then again, I’m just another stupid lawyer.The Complaint alleges that from about August 2007 through June 2008, Haley, through his entities Cornerstone Capital andVantage Point, raised at least $20 million for Morris’s Fund.Oh, and there’s this tidbit:  Morris and Haley had entered into an oral agreement that provided a payment of  20% per month on funds Haley raised.  Another thing, Haley could determine what portion of his fee he gave back to his investors. Lemme see, 20% of $20 million is like, what?, about $4 million?  Not bad for simply getting friends and acquaintances into some verification of deposit purposes thingamajig.  I wonder how much of that Haley gave back to the investors?

Enter the Lawyer

Sometime prior to June 2007, Morris and Haley hired Nguyen, a Utah attorney, to assist them with legal matters relating to soliciting investments. Nguyen set up Morris’s and Haley’s investment entities, drafted offering documents, and filed Forms D with the Commission for Morris controlled entities, E & R Holdings, Wise Financial and Momentum, and for Haley controlled entities, Cornerstone Capital and Vantage Point. After setting up the investment entities, the Complaint alleges that Nguyen stepped outside his role as counsel and began soliciting investments. Despite having conducted no due diligence on Morris or the Fund, Nguyen allegedly repeated Morris’s misrepresentations about the Fund to investors.Nguyen is also charged with knowingly making additional false representations to investors, including that he had reviewed the Fund’s documents and had personally spoken with the banks and private traders involved. Nguyen touted the Fund as “one of the best he had ever seen” and told investors he “understood the Fund better than Morris or Haley.”    Allegedly, Nguyen told investors that he was an “SEC attorney,” and that the Fund was “one of the best he had ever seen,” and  that he had done extensive due diligence into Morris’s Fund and knew the program better than Morris or Haley.  Nguyen purportedly told investors he had personally met with the attorneys representing the supposed trading companies involved in the Fund and that he had received copies of all operating agreements between the leasing companies and the trading companies. In fact, Nguyen performed no due diligence on Morris or the Fund, never met with anyone affiliatedNguyen also falsely told investors that he personally had significant assets invested in the Fund. In fact, Nguyen made no capital contributions to the Fund. Oh, and let’s not forget that Nguyen was allegedly paid at least $330,000 from Morris for raising investment funds and was paid at least an additional $58,000 in legal fees.

One More Player

Sometime during the Spring of 2007, Morris met Linford at an investment seminar , and thereafter, Linford is charged with raising about $1 million for the Fund by misrepresenting that the Fund paid returns as high as 100% in seven days with no risk to investor principal.

It’s All Madoff’s Fault

In April 2008, Morris stopped making regular interest payments to investors.  Morris gave many explanations to investors, including that Homeland Security had frozen the accounts, that the Madoff case had caused banks to hold funds and that typographical errors in wire request forms had caused delays.Oh, I see, it’s the old Homeland Security-Madoff-Typo-Dog-Ate-My-Homework explanation. Don’t they have a form for that?As investors complained and threatened to go to the SEC and other government agencies, Morris began disseminating phony bank statements falsely showing that he had over $200 million deposited with Wachovia Bank. In late October 2008, Morris gave Nguyen a purported “Bank Confirmation Letter” from Wachovia. This fraudulent letter states that Wachovia “currently holds funds in the amount of…$201,782,567.89…[and] Mr. Raymond Paul Morris is the signatory on this account.”  The letter also says “the funds are good, clean and of non-criminal origin, are unencumbered and freely disposable.”In addition to the letter, Morris gave Nguyen a phony “Verification of Depository,” also purporting to be from Wachovia Bank, showing that $201,827,067.89 was in Morris’s account.

Okay, so, let’s at least give these guys credit. It’s not like they came up with a simple round number, such as $201,000,000.00.  No, this is more convincing with every place filled with a seemingly plausible number. Can you find the whole numbers from 0 to 9 that are missing? Can you find Waldo?After Nguyen received the bogus “Bank Confirmation Letter” and “Verification of Depository,” the Complaint alleges that he agreed to draft a letter to Morris’s investors, assuring them their funds were safe. Unfortunately, Nguyen allegedly did not conduct reasonable due diligence prior to sending this October 30,2008 letter. The letter caused investors to delay their attempts to contact government authorities regarding Morris, Haley, Linford and Nguyen and their investment activities.

Carnage

By the time the Ponzi scheme unraveled, Morris, Haley, Linford and Nguyen, and their respective entities, had allegedly defrauded at least 90 investors out of at least $60 million by offering and selling unregistered and non-exempt promissory notes based on material misrepresentations and omissions.Many of the investors who lost money in the Fund were inexperienced, unsophisticated and had minimal net worth and annual income. Many investors lost their entire savings.  Some investors went so far as to borrow the money they invested and are now indebted beyond their ability to repay their lenders.In truth, the Complaint alleges that Morris did not work with private traders to obtain lines of credit that were invested.  As has become the norm with these Ponzi schemes,  Morris is accused of using investor funds to make bogus interest payments to earlier investors from capital raised from later investors.  Moreover, rather than investing the funds in debt and equity vehicles, real estate, commodities and leasing it to private traders, Morris used investor money to support a lavish lifestyle, including a luxurious home and several sports cars, and to make illusory interest payments to early investors in his scheme.Out of the approximate $20 million Haley raised, the Complaint alleges that he used at least $700,000 for personal expenses, including payments on a new home and $25,000 per month rental payments while building this new home.The Complaint charges Morris, Haley, Lindford, Nguyen, E&R Holdings, Wise Financial, Momentum, Cornerstone, Vantage Point and Freedom Group with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. The complaint also charges Morris, Haley and Nguyen with violates of Section 15(a) of the Exchange Act. The SEC seeks an injunction, disgorgement and civil penalties.’

 

 

Sentiment Signaling a Call for Caution - Prieur du Plessis ‘The results of the AAII Investor Sentiment Survey are shown in the graphs below. The Survey measures the percentage of individual investors who are bullish, bearish or neutral on stock market for the next six months. As the masses are usually on the wrong side of market movements, particularly at tops and bottoms, sentiment indicators fulfil a useful function as contrarian indicators. The bullish sentiment (55.9%) and bearish sentiment (18.3%) readings are at fairly extreme levels, as also seen from the bull-bear spread being quite a bit higher than the market peak of October 2007. Sentiment indicators are fairly blunt instruments from a timing point of view and can stay at high / low levels for extended periods. However, when companies are overvalued and technical indicators overbought, overbullish sentiment indicators complete a threesome of tools arguing quite strongly for a cautious approach to stock market investment.

Click to enlarge:

[chart]

[chart]

[chart]

[chart]

Source: AAII Investor Sentiment Survey; Plexus Asset Management.’

 

 

Food Stamp Usage Hits New High Of 43.2 Million Ever wonder where all the money for equity inflows came from? Here’s the answer: with all the money saved from participating in the Supplemental Nutrition Assistance Program, better known as foodstamps.

 

 

 

China Buys Up EU Government Debt China has been increasing its holdings of European government debt, including that issued by Spain, amid the euro-zone crisis, Chinese Vice Commerce Minister Gao Hucheng was quoted as saying.

 

 

Ron Paul Wants You! (To Take On The Fed) Zero Hedge | For all those with a penchant for crunching manipulated numbers and wish to make a change by taking on the Fed, this may be your chance.

 

New York owes $200 billion in retiree health care costs – but there’s no money David Gutierrez | New York State, along with its cities and counties, have promised $200 billion worth of retirement health care benefits to their employees, and no one knows where that money is going to come from.

 

Ron Paul: Congress Criminally Devaluing Americans’ Savings It is nothing short of cruel and criminal for Congress to stand idly by while the life savings of Americans are inflated away to nothing. It is high time Congress insist on getting complete information on what the Fed has been doing, and for whom.

 

The Silver Bears Are Back For Round Three, Explaining Two Key Recent Developments In The World Of Silver Confused by the recent downdraft in the price of (paper) silver… Even more confused by what is happening with the record open interest in the metal? Have no fear. The bears are here, and explain things in their traditionally simple and sound effect-filled way.

 

For Millions Of Senior Citizens The Only Future They Have To Look Forward To Is One Filled With Debt And Poverty In America today, millions upon millions of senior citizens are very deep in debt. In fact, more elderly Americans than ever before are going bankrupt.

 

 

Labor Force Participation Rate Drops To Fresh 25 Year Low, Adjusted Unemployment Rate At 11.7% Zero Hedge | While today’s unemployment number came at a low 9.4%, well below expectations, the one and only reason for this is that the labor force in America has plunged to a fresh 25 year low.

 

Why your local Hospital could soon shut down

Economic crisis archive

 

Presto! 9.4% Unemployment! How The Government Lies. Hooray…Happy days are here again! That is exactly what the elite would have us believe with the 9.4% unemployment number in this huge CONfidence game otherwise known as the USEconomy.

 

Fed Turns Over Record $78.4 Billion Profit to Treasury [ Totally manipulated paper with costs far exceeding those paper entries, and even greater costs prospectively even beyond the decline of the ever more worthless paper currency. ] Reuters | The Federal Reserve reported Monday its earnings jumped by more than 50 percent in 2010

 

Judge orders Fed to deliver gold records for her review GATA | GATA’s motion to order the Fed to produce in complete form for the judge’s private review 20 gold-related documents the Fed has sought to keep secret.

 

Deepening crisis traps America’s have-nots The Telegraph UK | The US is drifting from a financial crisis to a deeper and more insidious social crisis. Self-congratulation by the US authorities that they have this time avoided a repeat of the 1930s is premature.

National / World

 

 

 

Early Cancer Screening Could Cause Millions of Deaths Liberty Doctor | Early detection of cancer at the cellular level will have us aggressively looking for the location of early cancers via full body scanning.

 

DHS Links Loughner to White Supremacists Kurt Nimmo | Fox News reports that according to Homeland Security Loughner may be connected to American Renaissance.

 

Second Man Sought In Giffords Shooting May Be Assassin’s Handler Kurt Nimmo | The official story that will become gospel for the corporate media is in the process of formulation.

 

Jared Loughner Described by Classmate as “Left-Wing Pothead” Pheonix New Times | ​A classmate of the man accused of shooting Congresswoman Gabrielle Giffords this morning describes him as “left wing” and a “pot head” in a series of posts on Twitter this afternoon.

 

“Toning Down The Rhetoric” Means Obeying Big Government Despite the fact that Jared Lee Loughner was a psychotic loner with “left-wing” beliefs according to those who knew him, the establishment has hastily exploited yesterday’s tragic shooting in Tucson to demonize conservatives, libertarians and gun owners while ordering Americans to “tone down the rhetoric,” which is nothing more than a euphemism for stifling dissent and coercing people to roll over on Obamacare, bailouts and whatever big government is preparing to unleash next.

 

Establishment Media Demonizes Tea Party and Constitutionalists After Giffords Shooting Get ready for the shooting of Rep. Gabrielle Giffords to be used in a serious way against the Tea Party movement. MSNBC, CNN and the rest of the Mockingbird media are now attempting to portray millions of Americans as violence prone anti-government radicals.

 

Second Man Sought In Giffords Shooting May Be Assassin’s Handler The FBI and local law enforcement in Pima County, Arizona, are looking for a second man wanted in connection with the shooting of Rep. Giffords and the murder of a federal judge and five others.

 

UPDATED: Arizona Assassin Obsessed With Mind Control Jared Loughner, the gunman who shot Congresswoman Gabrielle Giffords and numerous other victims including a Federal Judge and a nine-year-old girl during a political event in Tuscon today, was a US military recruit who was obsessed with mind control, mirroring the circumstances of many other mass shooters in history.

 

Celente: Global Youth Rebellion Simmering RT | 2011 will see uprising against the white shoe boys around the world.

 

 

Internet Identity System Said Readied by Obama Administration The Obama administration plans to announce today plans for an Internet identity system that will limit fraud and streamline online transactions, leading to a surge in Web commerce, officials said.

 

US wants Twitter details of Wikileaks activists The US government has subpoenaed the social networking site Twitter for personal details of people connected to Wikileaks, court documents show.

 

Climate Scientists Deepening Skepticism of Democracy Does a liberal democracy have sufficient resolve to stomach the economic and political sacrifices required to stabilize global warming?

 

 

Justice Department Subpoenas Birgitta Jónsdóttir’s Twitter Account in WikiLeaks Case Peter Kemp | Inherent in that subpoena is a belief by the DOJ that some sort of incriminating evidence exists to use against Julian Assange.


Royal Family granted new right of secrecy London Independent | The Royal Family is to be granted absolute protection from public scrutiny in a controversial legal reform.

 

UK Library: Cryptome Blocked for “Criminal Activity” Cryptome | Official secrecy is the very greatest threat to democracy.

 

 

 

Illinois faces steep tax increases to meet fiscal crisis (Washington Post) [ This is only the beginning of this continued ultimately hyperinflationary depression with much worse to come. How the recession imploded states' finances (Washington Post) [  This is truly no joke!  Municipal Debt Threatens U.S. Economy Lim ‘The debt crisis that has taken down banks, and even countries, threatens more than 100 American municipalities this year. According to Meredith Whitney, who works as a US research analyst, local and state debts are the biggest concerns to the US economy today. It is large enough to derail economic recovery.

She said that,

There’s not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizable defaults – more. This will amount to hundreds of billions of dollars’ worth of defaults.

American states and cities have a total debt load of around $2 trillion.

New Jersey government Chris Christie summarized it clearly,

We spent too much on everything. We spent money we didn’t have. We borrowed money just crazily. The credit card’s maxed out, and it’s over. We now have to get to the business of climbing out of the hole. We’ve been digging it for a decade or more. We’ve got to climb now, and a climb is harder…’  Video: State pensions face 'death spiral' Wash.Post (It’s not just state and local … it’s national, ie., social security, medicare, Medicaid, veterans, etc., and as well, some companies. ) Sept. 15 (Bloomberg) -- U.S. state pensions such as Illinois, Kansas and New Jersey are in a "death spiral," with assets at many insufficient to cover benefits, payouts consuming a growing portion of resources and costs rising twice as fast as investment gains. Bloomberg's Monica Bertran reports. (Source: Bloomberg) (Bloomberg)  ] While experts call Illinois's plight the worst in the nation, many states are grappling with the perils of air-brushing structural budget problems rather than implementing difficult tax increases or service cuts.

 

 

White House to extend more support (to overcome widespread suspicion and anti-americanism) to Pakistan (Washington Post) [ Well, there you have it. Another victory notched up for defacto bankrupt, war criminal nation america. Sounds like a plan … you know, that winning hearts and minds thing … destroy the country, kill their people, have contractors siphon off the cash (with kickbacks of course). Victory americana … Riiiiight! ]  Offer aimed at overcoming widespread suspicion and anti-Americanism in nation, which is seen as a vexing but crucial partner in anti-terror efforts

 

Data point to economy crawling out of downturn (Washington Post) [ I don’t believe anything the u.s. government et als says or reports.    What Today's Job Numbers Aren't Telling You , On Friday January 7, 2011, 6:10 pm EST

‘Another month goes by and another unemployment report deciphered. Is there more to this month's report than the 9.4% headline number? Unless you are content with the information spoon fed by the financial media, you'll find the data points revealed in this article rather interesting.The only other Wall Street ritual that tops monthly unemployment reports is earnings season. Like any other ritual, it comes with many myths and fables attached. The most common one is that unemployment directly affects stock prices.

Myth Busted

If you base your investment decisions on today's release, you may want to revisit the market's performance following last month's release (published on December 3, 2010).The U-3 unemployment rate spiked from 9.6% to 9.8%. This was a huge disappointment, yet major stock indexes a la S&P (SNP: ^GSPC), Dow (DJI: ^DJI) and Nasdaq (Nasdaq: ^IXIC) rallied. What caused this unexpected reaction? The answer can be found in technical analysis.The technical setup going into last month's unemployment release (published on December 3) was predominantly bullish. With the S&P (NYSEArca: IVV - News) at 1,225 in early November, the ETF Profit Strategy Newsletter highlighted important support at 1,165 - 1,170 and on November 7 stated: 'Any correction that doesn't drop below 1,165 will likely result in new highs' with resistance at 1,267 (revised to 1,281 on December 12).As the chart below illustrates, the S&P tested support on five occasions and set the stage for future gains. That's why despite the dismal jobless numbers, stocks spiked on the day of the release and continued higher.  [chart] Before we talk about the technical set up going into today's release, let's examine some unknown but important details about today's unemployment report.

What the Headlines Won't Tell You

The Bureau of Labor Statistics (BLS.org) publishes more data than just the heavily quoted U-3 unemployment headline number (currently 9.4%).In fact, if you do some surfing on BLS.org you will find that the headline number is deceptive at best and inaccurate at least. Below are some statistics that put America's job market in perspective.According to the BLS, the real unemployment rate (U-6), which includes workers who stopped looking for jobs or had to settle for part-time jobs - is at 16.7%.

One of the most remarkable BLS data points on the BLS site is the average number of weeks workers are now unemployed. The jobless are unemployed for an average of 34.2 weeks.  As the chart below shows, this is the second highest reading in the survey's 63-year history (all-time high was 34.8 in July 2010).                                 [chart]

Along the same lines, the number of workers unemployed for more than 27 weeks (usually unemployment benefits cease after 26 weeks) is near its May 2010 all-time high.                              [chart]

A Painful Misconception

The Bush tax-cut extension led many to believe that unemployment benefits have been extended beyond the 99 weeks (26 weeks state-funded plus 73 weeks federal benefits) available to the 25 worst hit states. This is not correct.According to CNBC, no benefits will be paid once the 99-week period is exhausted. As per the extension, however, the jobless will continue to receive up to 99 weeks of unemployment checks.Over the past three years, the unemployed have collected about $320 billion in jobless benefits. About two million '99ers' received their last benefit check around Christmas.

A Shrinking Workforce

It is estimated that about 150,000 'youngsters' enter the work force every year. That's why the work force has steadily increased since 1948. Courtesy of the 2008 bear market, the workforce has actually been shrinking as discouraged workers drop out of the statistics .Discouraged workers are those who stopped searching in the last four weeks. Excluding them from the workforce and the unemployment equation artificially lowers the U-3 unemployment rate. Discouraged workers surged to a new record high of 1.32 million which depressed the labor force participation rate to 64.3% (a 27-year low). If the participation rate had stayed the same, the U-3 unemployment rate would be 9.7%.

Making Sense of What Doesn't Make Sense

Based on U-6 numbers, since December 2006 as many 13 million Americans have either lost their jobs, or have been downgraded.  Meanwhile food stamp recipients have mushroomed by ten 10 million.Nevertheless, stocks have shrugged off an avalanche of bad news and continue plowing ahead towards new highs. Does that make sense?It does when you include the Federal Reserve and it's quantitative easing program in this lopsided equation. The Fed has a history of creating and ignoring bubbles. The 2000 tech (NYSEArca: XLK - News) bubble came and went and was followed by the 2005 real estate (NYSEArca: IYR - News) bubble.The 2005 real estate bubble was somewhat cushioned by the 2007 financial (NYSEArca: XLF - News) bubble. The 2007 bubble bust expressed itself fully until the Fed started inflating yet another bubble - the QE1 and QE2-based 'great' new bull market.

The Technical Set Up

Looking at the long-term picture, there is reason to be skeptical about the growth potential for U.S. stocks (NYSEArca: IWM - News). But if you want instant gratification - as most investors do - what's the technical set up for the coming weeks?Looking at the market's internal indicators, we note that momentum is strong but breadth is weakening. Sentiment - one of the most reliable indicators in the investment universe - is extremely bullish, which is bearish for stocks.Prior instances when the ETF Profit Strategy Newsletter noted overheated excitement for stocks was in January 2009, January 2010, and April 2010. Another bearish factor is the new January effect that's seen stocks decline each January over the past three years.Additionally, the S&P is about to reach the measured upside target of a W pattern (December 12 ETF Profit Strategy Newsletter) and a host of other resistance levels.In summary, momentum and Fed induced liquidity point up, but sentiment gauges and some technical indicators convey a deeply bearish message.The best way to navigate such cross currents is to let the market speak and carefully analyze its reaction to important support and resistance levels. Failure to break resistance levels combined with an inability to remain above support have been recipes for disaster in the past, especially with bullish sentiment at extreme levels.A chain is only as strong as its weakest link. The ETF Profit Strategy Newsletter monitors the market's internal strength to identify weak links before they break.’

 

 

Health-care repeal vote looms (Washington Post) [ Starting with real / unspun data / facts is the wisest course, and such should be conveyed to the taxpayers who ultimately pay, including the bloated salaries of the corrupt, incompetent ‘washingtonians, federal employees, bushies, obamanoids, etc., CBO Says Repeal Would Reduce Spending by $540 Billion...The Congressional Budget Office, in an email to Capitol Hill staffers obtained by the Spectator, has said that repealing the national health care law would reduce net spending by $540 billion in the ten year period from 2012 through 2021. That number represents the cost of the new provisions, minus Medicare cuts. Repealing the bill would also eliminate $770 billion in taxes. It's the tax hikes in the health care law (along with the Medicare cuts) which accounts for the $230 billion in deficit reduction…’   ]         Right to undo? Panel | How much should Republican House leaders focus on undoing past initiatives versus creating their own new ones? | Weigh in

 

 

Twain needs no fixin' (Washington Post) [ I quite agree with Ms. Parker, particularly in this digital age which facilitates such censorship which can be accomplished with such ease and an environment as in the self-created paranoid u.s. replete with pervasive corruption, incompetence, and criminality where perpetrators / criminals therein cry out for more cover-up / censorship all in the self-destructive name of ‘war on terror’, jingoistic patriotism, etc.. I’m against almost all censorship  (subject to very limited exceptions, ie., ‘yelling fire in a crowded theater, kiddy porn, etc., except that the u.s. courts are so corrupt and venal that they can no longer be trusted to responsibly apply those limited exceptions to narrowly defined exceptional circumstances. See, for example, RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )  .     DRUDGEREPORT: NYT SATURDAY: NUMBER OF COMBAT INJURIES IN AFGHANISTAN APPROACHES IRAQ-WAR LEVELS... DEVELOPING...
'WE'RE DIGGING OUT OF A HOLE' [ Example of sentiment: some comments - ‘…Barack Obama is a cooked goose. He is absolutely the most incompetent president of the U.S. ever, so he continues to spin the numbers in such a manner that might make him look good. News for him: NOTHING will make you look good. Pretty is skin deep, incompetence goes clear to the bone. "Let his days be few; and let another take his office." Psalms 109:8- RightStuff, Texas, USA, 7/1/2011 19:45

You know what happens when you keep digging a hole - you reach China and that is what is going to finish the americans and Obamarama...- Olrik, Canada, 7/1/2011 19:41

'We're digging ourselves out of a hole' - Barack Hussein Obama To get out of a hole you've dug so deep, is to STOP DIGGING, fill it up with soil so you can climb OUT OF THE HOLE. STOP SPENDING OBAMA! STOP PRINTING MONEY! The US dollar is weakening against YUAN of China. Republicans better start cutting all spending, defund/repeal Obamacare, America is flat BROKE! If Republicans can't rein all spending created by Pelosi and her peons, their DEBT would be BIGGER than their economy.- Observer, over here, over there, 7/1/2011 19:33

Well the ammo index is still down, I guess having 3,000 rounds is enough- NVBob, Richland WA USA, 7/1/2011 19:31

Fill in the hole, with Obama in it, at the bottom!- Stan, St Louis, Missouri, USA, 7/1/2011 19:30

As one would expect of a socialist, clueless to the mechanics of a capitalist system, he seeks to extricate himself from a hole by further digging.- jnsesq, minimaxi, 7/1/2011 19:29    Read more: http://www.dailymail.co.uk/news/article-1345047/Glimmer-hope-U-S-economy-jobless-rate-falls-lowest-level-19-months.html#ixzz1APmJZga7 ]

Jobs report an 'utter mess'... ‘…However, some economists were less optimistic. 'It's a bit of a mixed bag,' said Ryan Sweet, an economist at Moody's Analytics. Many analysts hoped to see larger job gains, and the drop in the unemployment rate is unlikely to be sustained, he said. 'The labour market ended last year with a bit of a thud,' he said…’
China plans $1.3 billion 'seven-star hotel'...
China Backs Europe, Euro for Investing Reserves...
REPORT: Too much fluoride in US water...
]  Parker: Why 'The Adventures of Huckleberry Finn' should not be censored.

 


January 7, 2011: Market Summary

December Jobs Miss Expectations

Unemployment Down To 9.4%, But Jobs Report Disappoints

Is a Correction Inevitable? [Short answer: YES! ] Vistesen ‘The signs are clear: risk is overloved, overbought and overextended but does this necessarily spell the inevitable correction? [Short answer: YES! ] (click for larger image) [chart] Since Augsut 2010 the SPY has barely touched its 50 day moving average. Indeed, it has stayed well clear of it. Those, like yours truly, who entered 2011 fancying some bloodletting have so far been disappointed. Plan B Economics points to the obvious that oftentimes in the world of investing, a choir chiming for an event to unfold is the best bet that it will not occur.

I’ve had a pretty good sense in the past knowing when the “correction” trade is overcrowded. I gotta say that I definitely sense that now. Bulls are on guard for a correction and bears are calling for one too. In fact, I’ve never seen such a unanimous call for a correction as I do now in a long time. Near the low of the day I saw a headline from bigcharts.com that said some portfolio manager claimed the January correction has started. The market didn’t even go in the red for the year yet and this guy’s already saying the correction has started? Talk about being over-eager. I believe this group think call for a correction means that a correction either won’t happen or will be quite shallow, well below expectations.

As a good friend of mine noted that this is like second-guessing the second-guesser. Market timing is best performed when frontrunning the crowd, not standing in the middle shouting like everyone else. On the technical side, I would like to see two (or three) straight days of declines in the SPY before calling it.The more interesting point is how deep (or shallow) it will be. A move to the 50 day MA marker would be something like 4.15% and come at around 1221 at current levels. Sounds about right to me.’ [ Vistesen’s clearly an unbridled optimist! ]

 

Drowning in Debt NyaradiEverywhere I looked yesterday, the world seemed to be drowning in debt.

In Portugal, bond spreads continue to widen as they prepare for a sale on January 12th while next door in Spain, their “D-Day” (debt day) sale comes on January 13th. France steps up on January 10th with more than $10 billion coming to market with Italy following on January 11.

The euro fell to the lowest level against the U.S. Dollar in three months in anticipation of next week’s auctions while the U.S. Dollar Index rose +0.68%.

Closer to home, Illinois struggles wtih a nearly $15 Billion hole that needs to be filled and so is pushing for a tax hike to do the job while in California, recycled Governor Jerry Brown promises to unveil a budget next week that will be “painful.”

Meanwhile, December retail sales originally ballyhooed as being the best in years turned in a lackluster performance and the pesky problem of persistent unemployment resurfaced yesterday with Initial Claims rising unexpectedly to 409,000 from 391,000 prior while Continuing Claims managed to fall.

Today comes the big report and whisper numbers are huge improvements over recent numbers.

Technically there’s no breadth and no momentum to market action and we remain in very overbought territory on nearly all indicators.

Daily Moves for Major ETFs:

Dow Jones Industrials: (NYSEArca: DIA) -0.22%

Russell 2000: (NYSEArca: IWM) -0.47%

NASDAQ 100: (NasdaqGM: QQQQ) +0.32%

S&P 500 Index: (NYSEArca: SPY) -0.20%

MSCI Emerging Markets:(NYSEArca: EEM) -1.07%%

MSCI China (NYSEArca: FXI) -0.79%%

Gold (NYSEArca: GLD) -0.40%

7-10 Year Treasuries: (NYSEArca: IEF) +0.52%

20+ Year Treasuries: (NYSEArca: TLT) +0.44%

VIX +2.23%

U.S. Dollar (NYSE:Arca: UUP) +0.77%

The major indexes remain overvalued and overbought on a technical and fundamental basis and so Wall Street Sector Selector remains in “Yellow Flag” status, expecting choppy to lower prices ahead.’



Thursday's Economic Data Roundup: Mixed News Roche ‘U.S. retailers posted weaker than expected sales in December, the Monster job index declined from last month’s highs and unemployment claims continued their steady trend lower. All in all it was a very mixed day of data.

“Jobless claims haven’t been too bumpy this holiday period, moving convincingly lower. Claims did rise to 409,000 in the January 1 week yet follow the prior week’s 391,000 for the second best reading of the recovery (prior week revised from 388,000). The four-week average is telling the story, down 3,500 in the week for a 410,750 level that is down nearly 20,000from a month ago…’

 

Jobs growth disappoints, but jobless rate falls (Reuters)

 

Labor Force Participation Rate Drops To Fresh 25 Year Low, Adjusted Unemployment Rate At 11.7% Zero Hedge | While today’s unemployment number came at a low 9.4%, well below expectations, the one and only reason for this is that the labor force in America has plunged to a fresh 25 year low.

 

Europe unveils sweeping plans to govern reckless banks London Telegraph | Brussels has called for sweeping powers for regulators to seize failing EU banks, sack board members, and impose haircuts on senior bank debt.

 

Doug Casey: Prepare for Social Upheaval LewRockwell.com | The big question is not, “Can it happen here?” but, “Will it?” Or maybe, simply, “When?”

 

China Buys Up EU Government Debt China has been increasing its holdings of European government debt, including that issued by Spain, amid the euro-zone crisis, Chinese Vice Commerce Minister Gao Hucheng was quoted as saying.

 

Labor Force Participation Rate Drops To Fresh 25 Year Low, Adjusted Unemployment Rate At 11.7% While today’s unemployment number came at a low 9.4%, well below expectations, the one and only reason for this is that the labor force in America has plunged to a fresh 25 year low.

 

Not Just “Inflation Versus Deflation” … We’ve Got “MixedFlation” and “ExportFlation” Many people have made persuasive arguments for inflation.

 

The Contrived Drama of the Debt Ceiling Let the contrived drama of the debt ceiling begin for the American people.

 

Gallup Finds Unemployment Increased In December, Underemployment Is At 6 Month High, Blasts Government Data Fudging Following this week’s ebullient ADP private payrolls report, the sellside has succumbed to an orgiastic frenzy suggesting that tomorrow NFP number may be as high as 580,000 (as reported earlier).

 

National / World

 

US says too much fluoride causing splotchy teeth (AP)  [ Actually, flouride’s a poison which is actually used in such things as ‘rat poison’, but has also historically been used to make ‘populations’ more docile / controllable. I guess they figure they’ve finally gotten the controlled american public zombies where they want them…mission accomplished…no need to waste more flouride. ] In a remarkable turnabout, federal health officials say many americans are now getting too much fluoride because of its presence not just in drinking water but in toothpaste, mouthwash and other ...



Deregulating ‘Frankenfoods’ Jason Douglass | Pioneer, a DuPont Company has filed with APHIS to have a particular GM corn line deregulated.

 

Eco-Nazi Orders Americans To Pay Carbon Tax On Children Paul Joseph Watson | IPCC Professor wants communist-style controls on giving birth.

 

Alex Jones & Nick Begich On Coast to Coast Infowars.com | Radio host Alex Jones and researcher Nick Begich comment on the recent bird die-off.

Alex Jones: Eco-Fascists Call For Prison Cities Infowars.com | People who resist the state controlling every aspect of their existence will be forced to live in squalid ghettos.

 

Establishment Republicans Omit Crucial Passage in Constitution Reading Stunt Kurt Nimmo | The invasion and the spill-over of violence from the Mexican narco state represents “domestic violence” against the American people.

 

Government Recommends Lowering Fluoride Levels in U.S. Drinking Water The U.S. Department of Health and Human Services and the U.S. Environmental Protection Agency are recommending changing for the first time in nearly 50 years the amount of fluoride allowed in drinking water because of an increase in fluorosis — a condition that causes spotting and streaking on children’s teeth.


Homeland Security Hasn’t Made Us Safer DHS serves only one clear purpose: to provide unimaginable bonanzas for favored congressional districts around the United States, most of which face no statistically significant security threat at all.

 

Establishment Republicans Omit Crucial Passage in Constitution Reading Stunt The Constitution reading stunt performed by establishment Republicans designed to placate a co-opted Tea Party fizzled Thursda

 

Murdered Bush Aide Was An Expert In Chemical, Biological & Cyber-Warfare, Had Highest Security Clearances Cryptome | John Wheeler III was mysteriously found in a garbage dump only hours after being seen wandering around with one shoe in a parking garage. Retired Lt. Gen. McInerney said it ‘had to be a professional hit job.’

 

DRUDGEREPORT: NYT SATURDAY: NUMBER OF COMBAT INJURIES IN AFGHANISTAN APPROACHES IRAQ-WAR LEVELS... DEVELOPING...
'WE'RE DIGGING OUT OF A HOLE' [ Example of sentiment: some comments - ‘…Barack Obama is a cooked goose. He is absolutely the most incompetent president of the U.S. ever, so he continues to spin the numbers in such a manner that might make him look good. News for him: NOTHING will make you look good. Pretty is skin deep, incompetence goes clear to the bone. "Let his days be few; and let another take his office." Psalms 109:8- RightStuff, Texas, USA, 7/1/2011 19:45

You know what happens when you keep digging a hole - you reach China and that is what is going to finish the americans and Obamarama...- Olrik, Canada, 7/1/2011 19:41

'We're digging ourselves out of a hole' - Barack Hussein Obama To get out of a hole you've dug so deep, is to STOP DIGGING, fill it up with soil so you can climb OUT OF THE HOLE. STOP SPENDING OBAMA! STOP PRINTING MONEY! The US dollar is weakening against YUAN of China. Republicans better start cutting all spending, defund/repeal Obamacare, America is flat BROKE! If Republicans can't rein all spending created by Pelosi and her peons, their DEBT would be BIGGER than their economy.- Observer, over here, over there, 7/1/2011 19:33

Well the ammo index is still down, I guess having 3,000 rounds is enough- NVBob, Richland WA USA, 7/1/2011 19:31

Fill in the hole, with Obama in it, at the bottom!- Stan, St Louis, Missouri, USA, 7/1/2011 19:30

As one would expect of a socialist, clueless to the mechanics of a capitalist system, he seeks to extricate himself from a hole by further digging.- jnsesq, minimaxi, 7/1/2011 19:29    Read more: http://www.dailymail.co.uk/news/article-1345047/Glimmer-hope-U-S-economy-jobless-rate-falls-lowest-level-19-months.html#ixzz1APmJZga7 ]

Jobs report an 'utter mess'... ‘…However, some economists were less optimistic. 'It's a bit of a mixed bag,' said Ryan Sweet, an economist at Moody's Analytics. Many analysts hoped to see larger job gains, and the drop in the unemployment rate is unlikely to be sustained, he said. 'The labour market ended last year with a bit of a thud,' he said…’
China plans $1.3 billion 'seven-star hotel'...
China Backs Europe, Euro for Investing Reserves...
REPORT: Too much fluoride in US water...
CBO Says Repeal Would Reduce Spending by $540 Billion...
The Congressional Budget Office, in an email to Capitol Hill staffers obtained by the Spectator, has said that repealing the national health care law would reduce net spending by $540 billion in the ten year period from 2012 through 2021. That number represents the cost of the new provisions, minus Medicare cuts. Repealing the bill would also eliminate $770 billion in taxes. It's the tax hikes in the health care law (along with the Medicare cuts) which accounts for the $230 billion in deficit reduction…’

 

 

Republicans reject cost estimate on health repeal (Washington Post) [  One thing’s certain … they’ll agree to disagree … $14 plus trillion and counting and wobama the b for b*** s*** and co are worried about a couple hundred billion … tax cuts to the rich …   (Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE!) ‘Then again, look at the war spending :   Drudgereport: Congresswoman calls Afghanistan 'national embarrassment'...    'Epic failure'... Rep. Lynn Woolsey (D-CA) talks about the "disastrous" war that is Afghanistan. "This war represents an epic failure, a national embarrassment and a moral blight," Rep. Woolsey said. [ True enough! Though broke, they’re still voting for more war across the board. But even more than that, this war is a blowback-creating, self-perpetuating, self-destructive, self-defeating, colossally expensive debacle benefiting only the war profiteers / lobbies and attendant frauds while diverting attention from the more ’mundane’ tasks of governance of a failing, pervasively corrupt, defacto bankrupt nation, viz., america. ]
PENTAGON BUDGET SLASH [ Riiiiight! … What’s $80 billion on a trillion dollar tab especially with those off-budget special items whenever they so choose.  ]: OBAMA TO CUT TROOPS ON ACTIVE DUTY
FEDS BREAK GROUND ON SUPER SPY CENTER (Riiiiight! More spending on those ultra-efficient super-spies, ie., Iraq on a lie, illegal drug ops, 9-11 NORAD ordered to stand down, etc., though u.s. defacto bankrupt)...
New Miami Police peeping drone may be first in country; ACLU approves...
Man Arrested for Having 'Suspicious' Bagel on Plane...
Ex-CIA officer charged with leak to NYT reporter...
Packages Cause 'Flash Explosions' At 2 State Gov't Buildings in MD...

One addressed to Gov...
US Treasury asks Congress to lift debt ceiling...
Obama calls Gibbs $174,000 salary 'relatively modest' ( Come on! In pervasively corrupt, defacto bankrupt america, government jobs for the otherwise unemployable at those levels are over-priced and over-valued, as are other so-called executive jobs, ie., fraudulent wall street, etc.. Look at their results! )...  ]
Boehner dismisses CBO forecast that rescinding law would raise deficit by about $230 billion and leave 32 million more Americans uninsured.

 

 

Apprehension ahead of Moqtada al-Sadr speech (Washington Post) [ What is he expected to say?: Thank you america for bombing, invading, and destroying his nation based on a lie? Thank you america for killing, maiming innocent children, women, and men? Thank you america for all the depleted uranium you’ve left behind? Thank you america for removing your america-supported mad-dog tyrant sadam hussein who foolishly played into his cia handlers’ trap regarding that green light for Kuwait invasion over the slant-drilling by the latter from April Glasspie. I don’t think so, and I don’t think the rest of the world nor his fellow Iraqis think so.   ] Lawmakers across Iraq's political and ethnic spectrums wait for word from anti-American Shiite cleric Moqtada al-Sadr, saying his first address after returning from nearly four years of self-imposed exile in Iran would likely say a lot about his approach to Iraq's government.

 

 

Insurer claims it was misled by Goldman Sachs on investment (Washington Post) [ Talk about understatements. After all, who hasn’t been misled by goldmen sachs and fraudulent wall street generally, on investments. Don’t forget, the worthless toxic paper commissioned and cashed out by wall street is still out there in the trillions now marked to anything.  ] One of Goldman's clients says it has sued the bank seeking $120 million in damages.

 

 

Milbank: Getting creative with the Constitution (Washington Post) [ Constitution? Versions? Meaningful laws? Why, this is almost analogous or akin to the late idi amin reading the Ugandan constitution (1995) from his grave, certainly in terms of folly! ]Constitutionalism (WP) [ Come on! Constitution … meaningful american law … Don’t make me laugh! Wake up from the deep american sleep! Going through the motions, flag pins, etc., ad nauseum, like a bunch of zombies!  ] Krauthammer: It's a promising step to a conservative future.  Wash Post Staffer: Constitution Impossible to Understand Because It’s Over 100 Years Old [ In a meaningfully lawless society as pervasively corrupt, defacto bankrupt america, constitution / laws have become irrelevant in application and effect. After all, even zimbabwe has a constitution / laws, but I dare say no one would suggest they have any practical effect in reality, as is also so in america. I therefore believe Mr. Klein is correct but for reasons other than age and malleability. Indeed, anyone who has written a legal brief and researched law in support thereof, ultimately realizes that almost invariably one can find some case / law in support of almost any position. In america today, it’s the bribe, one way or another, that carries the day and makes the difference. Ask sam alito et als. That’s just the way it is in a declining, fallen society as america, zimbawe, etc.. That’s certainly my direct, sworn experience with these corrupt courts constituting (in large part along with the other 3 branches) pervasively corrupt, defacto bankrupt america’s illegal system.  Senate convicts Clinton-appointed judge... [ Come on! One way or another they’re almost all getting bribed; including the initial lifetime appointment as alito, trump-barry, etc.. Abolish the corrupt, costly, economically wasteful lifetime extravagantly appointed federal courts (see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )    End those lifetime licenses to steal. ] In earlier hearings, two attorneys who once worked with Porteous had testified that they gave him thousands of dollars in cash, including about $2,000 stuffed in an envelope in 1999, just before Porteous decided a major civil case in their client's favor.   ] Breitbart | On word that the House will open its next session with a first-ever reading of the U.S. Constitution, blogger Ezra Klein suggests that the Constitution is irrelevant due to its age and politically-malleable language. ]Eight key economic decisions of the Obama presidency all point in one direction.

 

 

Oh come on! Watch for the fake jobs report from the ever more desperate, pervasively corrupt, incompetent, failed, defacto bankrupt u.s. government (all 3 branches)! Who can believe anything they say? … Drudgereport: WObama the b for b*** s*** calls Gibbs $174,000 salary 'relatively modest' ( Come on! In pervasively corrupt, defacto bankrupt america, government jobs for the otherwise unemployable at those levels are over-priced and over-valued, as are other so-called executive jobs, ie., fraudulent wall street, etc.. Look at their results! )...   [video] ADP Data Still Fighting For Credibility [ Come on! Pervasively mob infested, corrupt jersey based ADP? There’s nothin’ left in desperation for those b.s. / b.e.(bad economics/finance) talking points and action to froth the market for the frauds on wall street. This is an especially great opportunity to sell / take profits because there’s nothin’ there, beyond the smoke and mirrors. This market’s way over-bought and way over-valued!  ] NEW YORK (TheStreet) -- Alan Valdes of DME Securities says the market focused on the job revision data as ADP is still viewed with skepticism.

 

 

1 in 6 Americans Live in Poverty  Tradermark ‘One of the biggest mega trends happening in America is the bifurcation of society between the haves and the have nots. Many of the jobs the 'underclass' once did are gone forever, while others spent freely when times were good, and when the tide turned, have little buffer. [Dec 8, 2007: Do the Bottom 80% of Americans Stand a Chance?] After all, saving for a rainy day is what boring people do. Others really never got off the ground, as the K-12 education system has degraded dramatically the past few decades.Frankly the underlying trend - as bad as it is on the surface - has been hidden by multiple bubbles, and most recently, there has been a level of government assistance never seen before. [Nov 5, 2010: USA Today - Anti-Poverty Programs Surpass Cost of Medicare] In terms of government spending. This brings up a host of issues as any changes to the social safety net are going to send millions past GO and directly to impoverished status (and yes there are people gaming the system, but not tens of millions). There are myriad societal effects of the transformation of America from a relative egalitarian society in the 1960s to a 2 or 3 class system - but those are topics for other posts we have done.The official U.S. government tally of who is living in poverty is a joke. We last looked at it about 16 months ago [Sep 19, 2009: US Poverty Rises to 11 Year High - But Still Vastly Understated] For example, if you make $23,000 for a family of 4 - you are not in poverty. If you are single and make $14,000 you are not in poverty. I'm not sure in what counties except for rural Mississippi you can accomplish that cost of living, but apparently the government believes a middle class lifestyle is available at $25K for a family of 4 in all of America. Or at least it would be inconvenient to admit otherwise. And yes once more let me put the caveat that being "poor" in America is different than being poor in Malawi, but in theory we should be comparing ourselves to other first world countries.The AP has an interesting report of a new measure of poverty in the U.S., based on the census. It has a different band of parameters and shows an increase over the government's incredibly generous definition of poverty. What is striking is the large increase in those in the over 65+ camp who fall into poverty. Due to our consumption culture (encouraged by the government at every turn, since we've transformed our economy from good producing to services and consumption) many are entering the golden years with little to nothing.Where once many had their mortgage paid off by the time they retired and hence could live on a much lower income as their largest expense was eliminated, now after a generation of serial refinancing and cash out to finance buying 'what we deserve', many still have the mortgage to worry about even at age 70+. There are many other factors we've discussed often - i.e. the move from pensions to do it yourself savings in a country where saving is a sin and spending is worshiped, the disaster that is the 401k system, etc. Unlike the mortgage crisis which is playing out in a relative short period of time (6-8 years), this grand economic experiment of running an economy on consumption & services (you do my nails, I'll cut your hair, you serve me a beer, I'll cut your lawn, you build a house, I'll default on it) is taking decades to play out. But we're starting to see the first wave of results the past 5-10 years, and it's not pretty.Bigger picture, there are enormous stresses being formed at the bottom end of the society, and more and more are being caught in the net. Anyone who truly believes there will be any serious spending cuts at the federal level does not realize the (increasing) dependency that has been created by the a multitude of poor decisions over the past few decades. Indeed we fast approach the time when 1 in every 5 dollars of "income" are government transfers. [May 25, 2010: 1 in 5.5 Dollars of American Income Now Via Government; All time High] At this point, the genie is out of the bottle and with a dysfunctional government whose only solution is layer on more debt to kick the can down the road, our modern day plutonomy only grows in power. [Sep 7, 2009: Citigroup - America; A Modern Day Plutonomy] However, there appears nothing to be worried about since we've been well trained to parrot the fact that as long as the S&P 500 only goes up, everything in America is fine. Nothing to see here, move along (buy stocks as you are moving of course).
Via AP

[Feb 20, 2009: NYT - Newly Poor Swell Lines @ Food Banks Nationwide]

[Oct 22, 2010: Reuters - The Haves, the Have Nots, and the Dreamless Dead]

[Sep 3, 2010: FT.com - The Crisis in Middle America]
[July 26, 2010: [Video] DatelineNBC - America's Increasing Ranks of Poor]

original article

 

 

Unemployment Claims Are Not What They Appear  Adler ‘First-time unemployment claims rose by 52,038 to 577,279 in the week that ended January 1. The Wall Street captive media is, as usual, fudging the reports by reporting that claims were at 409,000, based on the seasonal hocus pocus. They report an uptick of 18,000 instead of 52,000. Both Dow Jones and Bloomberg are emphasizing that the 4 week moving average dropped sharply. Again, this is based on seasonally adjusted fudge packing.The truth is that while this year's end of year rise in claims is better than the past two years, the numbers are still a lot worse than during good economic times. This week’s jump of 52k compares with a rise of 88,929 in the week that ended 1/2/10. The chart below shows that the normal seasonal uptrend is at a lower trend level than the past two years, but well above 2006-2008. The insured unemployment rate remains well above the 2004-2008 period. However, even that number may be misleading because it uses a base number comprised of a 6 month average from the period that ended in June. Because fewer people are now eligible, the actual rate should be higher.[chart]Because new claims are limited to those eligible, part of the downtrend in new claims is due to the millions of persons losing eligibility. To account for that, the next chart shows new claims as a percentage of those eligible. Here the improving trend shows evidence of leveling off. The normal seasonal spike at the beginning of January needs to hold around .053% to keep the downtrend from the peaks of the past 2 years intact. The green line connects the most recent week with the same week in prior years. Next week’s data should be the seasonal peak.[chart]The Department of Labor calculates the total number of covered employees quarterly, using a 6 month average. The current figure is based on data from the first half of 2010, which is not very useful now. However, it does imply that much of the drop in continuing claims has come from those losing eligibility.[chart]The following chart shows Continued Claims on an inverse scale, overlaid with stock prices and Fed securities holdings. The inverse Continued Claims graph is a directional proxy for total employment. The downtick at this time of year is normal. The trend remains strong which suggests that the seasonally adjusted payrolls data tomorrow should be positive. The consensus calls for a gain of 140,000. As I reported in the Wall Street Examiner Professional Edition Treasury update to subscribers this week, wage tax withholding in December ran 15% ahead of November, but that probably reflects withholding from year end bonuses rather than a significant increase in employment levels. The year to year gain was more muted.[chart]It’s pretty clear from this chart that the Fed is the driver of these trends, but that other forces are at work causing diminishing returns.Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.’

 

 

Expecting Employment Surprise: Dave's Daily  ‘There are a lot of wild estimates making the rounds for employment data Friday. Consensus estimates for new jobs added range from 150-200K, but some whisper numbers are as high as 500K and that would shock many sectors. Meanwhile stocks were hurt early by poorly received December same store sales (despite bullish headlines to the contrary) and rebound higher in Jobless Claims. Nevertheless, the dollar continued to rise as commodity markets were still selling-off. The buzz remains inflation is heating up particularly in food and energy so investors fear tightening even as the Fed is engaged in QE. Now that's interesting!! Bond prices remained rather stable. The Fed tossed in more POMO activity Thursday. As that was announced stocks immediately rallied if only briefly. What a coincidence! In advance of the all-important employment report volume remained light and breadth negative.’

 

 

Are Investors Concerned About Rising Gas Prices?   Rotblut ‘Bullish sentiment extended its streak of above-average readings to 18 consecutive weeks in the latest AAII Sentiment Survey. This is the longest such streak since 2004. The percentage of individual investors expecting stock prices to rise over the next six months rose 4.3 percentage points to 55.9%. The historical average is 39%.Neutral sentiment, expectations that stock prices will stay essentially flat over the next six months, fell 2.5 percentage points to 25.9%. Neutral sentiment has been below its historical average of 31% for 22 consecutive weeks.Bearish sentiment, expectations that stocks prices will fall over the next six months, slipped 1.8 percentage points to 18.3%. Bearish sentiment has been below its historical average of 30% for 15 out of the last 17 weeks.Bullish sentiment remains at historically high levels. One example of this is the eight-week moving average of bullish sentiment, which is above 51% for the third consecutive week. (It is at 51.4%.) This measure has not been higher since January 2005. Other measures also suggest sentiment is running hot, including the spread between bullish and bearish sentiment (37.6 percentage points) and the standard deviation (bullish sentiment is more than one standard deviation above the historical mean). High bullish readings have been correlated with market pullbacks, but other indicators should be analyzed before predicting where stocks prices are headed.Individual investors are continuing to feel optimistic about stock prices due to, in part, the sustained rally and additional signs that the economy is recovering. News of upbeat 2011 forecasts from several market strategists is also playing a role.This week’s special question asked AAII members whether they are concerned about the potential impact rising gasoline prices will have the economic recovery.About half of respondents described themselves as being somewhat worried about rising prices at the pump. Many did think the economy will grow, though the pace of the recovery might be slowed. Several members added the caveat that their concerns are dependent on how high prices actually rise. A small number thought higher prices would be good for their energy holdings or would increase demand for fuel-efficient vehicles and other green initiatives. Here is a sampling of the responses:

This week’s sentiment survey results:

Historical Averages:

The AAII Sentiment Survey has been conducted weekly since July 1987 and asks AAII members whether they think stock prices will rise, remain essentially flat, or fall over the next six months. The survey period runs from Thursday (12:01 a.m.) to Wednesday (11:59 p.m.). The survey and its results are available online.

 

Less Than 35% of All Stocks Are Undervalued Suttmeier ‘ValuEngine now shows that only 34.6% of more than 5,000 stocks are undervalued with 65.4% overvalued. A reading below 35% may persist for a while, but typically the stock market tops out when less than 35% of all stocks are undervalued. Fifteen of 16 sectors are overvalued by 8.6% for Consumer Discretionary to 33.1% for Basic Industries. Medical is the undervalued sector, but only by 1.4%. The major equity averages are extremely overbought on both daily and weekly charts. The missing ingredient for a top is the lack of nearby risky levels for the major averages. The major equity averages straddle quarterly value levels, pivots and risky levels favoring a reversal-oriented first quarter – 11,395 Dow, 1162.5 SPX, 2853 NASDAQ, 4671 Transports and 765.50 Russell 2000. The rise in the 30-year yield above 4.5% is a major drag on equity valuations. With stock market complacency as high as it is, Comex gold closed below its 50-day simple moving average at 1380.6 for the first time since August 11. Nymex crude oil is above this week’s pivot at $88.50. The euro is between its 200-day at 1.3080 and its 50-day at 1.3422, approaching a test of the 200-day. The Dow is well above my annual pivot at 11,491 without a nearby risky level as the MOJO run continues. Valuations are stretched with only 16.1% of all stocks undervalued by at least 20%, whereas 33.0% of all stocks are overvalued by more than 20%.[chart](Click to enlarge)

It is difficult to find stocks to add to the ValuTrader Model Portfolio as only 76 stocks are rated STRONG BUY or BUY with a market cap of at least five billion and average daily trading volume of 500,000 shares or more, and projected to gain at least 7.5% over the next twelve months. There are twelve stocks in the model portfolio.

Key Levels From My Proprietary Analytics

10-year Note – (3.483) Weekly, annual and semiannual value levels are 3.714, 3.791 and 4.268 with a daily risky level at 3.371. Annual, semiannual and monthly risky levels are 2.690, 2.441, 2.322 and 2.150.

Comex Gold – ($1373.7) Annual, semiannual and annual value levels are $1356.5, $1300.6 and $1187.2 with a weekly pivot at $1380.0. Daily, monthly, quarterly and semiannual risky levels are $1412.74, $1439.0, $1441.7 and $1452.6.

Nymex Crude Oil – ($90.30) Semiannual and monthly value levels are $87.52 and $75.74 with a weekly pivot at $88.50. Annual, semiannual and quarterly risky levels are $99.91, $101.92, $107.14 and $110.87.

The euro – (1.3149) Monthly and weekly value levels are 1.2805 and 1.2703 with quarterly and daily pivots at 1.3227 and 1.3358, and semiannual and annual risky levels at 1.4624, 1.4989, 1.6367 and 1.7312.

Daily Dow: (11,723) Annual, quarterly, weekly, semiannual, monthly and semiannual value levels are 11,491, 11,395, 11,334, 10,959, 10,427 and 9,449 with a daily pivot at 11,687, and annual risky level at 13,890.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.’



Retailers hold down stocks ahead of jobs data (Reuters)  - Stocks slipped on Thursday as soft retail sales and a sharp rise in the dollar left investors edgy a day before December's U.S. employment report.

 

Doug Casey: Prepare for Social Upheaval LewRockwell.com | The big question is not, “Can it happen here?” but, “Will it?” Or maybe, simply, “When?”

 

Fed May Keep Easing at ‘Full Throttle’ Until Decline in Unemployment Rate Bloomberg | Federal Reserve officials signaled they’ll probably push ahead with unprecedented stimulus until the recovery strengthens and many of the 15 million unemployed Americans find work.

 

Why Are Taxpayers Subsidizing Facebook, and the Next Bubble? The New York Times | Is another bubble being formed by ‘too big to fail’ Goldman-Sach’s valuation of FaceBook?

 

 

Record high food prices stoke fears for economy Reuters | Record high food prices are moving to the top of policymaker agendas, driven by fears they could stoke inflation, protectionism and unrest and dent consumer demand in key emerging economies.

 

White House Defends Obama’s Senate Vote against Raising Debt Ceiling But Warns of Catastrophe If GOP Doesn’t Raise Debt Ceiling The Obama administration is warning of catastrophic consequences if Congress does not increase the debt ceiling, the legal limit on how much the federal government can borrow, but Barack Obama held a different view on the issue as a senator in 2006.

 

2011: Year of the Big Default? Every week, Max Keiser looks at all the scandal behind the financial news headlines. Watch the full Episode 110 of the Keiser Report on Thursday.

 

How High Will Gold Go in 2011? Since CNBC has been issuing a non-stop barrage of its own version of reality vis-a-vis gold and other precious metals, it may be time for some counterpoint.

 

An Avalanche of Liquidity Threatens Us With Inflation With Ben Bernanke as our Shepherd how can we go wrong? He tells us quantitative easing is not inflationary.

 

 

National / World

 

‘Maryland Staged Terror’ and ‘Prison Cities’ Top Google Trends Aaron Dykes | Following two suspicious explosions today in Maryland, the search term “Maryland Staged Terror” topped Google’s hot trends at #1 this Thursday, January 6, 2011.

 

Alex Jones: DEA uses drug war to spy worldwide  [ Well, I don’t know about the spying, but the DEA certainly isn’t serious about putting a real dent the illegal drug trade inasmuch as they’re hands off the connected u.s. government connected illegal drug ops, ie., cia, etc., (see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )      http://albertpeia.com/FBIAgentAffidavit11.jpg         http://albertpeia.com/CIAAgentAffidavit1.jpg     ] Russia Today | The United States government allegedly infused drugs into our inner cities in order to keep minorities down and destabilize world governments.

 

Maryland Staged Terror? FBI Caught Provocateuring Patsies Paul Joseph Watson | Two explosions in Maryland should be treated with a huge amount of suspicion.

 

A Nation Of Truth-Rejecters Chuck Baldwin | The rejection of truth seems ubiquitous in America today.

 

Utah Welcomes NSA Mega-Snoop Center Kurt Nimmo | The NSA’s job is to keep tabs on Americans who disagree with the government

 

Eco-Fascists Call For Prison Cities People who resist the state controlling every aspect of their existence will be forced to live in squalid ghettos while the rest of the population will be tightly controlled in high-tech prison cities – that’s the future envisaged by eco-fascists who are exploiting the contrived global warming fraud to openly flaunt their plan for the total enslavement of mankind.

 

“The Birds”: Mapping The Global Mass Animal Deaths Graveyard Full interactive map of the now global mass animal deaths outbreak.

 

Utah Welcomes NSA Mega-Snoop Center Utah will be home to NSA’s mega-surveillance program under the aegis of the formerly secret Comprehensive National Cyber-security Initiative.

 

‘Birther’ arrested during Constitution reading A woman was arrested in the House gallery Thursday after interrupting a reading of the Constitution by yelling out her belief that President Barack Obama is not a natural born citizen of the United States.

 

Planned-Opolis: Elitist Agenda For Eco-Enslavement Not content with depicting children being slaughtered in the name of preventing non-existent global warming, climate change alarmists have embarked on a new propaganda campaign lecturing us all about how we will be forced to live in a “planned-opolis,” where car use will be heavily restricted, CO2 emissions will be rationed, meat will be considered a rare delicacy, the state will decide your career, and only the mega-rich elitists enforcing all these new rules and regulations will be exempt from them.

 

 

Authors: CIA waited years to stop nuclear proliferation The US government is guilty of allowing nuclear materials and intelligence to proliferate among some of the most dangerous regimes in the world for more than 30 years, a new book alleges.

 

Pentagon Plans to Send 1,400 Extra Marines To Afghanistan Defense Secretary Robert Gates has decided to send an additional 1,400 Marine combat forces to Afghanistan.

 

In The Future You May Not Be Able To Provide The Basics For Your Family Even If Everyone In Your Family Has A Job Today, millions of American families are extremely stressed out because they are working as hard as they can and yet they find at the end of the month they still haven’t been able to pay all of the bills.

 

 

Drudgereport: Congresswoman calls Afghanistan 'national embarrassment'...
'Epic failure'...
Rep. Lynn Woolsey (D-CA) talks about the "disastrous" war that is Afghanistan. "This war represents an epic failure, a national embarrassment and a moral blight," Rep. Woolsey said. [ But more than that, this war is a blowback-creating, self-perpetuating, self-destructive, self-defeating, colossally expensive debacle benefiting only the war profiteers / lobbies and attendant frauds while diverting attention from the more ’mundane’ tasks of governance of a failing, pervasively corrupt, defacto bankrupt nation, viz., america. ]
PENTAGON BUDGET SLASH [ Riiiiight! … What’s $80 billion on a trillion dollar tab especially with those off-budget special items whenever they so choose.  ]: OBAMA TO CUT TROOPS ON ACTIVE DUTY
FEDS BREAK GROUND ON SUPER SPY CENTER (Riiiiight! More spending on those ultra-efficient super-spies, ie., Iraq on a lie, illegal drug ops, 9-11 NORAD ordered to stand down, etc., though u.s. defacto bankrupt)...
New Miami Police peeping drone may be first in country; ACLU approves...
Man Arrested for Having 'Suspicious' Bagel on Plane...
Ex-CIA officer charged with leak to NYT reporter...
Packages Cause 'Flash Explosions' At 2 State Gov't Buildings in MD...

One addressed to Gov...
US Treasury asks Congress to lift debt ceiling...
Obama calls Gibbs $174,000 salary 'relatively modest' ( Come on! In pervasively corrupt, defacto bankrupt america, government jobs for the otherwise unemployable at those levels are over-priced and over-valued, as are other so-called executive jobs, ie., fraudulent wall street, etc.. Look at their results! )...

 

 

As euro zone expands, tension remains between weak, strong (Washington Post) [ Sounds like a scenario analogous to that in the USSAD, united soviet states of american disunity. After all, how can you justify fraudulent (ie., wall street, etc.) national sinkholes as mob corrupted new york, mob-infested, pervasively corrupt  jersey, etc..] German deficit hawks gained an ally Saturday when Estonia became the 17th member of the euro zone.

 

 

U.N. group warns of possible food crisis (Washington Post) [ Possible? How ‘bout it’s already begun and hence, inevitable particularly since worldwide with few exceptions in looking to the u.s. as analogous to the self-destructive compulsion of an addict or drunk they’ve jumped on the american crazy train, from perpetual wars, to profligate spending, to over-printing of fiat paper currencies, to mark to anything burial and cover-up and no-pros of fraudulent paper schemes of the fraudulent wall street ilk / variety, etc.   ] The Food and Agricultural Organization said Wednesday that the world faces a "food price shock" after the agency's benchmark index of farm commodities prices shot up last month.

 

 

IRS ombudsman: Heavy hand isn't working (Washington Post) [ Heavy hand, indeed; but in reality, a weak one at that BECAUSE, you can’t pay what you don’t have … then again, many people are wondering just what they’re paying for in these admittedly hard times; viz., perpetual and protracted wars, bailouts for the opulent frauds on wall street, profligate spending, rich plushly accoutered federal jobs for slugs of different stripes and failed performance, etc.. ]  By making it harder for taxpayers to get back on their feet, the IRS might actually reduce long-term tax collections, an in-house report says.

 

 

Fed will be in watch mode  (Washington Post) [ Riiiiight! … That eternally vigilant friend only of fraudulent wall street fed … ‘watch’ … as in boob tube? How the (‘no recession’ as per fed) recession (ongoing and great as in depression) imploded states' finances see infra) After a tumultuous 2010, what's on tap for Ben S. Bernanke and the Federal Reserve in 2011?

 

How the recession imploded states' finances (Washington Post) [  This is truly no joke!  Municipal Debt Threatens U.S. Economy Lim ‘The debt crisis that has taken down banks, and even countries, threatens more than 100 American municipalities this year. According to Meredith Whitney, who works as a US research analyst, local and state debts are the biggest concerns to the US economy today. It is large enough to derail economic recovery.

She said that,

There’s not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizable defaults – more. This will amount to hundreds of billions of dollars’ worth of defaults.

American states and cities have a total debt load of around $2 trillion.

New Jersey government Chris Christie summarized it clearly,

We spent too much on everything. We spent money we didn’t have. We borrowed money just crazily. The credit card’s maxed out, and it’s over. We now have to get to the business of climbing out of the hole. We’ve been digging it for a decade or more. We’ve got to climb now, and a climb is harder.

Cities from Madrid to Detroit are struggling to pay off even just basic services such as street cleaning. Ms. Whitney’s comments are likely to put focus on municipal bonds. She is ranked as one of the most influential women in American business. While working for Oppenheimer, a New York investment bank, she predicted that Citibank will cut its dividends. Although she suffered from a lot of criticisms then, her analysis proved to be correct as the bank was forced to seek government bail-out. Ms. Whitney has since started her own consulting firm.

Deficit Already Affecting Public Spending

American states have spent almost $500 billion more than tax revenues. In addition, they face another $1 trillion hole in pension funds. Already, Detroit is cutting road repairs, cleaning services, police, and lighting expenditures which affects 20% of the population. The city has suffered from nearly two decades of decline due to US auto outsourcing. It no longer generates enough wealth to provide services to its 900,000 inhabitants. Meanwhile, Illinois is suffering from similar ills after spending twice as much as it generated in tax. It is already six months behind on creditor payments. It owes $400 million to the University of Illinois alone and has 21% chances of defaulting on its debts. According to CMA Datavision which is a derivatives information company, this percentage is more than any other state. Other states such as California and Arizona are also taking steps to solve their debt problems. California has raised university tuition fees by 32% while Arizona sold its Supreme Court and state capitol buildings before leasing them back. Florida is another state that may be hit by a default; this state is the center of a real estate boom that went best recently.

Philip Brown, the managing director of Citigroup in London said that,

It’s all part of the same parcel: public sector indebtedness needs to be cut, it needs a lot of austerity and it hit the central government first, and now is hitting local bodies.

Unlike banks and other financial institutions, “cities are their own”. According to Andres Rodriguez-Pose, a professor of economic geography at the London School of Economics, “cities will have to pay for their debts, and in some cases they will have to carry out dramatic cuts, such as Detroit’s.” If there is a city that best symbolizes distressed local finances, it is Vallejo in California. Vallejo is a former US navy town located near San Francisco. It has entered into Chapter Nine bankruptcy protection in 2008 and the effects are still resonating up to this day. The city is trying to negotiate with the unions, which has refused to accept a plan to cut salary two years ago. Vallejo has a population of around 120,000 but it carries $195 million in unfunded pension obligations. The town does not have enough local industry to sustain its finances; property tax collection dropped dramatically upon the collapse of the real estate market. Vallejo is given a C rating by Standard & Poor, the lowest level. US cities are more susceptible to defaults than their European counterparts because it relies mainly on municipal bonds while European towns depend on government bailouts and bank loans.

Gold Expectations for 2011

Now, let’s take a look at long-term gold chart (courtesy of StockCharts.com) to see how bullion fared this week:

[chart] For some time, gold has tried to break the upper border of the rising trend channel. Gold prices have been wavering from $1,340 to $1,423 since October 5 with a general upward slope. It has often just fallen by a fraction below the rising trend line. There are signs that a break-out could be seen soon. We take into account that gold is quite bullish at the onset of a new year. The $1,600 target still seems realistic for the early part of 2011. 2010 ended on a high note for precious metals. Gold ended the year at $1,421 an ounce while silver is at $30.91 an ounce. Overall, gold prices rose by 30% in 2010 while silver leaped 80%. Prognostications abound in 2011. These forecasts consider the outlook for currencies, inflation, and interest rates in the world’s largest economies. We’ll examine some of the trends that may influence gold prices:Gold prices tend to rise in times of projected or actual inflation due to the bullion’s status as a “safe haven” asset. Investors who are seeking an asset that reacts favorably to currency devaluation and inflation typically move some of their wealth into gold. Right now, the Fed is more concerned about deflation rather than inflation. As such, they show little reluctance to flood the US economy with dollars. Meanwhile, countries such as India and China want stronger economic growth. The result of this is higher inflation. China’s prices are now 5.1% higher compared to a year ago while India projects an inflation of 5.5% by March 2011. But the correlation between high inflation and high gold prices isn’t set in stone. Although more inflation will initially favor high gold prices, the countervailing policy of keeping interest rates to control inflation sometimes makes interest-bearing instruments more attractive. As of now, however, rates are not high enough to have an impact on gold prices. Historically, the first two months of the year are good for gold. Buyers seek back the gold positions they shed going into the New Year. The continuing inflationary concerns can further support prices in 2011. The Reserve Bank of India said that inflation is not slowing down as quickly as desired. In the US, there are reports that companies are experiencing higher costs for staffing and/or materials, but these costs are not yet being felt by the customers. According to Frank Holmes, the CEO of US Global Investors, “The two pillars of gold are, in any country’s currency, are negative real interest rate and deficit spending.” Mr. Holmes believes that low interest rates won’t go away anytime soon as this would be “catastrophic” to the financial system.’

 

  Video: State pensions face 'death spiral' Wash.Post (It’s not just state and local … it’s national, ie., social security, medicare, Medicaid, veterans, etc., and as well, some companies. ) Sept. 15 (Bloomberg) -- U.S. state pensions such as Illinois, Kansas and New Jersey are in a "death spiral," with assets at many insufficient to cover benefits, payouts consuming a growing portion of resources and costs rising twice as fast as investment gains. Bloomberg's Monica Bertran reports. (Source: Bloomberg) (Bloomberg)

 ] The recession blew a huge hole in the already shaky finances of state governments, causing them to lose nearly one-third of their revenue in 2009, according to a Census Bureau report released Wednesday.

 

 

[video] ADP Data Still Fighting For Credibility [ Come on! Pervasively mob infested, corrupt jersey based ADP? There’s nothin’ left in desperation for those b.s. / b.e.(bad economics/finance) talking points and action to froth the market for the frauds on wall street. This is an especially great opportunity to sell / take profits because there’s nothin’ there, beyond the smoke and mirrors. This market’s way over-bought and way over-valued!  ] NEW YORK (TheStreet) -- Alan Valdes of DME Securities says the market focused on the job revision data as ADP is still viewed with skepticism.

 

 

World Food Prices Rise: Get Ready for the Riots?  [ Food Riots Next? FAO Says Food Prices Surpass Record Highs Seen During 2007-2008 Bubble  infowars.com / prisonplanet.com The last time food prices hit ridiculous levels, the immediate outcome was global food riots in places such as Haiti and Bangladesh.   ] Tradermark ‘As the 'financialization' of every commodity of earth continues at pace, and easy money pours out of almost every major central bank, we have now reached the point where food prices have surpassed the record levels of 2008. [Feb 12, 2008: Wheat is Being Ruined by ... what else... Hedge Funds and Speculators] [Apr 28, 2008: Wall Street Grain Hoarding Brings Farmers, Consumers Near Ruin] [Apr 6, 2008: Agflation Hits Rice - Prices Up 50% in 2 Weeks] What happened back then? Just some minor issues such as rioting in many '2nd' and '3rd' world countries. Looks like we need to prepare for another hot summer. And domestically those food stamps are not going to go quite so far as they used to. [Nov 10, 2009: Walmart Executive - "There are Families Not Eating at the End of the Month"]

Oh well, just consider it collateral damage in The Bernank's plan to make us (and Goldman, JPMorgan, et al) all rich via asset inflation. (I will stop by some local food banks to let them know they can make some mad money in the markets to offset the rising prices) Just remember to blame it all on China - that was a great excuse back in 08, even though we saw once leverage was taken out of the financial system prices of commodities suddenly crashed. This repeating epidemic has no relationship at all with financial speculation at all. Nope.

On a related note - a tip of the hat to Congress for the recent ethanol funding expansion, snuck in during the lame duck. If there is one thing that makes sense when we have the potential for global food crisis, it is putting inefficient corn in our cars. [Mar 27, 2008: WSJ - Farm Lobby Beats Back Assault on Subsidies] The main saving grace at this time is rice, which is massively important in the East. Too bad there is not a rice ETF or else speculators with Ben's easy money supply and demand dynamics could push it up much more quickly.

Via Bloomberg:

 

 

 

Rising Asset Prices Cannibalize U.S. Growth  , On Wednesday January 5, 2011, 7:44 pm EST

‘Rising asset prices are bad for investors! At first glance this statement makes no sense at all. Upon closer examination, however, there is much truth to this statement. Bear with me for a couple of minutes and you'll see what I mean.

Rising Oil Prices - Good or Bad?

Perception seems to have a bigger influence on news coverage than facts. A recent Wall Street Journal front-page headline read that: 'Oil back at $90 as growth gains pace.'According to the WSJ reporter, 'the recovery in oil prices is an encouraging sign of world growth.' Wait a minute. Since when are rising oil prices (NYSEArca: USO - News) good for the economy?In early 2008, when oil prices were rising, economists were in agreement that the ripple effect of rising crude would sap the American consumer of precious discretionary funds.Obviously, the concept of cause and effect is subject to interpretation. The same cause (rising oil prices) had a different effect in 2008 than it has today. In 2008 it stifled the economy; in 2011 it's viewed as a sign of improvement.Because rising oil prices affect everybody, they are often compared to a flat tax - like a sales tax. More money spent on taxes means less money spent on items that help improve the economy. In fact, some economists argue that rising crude negates much or all of the monetary benefits of the tax cut extension.

Rising Commodity Prices - Good or Bad?

If you've had your money in any single commodity like gold (NYSEArca: GLD - News), silver (NYSEArca: SLV - News), agriculture (NYSEArca: DBA - News) or broad commodity funds (NYSEArca: DBC - News), count yourself happy, but don't get greedy.Commodities had a great run, but similar to high oil prices, high commodity prices cannibalize economic growth. Why? The more money needed to spend on food staples, the more careful you have to be with your discretionary spending.In a still battered real estate market, homebuilders (NYSEArca: XHB - News) have to pass on the extra cost of rising timber, iron and copper prices. What this economy needs is an uptick in real estate prices, not a bigger price tag for building or remodeling homes.

Major Growth Engines in Trouble

Despite rising commodity prices, inflation has been a non-issue domestically, largely because retailers don't have much pricing power.According to Dr. Jim Walker, Founder of Asianomics Limited, higher commodity prices are already impoverishing large parts of emerging markets (NYSEArca: EEM - News) and are sucking the demand from the poor and middle-income class of society.Demand from the middle-class is the growth engine of a healthy economy. Stifling the growth of the world's largest consumer base - China (NYSEArca: FXI - News) - can't be good for business.

The 'New Economy'

Many readers remember a time when the U.S. was a production powerhouse, when General Electric earned profits with items of tangible value not TV stations and financial products; a time where GDP was built on ingenuity, hard work and sweat.The ingenuity portion of the equation is still alive, but look at its transition. The country's biggest and most successful company - Apple - manufactures and assembles nearly all of its products in China.The country's newest and most powerful companies - Groupon and Facebook - were created out of thin air. No disrespect to Mark Zuckerberg and Andrew Mason - they came up with the right concept at the right time - but what role does Facebook and Groupon play in the 'new economy?'Facebook is valued at $50 billion, that's more than triple the market cap of Alcoa. How and what does Facebook contribute to U.S. gross domestic products (GDP) and real organic economic growth? Yes, Facebook employs about a thousand people, but what else?How about Groupon? Groupon is an ingenious business model and has changed (or is about to change) the way Americans shop. Wall Street is cheering Groupon and can't wait for the IPO. However, the new way of buying nurtures frugality and robs restaurants and retail stores of their pricing power. Consumers just won't buy unless they get a 50%+ discount.Don't get me wrong, I have an above average appreciation for coupons - probably because there was no such thing when I grew up in Germany- but Groupon is the antidote to inflation. My guess is that even Bernanke would agree.

Air-pocket Protection

I often hear that technical indicators don't work in an environment where the Fed controls the market and inflates prices at will.If you believe the Fed is pumping up major indexes like the Dow (DJI: ^DJI), S&P (SNP: ^GSPC) and Nasdaq (Nasdaq: ^IXIC) you must be wondering how long that will work. If this rally isn't value driven - which in my humble opinion it isn't - stocks have nowhere to go but down, eventually.In essence, the Fed is creating a new bubble in an attempt to mop up the spill left behind by the previous bust. It doesn't take an investment wizard to figure out that this bubble will also burst, eventually. When it does, it will probably get ugly.How do you invest in a market where another potential meltdown lurks behind every correction? You monitor the markets vital signs. How? Technical indicators are the best way.

Technical Analysis - More Valueable than Ever

Using purely technical gauges, the ETF Profit Strategy Newsletter has identified various long-risk entries (to the upside) since the S&P broke above its 200-day moving average (at the time at 1,115).Technical analysis includes, but is not limited to, interpreting the effect candle formations, chart patterns (such as the ascending triangle or W pattern), acceleration bands, Fibonacci levels, and trading brackets have on prices.A technical approach to the market takes the bias out of investing. Personally, I am bearish on the market, but have learned to trust technicals and wait for high probability set ups, long or short.Despite the recent sentiment extremes, which rivaled or exceeded readings recorded at the 2007 highs, the ETF Profit Strategy Newsletter has been expecting prices to reach 1,285 for the S&P.   [chart]On December 12, the newsletter commented as follows on the W pattern: 'The W pattern (opposite of the bearish M pattern) is a bullish pattern. The upside target is calculated by the difference between the left side of the W and the bottom of the W (1,227 - 1,173 = 54). The difference is then added to the right breakout of 1,227 (1,227 + 54 = 1,281).'Markets tend to reverse around major resistance points, one of which surrounds the 1,281 area. What happens when stocks (or other asset classes) change direction from up to down? Will it be a temporary correction or a protracted decline?’

 

 

Municipal Debt Threatens U.S. Economy Lim ‘The debt crisis that has taken down banks, and even countries, threatens more than 100 American municipalities this year. According to Meredith Whitney, who works as a US research analyst, local and state debts are the biggest concerns to the US economy today. It is large enough to derail economic recovery.

She said that,

There’s not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizable defaults – more. This will amount to hundreds of billions of dollars’ worth of defaults.

American states and cities have a total debt load of around $2 trillion.

New Jersey government Chris Christie summarized it clearly,

We spent too much on everything. We spent money we didn’t have. We borrowed money just crazily. The credit card’s maxed out, and it’s over. We now have to get to the business of climbing out of the hole. We’ve been digging it for a decade or more. We’ve got to climb now, and a climb is harder.

Cities from Madrid to Detroit are struggling to pay off even just basic services such as street cleaning. Ms. Whitney’s comments are likely to put focus on municipal bonds. She is ranked as one of the most influential women in American business. While working for Oppenheimer, a New York investment bank, she predicted that Citibank will cut its dividends. Although she suffered from a lot of criticisms then, her analysis proved to be correct as the bank was forced to seek government bail-out. Ms. Whitney has since started her own consulting firm.

Deficit Already Affecting Public Spending

American states have spent almost $500 billion more than tax revenues. In addition, they face another $1 trillion hole in pension funds. Already, Detroit is cutting road repairs, cleaning services, police, and lighting expenditures which affects 20% of the population. The city has suffered from nearly two decades of decline due to US auto outsourcing. It no longer generates enough wealth to provide services to its 900,000 inhabitants. Meanwhile, Illinois is suffering from similar ills after spending twice as much as it generated in tax. It is already six months behind on creditor payments. It owes $400 million to the University of Illinois alone and has 21% chances of defaulting on its debts. According to CMA Datavision which is a derivatives information company, this percentage is more than any other state. Other states such as California and Arizona are also taking steps to solve their debt problems. California has raised university tuition fees by 32% while Arizona sold its Supreme Court and state capitol buildings before leasing them back. Florida is another state that may be hit by a default; this state is the center of a real estate boom that went best recently.

Philip Brown, the managing director of Citigroup in London said that,

It’s all part of the same parcel: public sector indebtedness needs to be cut, it needs a lot of austerity and it hit the central government first, and now is hitting local bodies.

Unlike banks and other financial institutions, “cities are their own”. According to Andres Rodriguez-Pose, a professor of economic geography at the London School of Economics, “cities will have to pay for their debts, and in some cases they will have to carry out dramatic cuts, such as Detroit’s.” If there is a city that best symbolizes distressed local finances, it is Vallejo in California. Vallejo is a former US navy town located near San Francisco. It has entered into Chapter Nine bankruptcy protection in 2008 and the effects are still resonating up to this day. The city is trying to negotiate with the unions, which has refused to accept a plan to cut salary two years ago. Vallejo has a population of around 120,000 but it carries $195 million in unfunded pension obligations. The town does not have enough local industry to sustain its finances; property tax collection dropped dramatically upon the collapse of the real estate market. Vallejo is given a C rating by Standard & Poor, the lowest level. US cities are more susceptible to defaults than their European counterparts because it relies mainly on municipal bonds while European towns depend on government bailouts and bank loans.

Gold Expectations for 2011

Now, let’s take a look at long-term gold chart (courtesy of StockCharts.com) to see how bullion fared this week:

[chart] For some time, gold has tried to break the upper border of the rising trend channel. Gold prices have been wavering from $1,340 to $1,423 since October 5 with a general upward slope. It has often just fallen by a fraction below the rising trend line. There are signs that a break-out could be seen soon. We take into account that gold is quite bullish at the onset of a new year. The $1,600 target still seems realistic for the early part of 2011. 2010 ended on a high note for precious metals. Gold ended the year at $1,421 an ounce while silver is at $30.91 an ounce. Overall, gold prices rose by 30% in 2010 while silver leaped 80%. Prognostications abound in 2011. These forecasts consider the outlook for currencies, inflation, and interest rates in the world’s largest economies. We’ll examine some of the trends that may influence gold prices:Gold prices tend to rise in times of projected or actual inflation due to the bullion’s status as a “safe haven” asset. Investors who are seeking an asset that reacts favorably to currency devaluation and inflation typically move some of their wealth into gold. Right now, the Fed is more concerned about deflation rather than inflation. As such, they show little reluctance to flood the US economy with dollars. Meanwhile, countries such as India and China want stronger economic growth. The result of this is higher inflation. China’s prices are now 5.1% higher compared to a year ago while India projects an inflation of 5.5% by March 2011. But the correlation between high inflation and high gold prices isn’t set in stone. Although more inflation will initially favor high gold prices, the countervailing policy of keeping interest rates to control inflation sometimes makes interest-bearing instruments more attractive. As of now, however, rates are not high enough to have an impact on gold prices. Historically, the first two months of the year are good for gold. Buyers seek back the gold positions they shed going into the New Year. The continuing inflationary concerns can further support prices in 2011. The Reserve Bank of India said that inflation is not slowing down as quickly as desired. In the US, there are reports that companies are experiencing higher costs for staffing and/or materials, but these costs are not yet being felt by the customers. According to Frank Holmes, the CEO of US Global Investors, “The two pillars of gold are, in any country’s currency, are negative real interest rate and deficit spending.” Mr. Holmes believes that low interest rates won’t go away anytime soon as this would be “catastrophic” to the financial system.’

 

Oil Continues Steady Climb Kurt Nimmo | Oil exec predicted $5 per gallon gas prices within two years.

 

Russia-China oil pipeline opens BBC News | The first oil pipeline linking the world’s biggest oil producer, Russia, and the world’s biggest consumer of energy, China, has begun operating.

 

Oil Continues Climb In Line With Lindsey Williams’ Prediction On December 16, Lindsey Williams told Alex Jones the price of crude oil will soon hit $150-200 per barrel and this would translate into gas prices in the range of $4-5 per gallon. Williams, an ordained Baptist minister who went to Alaska in 1971 as a missionary, was told about the price increase by insiders in the oil industry he had befriended.

 

Everything Is Falling Apart: America’s Decaying Infrastructure If you haven’t noticed lately, America is literally falling apart all around us. Decaying infrastructure is everywhere. Our roads and bridges are crumbling and are full of holes.

 

When States Default: 2011, Meet 1841 Land values soared. States splurged on new programs. Then it all went bust, bringing down banks and state governments with them.

 

Oil Prices Enter The Danger Zone High oil prices threaten to derail the fragile economic recovery among developed nations this year, the leading energy watchdog has warned, putting pressure on the Opec oil cartel to increase production.

World Food Prices Rise to Record on Sugar, Meat Costs World food prices rose to a record in December on higher sugar and meat costs, the United Nations said, exceeding levels reached in 2008 that sparked deadly riots from Haiti to Egypt.

 

 

National / World

 

Confirmed: Ventura’s Conspiracy Theory Episodes Disappearing from DVRs Kurt Nimmo | Concerted effort by TiVo, AT&T, Comcast to memory hole Police State FEMA show.

 

Choice Of A New World Order Jason Douglass | High fructose corn syrup is engineered to make you fat and unhealthy.

 

Recipe for a Successful 2011 Ron Paul | Will a new Congress elected on the energy of the Tea Party movement find the courage to change course?

 

Censored Jesse Ventura Show On FEMA Camps Survives On You Tube Infowars.com | During his last appearance on the Alex Jones Show, Jesse Ventura confirmed that TruTV was forced to pull the show from their schedule due to government threats.

 

Big Sis Responds In Lawsuit To Suspend TSA Scanners The DHS claims that the scanners are fully compliant with Constitutional requirements and that all other claims that the body imaging program is unlawful are “meritless”, “baseless” and “unfounded”.

 

Food Riots Next? FAO Says Food Prices Surpass Record Highs Seen During 2007-2008 Bubble The last time food prices hit ridiculous levels, the immediate outcome was global food riots in places such as Haiti and Bangladesh.

 

‘Disorientated and wearing just one shoe’: Bizarre last sighting of top White House aide found murdered and dumped in landfill The top Pentagon aide found dead at a landfill site was seen in a confused state 48 hours before his death wandering around the wrong car park and wearing only one shoe.

 

Oil Continues Climb In Line With Lindsey Williams’ Prediction On December 16, Lindsey Williams told Alex Jones the price of crude oil will soon hit $150-200 per barrel and this would translate into gas prices in the range of $4-5 per gallon. Williams, an ordained Baptist minister who went to Alaska in 1971 as a missionary, was told about the price increase by insiders in the oil industry he had befriended.

 

Mass Bird & Fish Die-Offs Go Global, Spark End Times Panic The mass bird and fish die-offs that have affected parts of the U.S. over the last week have now gone global, with Sweden, Brazil and New Zealand becoming the latest countries to experience a phenomena that has sparked both scientific intrigue and apocalyptic panic in equal measure.

 

Censored Jesse Ventura Show On FEMA Camps Survives On You Tube We urge you to watch the videos below because they might not be around for much longer. Jesse Ventura’s Conspiracy Theory show about the police state and FEMA camps, which TruTV never aired because of constant government harassment and pressure, has already been memory-holed and is now under threat of being removed from You Tube as well.

 

Israel said it would keep Gaza near collapse: WikiLeaks Israel told US officials in 2008 it would keep Gaza’s economy “on the brink of collapse” while avoiding a humanitarian crisis, according to U.S. diplomatic cables published by a Norwegian daily on Wednesday.

 

Drudgereport: NATIONAL DEBT TOPS $14 TRILL
DOLLAR FADE: World Bank issues 1st yuan bonds in Hong Kong...
...pushing use of Chinese currency in international markets
Commodities outlook: $100 oil and $1,500 gold...
OIL PRICE 'ENTERS DANGER ZONE'...

FORTUNE: 2011: Year of the bank run?
World Food Prices Rise to Record on Sugar, Meat Costs...
19 Dems vote against Pelosi...
Worst showing for party nominee since 1923...
Angry crowd forces Netanyahu to halt speech...
THE BIG STINK: Rats Having Field Day In NYC after garbage mess...
Canadian river mysteriously turns bright green...

Hundreds of dead birds in TX...
Thousands of dead fish in FL...
Swedish birds 'scared to death'...
40,000 crabs wash up on UK beaches...
MAP...

 

 

Fed's bond-buying strategy looks likely to run its course (Washington Post) [  Neither rain, nor sleet, but only depletion of trees for current and prospective fiat paper currency printing can keep the no-recession-fed from their wall street obsessive market-frothing rounds (which will end quite badly … as such always has … and always will).  ] Federal Reserve officials appear unlikely to stop their controversial strategy of buying Treasury bonds.

 

 

Agency extends Afghan food-supply contract for firm that hired former director (Washington Post) [  Almost, but not quite as bad as what I experienced with the pervasively corrupt american illegal system:

 

 

 

                                                                                                                   October 15, 2010 (*see infra)

 

 

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

 

 

Dear Sir:

 

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer’s browser) as per your office’s request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

 

 

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case  RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages)      [  ricosummarytoFBIunderpenaltyofperjury.pdf   http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf          ].

 

 

The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as     fbicorrespondencereyes.htm     .   With regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry). The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did – he served 12 years in prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).

 

 

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the    RICO VERIFIED COMPLAINT    (see infra). Such includes and as set forth in the case, inter alia,

 

 

  1. A judgment had been entered in my favor in the case, United States District Court Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth approximately now in excess of $300,000 remains unaccounted for and which could be used for payment to creditors, Los Angeles, etc..
  2. Counsel Robert Sullivan on my behalf documented by way of certification upon investigation that Alan Shiff, USBCJ, had falsely stated a dismissal upon which false statement he predicated a retaliatory and spurious contempt proceeding against me causing substantial damage, and for which he sought Judicial Notice of those and related proceedings as did I in some of my filings.
  3. The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to Defendant Coan’s failure to file anything whatsoever by the court’s deadline causing creditors and me substantial damages:   [  Shiff Order of Dismissal With Prejudice on Coan’s Failure to File        Page 1                Page 2          ]
  4. Defendant Coan had filed an action against me to prevent me from suing him which necessitated me to fly to Connecticut for a hearing before The Honorable Robert N. Chatigny, Chief Judge, USDC, District of Connecticut, who denied Coan’s requested relief as to Coan but precluded my action against Shiff (although there is no immunity, judicial or otherwise, for criminal acts, ie., fraud connected with a case under Title 11, USC, etc.) . [   transcript in pertinent part -     crossexamofcoanbypeia.pdf   ]
  5. Newly appointed judge, Maryanne Trump Barry, Donald Trump’s sister, was assigned the RICO case despite the conflict of interest in light of hundreds of thousands of dollars of illegal (drug) money being laundered through the Trump casinos by the RICO defendants, and despite my motion to recuse her which motion she heard herself and denied, and U.S. Trustee Hugh Leonard with whom I met personally refused to join or file a separate motion to recuse and not long thereafter left said office for private practice at Cole, Shotz, et als on retainer with the RICO defendants as his primary client.
  6. Probative and evidentiary documents, affidavits, exhibits, including those turned over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to Assistant U.S. Attorney Jonathan Lacey with whom I met personally at the U.S. Attorney’s Office in Newark, N.J., at which time Samuel Alito was U.S. Attorney, and went over said documents and their probative value with him. Within approximately a month thereafter upon inquiry I was told that Jonathon Lacey was no longer with the office, that the file/documents could not be located, and that there was no further information available concerning contacting him or his location. I thereupon delivered by hand, copies of said documents to the office of then U.S. Attorney Alito, addressed to him, with assurance they would go directly to him. In addition to being inept [ I looked in on the one mob case he had brought, bungled, lost (accidently on purpose?) since I was suing some mob-connected under RICO and the court (I had known / previously met outside of court the judge Ackerman through a client) was absolute bedlam and a total joke since incompetent corrupt Alito brought in all 20 mob defendants (rather than prosecute one or a few to flip them first) who feigning illness had beds/cots in the courtroom along with their moans during testimony and had the jury in stitches. As much as I hate the mob, it truly was funny, if not so tragic.],   Alito is also corrupt (and maybe corrupt because he is inept). After a reasonable (but still rather short) time I called to determine the status and was told that Alito was no longer with the Office of the U.S. Attorney, that he was (appointed) a federal judge, and that neither the documents nor any file or record of same could be located. Alito did parley the same / cover-up into quid pro quo direct lifetime appointment to the Court of Appeals, 3rd circuit, despite the absence of judicial experience or successful tenure as U.S. Attorney (Maryanne Trump Barry as well). This is the same Sam Alito that now sits on the purported highest court in the land. The real application of the illegal rule ‘don’t ask, don’t tell’.

 

 

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

 

 

Sincerely,

 

 

Albert L. Peia

611 E. 5th Street, #404

Los Angeles, CA 90013

(213) 219-**** (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their ‘fix’ so cell phone best for contact).

 

 

                       ----------

 

*The foregoing and as indicated therein was previously send 9-14-10 but delivery confirmation was flawed as set forth below and my inquiries to the u.s. postal service rebuffed (I believe tampered with inasmuch as your office could not locate same). This cover letter (9-13-10) is on the 3 disks with navigable hyperlinks to the subject files for ease of reference, including the files in the RICO action as indicated. (10-15-10) I spoke with Rose, FBI, ADIC Secretary, who indicates once again that your office has not received the aforesaid and which can reasonably be presumed to have been tampered with, and hence, a violation of the federal statute concerning same. ]

 

 

 

Protection bureau to hire general's wife (Washington Post) [  Wow! Sounds like a plan! Talk about insiders and concentrations of power. After all, would you argue with anything sweet Holly Polly Petraeus proffered with the full weight of the military behind her. Somehow, though I’m not goin’ to talk ‘bout smell tests here (you know, that ‘weight of the military thing’), there seems to be something amiss, not quite right here, ‘cause what and why Hollywood do this or that …’  ] Holly Petraeus will lead Consumer Financial Protection Bureau's Office for Service Member Affairs.

 

 

Regional unemployment edges down in November (Washington Post) [  No surprise there with the layer upon layer of bureaucracy, including the alphabet soup kitchens, viz., cia, nsa, dod, doj, etc., whose ranks can include loads of temps, gophers, waiters, ‘runners’, (you know, make-shift / make-work jobs, etc., to froth numbers, despite the nation’s defacto bankruptcy and reality beyond the bubble. 

Jobless Recovery?: 25 Unemployment Statistics That Are Almost Too Depressing To Read ‘… Unemployment is up again! That’s right – even though Wall Street is swimming in cash and the Obama administration is declaring that “the recession is over”, the U.S. unemployment rate has gone even higher. So are you enjoying the jobless recovery? Economic Collapse Blog Dec 4, 2010 ‘Guess what?  Unemployment is up again!  That’s right – even though Wall Street is swimming in cash and the Obama administration is declaring that “the recession is over”, the U.S. unemployment rate has gone even higher ... Times are really, really tough and unfortunately the long-term outlook is very bleak.  We should have compassion on those who are out of work right now, because soon many of us may join them.

The following are 25 unemployment statistics that are almost too depressing to read….

#1 According to the Bureau of Labor Statistics, the U.S. unemployment rate for November was 9.8 percent.  This was up from 9.6 percent in October, and it continues a trend of depressingly high unemployment rates.  The official unemployment number has been at 9.5 percent or higher for well over a year at this point.

#2 In November 2006, the “official” U.S. unemployment rate was just 4.5 percent.

#3 Most economists had been expecting the U.S. economy to add about 150,000 jobs in November.  Instead, it only added 39,000.

#4 In the United States today, there are over 15 million people who are “officially” considered to be unemployed for statistical purposes.  But everyone knows that the “real” number is even much larger than that.

#5 As 2007 began, there were just over 1 million Americans that had been unemployed for half a year or longer.  Today, there are over 6 million Americans that have been unemployed for half a year or longer.

#6 The number of “persons not in the labor force” in the United States recently set another new all-time record.

#7 It now takes the average unemployed American over 33 weeks to find a job.

#8 When you throw in “discouraged workers” and “underemployed workers”, the “real” unemployment rate in the state of California is actually about 22 percent.

#9 In America today there are not nearly enough jobs for everyone.  In fact, there are now approximately 5 unemployed Americans for every single job opening.

#10 According to The New York Times, Americans that have been unemployed for five weeks or less are three times more likely to find a new job in the coming month than Americans that have been unemployed for over a year.

#11 The U.S. economy would need to create 235,120 new jobs a month to get the unemployment rate down to pre-recession levels by 2016.  Does anyone think that there is even a prayer that is going to happen?

#12 There are 9 million Americans that are working part-time for “economic reasons”.  In other words, those Americans would gladly take full-time jobs if they could get them, but all they have been able to find is part-time work.

#13 In 2009, total wages, median wages, and average wages all declined in the United States.

#14 As of the end of 2009, less than 12 million Americans worked in manufacturing.  The last time that less than 12 million Americans were employed in manufacturing was in 1941.

#15 The United States has lost at least 7.5 million jobs since the recession began.

#16 Today, only about 40 percent of Ford Motor Company’s 178,000 workers are employed in North America, and a big percentage of those jobs are in Canada and Mexico.

#17 In 1959, manufacturing represented 28 percent of U.S. economic output.  In 2008, it represented 11.5 percent.

#18 Earlier this year, one poll found that 28% of all American households had at least one member that was looking for a full-time job.

#19 In the United States today, over 18,000 parking lot attendants have college degrees.

#20 The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

#21 As the employment situation continues to stagnate, millions of American families have decided to cut back on things such as insurance coverage.  For example, the percentage of American households that have life insurance coverage is at its lowest level in 50 years.

#22 Unless Congress acts, and there is no indication that is going to happen, approximately 2 million Americans will stop receiving unemployment checks over the next couple of months.

#23 A poll that was released by the Pew Research Center back in June discovered that an astounding 55 percent of the U.S. labor force has experienced either unemployment, a pay decrease, a reduction in hours or an involuntary move to part-time work since the economic downturn began.

#24 According to Richard McCormack, the United States has lost over 42,000 factories (and counting) since 2001.

#25 In the United States today, 317,000 waiters and waitresses have college degrees.

But this is what we get for creating the biggest debt bubble in the history of the world.  For decades we have been digging a deeper hole for ourselves by going into increasingly larger amounts of debt.  In America today, our entire economy is based on debt.  Even our money is debt.  We were fools if we ever thought this could go on forever. Just think about it.  Have you ever gone out and run up a bunch of debt?  It can be a lot of fun sitting behind the wheel of a new car, running your credit cards up to the limit and buying a beautiful big house that you cannot afford. But in the end what happens? It always catches up with you. Well, our collective debt is starting to catch up with us.  There is a sea of red ink on every level of American society.  It is only a matter of time before it destroys our economy. IF YOU THINK THAT THINGS ARE BAD NOW, JUST WAIT.  THINGS ARE GOING TO GET A WHOLE LOT WORSE.  A HORRIFIC ECONOMIC COLLAPSE IS COMING, AND IT IS GOING TO BE VERY, VERY PAINFUL.’




Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"   11-25-10  The U.S. economy "is a complete disaster," Howard Davidowitz declared here in July, the most recent in a string of dire predictions from Tech Ticker's most entertaining guest.On the eve of Thanksgiving, I asked Davidowitz if he had any regrets, or was ready to throw in the towel given recent signs of economic revival. Are you kidding me? "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."As with the economy, Davidowitz is unwaveringly consistent in his views on President Obama, calling him "deranged, dysfunctional and discredited."Results of the midterm election show "the people of this country think we are in a catastrophe," he says. "I'm with them."Check the accompanying video for more of Howard's unfettered opinions and stay tuned for additional clips from this interview. And...Happy Thanksgiving! Aaron Task is the host of Tech Ticker. You can follow him on Twitter at @atask or email him at [email protected]

 

 

 

Timid Tuesday: Is it Safe?   Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘

 

 



     ] The Washington region's unemployment rate dipped only slightly in November from a year ago.

 

 

New Congress, old style  (Washington Post) [  Come on! It’s articles like this, particularly lately by Mr. Milbank, that’ve been  hurting my eyes and ears. One party / administration more corrupt than another in pervasively corrupt, defacto bankrupt america? You’d need a micrometer to discern the difference. Those dogs don’t hunt no more. It’s not so long ago that one can’t remember (Reagan / bush) Iran Contra (which was just another excuse for operatives / cia / etc., to enrich themselves via illegal drug trade / arms which they’d do anyway but wrap themselves in the flag as so-called patriots for legal protection, ie., that so-called purported ‘technicality’ (bribe) that threw out knucklehead accomplice ollie north’s felony, etc., dumbya bush’s war crimes, war on a lie, wall street’s rampant and protected fraud, war profiteering, the clinton scandalous, etc., years. All three branches of the u.s. government are hopelessly and pervasively corrupt. (see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )   . But, let us also grudgingly admit that any accusation of corruption in american government is at least on its face, true; because, it really is true despite the concomitant reality of the ‘pot calling the kettle black’ scenario. ]  Milbank: The new GOP majority and its leader, Eric Cantor, are acting a lot like the Dems they beat.

 

Short-Term, High-Probability Mean-Reversion Indicator: Overbought Readings Continue to Increase Crowder ‘It was the best start to a year in over seven years, but I am not sure how long Monday’s gain will last, at least over the short-term.According to my High-Probability, Mean-Reversion overbought/oversold indicator, most of the ETFs I follow have pushed into a short-term “overbought” to “very overbought” state. As I have stated ad nauseum, when this many ETFs hit a short-term extreme the market typically takes a short-term reprieve (1-3 days).The XLB position that is currently held in the High-Probability, Mean-Reversion strategy moved in the red Monday although it was only a slight move. The position, in my opinion, still looks rather well-positioned given the short-term extreme overbought state of the market and XLB.Since I placed the trade there have been some incredibly large positions taken in XLB. Someone sure thinks the Materials sector (XLB) is headed south. Check it out here.The year ended with some nice gains as the High-Probability, Mean-Reversion strategy made 9.7% gains for the month to follow up the 3.7% in November. Not bad for the first two months of the strategy. Hopefully 2011 will bring allow for more gains in the strategy.As I stated last week, going back over the last seven years, if you purchased QQQQ on the 8th trading day of January and held until the end of the month, you would have had returns of -2.3%, -3.1%, -2.3%, -2.7%, -4.1%, -1.6% and -7.7%. The median maximum gain during those trades was +0.7% compared to a median draw down of -5.3%.

Short-Term High-Probability, Mean-Reversion Indicator – as of close 1/03/10

Benchmark ETFs

* S&P 500 (SPY) – 86.5 (very overbought) / RSI (2) – 96.5
* Dow Jones (DIA) –79.5 (overbought)
* Russell 2000 (IWM) – 71.4 (overbought)
* NASDAQ 100 (QQQQ) – 74.5 (overbought)

Sector ETFs

* Biotech (IBB) – 62.5 (neutral)
* Consumer Discretionary (XLY) – 70.5 (overbought)
* Health Care (XLV) – 72.5 (overbought)
* Financial (XLF) – 84.2 (very overbought)
* Energy (XLE) – 89.5 (very overbought) / RSI (2) – 98.8
* Gold Miners (GDX) – 48.5 (neutral)
* Industrial (XLI) – 80.1 (very overbought)
* Materials (XLB) – 91.4 (very overbought) / RSI (2) – 95.7
* Real Estate (IYR) – 85.8 (very overbought) / RSI (2) – 96.0
* Retail (RTH) – 76.2 (overbought)
* Semiconductor (SMH) – 61.8 (neutral)
* United States Oil Fund (USO) – 64.1 (neutral)
* Utilities (XLU) – 68.3 (neutral)

International ETFs

* Brazil (EWZ) – 82.0 (very overbought) / RSI (2) – 98.7
* China 25 (FXI) – 72.2 (overbought)
* EAFE (EFA) – 77.4 (overbought)
* South Korea (EWY) – 91.9 (very overbought) / RSI (2) – 99.1

Commodity ETFs

* Gold (GLD) – 64.9 (neutral)

Ultra Extremes

* Small Cap Bear 3x (TZA) – 24.6 (oversold)
* Small-Cap Bull 3x (TNA) – 74.1 (overbought)
* UltraLong QQQQ (QLD) – 75.4 (overbought)
* Ultra Long S&P 500 (SSO) – 90.2 (very overbought)
* Ultra Short S&P 500 (SDS) – 10.7 (very oversold)
* UltraShort 20+ Treasury (TBT) – 43.5 (neutral)

Disclosure: I am short XLB.’

 

 

China Stocks’ Best Forecaster Predicts Further Slump in 2011

 

Housing: A Drag on the Economy in 2011 (Part 2)

 

When the Going Gets Tough, Governments Seize Private Pensions Depew ‘If you were of an Austrian economics bent, and could read Polish, you'd find this article from Mises.pl, about governments seizing private pension funds to make up for revenue shortfalls, fascinating. But perhaps you cannot read Polish? Very well. The Christian Science Monitor has an English version of the article translated via The Adam Smith Institute Blog.

The most striking example is Hungary, where last month the government made the citizens an offer they could not refuse. They could either remit their individual retirement savings to the state, or lose the right to the basic state pension (but still have an obligation to pay contributions for it). In this extortionate way, the government wants to gain control over $14bn of individual retirement savings.

The Bulgarian government has come up with a similar idea. $300m of private early retirement savings was supposed to be transferred to the state pension scheme. The government gave way after trade unions protested and finally only about 20% of the original plans were implemented.

A slightly less drastic situation is developing in Poland. The government wants to transfer of 1/3 of future contributions from individual retirement accounts to the state-run social security system. Since this system does not back its liabilities with stocks or even bonds, the money taken away from the savers will go directly to the state treasury and savers will lose about $2.3bn a year.

I sure hope the U.S. government doesn't touch my private pension. Wait, I want a private pension!’ [They already have!]

 


Beware of the Wall Street Pump Job The Housing Time Bomb [ The old new pump and dump! ]’ Articles like the one below really bother me after the rally we have seen in the past two years:

Is the retail investor returning to stocks?

NEW YORK (Reuters) - U.S. stocks just posted back-to-back years of strong gains, yet the small U.S. investor largely remained a spectator. Now financial advisers say investors, many of whom rode out the financial crisis in cash and bonds, are slowly regaining confidence."What I'm seeing now is there's a lot more talk about getting into stocks," said David Gottlieb, a Cleveland adviser for Edward Jones, a nationwide brokerage catering to middle-class Americans.Gottlieb, who for several months has encouraged clients to increase their stock allocations, advises reducing bond holdings and buying dividend-paying stocks.The Standard & Poor's 500 Index kicked off the new year by rising 1.1 percent on Monday, reaching levels not seen since the weeks before Lehman Brothers collapsed in September 2008. Large company shares, as a group, have nearly doubled since their March 2009 lows, reflecting two years of double-digit gains.Worries of a banking system collapse and the deepest recession in more than 70 years drove many retail investors out of the stock market back in 2008. And the May 2010 "flash crash," when stocks lost 700 points in minutes for no apparent reason, further undermined confidence.
Investors showed their dismay by pulling money from stock mutual funds month after month, opting for the perceived safety of cash and bonds.

My Take:
What's your point Reuters? Are you telling investors to buy stocks because confidence is slowly coming back? Is that a solid fundamental reason to buy?Is now really the time to buy stocks after the equity markets have basically doubled since the lows?There are just as many money managers advising caution in our current investment environment as there are money managers who are advising investors to take on more risk. There are severe structural issues with our economy that are not going away, and it angers me that just about every article out of the media slants their articles into suggesting that you should buy stocks.Shouldn't the media be totally skeptical of Wall St. after watching equities plummet 50% twice within the same decade? Also, let's not forget that these are the same criminals that just finished putting of millions of Americans into homes that they cannot afford which are worth 30% less than what they paid for them.Shouldn't the press be relentlessly hammering Wall St after causing Americans so much financial pain in the last decade? I don't get it:Why does Wall St. always get a free pass when they destroy America's 401k's? Why isn't the article above titled "Is Now the time to sell stocks after a 90% rally?" The media needs to understand that they have a responsibility when they write this kinda fluff. To be fair Reuters did toss in a paragraph in the middle of the piece warning of the risks of getting into stocks:

Still, some advisers are being very cautious.William Jordan of William Jordan Associates in Laguna Hills, California, says he is telling clients not to increase their stock exposures."As good as the past two years have been, you can't say the stock market is undervalued. I'm not bailing out, but I'm advising people to take some profits."Clients also are encouraged to stick with their investment plans. Scott Smallman, a Seattle broker for Wedbush Securities, said he has been checking to see if the stock market rebound has pushed some stock exposures too high."When markets are good, our job is to talk clients down from the ceiling," said Smallman, who on Monday encouraged some clients to consider buying municipal bonds."


The Bottom Line
In my opinion, this article is far from "fair and balanced". Reuters quoted 4 "pump monkey" advisers suggesting that everyone should be piling into stocks versus only 2 advisers that were "cautious". There were zero "bears" in the piece which is ridiculous when you look at Wall Street's performance over the last 10 years. You are down 20% if you listened to these bubble makers over the last decade. There are numerous potentially catastrophic risks that remain out there and they are rarely if ever laid out by the MSM. High unemployment, bankrupt banks, and insolvent countries are just just a few that come to mind.I am amazed at how short all of our memories are when it comes to Wall St. The financial system was brought to it's knees two years ago by these pigs, and it's still sitting there crippled as the Fed runs up the credit card pretending that the economy is recovering.The MSM should be ashamed of themselves for ignoring the financial fraud and printing pieces of garbage like the one above.What ever happened to hardcore journalism? Walter Cronkite must be rolling over in his grave. Sadly, our media outlets now have the attention span of an 8 year old with ADD. If the news is a week old then it's history in their books.’ [  If it was only attention that was lacking there’d be at least a modicum of hope. The really sadly here is that most understand so little of what’s going on and those that do (understand) are want to report it; you know, mum’s the word, code omerta, no party-poopers allowed, etc.. ]

 

Dodd-Frank and the Return of the Loan Shark Wall Street Journal | In the name of consumer protection, Congress has pushed more Americans outside the traditional banking system.

 

The Rise of the New Global Elite The Atlantic | Two separate economies are emerging from the economic crisis as the elite get richer and the middle class join the ranks of poor.

 

The Never-Ending “Business of Centralization” Damon W. Root | What’s wrong with placing a few limits on federal power?

 

 

National / World

 

 

Ron Paul Talks 2012 Presidential Run: “I am Involved In A Revolution” Steve Watson | The Congressman appeared alongside his son, Senator elect Rand Paul on CNN’s Anderson Copper 360 show.

 

The Global Elite’s “ENDGAME” for Humanity Infowars | Canadian author, blogger, and philosopher Stefan Molyneux of freedomainradio.com joins the show to discuss several key issues. Big Pharma is preparing to exploit the new swine flu scare, news on the economy, and more.

 

Keiser Report: Monsanto and the Seeds of Evil RT | This time, Max Keiser and co-host, Stacy Herbert, about the US State Department’s genetically modified retaliation against France, more missing billions in Afghanistan and shopping frenzies in Britain.

 

Gladio reprise: More False Flag Operations Wayne Madsen | There are already signs that the paradigm shift from Islamist terrorism to leftist anarchism is already occurring.

 

The Madness Of A Lost Society 2: Final Warnings Youtube | We didn’t stand up for truth, we didn’t stand up for the Constitution, we didn’t stand up for the rule of law. And now the day of reckoning is upon us. Please, prepare.

 

Obama Picks Mobbed-Up Wall Street Insider For Powerful Administration Role Reports that Barack Obama is considering naming William Daley, a JPMorgan Chase & Co. executive and former U.S. Commerce secretary, to a powerful position within the White House, serve as a reminder that while posing as a squeaky-clean man of the people, Obama is the ultimate establishment lackey.

 

 

 

Falling birds likely died from massive trauma The thousands of birds that fell from the sky just before midnight New Year’s Eve in Arkansas likely died from massive trauma, according to a preliminary report released Monday.

 

Is The New Madrid Fault Earthquake Zone Coming To Life? What in the world is happening in the middle of the United States right now? Thousands of birds are falling dead from the skies, tens of thousands of fish are washing up on shore dead, earthquakes are popping up in weird and unexpected places and people are starting to get really freaked out about all of this.

 

500 Dead Birds Found In Louisiana Town Around 500 dead blackbirds and starlings have been found in Pointe Coupee Parish, according to state wildlife officials.

 

Lindsay Lohan Moves Out Of Hollywood & In To Venice, CA TV.com [  Public Enemy No. * - Right … No!  This is ridiculous! In California of all places (where crime rates, including violent serious crimes, as in america generally are understated across the board and yet america can boast the highest crime rates in world by far. After all, didn’t that pathetic former male model / actor / pretender schwarzenegger cut by more than half the sentence for murder / manslaughter to politically juice his own end of days scenario. Schwarzenegger is living proof of the substantial brain damage attendant to steroid use. The ‘tough on crime change meister’ … What a total gutless wonder and fraud schwarzenegger turned out to be … and no small wonder he’s pluggin’ for a position in the wobama administration. )  ]  Due to conflicting reports as to whether or not Lindsay Lohan is actually out of rehab right now, we aren't entirely sure where in the world the troubled starlet is at the moment.    Palm Desert PD Gunning for Lindsay From the Get-Go TMZ.com     People: Lindsay Lohan may go back to jail San Jose Mercury News

 

Drudgereport: NATIONAL DEBT TOPS $14 TRILL
OIL PRICE 'ENTERS DANGER ZONE'
FORTUNE: 2011: Year of the bank run?
Severed head hung from bridge in Tijuana...

Pakistani governor murdered -- by own guard...
Philippines politician takes photo of assassin -- moments before being killed...
POLL: Voter Concern About Economy Hits Highest Level In Over Two Years...
Unemployment up in two-thirds of metro areas; most since June...
UPDATE: BIRDS DROP FROM SKY OVER LOUISIANA...

MYSTERY...  
Tens of thousands of small fish die in Chesapeake Bay...
Kentucky woman reports dozens of dead birds in her yard...
100 tons of dead fish wash up on Brazil's shores...
House Republicans move to repeal Obama healthcare...
...may starve financial reform of cash
House Republicans plan assault on Obamacare...

BOEHNER PLANS REPEAL VOTE -- IN WEEKS...
Issa: Obama administration 'one of most corrupt in modern times'...
...vows to take on White House over spending...
New Congress sets its eyes on oversight...
COMING SOON: THE INVESTIGATIONS
Israel preparing for 'large scale war'...
Iran 'shoots down Western spy drones' in Gulf...

 

 

 

What it took to get the defense spending bill passed (Washington Post) [ Given the defacto bankrupt status of the nation, I’d say, like the unprecedented and insurmountably great national debt, unprecedented and insurmountably great stupidity.  Drudgereport: NATIONAL DEBT TOPS $14 TRILL

Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"   11-25-10  The U.S. economy "is a complete disaster," Howard Davidowitz declared here in July, the most recent in a string of dire predictions from Tech Ticker's most entertaining guest.On the eve of Thanksgiving, I asked Davidowitz if he had any regrets, or was ready to throw in the towel given recent signs of economic revival. Are you kidding me? "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."As with the economy, Davidowitz is unwaveringly consistent in his views on President Obama, calling him "deranged, dysfunctional and discredited."Results of the midterm election show "the people of this country think we are in a catastrophe," he says. "I'm with them."Check the accompanying video for more of Howard's unfettered opinions and stay tuned for additional clips from this interview. And...Happy Thanksgiving! Aaron Task is the host of Tech Ticker. You can follow him on Twitter at @atask or email him at [email protected]

 

Timid Tuesday: Is it Safe?   Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘
 ]

 

Israeli troops kill Palestinian man at checkpoint in West Bank (Washington Post) [ Could you imagine if it was a jew who was killed. Beyond the stereotype which is easily envisioned, you’d never hear the end of it. But israel sees no need to adhere to laws governing the civilized throughout the world, from illegal nukes, to u.n resolutions (ie., 343, 338, etc), international law, etc., and hence, the strife we see in the region and throughout the world.  ]

 

U.S.-built infrastructure is deteriorating (Washington Post) [ At first glance, I thought this article was miscategorized as a national story in the World section. Indeed, there’s no denying the truth of the title as america generally, domestically. Yet, the tragedy is that the tainted, destructive, self-defeating wars for america have been a boon for war profiteers, frauds of all stripes, when this defacto bankrupt america is sorely in need of repair, replacement of its own shoddy, aging infrastructure suffering from the domestic equivalent of similar scams, kickbacks, shoddy workmanship and all. After all, it got to the point that they didn’t even go through the motions / façade and actually flew $12 billion in hundred dollar bills into Iraq which to this day is unaccounted for / unprosecuted … like the wall street frauds, since the worthless toxic paper cashed out by wall street is still out there in the trillions now marked to anything. ] Roads, canals and schools built in Afghanistan as part of a special U.S. military program are crumbling under Afghan stewardship, despite new steps imposed over the past year to ensure reconstruction money is not being wasted, according to government reports.

 

 

Bank of America settles loan dispute with Fannie, Freddie (Washington Post) [ Guess they’re just looking for some year end bonus money (maybe not, depending on the controls, if any, if enforced – they weren’t last year). After all, though I believe the wall street frauds have been cashing out, albeit somewhat surreptitiously by way of QEs 1,2, etc., and for ever more worthless over-printed fiat dollars, that ‘toxic’ worthless paper is still out there in the many trillions marked to anything. Indeed, Davidowitz adds that with record numbers of americans on food stamps, real unemployment at 17+, wall street is giving out record bonuses from their accomplished fraud (with no-recession b.s. bernanke help) of $144 BILLION …]   Fannie Mae and Freddie Mac have accepted $2.8 billion from Bank of America to largely put to rest claims that the bank sold them faulty loans.

 

 

Incoming House GOP chairmen have a long list of issues to investigate (Washington Post) [ Yeah … Sounds like a plan! … One that requires backtracking at least to dumbya bush days and war based on a lie with wobama taking up where dumbya bush left off; viz, that perpetual war thing though the nation’s defacto bankrupt. Then there’s the still no pros for the largest and most massive securities fraud in the history of the world with consequences still extant to the tune of trillions in toxic / worthless paper now marked to anything they so choose as per legislative mandate via FASB rule change (bush’s and surprising to some wobama’s base) . A full plate, there is no doubt. But, butt, just posturing, politicking, don’t look for anything of consequence though there’s plenty there. Then there’s zionist peter king of the national sinkhole new york (   / new jersey- Bankrupt Government Has Plans For Your Unused Gift Cards.  [Mob invested, (and like america, generally) pervasively corrupt, meaningfully lawless and defacto bankrupt toxic, disgusting jersey is just doing what they’ve done for at least decades … no surprise here. (see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )     ] Jason Douglass ‘…Saving up this years gift cards to make a large purchase? You better use them up fast because state governments like New Jersey think they have a better use for that money. In an attempt to save themselves from obvious mismanagement, state authorities have begun steps to confiscate the balance left on your unused gift cards. Arguably, gift cards are one of the biggest scams going. Most consumers have been exposed to gift card’s eccentricities and know how impossible it is to use all the money on the card. Then, once the transaction is complete, it is twice as difficult to get the remainder of the balance left on the card in cash. Now our public officials want to get in on the scam.Large amounts of unused cash are locked away in these effective little marketing devices and New Jersey thinks they have a right to seize that money from you. In fact, they’ve already taken the steps to do just that…’     ]

 

 

Profit From the Rally's Inevitable End: My Correction Wish List Invest Chief ‘As we say goodbye to 2010, we look towards the future and what 2011 will bring. As you may or may not know, bullish optimism hit historical highs for the outlook of 2011. I mean you could find the wildest outlooks, such as Dow 20,000, housing crisis solved, unemployment 6%, etc.There was certainly no shortage of ridiculous claims that will not come true. The point is, the best way for success in the markets is to simply roll with the punches. Whether the Dow goes to 6,000 or 60,000, you must roll with the punches and profit from the changes. If you are too focused on a certain Dow level or other catalyst, you may be waiting for a long time, missing out on profits along the way.The first “punch” investors are going to get is a correction. The Dow had a huge run in December and investors will be taking profits as they had begun to do in the last few trading days in 2010. It is advised that you take profits and wait for the correction. While the correction is occurring, select a “wish list” of companies that you would like to snatch up at cheaper prices. That way all you have to do is place orders. The homework to value your stocks should be your reasoning to place them on your “wish list”.I have my “wish list” ready to go. Here are a few of my stocks that I am planning on buying during the correction:

Shell is one of the best integrated oil plays right now. It pays over 5% dividend, P/E of 13.3, financially stable, good cash flow. It should also be noted that Shell recently inked a huge deal with Qatar, which should help boost earnings no doubt.Hartford was devastated by the 2008 crisis, dropping from its high of $66 the stock now stands at 26.50. Hartford is the most undervalued company its industry, in cash flow. Also, it has a P/E of 11. Hartford has a good management team behind it and it will surely blossom as the economy recovers.

Diana Shipping has been catching big money’s attention lately. Diana is pretty undervalued with a P/E of 7.8. Diana outpaces the rest of its industry in ROE, debt/equity, growth, and cash flow. Diana is a great stock if you want exposure to bulk shipping. A well known competitor of Diana Shipping is DryShips (DRYS). Based on value, Diana is a better call.First Niagara is a regional bank with 171 branches in the Northeast United States. First Niagara is one of the stronger regional banks which makes it a good takeover play. First Niagara weathered the recession well and they pay a 4% dividend. The only major problem I have with FNFG is the fact that they have a sizable amount of debt on their balance sheet but like I said, this is a pretty good takeover play and they pay a nice dividend while you wait. Another regional bank I would recommend for 2011 is East West Bancorp (EWBC).The message I am trying to get across is that you should always have a list of desired stocks that you would like to pick up when a pullback occurs. Regardless, it is always important to do your homework on a stock to understand if that stock fits your investing style.

The best way to profit in the stock market is always being prepared for the inevitable. A correction is coming; stocks are just too expensive right now after the huge rally we have had. It is time to take some profits and wait patiently for a pullback and pick up some great names at a cheaper price…’

 

 

Market Crash on 1/31/11? Technical indicators suggest market collapse may begin by January 31st

 

 

 

Is This a Major Market Top? [ Truth be told, there was a time when I read Barron’s with great regularity (no more). I never missed Alan Abelson’s incisively sharp wit and the market laboratory, the latter being supplanted by readily accessible numerical data on the web. I also don’t recall Alan Abelson ever being wrong and I don’t think he’s wrong here, particularly when you consider the costs, fraud, and insanity underlying this manipulated and inflated stock market which bubble is at best a (contrived) bull cycle in a secular bear market. ] Roche ‘With economic recovery still in doubt and sentiment readings at their highest levels since the S&P 500 topped in 2007, some market prognosticators find the latest surge in stocks to have been irrational. There is now a near universal belief that stocks have but one direction to go and that has some investors feeling uneasy. This weekend’s Barron's showed the diametrically opposing views as two of their leading columnists (Alan Abelson and Mike Santoli) discussed why they believe this is a major market top (or not).

Abelson refers to a certain veteran market technician (whom he doesn’t identify):

And he shares our concern about the epidemic of optimism that has gripped the Street, manifest in any number of wildly bullish forecasts for the market in 2011. It is the kind of explosive optimism that is usually witnessed, he says more in wonder than rue, at market tops, either temporary or something worse.

He doesn’t buy the argument that the huge stash of cash supposedly sitting on the sidelines is a guarantee of a steady source of fuel for the equity rally. Rather, he calls that hefty pile of cash, which is being augmented by a fresh infusion from fixed-income investors now that bonds are getting clocked, “scared money.” It belongs, he elaborates, to folks who all this time have been leery of committing their dough to stocks but, thanks to December’s quantum leap in share prices, have grown increasingly fearful of missing the next leg up, and are itching to put all that scratch to work.

That such nervous-newbie equity buyers will stay the course and step up their buying after the initial, inevitable correction is hardly a given. Our bet is that they would jackrabbit out at the first hint of trouble.

The peerless technician is also bothered by the leadership of the end-of-the-year rally. More specifically, the shares of commodity-related companies are in the vanguard of the advance at a time when China, the big global buyer of virtually every commodity known to man, is striving to rein in inflation. It is no accident, he suggests, that Chinese stock markets have been lagging, and he feels they may prove a pretty good precursor for our own dear market.

In sum, he sees stocks making at least a temporary top early in the new year. It’s hard to say, he readily admits, just how bad or enduring a setback equities will suffer. But obviously, he’s talking something more substantial than a flickering decline or a tiny crack.

Santoli’s case against a major market top has been more commonly discussed:

The reasons the bulls are bullish are also pretty universally agreed upon. The industrial economy has gathered some momentum, the emerging markets are surging, companies are flush, profits look set to rise decently again, the Federal Reserve is seeking new ways to penalize risk aversion, taxes won’t go up and the market tends to do well in the year after a midterm election.

And we can add to the list the likelihood that another financial-engineering cycle is just getting into gear, so expect lots of equity-friendly refinancings by stretched companies, re-leveraging by cash-rich ones and buyouts hither and yon.

The thing is, it’s all pretty much true. And because of that, and given that stock valuations are not excessive, it’s tough to think a likely pullback or worse would signal some major top.

Indeed, the happy feeling and the recent climb in margin borrowing and drop in short interest, by one way of looking at them, simply show that what has been a bull market for the better part of two years is finally being viewed as one. The last time we had such a run of investor optimism, indeed, was late 2004, before a calm but not terribly exuberant year.

The risk, then, is more about the near term, about expectations of ease meeting some unforeseen complication early this year, and that what’s likely to be a firm fundamental and technical case for riskier financial assets in 2011 has, to a fair degree, been priced in by the market lift of late 2010.

Interestingly, both appear to agree that the major risk is in the near-term. Santoli, however, clearly believes any sell-off will prove to be a buying opportunity. Abelson tends to still be in the bear market camp. Major market top or a prelude to a continuation of the bull market? Only time will tell.

Source: Barron's’

 

 

 

 

January Barometer - As January Goes, so Goes the Year? , On Monday January 3, 2011, 6:40 pm EST Did you know that there are two seasonal patterns with an accuracy ratio of 90% or higher? This is no joke. The numbers don't lie, but there is one caveat.The January Barometer has a 90% rate of success. The essence of the January Barometer is simple, as January goes, so goes the year. If January is up, the entire year will be up and vice versa.

90% Accuracy - Too Good to be True?

From 1950 to 2008 this pattern has played out most of the time. There were only five times when it outright failed and seven times when it wasn't exactly accurate. According to the Stock Trader's Almanac, the Barometer has a 90% accuracy ratio. In terms of odds, that's about as good as it gets.However, the January Barometer led investors in the wrong direction in 2001 when the S&P was down a full 13% at the end of the year after being up 3.5% in January. Again, there was a major misfire in 2003 when the S&P finished with a 26.4% gain after a 2.7% January loss.There was a minor misfire in 2005, but the Barometer couldn't have been more wrong in 2009 and 2010. In 2009 the S&P was down 8.6% in January but ended the year with a 23.5% gain.  After a 3.9% January loss last year, the S&P (SNP: ^GSPC) finished with a 12.6% gain.It seems like the January Barometer has lost its mojo. In fact, five hits and five misses bring the last decade's success rate down to 50%, in line with random odds.

A New January Pattern

Every January is different, but over the past three years a new pattern has emerged. Christmas euphoria is followed by a New Year hangover. Let's see what the numbers say.On December 24, 2007 I was invited to share my 2008 outlook with CNBC's Maria Bartiromo. At the time, the major indexes had just recovered some of their initial October/November losses and the percentage of bullish advisors polled by Investors Intelligence was 54.9%, very close to last week's 55.6%.My advice then was to employ strategies that benefit from a topping market.  On December 24, 2007, the DJIA (DJI: ^DJI) closed at 13,549, the S&P (SNP: ^GSPC) at 1,496, the Nasdaq 100 (Nasdaq: ^IXIC) at 2,128, and the Russell 2000 (NYSEArca: IWM - News) at 794.Stocks (NYSEArca: VTI - News) suffered from topping action throughout 2008 before delivering a year-end rally. In fact, the 2008 Santa Claus Rally delivered the highest return in decades, 7.4% for the S&P.On December 14, 2008, I cautioned via the ETF Profit Strategy Newsletter: 'Optimistic sentiment, which should be more visible above Dow 9,000, will give way to further declines. These should draw the indexes close to or below their November 21st lows of 7,445 for the Dow and 740 for the S&P.' Early January 2008 the DJIA poked above 9,000 three times before shedding 29%.2009/2010 was not much different than the previous two years. On December 17, the ETF Profit Strategy Newsletter stated: 'The days leading up to and following Christmas tend to have a bullish bias for stocks. Nevertheless, bearish forces are becoming more pronounced and stocks are facing stiff resistance at Dow 10,500 and S&P 1,120.' That stiff resistance led to a swift 9% correction.The chart below illustrates the pattern of December rallies followed by January sell offs. Of course this new pattern might disappear as fast as it appears, but my analysis shows that January 2011 will follow in the footsteps of the three previous Januaries. [chart]

Looking Beyond January

Let's say we get the expected January correction, then what?We would be in a pickle because according to the long-term track record of the January Barometer, stocks should continue weak throughout the year while according to the Presidential Election Year Cycle stocks should be up.The third year of the Presidential Election Year Cycle (such as 2011) is historically the strongest of the four-year cycle. This may sound like a too good to be true statistic, but there hasn't been a major loss in a pre-election year since 1931.In an effort to get re-elected, each administration is working overtime the year before elections to buoy whatever there is to buoy in order to create a setting that's conducive to winning as many re-election votes as possible.

A Premature Pop?

Courtesy of the 2008 financial meltdown, the administration and the Fed were forced to open the money spigot earlier than during the average Presidential cycle. Does that mean that the stock market has peaked pre-maturely? We don't know yet, but based on current sentiment readings it's a possibility that shouldn't be ignored.

Correction and Pop Protection

Since the market's internals today are similar to what we saw leading up to the April 2010 high and the previous three January highs, it isn't a far stretch to expect a similar outcome - a swift and largely surprising decline between 9 - 29%.The S&P hasn't reached our upside target level yet, so it's best to let the current rally do its thing. Once reversal levels are reached, the proverbial air pocket that's been supporting this creeping up trend is likely to bust and result in a downward jolt.Momentum is a fickle force. Just as momentum has carried stocks higher than expected, it may drive prices lower than any of the ueber-bullish Wall Street analysts expect.

Eliminating Variables

The big question is whether the Federal Reserve and Wall Street banks (NYSEArca: XLF - News) can manage and control any sell off. It surely seems like they were able to do so in January and April of 2010. However, they were powerless throughout 2008 and had to watch the market swallow up fellow competitors.It's no secret that my personal outlook is fundamentally bearish, but with the influx of QE2 liquidity and the bullish bias of the Presidential Election Year Cycle, it's prudent to listen to the market's vital signs.The ETF Profit Strategy Newsletter continuously monitors the market's breadth in connection with important support and resistance levels. Any trend change from up to down is most likely to occur against resistance. Once a reversal is in place, it's vital to watch how the market performs at support levels of various degrees.The ETF Profit Strategy Newsletter outlines the next major resistance level along with support levels the market has established over the past weeks, months and years. Nothing expedites momentum like a break below support. We all know what momentum can do.’ 

 

 

Robert Shiller's 2020 Target for the S&P 500

 

A Look at Base Metals: Dave's Daily A FEW BULLS CHARGE OUT OF THE GATE It was an impressive ramp to start 2011 wasn't it? Inside the numbers there was again little volume. Markets are now much overbought and this low volume is worrisome as a cascade of heavy volume will no doubt appear from the sell-side as long as this continues. There was another round of POMO (nearly $8 billion) Monday to start the year which helps trading desks facilitate what the Fed wants -- higher stock prices. Of course the story making the biggest splash was Goldman Sachs wanting a piece of Facebook which would push the value of the company to $50 billion. Also, BAC settled some outstanding issues with FNM to the tune of $2 billion. Taken together this pushed the financial sector higher. Most economic news Monday like ISM Data was generally as expected, but higher prices in Europe spilled over early to New York. Most bulls believe a growing economy is in the works which should lead to better earnings and stock prices. That's the story, and bulls are sticking to it. The Interior Department will allow some deepwater drilling to resume oddly coincided with some selling in commodity markets, especially precious metals. But, the dollar was also somewhat stronger which would usually cause a decline…’

 

 

TrimTabs: “No Amount Of QE Will Be Able To Keep The Current Stock Market Bubble From Bursting” It was the night before Christmas Eve, and CNBC trucked out TrimTabs’ Charles Biderman to a de minimis audience, knowing full well that a man with his understanding of money flows would very likely repeat his statement from last year, that there is no real, valid explanation for the inexorable move in stocks higher, as equity money flows in 2010 were decidedly negative, and any explanation of the upward melt up would need to account for Fed intervention (and no-volume HFT offer-lifting feedback loops but that is a story for another day).

 

Observations On The Latest Debt “Inflection Point”, And Why Bernanke Has At Most 5 Months In Which To Announce QE3 Yesterday on Tom Keene’s always informative show, two of the world’s most important economists, Goldman’s Jan Hatzius and BofA’s Ethan Harris presented their respective defenses for why GDP in 2011 would rise by nearly 4% as per their recent predictions.

 

Oil Surges to Highest Year-End Price Since 2007 on Dollar Oil surged to its highest year-end price since 2007 as the dollar weakened and gasoline and heating oil futures climbed.

 

Is Gold – Or Fiat Currency – In a Bubble? Gold is not in a bubble, silver is not in a bubble, precious metals are in general terms not in a bubble.

 

China must Kill the Dollar Economic Assassin | In the hope of reducing their own inflation China must kill the dollar.

 

US Debt Limit Fight Would Be ‘Catastrophic’: White House Reuters | A top aide to President Barack Obama warned of catastrophic consequences if Republicans follow through on threats to reject an increase in the nation’s borrowing limit.

 

Jobs Are Trickling In, But Millions Have Given Up Looking For Work Reuters | U.S. private employers have recorded 11 consecutive months of job gains, yet the number of people who are so discouraged that they have given up searching for work stands at an all-time high.

 

War Causes Inflation … And Inflation Allows The Government to Start Unnecessary New Wars and Keep Us In Them For Longer than Needed War almost always causes inflation.

 

Never Forget The Fed Caused The Economic Downturn Chairman of the Federal Reserve, Ben Bernanke, would have us believe that if it were not for QE1 unemployment would have been considerably higher.

 

2011: Doom is Always 6 Months Away Since doom is always 6 months away, and I can write doom porn with the best of them, here we go…

 

National / World



Gerald Celente: What’s in store for 2011 RT | “Were going to see more and more cyber attacks, just like we saw with WikiLeaks,” explained Celente.‘What’s in store for the world in 2011? Trends forecaster Gerald Celente of the Trends Research Institute provided his insights on the year ahead. Will the people of the world wake up to a dire economic reality? Will the US dollar or the value of gold prevail? Will hardship-driven crimes be committed across the socioeconomic spectrum by legions of the on-the-edge desperate? Will the “War on Terror” morph into the “War on Crime,” where all Americans are suspects until proven innocent? Will governments try to eliminate free access to the web and literally shut down computers and websites they consider a threat to national security? Will the seeds of revolution be sown?Celente argued that all of the above will take place in some shape or form. There will be a wakeup call on the economy, a crack down on the people and a loss of liberty, and also an increase in Journalism 2.0, alternative energy and a growth in cyber war tactics. “Look what’s happening now. You name the city,” he said.“The people are getting hit on at every level.” The banks and governments are robbing the people and will continue to do so, he argued. “What they are going to do, is they are going to make up the slack by going after the little people at every level; licensing fees, parking fees, you name it, they’re going to squeeze every dollar out of the people,” Celente commented.“If you go five miles over the speed limit there’s a cop waiting for you.” Gold will run high in 2010, as the federal resave continues to dump US currency into the system gold will rise much higher, possibly even double in value over the next year. In the name of terror the government will clamp down on the people, crime will rise as dissatisfaction with the economy and government policies rise. “Big Brother will be watching!” Celente said. “We even have Wal-Marts as a rat for the homeland security division to call them up and let them know if anything is untore that they should know about and they are talking now about expanding homeland terrorist security in hotels and shopping malls.” The US government will be watching every move every person makes. “They are going to clamp down more and more as people continue to complain more and more about the injustices that are happening, particularly on the economic front,” he explained. “When people lose everything, and they have nothing left to lose, they lose it! As people keep losing it, the government will crack down even tighter.” Looking forward, cyber warfare will grow further, becoming a new type of warfare for the 21st century. Those in cyber industry have a strong future, he added.“Were going to see more and more cyber attacks, just like we saw with WikiLeaks,” explained Celente. “We’re going to see worldwide cyber crime. In the end, the world will end in 2011,” said Celente, but what that means exactly he wouldn’t say.’

 

 

Terrorist Watch List May Exceed US Population by 2019, World Population by 2023 A report from the Washington Post (brought to us via Infowars.com) says that the new official policy for the terrorist watch list is that a single ‘credible’ tip may deem you unworthy of (air) travel in the United States of America.

 

Pentagon’s propaganda in full view With the Afghanistan war going so poorly there has been an outpouring of emotions, an LA artist decided to make a mural depicting a dollar draped over a casket on a side of a building. Many believe this is revolting but some like Founder of Brave New Films Robert Greenwald says this indicates how brilliant the Pentagon has been at increasing censorship, so anything that goes against their propaganda will be shot down or in this case covered up.

 

 

 

Just 35 pct. of Americans support continuing Afghan occupation, poll finds A record number of Americans oppose the US war in Afghanistan, according to a recently released poll.

 

George Soros: The United States Must Stop Resisting The Orderly Decline Of The Dollar, The Coming Global Currency And The New World Order In the video you are about to see, George Soros talks about “the creation of a New World Order”, he discusses the need for a “managed decline” of the U.S. dollar and he talks at length of the global need for a true world currency.

 

30 Reasons Why 2011 Is Going To Be Another Crappy Year For America’s Middle Class Do you think that 2011 will be a good year for America’s middle class? Well, you might not be so optimistic after you read the 30 statistics posted below.

 

Preparing for the Financial Crisis The crisis in the US and world financial markets give us reason to make preparations for the foreseeable problems ahead.

 

Mass protest over Government cuts planned Unions are gearing up for a demonstration in the spring against the Government’s massive cuts in public spending, predicting it will be a “huge” national event.

 

Bankrupt Government Has Plans For Your Unused Gift Cards.  [Mob invested, (and like america, generally) pervasively corrupt, meaningfully lawless and defacto bankrupt toxic, disgusting jersey is just doing what they’ve done for at least decades … no surprise here. (see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )     ] Jason Douglass ‘…Saving up this years gift cards to make a large purchase? You better use them up fast because state governments like New Jersey think they have a better use for that money. In an attempt to save themselves from obvious mismanagement, state authorities have begun steps to confiscate the balance left on your unused gift cards. Arguably, gift cards are one of the biggest scams going. Most consumers have been exposed to gift card’s eccentricities and know how impossible it is to use all the money on the card. Then, once the transaction is complete, it is twice as difficult to get the remainder of the balance left on the card in cash. Now our public officials want to get in on the scam.Large amounts of unused cash are locked away in these effective little marketing devices and New Jersey thinks they have a right to seize that money from you. In fact, they’ve already taken the steps to do just that…’

 

Big Sis Photocopies Credit Cards, Confiscates Christmas Calendars Paul Joseph Watson | The agency is now instructing its airport security screeners to make photocopies of people’s credit cards, while Big Sis is also busy fighting terrorism and protecting America by confiscating chocolate Christmas advent calendars.

 

John Lott: More Guns, Less Crime Infowars.com | John Lott explains why guns bans only serve to increase gun crime rates.

 

TrimTabs: “No Amount Of QE Will Be Able To Keep The Current Stock Market Bubble From Bursting” Zero Hedge | If the money to boost stock prices by almost $9 trillion from the March 2009 lows did not come from the traditional players, it had to have come from somewhere else. We believe that place is the Fed.

 

More TSA Lies In Attempt To Cover Up Security Failures Steve Watson | Claims that leaked security failure figures are “outdated” are easily debunked.

 

Germany Hides Spy Satellite Under ‘Global Warming’ Umbrella. Jason Douglass | Wikileaks exposes an intergovernmental pact to disquise a spy satellite array as a tool to study ‘global warming’.

 

2010 in review: Here’s what happened in the world of natural health and health freedom Mike Adams | Still, 2010 was mostly a year of expanded censorship, attacks on health freedom and expansions of government tyranny.

 

 

Happy New Year: 19 killed in US drone attacks in Pakistan US drones carried out four strikes in Pakistan’s restive tribal belt today, killing 19 militants and injuring several more in the first such attacks of the new year, officials said.

Israel arrests 2 UK consulate workers in Jerusalem (AP)

Israel preparing for 'large scale war'...

Israel's Labor: We'll quit if no progress to peace (AP)

 

 

Treasury Department shifts its stake in Ally Financial (Washington Post) [ Oooooh! Sounds like a plan (with only those tiny pikers fannie and freddy to follow) … till the next debacle … which will be coming soon to a theater near you …

Tipping Point: 25 Signs That The Coming Financial Collapse Is Now Closer Then Ever The financial collapse that so many of us have been anticipating is seemingly closer then ever. Over the past several weeks, there have been a host of ominous signs for the U.S. economy… ] Decision could make it easier for the bailed-out lender to launch an IPO and repay its government debt.

 

 

Pakistan's top general vexes U.S. plans (Washington Post) [  Geeh! How dare that PAKISTAN General not jump on the war criminal american crazy train by putting the interests of his nation ahead of u.s. contrived interests and preventing Pakistan from being turned into a toxic wasteland, killing fields, etc., as in Iraq, Afghanistan, etc..   ] Despite intense efforts, officials fail to persuade Gen. Ashfaq Kayani to undertake the administration's strategy of eliminating Taliban havens inside Pakistan.

 

 

Economic forecasters see growth in 2011 (Washington Post) [  Kind of like that prescient economic forecast of ‘no recession’ preceding this continuing financial / economic debacle of a magnitude exceeding that of the great depression from our ‘economist in chief’ helicopter ben … riiiiight! … And you can take that the insolvent bank! Stock markets weather a challenging 2010  (Washington Post) [  ‘Weather’, ‘forecasts’ … somehow those words taken together do not engender confidence. Yet, like today, there’s no shortage of that exuberance thing just as in 2007 preceding the last crash, or preceding the dot.com crash, etc., and this time will be no different and probably worse.  Pay Attention to New Year Market Indicators [ The problem with these anecdotal, mechanized (and sophomoric) technical guidelines is that the frauds on wall street are well aware of them and with the current computer technology can easily program to meet them with the fraudulent hope they’ll become self-fulfilling. I disagree with the ‘everything coming up roses, green shoots and all’ scenarios being painted in typical self-interested fashion and hardly objective. Even near perma-bull John Augustine (speaking with Motek) looks for at a minimum, if things go well for the economy (not at all likely and no can do with real numbers / data) a 3-5% pullback / correction near term. Keep in mind all stock prices have been inflated by amounts exceeding the gains, viz., 13-17% by the debased dollar which of course is reflected in huge price increases for commodities across the board which will impact margins or consumption or both going forward. ] Plessis ‘If Santa has not yet made his way to your investment portfolio, don’t despair. According to Jeffrey Hirsch (Stock Trader’s Almanac), the “Santa Claus Rally” normally occurs during the last five trading days of a year and the ensuing first two trading sessions of the new year. During this seven-day period stocks historically tend to advance (by 1.5% on average since 1950), but when recording a loss, they frequently trade much lower in the new year.With four of the seven sessions behind us there has been little in it, with the S&P 500 Index marginally up by 0.09% and the Dow Jones Industrial Average losing 0.03%.Another old stock market saw tells us the first five trading days of January sets the course for January (known as the “First Five Days Early Warning System”), and if the month of January is higher, there is a good chance the year will end higher, i.e. the so-called “January Barometer”. Every down January since 1950 has been followed by a new or continuing bear market or a flat year. “As January goes, so goes the year,” said Hirsch.Lastly, according to Hirsch, the “December Low Indicator" says that should the Dow Jones Industrial Index close below its December low anytime during the first quarter, it is frequently an excellent warning sign of lower levels ahead. The numbers to watch are those recorded on December 1: 1,206.07 for the S&P 500 Index and 11,255.78 for the Dow Industrial Average.The American benchmark indices will have to crash today in order to make 2010 a down year. Early indications therefore point to the January Barometer (with January having been a down month) this year failing investors. Looking ahead to 2011, time will tell whether the year-end/new-year indicators play out according to the historical pattern. Meanwhile, we’ll have some fun tracking how it pans out.’  ]  In a year of political upheaval, fiscal crisis in Europe and the threat of a double-dip recession in the United States, the stock market weathered all challenges, plodding upward. Economic forecasters see growth in 2011

 

 

Private markets make up the core of Obamanomics (Washington Post) [ I doubt there is a core at all … nothin’ there … spend more than you take in … just smoke and mirrors … more bush*t … you know, froth the markets, fraud be damned but welcomed / protected … and, as before, this will end quite badly! But regarding the now ‘Klein Controversy’, the following: Wash Post Staffer: Constitution Impossible to Understand Because It’s Over 100 Years Old [ In a meaningfully lawless society as pervasively corrupt, defacto bankrupt america, constitution / laws have become irrelevant in application and effect. After all, even zimbabwe has a constitution / laws, but I dare say no one would suggest they have any practical effect in reality, as is also so in america. I therefore believe Mr. Klein is correct but for reasons other than age and malleability. Indeed, anyone who has written a legal brief and researched law in support thereof, ultimately realizes that almost invariably one can find some case / law in support of almost any position. In america today, it’s the bribe, one way or another, that carries the day and makes the difference. Ask sam alito et als. That’s just the way it is in a declining, fallen society as america, zimbawe, etc.. That’s certainly my direct, sworn experience with these corrupt courts constituting (in large part along with the other 3 branches) pervasively corrupt, defacto bankrupt america’s illegal system.  Senate convicts Clinton-appointed judge... [ Come on! One way or another they’re almost all getting bribed; including the initial lifetime appointment as alito, trump-barry, etc.. Abolish the corrupt, costly, economically wasteful lifetime extravagantly appointed federal courts (see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )    End those lifetime licenses to steal. ] In earlier hearings, two attorneys who once worked with Porteous had testified that they gave him thousands of dollars in cash, including about $2,000 stuffed in an envelope in 1999, just before Porteous decided a major civil case in their client's favor.   ] Breitbart | On word that the House will open its next session with a first-ever reading of the U.S. Constitution, blogger Ezra Klein suggests that the Constitution is irrelevant due to its age and politically-malleable language. ]Eight key economic decisions of the Obama presidency all point in one direction.

 

 

Pay Attention to New Year Market Indicators [ The problem with these anecdotal, mechanized (and sophomoric) technical guidelines is that the frauds on wall street are well aware of them and with the current computer technology can easily program to meet them with the fraudulent hope they’ll become self-fulfilling. I disagree with the ‘everything coming up roses, green shoots and all’ scenarios being painted in typical self-interested fashion and hardly objective. Even near perma-bull John Augustine (speaking with Motek) looks for at a minimum, if things go well for the economy (not at all likely and no can do with real numbers / data) a 3-5% pullback / correction near term. Keep in mind all stock prices have been inflated by amounts exceeding the gains, viz., 13-17% by the debased dollar which of course is reflected in huge price increases for commodities across the board which will impact margins or consumption or both going forward. ] Plessis ‘If Santa has not yet made his way to your investment portfolio, don’t despair. According to Jeffrey Hirsch (Stock Trader’s Almanac), the “Santa Claus Rally” normally occurs during the last five trading days of a year and the ensuing first two trading sessions of the new year. During this seven-day period stocks historically tend to advance (by 1.5% on average since 1950), but when recording a loss, they frequently trade much lower in the new year.With four of the seven sessions behind us there has been little in it, with the S&P 500 Index marginally up by 0.09% and the Dow Jones Industrial Average losing 0.03%.Another old stock market saw tells us the first five trading days of January sets the course for January (known as the “First Five Days Early Warning System”), and if the month of January is higher, there is a good chance the year will end higher, i.e. the so-called “January Barometer”. Every down January since 1950 has been followed by a new or continuing bear market or a flat year. “As January goes, so goes the year,” said Hirsch.Lastly, according to Hirsch, the “December Low Indicator" says that should the Dow Jones Industrial Index close below its December low anytime during the first quarter, it is frequently an excellent warning sign of lower levels ahead. The numbers to watch are those recorded on December 1: 1,206.07 for the S&P 500 Index and 11,255.78 for the Dow Industrial Average.The American benchmark indices will have to crash today in order to make 2010 a down year. Early indications therefore point to the January Barometer (with January having been a down month) this year failing investors. Looking ahead to 2011, time will tell whether the year-end/new-year indicators play out according to the historical pattern. Meanwhile, we’ll have some fun tracking how it pans out.’

 

 

 

Happy New Year! Here Are The Final Numbers For 2010 , On Friday December 31, 2010

‘Indices mixed today, but not for the year. Stocks weren't the real winner, however, with commodity prices booming.

First, today's scoreboard:

Now, the final scoreboard for 2010:

Equities:

Check out the best and worst performing global equity indices in 2010 >

Commodities:

Check out Societe Generale's guide to commodities in 2011 >

Bonds:

Bank of America Merrill Lynch’s Global Broad Market Index rose 4.7% this year.

 

 

The Shadow Banking System: A Third Of All The Wealth In The World Is Held In Offshore Banks Economic Collapse Blog | You and I live in a totally different world than the ultra-rich and the international banking elite do.

 

Entire American middle class will fall under the poverty line in five years Press TV | “The middle class, I am afraid, in the United States is not going to exist in another five years and everybody is going to be driven down to the lower poor class,” said Wayne Madsen.

 

Home foreclosures jump in 3rd quarter: regulators Reuters | U.S. home foreclosures jumped in the third quarter and banks’ efforts to keep borrowers in their homes dropped as the housing market continues to struggle.

 

Must See: Howard Davidowitz Destroys The Recovery Illusion, Debunks The Consumer Renaissance Today’s must see TV comes from the following interview of Pimm Fox on the consumer and the economy with retail expert Howard Davidowitz, who in 10 minutes provides more quality content and logical thought than we have seen from CNBC guests in probably all of 2010.

 

Oil Could Push to $110: Charts It’s “certainly possible” that the price of a barrel of oil will push above $100 a barrel, Daryl Guppy, CEO of Guppytraders.com, told CNBC Thursday. “Once you move above $100, then $110 is just clear freeway straight to that level,” Guppy added.

 

Eurozone ‘has 80% chance of losing the single currency in next decade,’ claims think-tank There is an 80 per cent chance that the euro will not survive in its current form, a leading think tank has warned.

 

Metals from copper to silver hit record highs Copper has hit yet another record high in a strong morning for metals trading, as commodities shook off China’s efforts to halt inflation by raising interest rates on Christmas Day.

 

Washington's Revolving Door: Minimalist Approach to Wall Street Reform Leaves Business as Usual, Author Says - Gross

 

Peter Schiff: Here’s Why Home Prices Have To Decline At Least 20% And Probably More House prices have to decline at least another 20.3% to come back to the historical trend and may have much further to fall, according to Peter Schiff of Euro Pacific Capital.

 

 

2010 worst year for bank failures since 1992 More banks failed in the United States this year than in any year since 1992, during the savings-and-loan crisis, according to the Federal Deposit Insurance Corp.

 

ROBERT SHILLER: If House Prices Keep Falling This Fast, The Economy Is Screwed He also says that if house prices keep falling this fast, the economy will face “serious reasons to worry” (which, for Professor Shiller, is an apocalyptic statement).

 

 

National / World



Washington Uses Arms Sales To Achieve Ever Fleeting Purported Global Supremacy Rick Rozoff | The Stockholm International Peace Research Institute (SIPRI) documents that the United States accounts for 43 percent of world military spending and 30 percent of global arms exports.

 

Will It Be A Happy New Year For the Global Resistance Against the New World Order? Paul Joseph Watson | 2010 was a year of worldwide awakening, 2011 will go a long way to proving whether or not the resistance has teeth.

 

MSNBC Analyst: Constitution Has “No Binding Power On Anything” Kurt Nimmo | For the establishment political class, the Constitution is completely irrelevant.

 

What Kind Of Mood Are The American People In As We Enter 2011? The American Dream | The following is a compilation of recent poll results that show just how frustrated and angry the American people are becoming as we enter 2011.

 

10 Modern Methods of Mind Control Nicholas West | We have entered a perilous phase where mind control has taken on a physical, scientific dimension that threatens to become a permanent state.

 

Wash Post Staffer: Constitution Impossible to Understand Because It’s Over 100 Years Old [ In a meaningfully lawless society as pervasively corrupt, defacto bankrupt america, constitution / laws have become irrelevant in application and effect. After all, even zimbabwe has a constitution / laws, but I dare say no one would suggest they have any practical effect in reality, as is also so in america. I therefore believe Klein is correct but for reasons other than age and malleability. Indeed, anyone who has written a legal brief and researched law in support thereof, ultimately realizes that almost invariably one can find some case / law in support of almost any position. In america today, it’s the bribe, one way or another, that carries the day and makes the difference. Ask sam alito et als. That’s just the way it is in a declining, fallen society as america, zimbawe, etc..  ] Breitbart | On word that the House will open its next session with a first-ever reading of the U.S. Constitution, blogger Ezra Klein suggests that the Constitution is irrelevant due to its age and politically-malleable language.

 

Euro has 1-in-5 chance of lasting decade: UK think-tank Reuters | The Center for Economics and Business Research said Spain and Italy would have to refinance over 400 billion euros ($530 billion) of bonds in the spring, potentially sparking a fresh crisis within the 16-nation euro area.

 

Will It Be A Happy New Year For the Global Resistance Against the New World Order? 2010 was a year of extremes – a clear intensification of the tyranny being metered out in pursuit of a new world order, but also a tipping point in the accelerating awakening of human consciousness to the reality of the agenda for global serfdom.

 

Man strips to underwear, socks in protest at airport security checkpoint A man protesting airport security measures was arrested after he stripped down to his underwear and socks.

 

NYC Police Tightens Security for New Years Eve Hundreds of radiation detectors will be dispersed throughout the area, along with devices that can detect biological contaminants. Crowds will be shepherded into closely scrutinized pens where backpacks and big bags are banned.

 

MSNBC Analyst: Constitution Has “No Binding Power On Anything”  [ In a meaningfully lawless society as pervasively corrupt, defacto bankrupt america, constitution / laws have become irrelevant in application and effect. After all, even zimbabwe has a constitution / laws, but I dare say no one would suggest they have any practical effect in reality, as is also so in america. I therefore believe Klein is correct but for reasons other than age and malleability. Indeed, anyone who has written a legal brief and researched law in support thereof, ultimately realizes that almost invariably one can find some case / law in support of almost any position. In america today, it’s the bribe, one way or another, that carries the day and makes the difference. Ask sam alito et als. That’s just the way it is in a declining, fallen society as america, zimbawe, etc..  ]   Now that Republicans have a majority in Congress, they are pretending to be constitutionalists. In order to demonstrate this, they will theatrically read aloud the Constitution from the floor of the House next week.

 

TSA Wants To Expand Groping Of Vaginas The TSA agent used her hands to feel under and between my breasts. She then rammed her hand up into my crotch until it jammed into my pubic bone … I was touched in the pubic region in between my labia.

 

As Frustration Grows, Airports Consider Ditching TSA Some of the nation’s biggest airports are responding to recent public outrage over security screening by weighing whether they should hire private firms such as Covenant to replace the Transportation Security Administration.

 

China Makes Skype Illegal  [ China, the current creation and envy of destructive / self-destructive poppy bushies, clintonistas, wobamanoids, et als americans, is so pathetic in their own special totalitarian communistically sad way. ] THE Chinese regulator has declared Internet phone services other than those provided by China Telecom and China Unicom as illegal, which is expected to make services like Skype unavailable in the country.

 

 


Drudgereport: Medicare Bound to Bust 'by 2017' as First Boomers Hit 65...
POLL: Only 21% Want FCC to Regulate Internet...
Fear of Political Agenda...

Next Year's Wars: 16 brewing conflicts to watch...
VIDEO: Oil Could Push to $110...
Berlin sees most snow in December since 1900s...

White House Plans to Push 'Global Warming' Policy, GOP Vows Fight...
FLASHBACK: Gore Reports Snow and Ice Across World Vanishing Quickly...
Top China blogger forced to shut down magazine...
Non-US banks gain from Fed crisis fund; Half of emergency credit facility cash went to foreign institutions...

Backlash...
THE MAN WHO TOOK ON BIG SIS...  Pilot angered TSA with video... ‘…News10 established a relationship with the Liu family last July after their rental home in Sacramento's Oak Park was destroyed by an arsonist. Four firefighters were injured when the house exploded…’
Oil rises near $92...
Ex-SHELL president sees $5 gas in year...
MATTHEWS: Why Doesn't Obama Just Release The Birth Certificate?
NYT: Bundle Up, It's Global Warming...
Obama Reading List: Book on Reagan... [ Reagan would absolutely detest, hate (yes, Reagan could hate )  wobama and did detest, hate people like failed president like no other in history, wobama]

Duma Disses Obama, delays START vote...
Assange fears death in a US jail...
OPEC Members 'Target $100'...

China, following pervasively corrupt, meaningfully lawless, defacto bankrupt american example, bars political dissident access to lawyers...
Indefinite detention possible for suspects at Guantanamo Bay...
DARK SIDE OF SIS: AGENTS RAID HOME OF PILOT CRITICAL OF TSA...

Posted Video Exposing Airport Security Flaws...
PUNISHED...
DEFICIT HITS RECORD...
MINORITY REPORT: Spielberg advising on rebranding Dems... [ Come on! You can’t unring the bell on the damage they’ve done by particularly doing the opposite of what they said, from perpetual war, to no prosecutions of the wall street frauds now marked to anything as per criminal courtesy via FASB rule change, etc.. They b*** s*** like their mascot, ‘wobama the b’ (for b*** s***); not that the republicans are substantially different … they’re incompetent, corrupt, etc... They’ve embraced the ‘history of decline and fall of nation-states’. ]
TODAY: Obama pledges 'singular focus' on economy...

ONE YEAR AGO: 'Obama to focus hard on economy'...
TWO YEARS AGO: Obama to put 'renewed focus' on economy...
US press should fear being targeted: Assange...
BLOWOUT: Government liabilities rose $2 trillion for year...
PEOPLE: 308,745,538
DEBT: $13,868,461,000,000
STATE OF THE NATION: Census shows slowing US growth...
GOP-leaning states pick up seats in Congress...
NY, OH, IL, MA, NJ and PA lose seats...

FCC Gives Government Power to Regulate Web...

Agency splits along party lines...
DeMint vows to reverse 'Internet takeover'...
AP: TOP 10 STORIES OF 2010...
MOODY'S May Cut US Rating on Tax Package...
New spending bill totals $1.1 TRILLION!

Congress Job Approval Rating Worst in GALLUP History...
FLASHBACK: Obama Promised 5-Day, Public Review of Bills Before Signing; Signs Tax Bill Within Hours of House Vote...

13 million get unexpected tax bill from 'tax credit'?
Pelosi skips vote on tax bill, then shuns signing ceremony...
House votes to extend gov't funding -- through Tuesday...
OBAMA FALLS TO 40% APPROVE IN FOXNEWS POLL...
The FCC's Threat to Internet Freedom...

Dems play politics with 'net neutrality' vote...
'Sweeping new rules'...
REGULATE...
SHUT: Music Web Sites Dispute Legality of Their Closing...
UK ministers threaten: Censor web, or we will legislate 'to protect children'...
Plan to block all online porn...
Hugo Chavez defends plan for web regulations...
Venezuela tightens Internet regulation... 

THEY'RE COMING FOR THE INTERNET!
JULIUS SEIZURE

$2 trillion debt crisis threatens to bring down 100 US cities...
States face $140 billion in budget shortfalls...
32 states borrow billions from feds to cover unemployment benefits...
Friedman: America the Stupid...

French AAA Grade at Risk as Downgrades Sweep Europe...

Oil Heads Toward $100...
Chavez defends plan for Internet regulations...
UK ministers threaten: Censor web, or we will legislate 'to protect children'...
The FCC's Threat to Internet Freedom...
Dems play politics with 'net neutrality' vote...
'Sweeping new rules for the Internet'...
SKorea detains Chinese fishermen...

Security Council meets on tensions...
North Threatens More Attacks...
... says war would go nuclear
China warns of escalating arms race...

'Don't ask' repeal moves toward law...
DREAM OVER: Senate Blocks Bill for Illegal Immigrants...
Budget Brawl Looms in Congress...

Michelle wears $2,500 purchased dress to Christmas concert...
Senate Plans Weekend Votes on 'Don't Ask, Don't Tell,' Amnesty Bill...
Senator: Gay ban tied to Russia treaty...
UN PLANS INTERNET REGULATION [  Those who can’t do … work at the u.n., in the u.s.; after all, for the first time in human history, the internet has for the most part enabled an unfettered look at the truth and truthful reasons for the unequivocally sad state of the world. That a supposed world body should support and potentially facilitate the encroachment upon such global communication is reason enough to dismantle such an already discredited body which arbitrarily seeks enforcement of some ‘resolutions’ as to some but not others ( ie., israel, u.n. resolutions 242, 338, etc., israeli and american war crimes, etc..) Raison d’tre … I don’t think so!  Quite the contrary! ]
Regulators close banks in GA, FL, AR, MN... [ Regulators shutter 3 small banks in Ga., 1 each in Fla., Ark., Minn.; 157 banks closed in 2010 ]
Payrolls Drop in 28 States, Joblessness Rises in 21...
Nevada rate to 14.3%...
Rhode Island City Nears Bankruptcy...
Ireland Debt Downgrade...

IMF chief worried about Europe domino effect...
Senate clerks preparing to read 1,924-page spending bill on floor -- for 50 hours!...

Senator: 'There's No Way' To Read Entire Bill Before Vote...
KERRY: 'Why Would We Have To Read Something?'
McConnell offers 1-page resolution in place of 1,924-page spending bill...
SHOWDOWN: Gingrich Urges Fillibuster...

Biden To GOP Opposition: 'Get Out Of The Way'...
Reid: Earmarks are 'what we're supposed to do'...
Ban on Gitmo transfers vanishes...
Omnibus bill loaded with goodies for abortion industry...
PRIORITIES: House approves bill to make hybrids louder...
23% Say USA Heading in Right Direction, Lowest Since Obama Took Office...

POLL: Just 29% think Obama will be re-elected...
Is America the sick man of the globe?
BUCHANAN: Is this our America anymore?
UK Red Cross Bans Christmas to Avoid Offending Muslims...
SALVATION ARMY bell ringer caught stealing from kettle...
Deputies suspended after getting into brawl at party...
2 women charged with robbing 74-year-old...
Hundreds of gifts for kids stolen from 'Toys for Tots'...
Thousands of dollars in donated toys ruined after skunk attack...
Grocery prices grow by 1.5 times inflation rate...

Socialist president plays host to capitalism...
REPORT: Obama told lawmakers not passing tax deal could end presidency...
A $48 billion earmark...
PAPER: Year of bullying, bluff and bailouts leaves euro fighting for its life...
Reeling from riots, Italy faces uncertainty...
Greek anti-austerity strike turns violent...
VIDEO...
MORE UNREST: 2011...
$575 million PER PAGE...
6,488 earmarks...
McConnell fumes: 'No one has seen it'...
Reid threatens to keep Congress into next year...
Intelligence Reports Offer Dim Views of Afghan War...
HOLBROOKE LAST WORDS: STOP THIS WAR!

UPDATE: RUSSIA TO USE CHINA CURRENCY IN TRADES...
UK GRANTS ASSANGE BAIL; SWEDEN APPEALS...

Release delayed...
Lawyer: Secret Grand Jury Meeting Outside Washington on Leak...
CHRISTMAS CRIMES: Drive-By Purse Snatcher Terrorizing Women In NJ...
2 women charged with robbing 74-year-old...

Hundreds of gifts for kids stolen from 'Toys for Tots'...
Thousands of dollars in donated toys ruined after skunk attack...
Copper thieves burn down city's Christmas tree...
Burglar steals family's gifts -- and its dog!
Grave robbers steal 400 urns from cemetery...
'Grinch' Steals Packages Off Doorsteps, Signs For Deliveries...
Home Invaders Tie Up 12-Year-Old Boy, Take Video Games...
90-Year-Old Man Put In Choke-Hold, Robbed Of $370...
'Tea Party' anger simmers over backroom deal; Ramps up efforts...
2 Bank Failures Bring Year's Tally To 151...

COPS: Madoff's son hangs himself with dog collar in SoHo apartment...
...gave mechanic $400 tip day before suicide
Madoff Trustee Launches $19.6 Billion Lawsuit; 60 accused of participating in 'illegal scheme'...
Pump prices close in on average $3 a gallon...
FLASHBACK: $1.81 when Obama took office...
BLOW TO O: JUDGE RULES GOV'T CAN'T MANDATE CITIZENS BUY HEALTH CARE...

Cantor: Direct Appeal to Supremes...
POLL: Support For Obamacare Hits New Low...
Pelosi: 'Are You Serious?'
Obama: 'I'm itching for a fight'...
U N C O N S T I T U T I O N A L
Barbara Walters: 'This Guy (wobama) Has an Emotional Problem' [ Yes, it’s true, babawawa … wobama has substantial mental problems which along with inherent criminality are pervasive in america which also includes boner, and where were you in discussing such, babawawa regarding psychopaths bush, clinton, etc., or even former beau, senile greenspun ]...
DEFICIT HITS RECORD...
Putin Slams West for Assange Arrest...

US cable: Cuba to be insolvent within 2-3 years...
Assange Lawyers Prepare for U.S. Spying Indictment...
Teen Arrested in Hack Attacks...
Donations to WIKILEAKS are Tax Deductible -- in Germany...
Anonymous cyberwarriors stun experts...
Media outlets may be probed over WikiLeaks stories, joe ‘zelig zionist incompetent and corrupt‘ lieberman in Campaign To Trample The First Amendment claims  Can the US government prosecute media outlets that reported on the WikiLeaks cables? According to joe ‘zelig zionist incompetent and corrupt‘ lieberman  in his Campaign To Trample The First Amendment, the answer is maybe.
Home Values May Drop by $1.7 Trillion This Year...
UNEMPLOYMENT WEEK: DOWN TO 421,000; REVISED UP LAST WEEK 438,000...

POLL: Most Americans Say They’re Worse Off Under Obama...
F O [Related: Olbermann:  Obama Is ‘God Damned Wrong’ ]
REVENGE OF THE WIKIS!
Army of hackers targets the Swedish government...
Take down MASTERCARD site...
...VISA
PAYPAL...
AMAZON braces for hactivist attack...
Palin under cyber attack...
Assange's 'poison pill' file impossible to stop...
MOSCOW: Give Assange Nobel Peace Prize...
SENATE REJECTS REPEAL OF DON'T ASK DON'T TELL...

House Dems push through massive budget bill...
Final House Race Decided; GOP Net Gain: 63 Seats...
Ron Paul, Author of 'End the Fed,' to Lead Fed Oversight Panel...
Student protesters in London turn violent over tuition hikes...

Thousands try to break through police barricades at Houses of Parliament...
...attack car containing Prince Charles, Camilla...
Rolls Royce hit with paint; rear window smashed...
US Treasuries hit by biggest sell-off since LEHMAN...
Prices Plunge for 2nd Day on Deficit Fears...
Rattles investors...
Oil tipped to bubble over $100 barrel...
Food Stamp Rolls Continue to Rise...
SHOCK POLL: Americans Believe China Has Surpassed USA in Economic Strength...

'U.S. fiscal health worse than Europe's'...
Sorkin: Palin TV show is 'snuff movie'...  [ Yeah … ‘she’s really all that’ and worse … I have great difficulty getting past the fact that she’s so incredibly dumb … not just ‘nonintellectual’ … butt really dumb! ] ‘…
Sorkin, writer of the recent Facebook movie The Social Network, also accused the Fox News contributor of making a "snuff film" after the latest episode of Sarah's Palin's Alaska featured the politician going hunting with her father and shooting a caribou. He described Palin as "deranged", a "witless bully" and a "phony pioneer girl". He also said The Learning Channel, the US cable network, "should be ashamed of itself" for broadcasting her "truly awful reality show"…’
Senate convicts Clinton-appointed judge... [ Come on! One way or another they’re almost all getting bribed; including the initial lifetime appointment as alito, trump-barry, etc.. Abolish the corrupt, costly, economically wasteful lifetime extravagantly appointed federal courts (see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )    End those lifetime licenses to steel. ] In earlier hearings, two attorneys who once worked with Porteous had testified that they gave him thousands of dollars in cash, including about $2,000 stuffed in an envelope in 1999, just before Porteous decided a major civil case in their client's favor.
Assange could face espionage trial in USA...
Palin under cyber attack...
1st Amendment issues...
Assange's 'poison pill' file impossible to stop...
WIKILEAKS: Stop Us? You'll Have to Shut Down Web...
Berkeley 'resolution' honoring leaker...
Scientologists outraged over spoof Christmas play...  [ Hubbard was such a total fraud! Scientologists are delusional! ]
St. Petersburg, Florida – ‘A controversial holiday musical production is set to open at American Stage Theatre in St. Petersburg. Photos: Pictures of A Very Merry Unauthorized Children's Scientology Pageant "A Very Merry Unauthorized Children's Scientology Pageant" is a musical play designed for the holiday season, but this play will not focus on Jesus Christ, but instead the story is about L. Ron Hubbard, the founder of the church Of Scientology…’ 
NO BAIL...
Assange 'sabotaged condom' during one night stand...
Refused to wear one during another...
Stockholm police: Both women are victims...
INTERPOL WARRANT FOR NOT WEARING PROTECTION?

ASSANGE UNDER ARREST:
'HE DIDN'T WEAR A CONDOM'
Under arrest, will Assange dump the Doomsday Files?
Assange: Don't shoot messenger for revealing uncomfortable truths...
FLASHBACK: HILLARY COMPLAINS GOVERNMENTS BLOCK FREE FLOW OF INFO ON INTERNET...
WIKILEAKS: LIVE UPDATES...
FCC push to regulate news draws fire...

Lieberman: NYT may have committed crime by printing WIKILEAKS docs...
US to Host World Press Freedom Day in 2011 … [ What a total travesty! The u.s. as host … What a cruel joke! ] ...
OBAMA RACES TO CUT TAXES BEFORE REPUBLICANS: 6.2% Social Security tax would drop to 4.2% for workers for one year... MORE
THE NEW OBAMA!
SURPRISE TAX CUT MOVE
   [ As with defacto bankrupt america generally, more defacto bankrupt social security system, etc.,  are distinctions without significant differences. ]
OIL HITS $89...
Pump prices hit 2-year high...
Schwarzenegger Declares Fiscal Emergency, Proposes $9.9 Billion In Cuts...

Top Democrats defect, join unified GOP...
WIKILEAKS' Assange Will Release Encrypted Files If Arrested...

Cables Reveal How US Manipulated Climate Accord...
Cable: China Leaders Ordered Hacking on GOOGLE...
Meddling by Neighbors Adds to Iraq's Woes...
Government Workers Ordered Not to Read Cables...
Gingrich: Leaks Show Admin 'Shallow,' 'Amateurish'...
McConnell: Assange a 'High-Tech Terrorist'...
List of facilities 'vital to US security' leaked...
Mirror Sites Appear by the Hundreds...
Assange Speaks...
Hillary Jokes...
US forced to shake up embassies around world...
THE DOOMSDAY FILES
PAPER: Wave goodbye to Internet freedom...
[ I’m absolutely astounded that the world is not profoundly grateful to Assange et als for providing insight into the machinations and insanity of pervasively corrupt, defacto bankrupt america, et als who wreaked havoc on the world as they pillage, plunder, and destroy (lives, nations, etc.). ]
+39,000 JOBS IN NOVEMBER...

BOEHNER: Dem Leaders Should Stop Wasting Time on Tax Hike Votes...
HALPERIN: Dems 'In Midst of Nervous Breakdown'...
Obama Makes Surprise Trip to Afghanistan...

Flies 7,000 miles -- talks to Karzai for 15 minutes on phone!
Forgets the Coast Guard...
Leaves Biden behind to handle 'disappointing' jobs report...
Reid, funded by casinos, pushes online gambling...

ABCNEWS accused of breaking embargo...
2010 death toll of US troops nears that of 2001-2008 combined...
OBAMA SPEECHWRITER JOKES ABOUT TSA GROPING: Allows 'defrocked priests to give back to society'...

US Deficit-Cutting Plan Falls Short of Needed Votes...
UNEMPLOYMENT UP TO 9.8%
HILLARY: Secretary of State will be 'my last public position'...   ...  PITCHE$ $IGNED DVD ON HOME $HOPPING NETWORK..
US TO BAILOUT EU [ Riiiiight! Sounds like a plan! After all, in defacto bankrupt america money does grow on trees … derivatively (pun intended) that is … you know … that ever more worthless fiat paper currency … and ultimately, existentially, philosophically, doesn’t paper come from trees … sure it does …so, no problemo since money grows on trees.   ]
BOMBSHELL: European banks took big slice of Fed aid...
Hundreds of billions of dollars...
Fed reveals global extent of its backing... ]Funds went to stalwarts of American industry including GE and Caterpillar and household-name companies such as Verizon, new data show.
GEORGIA: HUNDREDS LINE UP IN COLD FOR HEAT HELP...
Assistance Funds Quickly Depleted...
'Almost like being in soup line during great depression'...
VIDEO...
DELAYING TAX VOTE COULD 'CRASH STOCK MARKET' STARTING 12/15 [ Come on! There’s no way to justify the tax cut to the top 1% including the frauds on wall street … their threats don’t hunt no more … the nation’s defacto bankrupt … see Davis, supra!  ]
Chase Bank orders branch to remove Christmas tree...
Cyber attack forces WIKILEAKS to change web address...

Respected media outlets collaborate with organization...  [ Said outlets and other disseminators and of course Wikileaks deserve accolades for the advancement of first amendment liberties in the name of an informed global body politick for all.]
UPDATE: Latest developments...
Foreign contractors hired Afghan 'dancing boys'...
Embassy cables portray Karzai as corrupt, erratic...
CIA drew up UN spying wishlist...
Assange speaks...
UPDATE: Latest WIKILEAKS developments...

Foreign contractors hired Afghan 'dancing boys'...
Embassy cables portray Karzai as corrupt, erratic...
CIA drew up UN spying wishlist...
SANTA CLAUSE: FED AID WENT TO COMPANIES, BANKS, OFFSHORE...

SECRETLY BAILED OUT GE -- GE NEWS OUTLETS FAILED TO REVEAL IN FED COVERAGE...
SANTA CLAUSE: FORD, BMW, TOYOTA Took Secret Government Money......

Fed Created Conflicts in Improvising Financial System Rescue...
Tax Breaks for Bailout Recipients Spark Debate...
MORE SECRETS: Fed Withholds Data for $885 Billion in Loans...
RUSSIA TO HOST '18 WORLD CUP FINALS...

Qatar selected '22 host over USA, others...
'AMERICAN PSYCHO' musical in works... [ I recommend the derivative films, American Psycho  and American Psycho 2, for insight! ]
National Board of Review: SOCIAL NETWORK named best film...
  [ National board of what? ‘Inception’ is by far and away the ‘Best Film’ across the board, in all categories, and on the list!  ]   LIST...
BANK OF AMERICA Becoming 'Bank of Asia' as Revenue Increases 30% ...
RESET: PUTIN CRITICIZES USA OVER WIKILEAKS … [ Putin deserves the greatest deference in matters of global concern in light of his greater rationality; america’s self-serving accusations are merely envy and projection / displacement (in psychoanalytic terms) of america’s pervasively corrupt, criminal, broken system which is a far cry in reality from defacto bankrupt america’s propaganda.]...
 
REWARD: [ The payoff. Bribe complete! Next bribe scenario … ] CITI to Hire Obama's Ex-Budget Chief Orszag...
FLASHBACK: Rubin and friends ride NY-DC shuttle...
ZUCKERMAN: Watching America's Decline and Fall [the moral authority of the West has dramatically declined in the face of the financial crisis. It has revealed deep fault lines within Western economies that have spread to the global economy. The majority of Western governments are running fiscal deficits of 10 percent or more relative to GDP, but it is increasingly clear that there will be no quick fixes, that big government and fiscal deficits will not bring us back to the status quo ante. Indeed, the tidal wave of red ink has meant that the leverage-led or debt-led growth model is dead. Developed countries will be forced to deal with their debt on every level, from the personal to the corporate to the sovereign. Being able to borrow may have made people feel richer, but having to repay the debt is certainly making them feel poorer, particularly since the unfunded liabilities that many governments face from aging populations will have to be paid for by a shrinking band of workers. (Ecoutez, mes amis!) Demography is destiny. As a result, there is a burgeoning consensus that we are witnessing an inevitable rise of the East and a decline of the West…( Harry Dent, Jr.  Economy will be in a Depression by 2011
The worst of this next depression is likely to hit between mid-2010 and mid-2013, especially around early 2011, but if the banking system continues to implode a deep downturn or depression could begin sometime in 2009 instead of 2010.
Dow will Fall to 3,800 – 4,500 by 2012
Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest.
Inflation will Increase until mid- 2010 and then turn to Deflation
Interest Rates will Increase
U.S. Dollar will Decline
Housing will Decline by 40 – 60% from Today’s Levels
Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010 and 2012).
  ) ]...

Interpol issues wanted notice for Julian Assange [ They just can’t take the truth! ] ...
US cuts access to files [ Think about it. Really think about it. Their policies are in the tank, along with the nation and the rest of this world as a consequence. Don’t those so detrimentally affected (everyone) have a right to know? I think in light of the global frauds, contrived perpetual wars though defacto bankruptcy of this and other nations, pervasive corruption and crime, failed policies domestically and geo-politically while serving the very parochial interests of the self-interested few, the answer is an unequivocal, YES! I believe that world history will write Mr. Assange as a hero in the truest sense. He should be given a medal; and, certainly, since mr. b*** s*** wobama undeservingly got a ‘nobel peace prize’ (what he does, not what he says, ie., Afghanistan, etc.), who more than Julian Assange is deserving of that and more? Cover-up / propaganda … thy name is fallen america.]...
WIKILECTURE: 'HILLARY SHOULD RESIGN' ‘…Hillary Clinton, Julian Assange said, "should resign." Speaking over Skype from an undisclosed location on Tuesday, the WikiLeaks founder was replying to a question by TIME managing editor Richard Stengel over the diplomatic-cable dump that Assange's organization loosed on the world this past weekend. Stengel had said the U.S. Secretary of State was looking like "the fall guy" in the ensuing controversy, and had asked whether her firing or resignation was an outcome that Assange wanted. "I don't think it would make much of a difference either way," Assange said. "But she should resign if it can be shown that she was responsible for ordering U.S. diplomatic figures to engage in espionage in the United Nations, in violation of the international covenants to which the U.S. has signed up. Yes, she should resign over that."…’
CITY ON EDGE: Cash-Strapped Newark, new jersey Forced To Lay Off 14% Of Police Force... [ From decades old (1978-1985) direct personal experience with newark, n.j., the police are the absolute last cuts that can be afforded to be made. Indeed, while walking through Military Park (a sliver of a “park” - more a pedestrian thoroughfare/cement walks) in newark, new jersey on the way to the bank during lunch hour, I heard the clearly audible screams/cries of what turned out to be an old lady on the ground with blood streaming from her mouth. I ran toward the sound of the cries, the source of which I could not see because there were so many people in and about this thoroughfare so as to block any vision of the source of the cries. When I came to the woman, on the ground, blood streaming from her mouth, I asked what happened, to which she responded she had been hit in the mouth and knocked to the ground, her purse stolen/put inside her shopping bag, and she pointed out the criminal casually now walking across the main street. Nobody stopped to help her, many having passed her by. I slammed the thug to the ground so hard that, in light of all the blood and confusion (limbic system / adrenalin flow) I thought I had been stabbed (the blood was from his elbows hitting the pavement so hard - no one helped / a crowd gathered / an undercover cop happened along). When I testified at the Grand Jury Proceeding I made sure his threat on my life was set forth in prima facie fashion so as to maximize the DA’s position with both felonies ( he went to prison – pled out ). The other case I wrote about here ( This was included on my website in the Psychology forum discussion of ‘bystander effect’ / diffusion of responsibility. ) - Having had occasion to have run down a mugger in newark, n.j. who apparently had followed a girl from the bank on her way to the bursar to pay tuition, though in pretty good shape, I was astounded by how totally exhausting such a pursuit was, how much like rubber my arms were when I traded punches with the perpetrator, and truth be told, if I had a flashlight on my belt, I have little doubt that I would have probably used it to subdue the perp. The girl was not that seriously injured, did get her pocketbook and tuition back, and the criminal went to jail. The other thing about such a pursuit that amazed me was that no one else assisted the girl or me despite being in a position to do so). (Other newark / new jersey and new york, n.y. metro, viz., ie., connecticut, and of course, d.c., d.c. metro, viz., ie., virginia experience … corrupt federal judges as maryanne trump barry, sam alito, shiff, matz (california), hall, underhill, dorsey, etc.. Defacto bankrupt america’s so-called system is pervasively corrupt and broken (AP)   Abolish the corrupt, costly, economically wasteful lifetime extravagantly appointed federal courts - see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )  ]
Nation's '2nd Most Dangerous City' (camden, new jersey) To Lay Off Nearly Half Of Police Force...
Chicagoland: Vandals torch Christmas charity van...

 

 

 

Businessman gets harsh prison term (Washington Post) [ Come on! Quality of justice concerns by pervasively corrupt / defacto bankrupt america (I’ve seen this first hand and have sworn under penalty of perjury to the readily discernible corruption in the ‘so-called judicial process’ / american illegal system; and Orwellian britain / european illegal systems little better as toadies to the criminal americans)? Don’t make me laugh? The u.s. illegal system is a cruel joke! What parallel universe / fantasy land are they living in?  ] A Moscow judge's decision to impose the harshest possible penalty on Russian oil tycoon Mikhail Khodorkovsky signaled that Prime Minister Vladimir Putin intends to keep a firm grip on power and is unwilling to bend to American and European concerns about the quality of Russian justice.

 

 

 

                                                                                                                   October 15, 2010 (*see infra)

 

 

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

 

 

Dear Sir:

 

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer’s browser) as per your office’s request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

 

 

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case  RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages)      [  ricosummarytoFBIunderpenaltyofperjury.pdf   http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf          ].

 

 

The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as     fbicorrespondencereyes.htm     .   With regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry). The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did – he served 12 years in prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).

 

 

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the    RICO VERIFIED COMPLAINT    (see infra). Such includes and as set forth in the case, inter alia,

 

 

  1. A judgment had been entered in my favor in the case, United States District Court Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth approximately now in excess of $300,000 remains unaccounted for and which could be used for payment to creditors, Los Angeles, etc..
  2. Counsel Robert Sullivan on my behalf documented by way of certification upon investigation that Alan Shiff, USBCJ, had falsely stated a dismissal upon which false statement he predicated a retaliatory and spurious contempt proceeding against me causing substantial damage, and for which he sought Judicial Notice of those and related proceedings as did I in some of my filings.
  3. The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to Defendant Coan’s failure to file anything whatsoever by the court’s deadline causing creditors and me substantial damages:   [  Shiff Order of Dismissal With Prejudice on Coan’s Failure to File        Page 1                Page 2          ]
  4. Defendant Coan had filed an action against me to prevent me from suing him which necessitated me to fly to Connecticut for a hearing before The Honorable Robert N. Chatigny, Chief Judge, USDC, District of Connecticut, who denied Coan’s requested relief as to Coan but precluded my action against Shiff (although there is no immunity, judicial or otherwise, for criminal acts, ie., fraud connected with a case under Title 11, USC, etc.) . [   transcript in pertinent part -     crossexamofcoanbypeia.pdf   ]
  5. Newly appointed judge, Maryanne Trump Barry, Donald Trump’s sister, was assigned the RICO case despite the conflict of interest in light of hundreds of thousands of dollars of illegal (drug) money being laundered through the Trump casinos by the RICO defendants, and despite my motion to recuse her which motion she heard herself and denied, and U.S. Trustee Hugh Leonard with whom I met personally refused to join or file a separate motion to recuse and not long thereafter left said office for private practice at Cole, Shotz, et als on retainer with the RICO defendants as his primary client.
  6. Probative and evidentiary documents, affidavits, exhibits, including those turned over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to Assistant U.S. Attorney Jonathan Lacey with whom I met personally at the U.S. Attorney’s Office in Newark, N.J., at which time Samuel Alito was U.S. Attorney, and went over said documents and their probative value with him. Within approximately a month thereafter upon inquiry I was told that Jonathon Lacey was no longer with the office, that the file/documents could not be located, and that there was no further information available concerning contacting him or his location. I thereupon delivered by hand, copies of said documents to the office of then U.S. Attorney Alito, addressed to him, with assurance they would go directly to him. In addition to being inept [ I looked in on the one mob case he had brought, bungled, lost (accidently on purpose?) since I was suing some mob-connected under RICO and the court (I had known / previously met outside of court the judge Ackerman through a client) was absolute bedlam and a total joke since incompetent corrupt Alito brought in all 20 mob defendants (rather than prosecute one or a few to flip them first) who feigning illness had beds/cots in the courtroom along with their moans during testimony and had the jury in stitches. As much as I hate the mob, it truly was funny, if not so tragic.],   Alito is also corrupt (and maybe corrupt because he is inept). After a reasonable (but still rather short) time I called to determine the status and was told that Alito was no longer with the Office of the U.S. Attorney, that he was (appointed) a federal judge, and that neither the documents nor any file or record of same could be located. Alito did parley the same / cover-up into quid pro quo direct lifetime appointment to the Court of Appeals, 3rd circuit, despite the absence of judicial experience or successful tenure as U.S. Attorney (Maryanne Trump Barry as well). This is the same Sam Alito that now sits on the purported highest court in the land. The real application of the illegal rule ‘don’t ask, don’t tell’.

 

 

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

 

 

Sincerely,

 

 

Albert L. Peia

611 E. 5th Street, #404

Los Angeles, CA 90013

(213) 219-**** (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their ‘fix’ so cell phone best for contact).

 

 

                       ----------

 

*The foregoing and as indicated therein was previously send 9-14-10 but delivery confirmation was flawed as set forth below and my inquiries to the u.s. postal service rebuffed (I believe tampered with inasmuch as your office could not locate same). This cover letter (9-13-10) is on the 3 disks with navigable hyperlinks to the subject files for ease of reference, including the files in the RICO action as indicated. (10-15-10) I spoke with Rose, FBI, ADIC Secretary, who indicates once again that your office has not received the aforesaid and which can reasonably be presumed to have been tampered with, and hence, a violation of the federal statute concerning same. ]

-----

 

Former president convicted of rape (Washington Post) [  Between the orgies, war crimes, assassinations, etc., what a bunch of sick perverts, criminals the israeli operatives / powers that be and their friends are; see, ie.,  Victor Ostrovsky Mossad ebook download in PDF format September: Victor Ostrovsky, a former Mossad trainee, publishes his book By Way of Deception  ... Israel's Mossad has regularly faked Australian passports for its. spies,    1 http://khup.com/keyword/victor-ostrovsky-mossad-by-way-of-deception.html     2 http://khup.com/keyword/page-2/victor-ostrovsky-mossad-by-way-of-deception.html   3 http://khup.com/keyword/page-3/victor-ostrovsky-mossad-by-way-of-deception.html      ]  An Israeli court finds former president Moshe Katsav guilty of rape, indecent assault and sexual harassment of female subordinates, the most serious conviction of a former top official in Israel's history 

 

 

A villain in foreclosure crisis (Washington Post) [  Villain … as in singular … as opposed to plural in a very big way … I don’t think so … We can hear new words ringing and put to that once popular theme, formerly of love but now of fraud, ‘Where do we begin, to tell the story of how great and massive frauds can be, that great fraud story that spreads from sea to sea, in defacto bankrupt america and the futures taken from we … Yes, ‘Fraud Story’ … the forever american story… It’s really that bad and worse than could be imagined at this immutably intractable juncture.  I mean, what isn’t fraudulent in pervasively corrupt, defacto bankrupt america today, from courts, to government, to policy, etc., ie., inter alia see infra,  Senate convicts Clinton-appointed judge... [ Come on! One way or another they’re almost all getting bribed; including the initial lifetime appointment as alito, trump-barry, etc.. Abolish the corrupt, costly, economically wasteful lifetime extravagantly appointed federal courts (see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )    End those lifetime licenses to steel. ] In earlier hearings, two attorneys who once worked with Porteous had testified that they gave him thousands of dollars in cash, including about $2,000 stuffed in an envelope in 1999, just before Porteous decided a major civil case in their client's favor.  ] A registry with 67M mortgages on file shoulders much of blame in the uproar over the paperwork mess.

 

 

Economic forecasters see growth in 2011 (Washington Post) [  Growth indeed … in the deficits that is … and in insurmountable fashion at that … which masks / obfuscates in the short-term the weakness and structural shift in the worst economic terms imaginable while benefiting the self-interested few (ie., frauds on wall street, war profiteers, the ‘already campaigning for the next election’ pols, etc.. The trade-off is far from commensurate.

Tipping Point: 25 Signs That The Coming Financial Collapse Is Now Closer Then Ever The financial collapse that so many of us have been anticipating is seemingly closer then ever. Over the past several weeks, there have been a host of ominous signs for the U.S. economy.

The Economic Collapse
Dec 17, 2010

The financial collapse that so many of us have been anticipating is seemingly closer then ever.  Over the past several weeks, there have been a host of ominous signs for the U.S. economy.  Yields on U.S. Treasuries have moved up rapidly and Moody’s is publicly warning that it may have to cut the rating on U.S. government debt soon.  Mortgage rates are also moving up aggressively.  The euro and the U.S. dollar both look incredibly shaky.  Jobs continue to be shipped out of the United States at a blistering pace as our politicians stand by and do nothing.  Confidence in U.S. government debt around the globe continues to decline.  State and local governments that are drowning in debt across the United States are savagely cutting back on even essential social services and are coming up with increasingly “creative” ways of getting more money out of all of us.  Meanwhile, tremor after tremor continues to strike the world financial system.  So does this mean that we have almost reached a tipping point?  Is the world on the verge of a major financial collapse?

Let’s hope not, but with each passing week the financial news just seems to get eve worse.  Not only is U.S. government debt spinning wildly toward a breaking point, but many U.S. states (such as California) are in such horrific financial condition that they are beginning to resemble banana republics.

But it is not just the United States that is in trouble.  Nightmarish debt problems in Greece, Spain, Portugal, Ireland, Italy, Belgium and several other European nations threaten to crash the euro at any time.  In fact, many economists are now openly debating which will collapse first – the euro or the U.S. dollar.

Sadly, this is the inevitable result of constructing a global financial system on debt.  All debt bubbles eventually collapse.  Currently we are living in the biggest debt bubble in the history of the world, and when this one bursts it is going to be a disaster of truly historic proportions.

So will we reach a tipping point soon?  Well, the following are 25 signs that the financial collapse is rapidly getting closer….

#1 The official U.S. unemployment rate has not been beneath 9 percent since April 2009.

#2 According to the U.S. Census Bureau, there are currently 6.3 million vacant homes in the United States that are either for sale or for rent.

#3 It is being projected that the U.S. trade deficit with China could hit 270 billion dollars for the entire year of 2010.

#4 Back in 2000, 7.2 percent of blue collar workers were either unemployed or underemployed.  Today that figure is up to 19.5 percent.

#5 The Chinese government has accumulated approximately $2.65 trillion in total foreign exchange reserves.  They have drained this wealth from the economies of other nations (such as the United States) and instead of reinvesting all of it they are just sitting on much of it.  This is creating tremendous imbalances in the global economy.

#6 Since the year 2000, we have lost 10% of our middle class jobs.  In the year 2000 there were approximately 72 million middle class jobs in the United States but today there are only about 65 million middle class jobs.

#7 The United States now employs about the same number of people in manufacturing as it did back in 1940.  Considering the fact that we had 132 million people living in this country in 1940 and that we have well over 300 million people living in this country today, that is a very sobering statistic.

#8 According to CoreLogic, U.S. housing prices have now declined for three months in a row.

#9 The average rate on a 30 year fixed rate mortgage soared 11 basis points just this past week.  As mortgage rates continue to push higher it is going to make it even more difficult for American families to afford homes.

#10 22.5 percent of all residential mortgages in the United States were in negative equity as of the end of the third quarter of 2010.

#11 The U.S. monetary base has more than doubled since the beginning of the most recent recession.

#12 U.S. Treasury yields have been rising steadily during the 4th quarter of 2010 and recently hit a six-month high.

#13 Incoming governor Jerry Brown is scrambling to find $29 billion more to cut from the California state budget.  The following quote from Brown about the desperate condition of California state finances is not going to do much to inspire confidence in California’s financial situation around the globe….

“We’ve been living in fantasy land. It is much worse than I thought. I’m shocked.”

#14 24.3 percent of the residents of El Centro, California are currently unemployed.

#15 The average home in Merced, California has declined in value by 63 percent over the past four years.

#16 Detroit Mayor Dave Bing has come up with a new way to save money.  He wants to cut 20 percent of Detroit off from essential social services such as road repairs, police patrols, functioning street lights and garbage collection.

#17 The second most dangerous city in the United States – Camden, New Jersey – is about to lay off about half its police in a desperate attempt to save money.

#18 In 2010, 55 percent of Americans between the ages of 60 and 64 were in the labor market.  Ten years ago, that number was just 47 percent.  More older Americans than ever find that they have to keep working just to survive.

#19 Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China’s share had soared to 20 percent.

#20 The U.S. government budget deficit increased to a whopping $150.4 billion last month, which represented the biggest November budget deficit on record.

#21 The U.S. government is somehow going to have to roll over existing debt and finance new debt that is equivalent to 27.8 percent of GDP in 2011.

#22 The United States had been the leading consumer of energy on the globe for about 100 years, but this past summer China took over the number one spot.

#23 According to an absolutely stunning new poll, 40 percent of all U.S. doctors plan to bail out of the profession over the next three years.

#24 As 2007 began, there were just over 1 million Americans that had been unemployed for half a year or longer.  Today, there are over 6 million Americans that have been unemployed for half a year or longer.

#25 All over the United States, local governments have begun instituting “police response fees”.  For example, New York Mayor Michael Bloomberg has come up with a plan under which a fee of $365 would be charged if police are called to respond to an automobile accident where no injuries are involved.  If there are injuries as a result of the crash that is going to cost extra.

 

 

Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"   11-25-10  The U.S. economy "is a complete disaster," Howard Davidowitz declared here in July, the most recent in a string of dire predictions from Tech Ticker's most entertaining guest.On the eve of Thanksgiving, I asked Davidowitz if he had any regrets, or was ready to throw in the towel given recent signs of economic revival. Are you kidding me? "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."As with the economy, Davidowitz is unwaveringly consistent in his views on President Obama, calling him "deranged, dysfunctional and discredited."Results of the midterm election show "the people of this country think we are in a catastrophe," he says. "I'm with them."Check the accompanying video for more of Howard's unfettered opinions and stay tuned for additional clips from this interview. And...Happy Thanksgiving! Aaron Task is the host of Tech Ticker. You can follow him on Twitter at @atask or email him at [email protected]

 

 

 

Timid Tuesday: Is it Safe?   Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘

 

 

] As 2011 begins, the U.S. is poised for its strongest year of economic growth since the recession began three years ago. Plenty of risks that could undermine the recovery remain, and it could take years of solid growth to get the nation out of its deep economic hole.

 

 

Krauthammer: How to impose a liberal agenda (Washington Post) [ I am not being sarcastic here when I say, and I believe with good reason, that liberal / conservative, republican / democrat labels, agendas, distinctions are complete fictions today in favor of the reality of total incompetence, pervasive corruption, and self-interested expedience. Indeed, with dumbya bush bush being the easiest of presidential acts to follow, wobama’s abject failure can be tied to his label-defying continuation of  contraindicated self-sustaining / self-defeating war policies, profligate spending on less revenue, etc.. Even the Reagan days are besmirched by the reality of the substantial growth, not shrinkage of the government bureaucracy. The 2 bush incompetents / war criminals were blazing bureaucrats by any standard which was what made poppy bush a ‘required’ presence on the Reagan ticket (cia, government mob, etc.). The clintons no different, and of course, ‘wobama the b’ for b*** s*** at best no different and probably worse which of course, consistent with their spend more on less revenues, particularly to favor the few (ie., frauds on wall street, war profiteers, government employees and contractors, etc., is reflected in the insurmountable budget deficits and ultimately failed policies across the board. ]

 

 

Come on! Do you really believe those employment numbers? Given their desperation, at best there was a collusive one day spike of one-day duration temp hires on the last day of the month!

 

5 More Themes for 2011 Suttmeir ‘5 themes for 2011 (6 more are on their way):

  1. Home prices will resume a decline that began in mid-2006. We had the home buyer tax credits expire in mid-2010, and government sponsored mortgage modifications provided limited help. In 2011 we face continued foreclosure issues including questionable documentation, and banks have a record high Other Real Estate Owned (OREO). OREO is up to $53.2 billion at the end of the third quarter, up 338.2% since the end of 2007. Depressed home sales are being sold at a 30% to 35% discount, which reduces property appraisals at the county level. Home builders will have to compete with these lower prices and we need a mortgage modification program for all Americans, not just those at risk of losing their homes. QE2 is not working and US Treasury yields are higher causing mortgage rates to rise. “The Great Credit Crunch” began with housing, and that foundation needs repair before Main Street can recover with sustainable job creation.
  1. Community banks still have $1.43 trillion in commercial real estate loans that require resolution. The FDIC’s List of Problem Banks rose to 860 in the third quarter of 2010, which is 11.1% of all insured institutions. My analysis shows 2,485 or 32% of all banks overexposed to commercial real estate loans, and 3,938 or 50.7% of all banks with real estate loan pipelines that are 80% to 100% funded. This stress needs to be addressed before jobs can be created on Main Street USA as housing and construction drive local economies. “The Great Credit Crunch” will not end without a program to remove toxic real estate loans from the books of community banks around the country.
  1. The banking system is supposed to de-lever risk, but it has not. When I look at the Notional Amount of Derivative Contracts I cringe at the fact that since the end of 2007 this risk category has grown $71.6 trillion since the end of 2007, that’s an increase of 43.5% to $236.4 trillion at the end of the third quarter in an environment where banks should be de-leveraging not adding to this risk where financial time bombs are ticking.
  1. Fannie Mae and Freddie Mac will continue to drain taxpayer money as the Treasury provides unlimited lines of credit through 2012. The cost currently is about $150 billion, by far the largest of any government bailouts. We need to unwind the activities of these GSEs, and beef up Ginnie Mae as the go to government agency that backs new mortgage issuance.
  1. Because of the housing market depression and stress in the banking system the unemployment rate will stay above 9% for all of 2011.

Tracking the US Capital Markets – US stocks are overvalued fundamentally and overbought technically on both daily and weekly charts. The snow storm causes stocks to drift lower and higher.

Here are my remaining themes for 2011 – Six through Eleven (a continuation of 1-5)

6. QE2, the $600 billion program where the Federal Reserve buys long dated US Treasury Securities has been a failure so far. The yield on the 10-Year was 2.334 when Fed Chief Bernanke touted QE2 in October only to see the yield nearly 125 basis points higher in December. The primary intent of QE2 was to lower longer-dated US Treasury yields. Yields held this week’s value level at 3.494 again on Wednesday. There is risk to 3.75 to 4.25 in 2011, but with or without this weakness, the 10-Year yield will decline to 2.75 to 2.50 during 2011.

7. Comex Gold has gone parabolic, and therefore you cannot predict how high gold prices can climb. I do know that corrections will be fierce and painful for those that buy strength instead of weakness. The 2011 neutral zone is between $1350 and $1450.

8. Nymex Crude Oil is headed back above $100 per barrel according to most experts. I cannot rule that out for 2011, but the downside is more significant given weekly closes below the $87 per barrel area. If gasoline stays above $3.00 per gallon demand on Main Street will slow down and will be a drag on economic growth and job creation.

9. Problems among the PIIGS nations denominated in euros will trump problems at the state level in the USA. This will keep the euro versus the dollar in a trading range. We will begin 2011 with a quarterly pivot around 1.3150.

10. US stocks show strong technical characteristics. The S&P 500 is above the 61.8% Fibonacci Retracement of the decline from October 2007 to the low of March 2009 at 1228.74. Dow Theory had a Buy Signal in early November and another confirmation in December. The Dow Industrial Average – I project downside to 9,375 in the first half with a rebound to 11,500 in the second half. Strength above 11,500 will return to 11,500, and the 2011 close will be at or below 11,500.

11.ValuEngine.com indicates that equity fundamental are not cheap. Fifteen of sixteen sectors will begin 2011 overvalued according to ValuEngine. The normal range for the percent undervalued or overvalued stocks is 35% to 65%. We will begin 2011 close to the low end of the range for undervalued stocks and towards the high end for overvalued stocks. Because of the battle between the technicals and fundamentals, stocks will be reversal-oriented in 2011 and be little changed year over year.

Tracking the US Capital Markets – US stocks are overvalued fundamentally and overbought technically on both daily and weekly charts.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.’

 

 

Struggling to the Finish Line: Dave's Daily  ‘Most economic news today (Jobless Claims, Chicago PMI and Home Sales) was, ahem, "better than expected"; still, that didn't spark any determined buying. Maybe without any POMO Thursday trading desks were running on empty. 2010 was an interesting year with lots of erratic behavior but a Fed "stick save" in the end. Flash Crashes, elections, tax issues, spending, unemployment, POMO and home prices were all center stage. Now you're probably expecting some sort of forecast from your humble pundit, but alas, all I can offer are three basic tenets to follow:

"The best laid schemes of mice and men go often askew."

-- Robert Burns

Or, if you prefer: "The best laid plans of mice and men often go awry"

-- John Steinbeck

"If you must forecast, forecast often."

--Economist Edgar Fiedler (ETF Digest Sacred Cow IX)

"Things change"

-- ETF Digest Sacred Cow X

You were expecting Dow 20,000?!?

Volume Thursday did improve a tad and breadth was flat… ‘

 

 

8 Contrarian Signs Against a 2011 Rally: My Thoughts  Mansell ‘Recently my grandfather sent me an article from DailyFinance.com. The article was listing 8 contrarian signs to suggest a stall in the current rally in 2011…Check out the article for more information on each of the points and links to charts and etc. I just list them below and my opinions on each.

1) Industrial production and capacity utilization have both stalled: This is a fair argument and one that merits some consideration. My only comment would be that just because it is slowing down does not necessarily bode poorly for the economy (though "growth" may slow). It is my understanding that much of the growth in the industrial production was in companies rebuilding inventories that they depleted during the height of the recession. It should be obvious that it would turn down at some point but I am curious to know if the recent downturn has more than accounted for the loss of restocking inventories in the equation.

2) The Baltic Dry Index (BDI) has been in a downtrend since June: The BDI is down because people the world over are worried about oversupply within the dry bulk sector. This is also why a lot of the stocks within that sector trade at single digit P/Es. My argument, though, is that low rates due to oversupply doesn't suggest anything about the overall global economy and its recovery; it is just the mismanagement of assets by industry executives.If we are making the argument that the price being lower to ship goods is bad; here is an argument for gradually raising rates.The way people are determining the oversupply is by looking at outstanding orders; however, in 2010 around 50% of orders weren't delivered due to cancellations by the companies who ordered them. I imagine a similar number will occur in 2011 (source, slides 6 and 7). Also, I have read an interview with an industry executive that suggests they have yet to see a slowdown in demand, even with the increased number of ships AND the attempts of China's government to slow its growth. The Chinese economy is still 10% larger than it was last year, has grown substantially this year, and I think that growth has taken out a large amount of the expected slack within the shipping industry. India and other emerging markets are also supposed to be doing pretty well, suggesting further demand there.Also, 21% of the current fleet (of Panamax vessels) are over the age of 20 years old. I do not know what the average scrap rate is for a panamax vessel but I know that currently there are non that appear to be over 35 and few that fall into the 30-35 range. This suggests that over the next 10 years we'll see the scrapping of 1 out of every 5 of the current fleet. While this clearly won't help short term rates, it does suggest that oversupply won't last long and will begin improving over the next five years or so.

3) Interest rates are rising: Some have actually hailed the Fed's QE2 program as a success based on this; clearly investors are expecting more inflation which is why rates are rising and this inflation expectation started largely after the Fed began that program. However, I was never a fan of this program and I don't know how inflation is supposed to help the 10% of people who are unemployed who find their savings eaten away by rising prices AND necessary living expenses.

4) Oil and gasoline have risen to levels that some analysts see as negative for growth: This makes sense; however, I do not know much about this. I know gas prices were much higher while the economy was stalling in 2008, but we didn't have the unemployment we have now and the economy WAS stalling so it would be hard to know the effect of high gasoline prices. I think we've all noticed its quick rise, though, and it will lead to less disposable income.

5) Property taxes and other state/local taxes are rising: I don't know the absolute amount of dollars for each but I know that Congress cut the social security tax for working individuals over the next year which should help them make up some of these rising costs. Also, consumers have been deleveraging and are spending less disposable income on credit, which means that this shouldn't be too entirely unbearable but will weigh on consumer spending nonetheless.

6) Retail investors are shunning the U.S. stocks: This to me suggests that it is a time to buy. Especially since companies have the most cash on balance sheets than they have had since the 1950s. As soon as the economy turns around they'll produce returns on that cash or invest it abroad and earn those returns now. Either way, you're currently getting more safety in cash, with greater growth potential, for cheaper prices than available before and this is bad because....?Also, aren't retail investors notorious for being wrong? There are investment strategies based entirely around doing the exact opposite of retail investors; while this doesn't mean we should dismiss their actions or automatically do the opposite, I do think we should consider how much weight we're placing on retail investors' behavior.

7) Margin debt is at the highest levels since September 2008: Very true, but as #6 says there are fewer dollars from investors in the market, so this affects few individuals at very large levels and doesn't appear to be pandemic for all US households.

8) Investor sentiment remains at extremely high levels: What investors? Money has been leaving the equity markets since 2008, as suggested in #6, and we've seen net outflows in equity markets even during the "recovery". So investors are saying they're excited about stocks while pulling money out of equity markets and putting it into bond markets, gold, and other investments? I think I'd rather follow the truth in people's actions as opposed to following their words. I don't think investor sentiment is REALLY that high if they are investing in other assets as opposed to stocks.Lastly, I'm really disappointed that this article didn't mention the ONE greatest threat that I believe is currently inflicting the American economy and that is the continuous struggle in housing. Don't get me wrong, I'm currently investing in REITs, but I think housing is far from the bottom and that in 2011 and 2012 we'll see further atrophy in home prices.New single home sales have fallen back to 283,000 in October 2010, which is a little lower than the 300k -320k that we were seeing at the beginning of 2000 and a far cry from the near 600,000 we saw at the peak; however, even though these numbers have normalized, other factors have not.In 2000, 300k homes for sale represented about 4 months of supply which is normal. The 283,000 number we've seen, while lower than the 300k in 2000, represents 8+ months of inventory currently. On top of this, we have waves of foreclosures that are hitting the market further exacerbating the problem. I think it's safe to say that we probably have over a year's worth of housing inventory that will be available for sale over the next year AND interest rates are rising, making it more expensive to own. The only thing that can give a little to rebalance the equation is home prices.On top of all of this, in 2011 and 2012 we'll start to see another wave of ARMs resetting. I do not believe that we'll see a pandemic of foreclosures because people are unable to afford the switch that we saw in 2008 and 2009, but I do think we'll see a lot of foreclosures because people won't want to pay that much for houses that are worth 25%-30% less than what they were when the agreed to the ARM. In fact, the scenario of people living free in their homes for a year or more has become a relatively common occurrence even now as they realize that foreclosures are so backed up that they can live rent free for some time. I imagine that raising interest rates will only make more people decided that it's better to default now on the higher rates and rent or purchase a less expensive home....In the short term, this could cause massive damage to the economy. Over the long term, it allows for greater deleveraging and a normalization of the housing industry as opposed to dragging this recovery out over a much longer period of time.Another downturn in the housing industry, which I think is likely even as the rest of the economy recovers, will likely be what makes 2011 and 2012 bleak.The only solutions for making this situation better, faster, include: creating jobs, speeding up the foreclosures process to get houses off the market and to prevent voluntary default, coming up with effective ways to allow homeowners to modify/refinance, and letting this monster run its course. Between the years 2000 and 2006, we more than doubled the amount of money in mortgages outstanding in the US. That is incredible when you consider that mortgages are 15-30 year maturities yet we doubled the amount in 6 YEARS! It's going to take the better part of a decade for us to recover from this and housing will be in trouble for awhile…’

 

Home foreclosures jump in 3rd quarter: regulators Reuters | U.S. home foreclosures jumped in the third quarter and banks’ efforts to keep borrowers in their homes dropped as the housing market continues to struggle.

 

More Dollar Declines in 2011? CNBC | The US dollar is likely to fall further during 2011, but the stock market could perform well, according to Peter Cardillo, chief market economist at Avalon Partners.

 

Ratigan Calls Out Obama On Pushing The Big Tarp Lie SaveOurSovereignty3 | The Big Lie is that the banksters paid back the TARP money.

 

17 National Debt Statistics Which Prove That We Have Sold Our Children And Grandchildren Into Perpetual Debt Slavery What we have done to future generations over the past 30 years is absolutely criminal. 30 years ago the U.S. national debt was a bit under one trillion dollars, and at that time it was considered a huge national crisis.

 

Have Bankers Overthrown the U.S, Government? (Yes) John Truman Wolfe | The enemy has taken control of our very financial lives without a single shot being fired.

 

Metals from copper to silver hit record highs Copper has hit yet another record high in a strong morning for metals trading, as commodities shook off China’s efforts to halt inflation by raising interest rates on Christmas Day.

 

Bernanke Only Adds Fuel To The Fire With Quantitative Easing Mr. Bernanke, Chairman of the Federal Reserve, a private corporation, would have us believe that, quantitative easing is the only way to save the US economy and to reverse the unemployment problem.

 

2010 worst year for bank failures since 1992 More banks failed in the United States this year than in any year since 1992, during the savings-and-loan crisis, according to the Federal Deposit Insurance Corp.

 

ROBERT SHILLER: If House Prices Keep Falling This Fast, The Economy Is Screwed He also says that if house prices keep falling this fast, the economy will face “serious reasons to worry” (which, for Professor Shiller, is an apocalyptic statement).

 

National / World

 

Naked Wheelchair Protester Targeted by TSA Over Buttocks Steve Watson | Agents single out woman who stood up to airport tyranny, ban her from flying.

 

Feds, Police Enforce Mandatory Blood Tests At Florida Checkpoints Steve Watson & Paul Watson | “No refusal” DUI stops soon to expand nationwide.

 

Mandatory DUI Checkpoint Blood Tests Coming to Florida Kurt Nimmo | A concerted effort to raise the bar as government connives to trash the Constitution and the Bill of Rights.

 

Baby Boomers Start To Turn 65: 16 Statistics About The Coming Retirement Crisis That Will Drop Your Jaw The American Dream | The moment when the first Baby Boomers reach retirement age has arrived. ‘ … The following are 16 statistics about the coming retirement crisis that will drop your jaw…..

#1 Beginning January 1st, 2011 every single day more than 10,000 Baby Boomers will reach the age of 65.  That is going to keep happening every single day for the next 19 years.

#2 According to one recent survey, 36 percent of Americans say that they don’t contribute anything at all to retirement savings.

#3 Most Baby Boomers do not have a traditional pension plan because they have been going out of style over the past 30 years.  Just consider the following quote from Time Magazine: The traditional pension plan is disappearing. In 1980, some 39 percent of private-sector workers had a pension that guaranteed a steady payout during retirement. Today that number stands closer to 15 percent, according to the Employee Benefit Research Institute in Washington, D.C.

#4 Over 30 percent of U.S. investors currently in their sixties have more than 80 percent of their 401k invested in equities.  So what happens if the stock market crashes again?

#5 35% of Americans already over the age of 65 rely almost entirely on Social Security payments alone.

#6 According to another recent survey, 24% of U.S. workers admit that they have postponed their planned retirement age at least once during the past year.

#7 Approximately 3 out of 4 Americans start claiming Social Security benefits the moment they are eligible at age 62.  Most are doing this out of necessity.  However, by claiming Social Security early they get locked in at a much lower amount than if they would have waited.

#8 Pension consultant Girard Miller recently told California’s Little Hoover Commission that state and local government bodies in the state of California have $325 billion in combined unfunded pension liabilities.  When you break that down, it comes to $22,000 for every single working adult in California.

#9 According to a recent report from Stanford University, California’s three biggest pension funds are as much as $500 billion short of meeting future retiree benefit obligations.

#10 It has been reported that the $33.7 billion Illinois Teachers Retirement System is 61% underfunded and is on the verge of complete collapse.


#11
Robert Novy-Marx of the University of Chicago and Joshua D. Rauh of Northwestern’s Kellogg School of Management recently calculated the combined pension liability for all 50 U.S. states.  What they found was that the 50 states are collectively facing $5.17 trillion in pension obligations, but they only have $1.94 trillion set aside in state pension funds.  That is a difference of 3.2 trillion dollars.  So where in the world is all of that extra money going to come from?  Most of the states are already completely broke and on the verge of bankruptcy.

 

#12 According to the Congressional Budget Office, the Social Security system will pay out more in benefits than it receives in payroll taxes in 2010.  That was not supposed to happen until at least 2016.  Sadly, in the years ahead these “Social Security deficits” are scheduled to become absolutely horrific as hordes of Baby Boomers start to retire.

 

#13 In 1950, each retiree’s Social Security benefit was paid for by 16 U.S. workers.  In 2010, each retiree’s Social Security benefit is paid for by approximately 3.3 U.S. workers.  By 2025, it is projected that there will be approximately two U.S. workers for each retiree.  How in the world can the system possibly continue to function properly with numbers like that?

 

#14 According to a recent U.S. government report, soaring interest costs on the U.S. national debt plus rapidly escalating spending on entitlement programs such as Social Security and Medicare will absorb approximately 92 cents of every single dollar of federal revenue by the year 2019.  That is before a single dollar is spent on anything else.

 

#15 After analyzing Congressional Budget Office data, Boston University economics professor Laurence J. Kotlikoff concluded that the U.S. government is facing a “fiscal gap” of $202 trillion dollars.  A big chunk of that is made up of future obligations to Social Security and Medicare recipients.

 

#16 According to a recent AARP survey of Baby Boomers, 40 percent of them plan to work “until they drop”.

Companies all over America have been dropping their pension plans in anticipation of the time when the Baby Boomers would retire.  401k programs were supposed to be part of the answer, but if the stock market crashes again, it is absolutely going to devastate the Baby Boomers.

State and local governments are scrambling to find ways to pay out all the benefits that they have been promising.  Many state and local governments will be forced into some very hard choices by the hordes of Baby Boomers that will now be retiring.

Of course whenever a big financial crisis comes along these days everyone looks to the federal government to fix the problem.  But the truth is that after fixing crisis after crisis the federal government is flat broke  …’

 

Underneath the Happy Talk, Is This As Bad as the Great Depression? Washington’s Blog | Even though the government’s spending on the economic crisis dwarfs the amount spent on the New Deal, our economy is still stuck in the mud.

 

America Has Gone Away Anyone who doesn’t believe that the US is an incipient fascist state needs only to consult the latest assault on civil liberty by Fox News. Instead of informing citizens, Fox News informs on citizens. Jason Ditz reports that Fox News “no longer content to simply shill for a growing police state,” turned in a grandmother to the Department of Homeland Security for making “anti-American comments.”



Jumping ship for private sector (Washington Post) [ Nothing new here! After all, given the state of the u.s. government (pervasively corrupt, mired in failure, nation’s defacto bankupt, totally incompetent, etc.), what possible value could such experience be other than peddling influence based upon professional criminal courtesy to, ie., other criminals of course, viz., frauds on wall street, war profiteers, pay-to-play lobbyists, etc.. It’s truly the backstory to america’s decline across the board, private sector and public sector. ] Regulators, prosecutors and financial policymakers look to cash in on their government experience.

 

Constitution's new starring role in House (Washington Post) [ Riiiiight!…Whew! That was a close one…we can all rest easy now…and to think we were thinkin’ they were goin’ in the wrong direction and sinkin’…for those skeptics who hail this as yet another desperate and redundant gimmick … have no fear, the new congress is here.   ]  ‘…They will read the Constitution aloud…’

 

Iraqi police commander killed in triple suicide attack (Washington Post) [  Well, at least al-Maliki understands the ‘physics of the situation’… you know, that ‘cause and effect thing’ …    Iraq Wants the U.S. Out  Infowars.com Prime Minister Nouri al-Maliki ruled out the presence of any U.S. troops in Iraq after the end of 2011, saying his new government and the country’s security forces were capable of confronting any remaining threats to Iraq’s security, sovereignty and unity. ]

 

SUVs lead U.S. auto sales growth (Washington Post) [  Sounds like a plan … ahead … for when $5 plus gas turns these eventual valued antiques into ‘luxury mobiles’  … for that Sunday spin (expensive at that) down Main Street much like the early 20th century motorcars themselves.    Oil Prices Are About To Wake Up To Peak-Production Realities?  Infowars.com ] If U.S. consumers are in the midst of a green revolution, the news hasn't reached car buyers.

 

 

Bank failures hit record in 2010 (Washington Post) [ As night follows the day:

ROBERT SHILLER: If House Prices Keep Falling This Fast, The Economy Is Screwed He also says that if house prices keep falling this fast, the economy will face “serious reasons to worry” (which, for Professor Shiller, is an apocalyptic statement).

Roubini: ‘Housing Prices Can Only Move Down’ According to economist Nouriel Roubini, the housing market is in a double dip. And negative Case-Shiller Home Price numbers out today only confirm that unpleasant truth.

Underneath the Happy Talk, Is This As Bad as the Great Depression? To find out, we’ll look at a couple comparisons to get an idea of what is going on in the rest of the economy. And then we’ll compare the government’s efforts in the 1930s to today.

Video of Bernanke and Geithner Trying to Get the Economy Unstuck Bernanke and Geithner are driving the tow truck. The bulldozer which the tow truck is so persistently trying to yank free is Wall Street, and the white SUV being repeatedly rammed without any concern whatsoever is the little guy on Main Street. ]  More banks failed in the U.S. this year than in any year since 1992, and there are more on the horizon.

Housing market forecast (Washington Post)  Expert says "house prices probably have another 20% to fall." And that may be a "conservative estimate.’

 

Disgraced ex-Israeli president convicted of rape (AP)

Israel's ex-president Katsav guilty of rape (Reuters)

 

The 10 Most Important Tax Tips Of 2010  Posted by Investopedia It’s the end of the year, and while holiday baking may be top of mind, that niggling little task of getting the year-end tax tasks done is still there, bothering you over the scent of the fruitcake in the oven. The following tips will give you some specifics so you can take care of taxes, and then get back to your fun holiday activities.

IN PICTURES: Top 10 Solutions For A Big Tax Bill

  1. Defer Income Until 2011
    With lower payroll taxes starting in January 2011, if you have income you can defer and report in the new year’s taxes, do so. Hold your last batch of invoices and send them out in early 2011; save that bit of money by paying the 2011 tax rate.
  2. Contribute To A Retirement Plan
    Whether you choose to convert your traditional IRA to a Roth IRA or not, make sure you contribute the maximum amount you can before the year’s over. It’s one of the easiest ways to save money on your taxes.
  3. Use Your Flexible Spending Account
    If you have a flexible spending account (also known as a health savings account or medical/health care spending account), use up what’s left in your account for 2010. And if you haven’t opened one yet, check into what your company offers. Be sure to specify the amount of your 2011 wages that you want to have placed in your flexible spending account. (Learn more in Benefits Of A Dependent Care Flexible Spending Account.)
  4. Invest In Your Business
    If you need to make investments in your business – new equipment, upgraded machinery or real estate improvements – then invest before the year’s end for the write-off on your 2010 taxes.
  5. Save Energy
    Energy-efficient improvements in your residence before year’s end can get you a tax credit of up to $1,500. Though installing a new metal or asphalt roof may be out of the question between now and January 1, you can purchase energy-efficient windows, doors and appliances. And if you’re just itching for another home improvement project to tackle over the holidays, install a solar water heater or solar panels for another credit of up to 30% of the cost.

IN PICTURES: 6 Tax Credits That Anyone Can Claim

  1. Itemize, Itemize, Itemize
    Keep track of your business expenses and put them into your itemized deductions; don’t forget home office purchases, supplies, fees for memberships in professional organizations, technological costs (web hosting, website design, internet costs). Be sure all your itemized costs are for the business and you have the receipts.
  2. Donate
    Make charitable donations before the year’s end for the write-off, but don’t make the mistake of sending out checks dated on or before December 31 and thinking they will qualify. The IRS specifies that checks mailed out must be postmarked by the last day of the year. You can also make donations through major credit cards, as long as the charges are authorized by the end of the year. (Generosity may be its own reward, but some charitable giving also provides personal tax benefits. Learn more in Deducting Your Donations.)
  3. Contribute To A College Savings Plan
    Save for your kids and save on your taxes - up to $13,000 in 2010 for a college savings plan. The magic $13,000 limit keeps you under the federal gift tax.
  4. Pay Your Next Health Insurance Premium
    If you’re self-employed, you can deduct 100% of the cost of health insurance premiums (up to the total of the net earnings of your business). That can be a rather hefty deduction, since it includes costs for your spouse and dependents as well. You can pay ahead – cover your first premium of the new year in 2010, and you can claim it on your 2010 taxes. (Find out where you can take a tax deduction on the contributions you make; see Traditional IRA Deductibility Limits For 2010.)
  5. Pay Into A Specialized Account
    Some employers offer the opportunity to contribute into specialized accounts, including dependent and commuter accounts. A dependent account covers the cost of child care, and a commuter account covers the cost of commuting expenses. Both have limits, but both can help you save on your taxes while paying for stuff you have to pay for anyway.

The Bottom Line
With taxes, you don’t know until you ask. You may be able to save much more than you think you can just by making a few simple changes, or by paying for expenses in December instead of January, February or March. It’s a little bit of forethought that can make the tax bill much more bearable.

For the latest financial news, see Water Cooler Finance: FBI Insider-Trading Bust.’

 

 

Fed Can’t Prop Up Stock Market Forever USA Watchdog | From the very beginning of QE2, it was no secret the Federal Reserve wanted the stock market to rise.

 

BofA/Countrywide Lied About Virtually Everything When Selling Mortgages Zero Hedge | A few days ago, news broke that MBIA was allowed to use statistical sampling in its ongoing Bank of America fraud lawsuit.

 

J.P Morgan, the ultimate *ankers of 2010 Economic Assassin | The contracts that Bear Stearns once held on silver have now been taken over by J.P Morgan, allowing them complete control on the paper price on silver.

 

ROBERT SHILLER: If House Prices Keep Falling This Fast, The Economy Is Screwed He also says that if house prices keep falling this fast, the economy will face “serious reasons to worry” (which, for Professor Shiller, is an apocalyptic statement).

 

Underneath the Happy Talk, Is This As Bad as the Great Depression? To find out, we’ll look at a couple comparisons to get an idea of what is going on in the rest of the economy. And then we’ll compare the government’s efforts in the 1930s to today.

 

Video of Bernanke and Geithner Trying to Get the Economy Unstuck Bernanke and Geithner are driving the tow truck. The bulldozer which the tow truck is so persistently trying to yank free is Wall Street, and the white SUV being repeatedly rammed without any concern whatsoever is the little guy on Main Street.

 

Roubini: ‘Housing Prices Can Only Move Down’ According to economist Nouriel Roubini, the housing market is in a double dip. And negative Case-Shiller Home Price numbers out today only confirm that unpleasant truth.

 

 

National / World

 

FBI Delivers Anti-terror Flyers to Farm Supply Stores Kurt Nimmo | Reader was recently visited by the FBI’s Joint Terrorism Task Force.

 

Forcing Everyone to Live with Their Heads in ‘The Cloud’ Jason Douglass | A new revolution in computing is just another means of control.

 

Poll Reveals Americans Opposed to Government Takeover of Internet Kurt Nimmo | The internet cannot be allowed to be a source of alternative information that challenges the corporate media propaganda system.

 

An Open Letter to Those Who Would Murder Julian Assange Peter Kemp | In a society where truth becomes treason, we are in big trouble.

 

Let’s Reclaim History As We Go Into 2011, And The Unknown Future Saman Mohammadi | Waking up to this new history is paralyzing at first, but it is better to be awake then to continue to live in a vegetative state, believing a false reality.

 

Hollywood and the war machine  [ I disagree. Yes, there’s plenty of propaganda to go around in Hollywood, as everywhere else; but, on balance, I believe more modern film particularly tends to paint war in the more realistically negative light. This is especially so inasmuch as there hasn’t been what anyone could call a so-called ‘good war’ to justify america’s war criminal behavior for quite some time. Of course, there’s no denying the jewish elements so stereotypical of Hollywood which does lend credence to the criticism; but such ‘pro-zionist revelatory filmmaking’ as that regurgitated by, ie., spielberg, etc., has become so predictably boring and devoid of reality that such films now pale in comparison and popularity to the anti-war films including offhand, ie., ‘Platoon’, ‘Apocalypse Now’, and more recently, ‘Hurt Locker’. It is true that in the past the military strong-armed even the likes of Frank Capra to their propaganda campaigns; and, it is also true that today’s attacks on first amendment protected speech are unprecedented in scope as a consequence of the perceived threat of truth (of america’s pervasive corruption, war crimes, fraud, etc.) leaking out all over … the internet (mainstream media is concededly totally controlled – I don’t include, ie., The Washington Post in the category of controlled media, but other papers, tv, etc., certainly should be). Yet, I think the criticism better directed at the source; viz., the criminal and corrupt elements of the american government et als, which is almost all. ( I admit to being somewhat biased and ‘I previously wrote on my site, ‘I happen to like and respect film as a rich medium which presents large amounts of audio, visual, and thematic information which can be processed in relatively small amounts of time, etc..’).  ] Al Jazeera | War is hell, but for Hollywood it has been a Godsend, providing the perfect dramatic setting against which courageous heroes win the hearts and minds of the movie going public. Russia rebuffs Western criticism of oil tycoon's trial (Washington Post) [ As right they should! After all, is anyone foolish enough to believe that america’s illegal system is anything but a farce and a means to legitimize blatantly illegal activity domestically and internationally, while arbitrarily enforcing as to some and retaliating against others … does anybody really believe Assange would get a fair trial in america, or Orwellian britain,  etc.. Pervasively corrupt america’s illegal system is a travesty and their propaganda dogs don’t hunt no more!

Army edits its history of deadly battle of Wanat  (Washington Post) [ Come on! Does anyone really think they ever get a true story from the u.s. gov’t et als about anything at all?  ] Draft put majority of blame on top commanders, but final version's focuses on lower-level leaders sparks anger among families of those killed.

 

A subtler tack to fight Afghan corruption? (Washington Post)  [ How about a not so subtler tack to fight corruption starting right here in the u.s. of a. where corruption and crime are pervasive and in fact, at the root of the Afghanistan problems, from american reinvigorated heroin trade to bribery attendant thereto to killing civilians, etc..  Defacto Bankrupt, Meaningfully Lawless, War Criminal Nation america, the leader of nations … in crime:

Though having but 5% of the world’s population, america can boast 76% of the world’s serial killers, followed by Europe with England/UK then Germany leading the way for the eu [excerpt, 6 minute video, Serial Killers: Real Life Hannibal Lechters          http://www.albertpeia.com/realifeamericaserialkillers.mpg      (as is consistent with crime generally, see infra)]. Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense  ( http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         )   ]:

CRIME STATISTICS > TOTAL CRIMES (MOST RECENT) BY COUNTRY  SHOWING LATEST AVAILABLE DATA (america’s No. 1).

Rank  

Countries 

Amount 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

  ]

 

WikiLeaks founder could be charged by Feds  (Washington Post) [ He deserves a medal!  I think they should start prosecuting american war criminals, frauds on wall street, $12 billion $100 bills flown into and missing in Iraq, RICO litigation  http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm .

Wall Street Is Laundering Drug Money And Getting Away With It Zach Carter, … etc. … Drudgereport:  CLASSIFIED NO MORE: USA RACES TO LIMIT WIKILEAKS DAMAGE   [Publishing the Wikileaks is the right thing to do; after all, one cannot possibly look to even one rationally correct strategy, domestically, globally, geopolitically that would justify continued hiding/cover-up of the failed strategies, their genesis, flawed rationale, etc., which has cost this nation and the world dearly] ...
WIKILEAKS: We've been hit with 'mass distributed denial of service attack'...
MOST EMBARRASSING, DAMAGING DISCLOSURE IN DECADES...
SENATORS: PROSECUTE THE LEAKERS!
NYT EXPLAINS: THE DECISION TO PUBLISH … [The NYT clearly did the right thing to publish; after all, one cannot possibly look to even one rationally correct strategy, domestically, globally, geopolitically that would justify continued hiding/cover-up of the failed strategies, their genesis, flawed rationale, etc., which has cost this nation and the world dearly]...
SKorea says sound of artillery heard on island...

US, SKorea start major naval drills...
China issues warning...

TO THE BRINK

DHS SEIZES DOMAIN NAMES...
EU Debt Crisis Escalates...
6 American soldiers killed in Afghanistan...

Next Debt Crisis 'May Start in Washington'...
WIKILEAKS TURNS ON OBAMA! … [ Like who hasn’t, and for good reason! Publishing the Wikileaks is the right thing to do; after all, one cannot possibly look to even one rationally correct strategy, domestically, globally, geopolitically that would justify continued hiding/cover-up of the failed strategies, their genesis, flawed rationale, etc., which has cost this nation and the world dearly] ]
] Authorities are investigating whether Julian Assange violated criminal laws, including possible charges under the Espionage Act, sources say. Afghanistan:  Gates: Progress has 'exceeded my expectations' (Post, December 8, 2010; 5:53 PM)
U.S. hurting peace chances by giving up on israeli settlement freeze, analysts say (Post, December 8, 2010; 11:00 PM)
In South Korea, Joint Chiefs chairman scolds China for its 'tacit approval' of North's aggression
(Post, December 8, 2010; 11:01 PM)
Iran talks end with little sign of progress
(Post, December 8, 2010; 1:04 AM)
Rice, on 'The View,' defends Obama on WikiLeaks
(Post, December 8, 2010; 1:00 AM) (Washington Post) [ The problems in all these regions are inextricably tied to the nation with insurmountable problems of its own and own making.  That nation quite obviously is pervasively corrupt, meaningfully lawless, defacto bankrupt america (along with such comparable enablers / allies as zionist israel, nato, etc.. How can anyone believe anything they say, least of all gates who hails from C(ottage)I(ndustries of)A(merica) based on lies, chaos, and conflict.]

 

 

 

Americans Oppose Government Efforts To Take Over Internet According to a recent Rasmussen’s poll, most Americans understand the FCC’s internet regulations will be used by the government to push a political agenda.

 

Congress to Demand Answers From TSA in Airport Security Flaws Exactly one month after Chris Liu posted videos to YouTube showing what he calls “critical security flaws,” the new chairman of a House subcommittee said he will call Transporation Security Administration (TSA) leaders to Capitol Hill for an explanation.

 

Woman Who Protested TSA Pat-Downs At OKC Airport Banned From Flying The woman who made national headlines for her near-naked protest at the airport in Oklahoma City is back and once again banned from flying.

 

2011: The Seeds Of Revolution Will Be Sown After the tumultuous years of the Great Recession, a battered people may wish that 2011 will bring a return to kinder, gentler times. But that is not what we are predicting.

 

Food Safety Bill Invokes Codex Harmonization and Grants FDA Authority to Police Food Safety of Foreign Nations Of all the talk about S.510, virtually no one has actually read the language in the bill — especially not those lawmakers who voted for it. The more you read from this bill, the more surreal it all becomes. For example, did you know there’s a global FDA power grab agenda hidden in the Food Safety Modernization Act?

 

Obscene, Threatening Comments Posted at Anti-TSA Website Traced to Homeland Security Servers According to George Donnelly, owner of WeWontFly.com, government workers appear to be posting hateful messages on his anti-TSA blog under the guise of anonymity.

 

WikiLeaks set to turn on Israel Wikileaks founder Julian Assange has promised that future documents to be published from the trove of leaked American diplomatic cables, will shed light on operations of the Mossad and Israel’s Second Lebanon War in 2006.

 

Iraq Wants the U.S. Out Prime Minister Nouri al-Maliki ruled out the presence of any U.S. troops in Iraq after the end of 2011, saying his new government and the country’s security forces were capable of confronting any remaining threats to Iraq’s security, sovereignty and unity.

 

Nigeria’s deal to drop Cheney charges called illegal Lawyers and media pundits in Nigeria are accusing the government of acting illegally by agreeing to settle criminal bribery charges against Dick Cheney out of court.

 

Get Ready For A Year Of Volatility: More Flash Crashes, Fed Hating, Civil Unrest And Bad Weather Social unrest will become visible in America in 2011. There will be demonstrations in many major cities. Some will turn violent. Economics will be at the heart of the anger. The frustration that was evident in France in recent years will come to the US.

 

Exploding Bullets – Not Hairspray – Caused Bomb Scare at Miami Airport: TSA A man has been arrested after FBI and TSA officials said his luggage contained volatile gun parts, which caused his bag to explode Tuesday just before it was about to be loaded on a plane.

 

 

 

Looking back at 2010 (Washington Post) [ I think Mr. Sloan should run for office or be appointed ‘Head of the Fed’ or u.s. attorney general, though his lack of ‘liar’ credentials might exclude the latter!   ] I have performed a painful annual ritual ever since I began writing a column about 20 years ago: re-reading my work for the year and telling you about the things I got wrong and the things I wish I'd done differently.

 

Russia rebuffs Western criticism of oil tycoon's trial (Washington Post) [ As right they should! After all, is anyone foolish enough to believe that america’s illegal system is anything but a farce and a means to legitimize blatantly illegal activity domestically and internationally, while arbitrarily enforcing as to some and retaliating against others … does anybody really believe Assange would get a fair trial in america, or Orwellian britain,  etc.. Pervasively corrupt america’s illegal system is a travesty and their propaganda dogs don’t hunt no more!

Army edits its history of deadly battle of Wanat  (Washington Post) [ Come on! Does anyone really think they ever get a true story from the u.s. gov’t et als about anything at all?  ] Draft put majority of blame on top commanders, but final version's focuses on lower-level leaders sparks anger among families of those killed.

 

A subtler tack to fight Afghan corruption? (Washington Post)  [ How about a not so subtler tack to fight corruption starting right here in the u.s. of a. where corruption and crime are pervasive and in fact, at the root of the Afghanistan problems, from american reinvigorated heroin trade to bribery attendant thereto to killing civilians, etc..  Defacto Bankrupt, Meaningfully Lawless, War Criminal Nation america, the leader of nations … in crime:

Though having but 5% of the world’s population, america can boast 76% of the world’s serial killers, followed by Europe with England/UK then Germany leading the way for the eu [excerpt, 6 minute video, Serial Killers: Real Life Hannibal Lechters          http://www.albertpeia.com/realifeamericaserialkillers.mpg      (as is consistent with crime generally, see infra)]. Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense  ( http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         )   ]:

CRIME STATISTICS > TOTAL CRIMES (MOST RECENT) BY COUNTRY  SHOWING LATEST AVAILABLE DATA (america’s No. 1).

Rank  

Countries 

Amount 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

  ]

 

WikiLeaks founder could be charged by Feds  (Washington Post) [ He deserves a medal!  I think they should start prosecuting american war criminals, frauds on wall street, $12 billion $100 bills flown into and missing in Iraq, RICO litigation  http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm .

Wall Street Is Laundering Drug Money And Getting Away With It Zach Carter, … etc. … Drudgereport:  CLASSIFIED NO MORE: USA RACES TO LIMIT WIKILEAKS DAMAGE   [Publishing the Wikileaks is the right thing to do; after all, one cannot possibly look to even one rationally correct strategy, domestically, globally, geopolitically that would justify continued hiding/cover-up of the failed strategies, their genesis, flawed rationale, etc., which has cost this nation and the world dearly] ...
WIKILEAKS: We've been hit with 'mass distributed denial of service attack'...
MOST EMBARRASSING, DAMAGING DISCLOSURE IN DECADES...
SENATORS: PROSECUTE THE LEAKERS!
NYT EXPLAINS: THE DECISION TO PUBLISH … [The NYT clearly did the right thing to publish; after all, one cannot possibly look to even one rationally correct strategy, domestically, globally, geopolitically that would justify continued hiding/cover-up of the failed strategies, their genesis, flawed rationale, etc., which has cost this nation and the world dearly]...
SKorea says sound of artillery heard on island...

US, SKorea start major naval drills...
China issues warning...

TO THE BRINK

DHS SEIZES DOMAIN NAMES...
EU Debt Crisis Escalates...
6 American soldiers killed in Afghanistan...

Next Debt Crisis 'May Start in Washington'...
WIKILEAKS TURNS ON OBAMA! … [ Like who hasn’t, and for good reason! Publishing the Wikileaks is the right thing to do; after all, one cannot possibly look to even one rationally correct strategy, domestically, globally, geopolitically that would justify continued hiding/cover-up of the failed strategies, their genesis, flawed rationale, etc., which has cost this nation and the world dearly] ]
] Authorities are investigating whether Julian Assange violated criminal laws, including possible charges under the Espionage Act, sources say. Afghanistan:  Gates: Progress has 'exceeded my expectations' (Post, December 8, 2010; 5:53 PM)
U.S. hurting peace chances by giving up on israeli settlement freeze, analysts say (Post, December 8, 2010; 11:00 PM)
In South Korea, Joint Chiefs chairman scolds China for its 'tacit approval' of North's aggression
(Post, December 8, 2010; 11:01 PM)
Iran talks end with little sign of progress
(Post, December 8, 2010; 1:04 AM)
Rice, on 'The View,' defends Obama on WikiLeaks
(Post, December 8, 2010; 1:00 AM) (Washington Post) [ The problems in all these regions are inextricably tied to the nation with insurmountable problems of its own and own making.  That nation quite obviously is pervasively corrupt, meaningfully lawless, defacto bankrupt america (along with such comparable enablers / allies as zionist israel, nato, etc.. How can anyone believe anything they say, least of all gates who hails from C(ottage)I(ndustries of)A(merica) based on lies, chaos, and conflict.]

 

 

 

 

U.S. home prices drop 1.3%  (Washington Post) [  Oooooh! Ouch … but no say the frauds on wall street … that’s a good thing … you know … that ‘affordability thing’ … yes, they say … sounds like a plan!   ] Six regions hit new lows, and they're not expected to rebound anytime

 

 

Budget proposal to be delayed (Washington Post) [  At this point, who’s still counting … and does it count? I mean, near $14 trillion and counting, the question is ‘can they count’ … then there’s the real debt … Timid Tuesday: Is it Safe?   Davis    ‘… This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘ … Howard Davidowitz on the Economy: "Here Are the Numbers ... WE'RE BROKE!"   11-25-10  The U.S. economy "is a complete disaster," Howard Davidowitz declared here in July, the most recent in a string of dire predictions from Tech Ticker's most entertaining guest.On the eve of Thanksgiving, I asked Davidowitz if he had any regrets, or was ready to throw in the towel given recent signs of economic revival. Are you kidding me? "Here are the numbers...we're broke," Davidowitz declares, noting the U.S. government goes $5 billion deeper into debt every day and is facing $1 trillion-plus annual deficits for the next decade. "In other words, we're bankrupt."As with the economy, Davidowitz is unwaveringly consistent in his views on President Obama, calling him "deranged, dysfunctional and discredited."Results of the midterm election show "the people of this country think we are in a catastrophe," he says. "I'm with them."Check the accompanying video for more of Howard's unfettered opinions and stay tuned for additional clips from this interview. And...Happy Thanksgiving! Aaron Task is the host of Tech Ticker. You can follow him on Twitter at @atask or email him at [email protected]   ] President Obama expects to release his fiscal 2012 budget a week later than the timetable set out under the Budget Act of 1974.

 

 

2010 worst year for bank failures since 1992 (Washington Post) [ And you can safely say the worst is not over and there’s more to come …’ Suttmeier ‘5 Economic Themes for 2011  (6 more are on their way): … 3.The banking system is supposed to de-lever risk, but it has not. When I look at the Notional Amount of Derivative Contracts I cringe at the fact that since the end of 2007 this risk category has grown $71.6 trillion since the end of 2007, that’s an increase of 43.5% to $236.4 trillion at the end of the third quarter in an environment where banks should be de-leveraging not adding to this risk where financial time bombs are ticking…’   ‘Deadbeat’ TARP banks on rise (Washington Post) [ Sounds like a plan! Viz., when worthless paper / securities / toxic assets are being carried in the trillions now marked to anything (as per legislated mark to anything FASB rule change), the reality is that there’s no real surplus from which to pay dividends, etc..  ] Obama administration steps up monitoring of banks that miss required payments.   ]  The nation is closing out the year with 157 bank failures, up from 140 in 2009.

 

 

 5 Economic Themes for 2011  Suttmeier ‘5 themes for 2011 (6 more are on their way):

  1. Home prices will resume a decline that began in mid-2006. We had the home buyer tax credits expire in mid-2010, and government sponsored mortgage modifications provided limited help. In 2011 we face continued foreclosure issues including questionable documentation, and banks have a record high Other Real Estate Owned (OREO). OREO is up to $53.2 billion at the end of the third quarter, up 338.2% since the end of 2007. Depressed home sales are being sold at a 30% to 35% discount, which reduces property appraisals at the county level. Home builders will have to compete with these lower prices and we need a mortgage modification program for all Americans, not just those at risk of losing their homes. QE2 is not working and US Treasury yields are higher causing mortgage rates to rise. “The Great Credit Crunch” began with housing, and that foundation needs repair before Main Street can recover with sustainable job creation.
  1. Community banks still have $1.43 trillion in commercial real estate loans that require resolution. The FDIC’s List of Problem Banks rose to 860 in the third quarter of 2010, which is 11.1% of all insured institutions. My analysis shows 2,485 or 32% of all banks overexposed to commercial real estate loans, and 3,938 or 50.7% of all banks with real estate loan pipelines that are 80% to 100% funded. This stress needs to be addressed before jobs can be created on Main Street USA as housing and construction drive local economies. “The Great Credit Crunch” will not end without a program to remove toxic real estate loans from the books of community banks around the country.
  1. The banking system is supposed to de-lever risk, but it has not. When I look at the Notional Amount of Derivative Contracts I cringe at the fact that since the end of 2007 this risk category has grown $71.6 trillion since the end of 2007, that’s an increase of 43.5% to $236.4 trillion at the end of the third quarter in an environment where banks should be de-leveraging not adding to this risk where financial time bombs are ticking.
  1. Fannie Mae and Freddie Mac will continue to drain taxpayer money as the Treasury provides unlimited lines of credit through 2012. The cost currently is about $150 billion, by far the largest of any government bailouts. We need to unwind the activities of these GSEs, and beef up Ginnie Mae as the go to government agency that backs new mortgage issuance.
  1. Because of the housing market depression and stress in the banking system the unemployment rate will stay above 9% for all of 2011.

Tracking the US Capital Markets – US stocks are overvalued fundamentally and overbought technically on both daily and weekly charts. The snow storm causes stocks to drift lower and higher.

The Yield on the 10-Year Note (3.345) – Tested this week’s value level at 3.494 with today’s risky level at 3.306.

Comex Gold ($1384.2) – The 50-day at $1372.1 held at the low on Monday with this week’s risky level at $1401.2.

Nymex Crude Oil ($90.79) – Reached a new high for the year at $91.88, shy of this week’s risky level at $93.28. Support is the 21-day simple moving average at $88.24.

The Euro (1.3163) – My weekly value level is 1.2906 with 200-day simple moving average at 1.3087 and quarterly pivot at 1.3318, which goes away at the end of the year.

The Dow Industrial Average (11,555) – Remains extremely overbought on both daily and weekly charts. The 21-day simple moving average is 11,384 with a daily pivot at 11,569 and this week’s risky level at 11,629.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

 

 

Market Crash on 12/31/10? Technical indicators suggest market collapse may begin by December 31st    Why Stocks Could Collapse...Beginning as Soon as December 31, 2010! The Fed has propped up the equity markets for months ... but that could soon come to a disastrous end! Dennis Slothower is one of the world’s leading technical analysts. He’s one of the few advisors whose readers completely avoided ALL losses during the disaster that was 2008. And now he’s issuing another dire warning. His technical indicators suggest that the market manipulation we’ve seen over the last several months is about to come to an end…and that means thousands of investors are about to get clobbered. This correction could begin as soon as December 31st– so it’s important that you take action now to prepare yourself. Click on the link below for immediate access to Dennis Slothower’s latest report, which will explain – in plain English – just how Dennis saw the collapse of 2008 coming…and how he’ll help you avoid disaster in the weeks ahead.   http://www.stealthstocksonline.com/reports/FreeReport4StealthStocks.pdf 

 

 

Don't Be Fooled By Investment Disinformation [ While this is axiomatically true, it is also true that one must go beneath the numbers to find the reality underlying particularly manipulated moves which, as one might expect from a forbes contributor with an indirect bobblehead nod to the u.s. market based upon, ie., ignoring such things as the debased dollar, insurmountable debt, fraud, etc.. The u.s. numbers are a joke to keep ‘fools rushin’ in’, to keep them sucked in, etc.. ]

 

 

What's Coming in 2011? More Gloom, But Not Necessarily Doom  Krasting ‘Oh boy, is 2011 going to be an exciting year! Some things that I think might happen:

Have a great year!’

 

 

Artificial intelligence to transform web: Russian tycoon (AFP)

 

J.P Morgan, the ultimate *ankers of 2010 Economic Assassin | The contracts that Bear Stearns once held on silver have now been taken over by J.P Morgan, allowing them complete control on the paper price on silver.

 

GAO Sees Problems in Government’s Financial Management Accounting Today | Government Accountability Office Can’t Hold Government Accountable.

 

War Would End the Recession? Steven Horwitz | Krugman says destruction creates wealth.

 

 

9 Signs That The Price Of Oil In 2011 Will Soar Well Beyond 100 Dollars A Barrel

Will we see the price of oil rise significantly in 2011? Unfortunately, that appears to be precisely where we are headed. Despite stubbornly high unemployment and a very sluggish economy in the United States, the price of oil continues to creep upward.    Ex-Shell president sees $5 gas in 2012  The former president of Shell Oil, John Hofmeister, says Americans could be paying $5 for a gallon of gasoline by 2012.

 

Nearly 100 bailed-out banks may collapse all the same: analysis The $700-billion bank bailout, launched in the final months of the Bush administration, was meant to save US financial institutions from a systemic collapse.

 

Andy Xie: Either America Or China Will Crash In 2011 The most likely candidates to trigger the next global crisis are the U.S.’s sovereign debt or China’s inflation. When one goes down first, the other can prolong its economic cycle.

 

Non-US Banks Gained from Fed Crisis Fund Some of the world’s strongest banks have profited from an emergency credit facility set up by the US Federal Reserve to shore up confidence in the global financial system, according to a Financial Times analysis of data released by the Fed.

 

Midas Resources: QE2 Explained Midas Resources explains how QE2 works and why it is killing the dollar and our future.

 

 

 

National / World

 

Chris Matthews Wants Obama to Produce Birth Certificate Kurt Nimmo | MSNBC is worried that the “birther issue” has grown legs and is about to swamp the Barry Obama administration.

 

Alex Jones’ Audio Blog: War on Common Sense – Losing Our Cultural Instincts Under the NWO THElNFOWARRlOR | Recorded during his break on Christmas Eve, Alex discusses how we are deep into a long-term agenda to conform humanity to the globalists’ system.

 

Social Security is not “Insurance” Ron Paul | Social Security does not represent an old age pension, an “insurance” program, or even a forced savings program.

 

Amerika Has Caught Up With 1984 Paul Craig Roberts | America’s future is the world of Winston Smith.

 

10 New Year’s Re-Solutions For Non-violent Rebellion Activist Post | The only reason the system is maintained is because the majority still acquiesce to it.

 

Alex Jones’ Audio Blog: War on Common Sense – Losing Our Cultural Instincts Under the NWO Recorded during his break on Christmas Eve, Alex discusses how we are deep into a long-term agenda to conform humanity to the globalists’ system. Under modern day mind control, individuals willingly defend their road to servitude while learning to shed their family, culture, values and instinctual defenses against domination by the ruling predator class.

 

Chris Matthews: Why Doesn’t Obama Just Release The Birth Certificate? On Monday night’s edition of “Hardball,” host Chris Matthews talked about putting the birth certificate controversy surrounding President Obama to rest.

 

The Secret Of Queen Elizabeth Exposed Alex Jones and Aaron Dykes discuss the British Royal Family and the Groom of the Stool.

 

Gold Surges To Two Week High As $1,400 Level Exposes Many To Pin Risk To be sure, we assumed that this merely opens the way for yet another year end rally to all time highs, in line with the prediction by John Embry from two days earlier.

 

Pilot Who Took On Big Sis Goes Public The airline pilot who lost his federally-issued gun and badge for posting video on YouTube critical of airport security has chosen to go public with his identity.

 

2011: “Dissent Is What Rescues Democracy” The year 2011 will bring Americans a larger and more intrusive police state, more unemployment and home foreclosures, no economic recovery, more disregard by the US government of US law, international law, the Constitution, and truth, more suspicion and distrust from allies, more hostility from the rest of the world, and new heights of media sycophancy.

 

With food safety bill, U.S. government will spend nearly $1 million per person to prevent food-borne illness deaths The recently-passed Food Safety Modernization Act, which was passed in order to prevent food-borne illness deaths in the USA, will cost $1.4 billion over the first five years. But nobody thinks about the economics of the issue. How many people are we going to save by spending this $1.4 billion, even assuming it works?

 

US declined to investigate suspected Mossad assassination, cable shows The US government lied about a request from the United Arab Emirates (UAE) government to probe the death of a Hamas military leader, according to a recently released US State Department cable from secrets outlet WikiLeaks.

 

High-risk insurance pools attracting few (Washington Post) [ As if we didn’t already know we can’t believe anything thet say!   ] Early feature of the new health-care law isn't attracting as many customers as expected.

 

Iraq:  2 suicide bombings kill 19, wound 45 (Washington Post) [  Progress breakin’ out all over …
Britain charges 9 of 12 arrested in terror plot
(Post, December 27, 2010; 4:07 PM)  …blowback’s a bitc*h! …
Conflicting accounts of deadly raid in Kabul
(Post, December 27, 2010; 6:32 PM) WikiLeaks papers detail Iraq torture, US killings Al-Jazeera on Friday released what it called “startling new information” from US documents obtained by WikiLeaks, alleging state-sanctioned Iraqi torture and the killing of hundreds of civilians at US military checkpoints. Julian Assange to RT: WikiLeaks gives ‘most accurate picture of war’ The shocking WikiLeaks release, which has revealed thousands of unreported civilian casualties in Iraq, is the most accurate picture of war ever made, and it is food for thought, says the website’s editor-in-chief. The report, condemned by the Pentagon, claims that US commanders in Iraq ignored evidence of torture and the murder of civilians. Spiegel: WikiLeaks logs may reveal war crimes In its early analysis of the Iraq war logs released by whistleblower site WikiLeaks on Friday, the German paper Der Spiegel pointed to several accounts of what it calls “dubious attacks” by US Apache helicopters that may have amounted to war crimes.Secret Iraq war records reveal grim new details  (Washington Post) Logs released by WikiLeaks offer chilling insights about conflict's death toll and the tactics of Iraqi leaders who have taken over as U.S. troops exit. [  Now why did I think the u.s. military’s numbers were all wet?    Poll: Does WikiLeaks put soldiers in danger? I haven’t looked at this poll, but my inner poll says needless wars in other people’s lands put soldiers at risk, particularly when your nation is defacto bankrupt. ] Previous: 77,000 Iraqis killed from 2004 to August 2008, U.S. military says (Washington Post) [ And you can take that to the fraudulent american bank … riiiiight! … Come on … americans lie about everything and certainly this … A conservative estimate  from AP through only 2007: Study: 151,000 Iraqis died in conflict’s violence Surveyors face danger to count casualties from 2003 to 2006 The Associated Press  - updated 1/9/2008 7:15:50 PM ET 2008-01-10T00:15:50  About 151,000 Iraqis died from violence in the first three years after the United States invaded, concludes the best effort yet to count deaths — one that still may not settle the fierce debate over the war's true toll on civilians and others … americans are just lying war criminal american scum.    Obama’s Finest Hour: Killing Innocent People For “Made-Up Crap” Floyd  Empire Burlesque  Oct 22, 2010 If ever I am tempted by the siren songs of my tribal past as a deep-fried, yellow-dawg Democrat, and begin to feel any faint, atavistic stirrings of sympathy for the old gang, I simply think of things like the scenario below, sketched last week by Johann Hari, and those wispy ghosts of partisanship past go howling back to the depths: … Unauthorized US strike kills 4 Pakistanis A non-UN-sanctioned US strike on a house in Pakistan’s tribal region of North Waziristan has killed four civilians and injured two others.]

 

Rise in mergers may spell trouble for jobs  (Washington Post) [  Lifelines for a few, obfuscation of impending disaster for most, fraudulent wall street just loves those fees, and though contraindicated, the potential talking points thereby.  ] Some corporate mergers this year have been shadowed by fears of layoffs.

 

 

Toasting the bad economy (Washington Post) [  As indeed the Russians should since they have much to celebrate.           Russian tiger team hails success yahoo   Moscow's unprecedented military deal (Washington Post) ( France should be praised inasmuch as a strong Russia, and conversely, a weak perpetual war, war mongering, war crimes, pervasively corrupt nation, america is optimal for world peace! )   Russia is last in series of major powers to seal valuable deals with India (Washington Post) ( Bravo for India … a deal with Russia is a deal with a future!  )  ] Their country still endures the sting of economic crisis, but Russians plan to drink up this holiday season.   Applebaum: The 'decline of the West' (Washington Post) [ It really is true … and, no leftist sympathizer with his book of the same name, none other than Buchanan says as much. The reason of course is based on reality. From Orwellian Britain, to failed nation-state the pervasively corrupt and defacto bankrupt wobama-bushland america, to perpetual war ‘me-toos’ (ie., nato allies, war crimes nations israel, u.s., etc.), their frauds (wall street, etc.) protected, laws meaningless(see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )    , their ruthless suppression subtle, hidden, but odious as never before in their respective histories, the west at best has become that ‘distinction without significant difference’ and heading to worse than can be imagined. Of course they’ll lay blame to something other than the huge frauds / wealth transfers that have plundered the nation. Indeed, one could even cogently argue that said plundering gave rise to the flawed, failed communism lie in the first instance. Yet, Russia, a great nation with a rich history is not a communist nation, did not violently suppress the people as they shirked that communist yoke / albatross, is not as defacto bankrupt, meaningfully lawless, pervasively corrupt america engaging in perpetual wars of destruction to persons and property, and with a great leader of historical dimension in Putin is a far more rational choice than the bankrupt west on all levels.  As for communist china, it has truly been a self-defeating, self-destructive creation of the west out of greed which is in no short supply in the west.   PREVIOUS: 

Wikileaks founder freed on bail  (Washington Post) [  ‘… Moore (correctly) asserts that Assange is under attack solely because he had the courage to expose American war crimes. Moore writes:

We were taken to war in Iraq on a lie. Hundreds of thousands are now dead. Just imagine if the men who planned this war crime back in 2002 had had a WikiLeaks to deal with. They might not have been able to pull it off. The only reason they thought they could get away with it was because they had a guaranteed cloak of secrecy....

So why is WikiLeaks, after performing such an important public service, under such vicious attack? Because they have outed and embarrassed those who have covered up the truth…’

Though Assange’s arrest was on far more tenuous grounds owing to a CIA-linked girl, Roman Polanski was similarly targeted:

BBC News - Roman Polanski triumphs at European Film Awards Dec 5, 2010 ... Roman Polanski's thriller The Ghost Writer wins six prizes at the European ... Polanski was working on the film at the time of his arrest in ...
www.bbc.co.uk/news/entertainment-arts-11921048  {I strongly recommend this, of course, masterfully done film which deals with exactly that topic and the sordid, unscrupulous machinations of the cia / u.s. (no wonder the u.s. opted out of coverage by world treaty / The Hague thereby) to avoid detection of, and to further such activities as the war crimes referenced.}

Don’t forget: america has their own untouchables in the illegal sense, ie., wall street, etc., and In interview, Bush defends Iraq war and waterboarding (Washington Post)  [ Defending the indefensible … what choice does he have … then there’s the lies … ] Bush breaks silence, writes next chapter  (Washington Post)  [ As a failed president and war criminal himself, moron dumbya bush is among the few in the world that makes failed president wobama look plausibly good in comparison … wobama merely continued the failed policies of dumbya (perpetual war, no pros the frauds on wallstreet, etc.) that got pervasively corrupt, defacto bankrupt america to this point of decline and failure. ]            Anne E. Kornblut    Your take: His most memorable moment?  [ Like regrets in that old song (his way) he’s had a few – http://albertpeia.com/evilonthetarmac.htm   here’s a few:  bushisms from bush the brain-damaged moron http://albertpeia.com/bushisms.htm :

 

Clinton Speaks: He Did It Because He Could - There Are Serial Killers On Death Row Who Have Killed Fewer People Than Unconflicted, Pathological Liar/Perjurer, Rapist, and Murderer, Psychopath criminal american clinton

·         clinton Flashed ("Dropped his Drawers") Paula Jones and Implored Her To "Kiss It" (his p***s, which owing to distinctive "marking/disfigurement" she was able to describe)

·         clinton "Cops a Cheap Feel/Grope" From Kathleen Willey In Attempting Prey Upon Her Perceived Vulnerability

·         clintonites Threaten Dolly Kyle Browning In Attempting To Intimidate Her Into Giving False Testimony

·         clinton Brutally Rapes Juanita Broaddrick

·         clinton Was Asked To Leave Oxford Owing To Sexual Assault Of A Fellow Student

He Does It Because He Can

On March 11, 1999, Investor’s Business Daily reported that at least nine (9) women have now charged that Clinton "personally assaulted them or, through his ‘agents’ or ‘people,’ threatened to do them or their families physical harm." The list includes Dolly Kyle Browning, Gennifer Flowers, Juanita Broaddrick, Paula Corbin Jones, Kathleen Willey, Monica Lewinsky, Linda Tripp, Sally Perdue, and Elizabeth Ward Gracen. "And all of them say they’re afraid for their safety so long as he remains in power."

 

 

CLINTON BODY COUNT

By: Ether Zone Staff

Here is the latest body count that we have. All of these people have been connected with the Clintons in some form or another. We have not included any deaths that could not be verified or connected to the Clinton scandals. All deaths are listed chronologically by date. This list is current and accurate to the best of our knowledge as of January 13, 1999 August 1, 2000.  (see complete list  http://albertpeia.com/bodycount.htm   ) …’  ]

 

 

Robinson: On track to nowhere in Afghanistan (Washington Post) [  I agree with Mr. Robinson and we should be thankful that he’s watching closely and, unlike so many others, he has courage enough to say so :


Obama's glaring ego (Washington Post) [ Come on! Now known for what he really is; viz., an insecure, dysfunctional, jive-talking b*** s*** artist, he’s just once again, but typically wrong, and is nothing to have an ego about.   Robinson: White House is eerily silent on taxes (Washington Post) [ Eerily? I think not! Expectantly? I think so! That is, once you get beyond the wobama b*** s*** ! And, truth be told party distinctions are merely distinctions without significant differences (no prosecution of the wall street frauds, wars raging in Afghanistan / Middle East, etc.. But alas, as to the ‘wobama whitehouse’ this was predictable early on as by David Icke : Barack Obama: The Naked Emperor Shocking but true revelations from David Icke (a must read) | ‘Vast numbers of people across the world, including many who should know better, have been duped by the mind-game called Operation Obama... (excerpts) Obama has been the chosen one for a long time, a fact known only to a few in the deep inner circle, and his relationship with Brzezinski almost certainly goes back to the start of the 1980s when he attended the Ivy League, and big-time Illuminati, Columbia University where Brzezinski was head of the Institute for Communist Affairs. Obama simply will not talk in any detail about this period. He has been covertly funded and supported ever since by the Trilateral Commission and its network of foundations connecting into the Ford Foundation, for whom Obama's mother worked. And a question: Does anyone really believe that someone, a 'man of the people', would simply appear from apparently nowhere to run the slickest and best-funded presidential campaign in American history? He was chosen long ago by those who wish to enslave the very people that Obama says he wants to 'set free'. The sources of Obama funding read like a Wall Street Who's Who - Goldman Sachs, UBS, Citigroup, Credit Suisse, Deutsche Bank, J.P. Morgan Chase, Morgan Stanley, and so on. No wonder he went back on his pledge to accept the limitations of public funding for his campaign and instead took the no-limit option of 'private funding. Then there is the Jewish financier, George Soros, the multi-billionaire associate of Brzezinski and closely involved with the funding and marketing of Obama. Soros is a former board member of the Illuminati's Council on Foreign Relations and funds the European Council on Foreign Relations. In short, he is a major insider' You can certainly see the Soros/Brzezinski techniques in the Obama 'revolution' in the United States. It was the complex and secretive network of Soros foundations and organisations, connected to the intelligence agencies of the US and Israel, that trained and funded students in the Ukraine, Georgia and elsewhere in the art of mass protest and overthrowing governments. These manufactured protests were sold to the world as peoples' revolutions, but it just so happened that when they were over and the old regime was removed the new leaders were those waiting in the wings all along - the puppets of Soros, Brzezinski and their associated networks. Obama is just more of the same, a big smile with strings attached, and controlled completely by the Illuminati networks that chose him, trained him, sold him and provided his record funding. It was they who kept his many skeletons under wraps, like the gay sex and crack cocaine allegations of Larry Sinclair (from affidavit: 1. Who is Ron Allen that claims to be with your Presidential camp, who is alleged to claim that someone claiming to represent me called asking for $100,000, to keep me from coming forward about our (Obama and I) November 1999 encounter of sex and cocaine use?), and they will continue to do so as long as he jumps to their bidding. Obama is just another Banksters' moll prostituting himself for fame and power, and that's why he supported the grotesque bail-out of the banking system and why he will always put their interests before the people. His financial advisors are straight from the Wall Street 'A' list, including Paul Adolph Volker (Trilateral Commission, Council on Foreign Relations, Bilderberg Group), the head of the Federal Reserve from 1979 to 1987 and Illuminati to his fingertips. Obama has made him head of the Economic Recovery Advisory Board, which is dominated by insiders, including its staff director and chief economist, Austan Goolsbee, a close Obama associate from the University of Chicago. Goolsbee is an initiate of the infamous Illuminati Skull and Bones Society at Yale University, which also includes Boy and Father Bush. It was Goolsbee who told the Canadian government not to worry about Obama's attacks on the economic effects of free trade agreements because his words were just to win votes in the election campaign. Another Wall Street insider, the Zionist Timothy Geithner (Bilderberg Group, Trilateral Commission, Council on Foreign Relations), was appointed by Obama to be his Treasury Secretary. Geithner was the President of the New York Federal Reserve Bank, the most powerful in the private Federal Reserve cartel that masquerades as America's central bank, and he is a former employee of both the Council on Foreign Relations and the appalling Kissinger Associates. Obama's Treasury team locks into the inner circle around the Zionist Robert Rubin, the Director and Senior Counselor of Citigroup, co-chairman of the Council on Foreign Relations, and economic advisor to Obama. Rubin, a member of the Illuminati Bilderberg Group, was the man behind Citigroup's strategy of expanding its risk in debt markets which forced it to be rescued by taxpayers' money. The very people who caused the financial crisis are being appointed by Obama to decide how to respond to it (more taxpayers' money for them and their friends) ‘    
The following youtube video is well worth the look and explains how and why the frauds on wall street have gotten away with their devastating fraud thus far.  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed.  (
UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...         CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN BLACK PANTHER CASE...In emotional and personal testimony, an ex-Justice official who quit over the handling of a voter intimidation case against the New Black Panther Party accused his former employer of instructing attorneys in the civil rights division to ignore cases that involve black defendants and white victims ...’    US v. AZ...    Cases against Wall Street lag despite Holder’s vows to target financial fraud  Washington Post | Obama has promised to hold Wall Street accountable for the meltdown. ):

‘THE OBAMA DECEPTION’  http://www.youtube.com/watch?v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from=PL&index=0&playnext=1  – well worth a look. [ The Obama Deception Number 1 on U.S. Google Trends  ]

While boner and barton are indeed jokes / vegetables that bespeak the single-digit approval rate for congress, obama’s failure to deliver on promises with as well, endless war spending despite defacto bankruptcy of the nation and a watered down nothing financial regulation bill for talking points but little substance, make him as big a joker. This well researched / produced video tells the real story :  http://www.youtube.com/watch?v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from=PL&index=0&playnext=1   ‘THE OBAMA DECEPTION’ – well worth the view.    [ The Obama Deception Number 1 on U.S. Google Trends ]

‘The Obama Deception’ Censored  A viral You Tube upload of one of Alex Jones’ most popular feature films ‘The Obama Deception’ has been censored following a spur of the moment campaign to elevate the movie’s title to the top of the major internet search engines.      In light of this development, I provide an archived site version which appears to be complete (but will be compared with earlier version and replaced with same if incomplete) http://albertpeia.com/obamadeceptionhighqualityversion.flv

Then there is the well researched, produced, and informative ‘ESOTERIC AGENDA’ which explains how we’ve gotten to this forlorn point:     http://video.google.com/videoplay?docid=-7052400717834950257#    [    youtube is often down – website archived version is available as follows:          http://www.albertpeia.com/esotericagenda.flv           http://www.albertpeia.com/esotericagendalinktoarchive.htm          ]

 

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In interview, Bush defends Iraq war and waterboarding (Washington Post)  [ Defending the indefensible … what choice does he have … then there’s the lies … ] Bush breaks silence, writes next chapter  (Washington Post)  [ As a failed president and war criminal himself, moron dumbya bush is among the few in the world that makes failed president wobama look plausibly good in comparison … wobama merely continued the failed policies of dumbya (perpetual war, no pros the frauds on wallstreet, etc.) that got pervasively corrupt, defacto bankrupt america to this point of decline and failure. ]            Anne E. Kornblut    Your take: His most memorable moment?  [ Like regrets in that old song (his way) he’s had a few – http://albertpeia.com/evilonthetarmac.htm   here’s a few:  bushisms from bush the brain-damaged moron http://albertpeia.com/bushisms.htm :

 

Clinton Speaks: He Did It Because He Could - There Are Serial Killers On Death Row Who Have Killed Fewer People Than Unconflicted, Pathological Liar/Perjurer, Rapist, and Murderer, Psychopath criminal american clinton

·         clinton Flashed ("Dropped his Drawers") Paula Jones and Implored Her To "Kiss It" (his p***s, which owing to distinctive "marking/disfigurement" she was able to describe)

·         clinton "Cops a Cheap Feel/Grope" From Kathleen Willey In Attempting Prey Upon Her Perceived Vulnerability

·         clintonites Threaten Dolly Kyle Browning In Attempting To Intimidate Her Into Giving False Testimony

·         clinton Brutally Rapes Juanita Broaddrick

·         clinton Was Asked To Leave Oxford Owing To Sexual Assault Of A Fellow Student

He Does It Because He Can

On March 11, 1999, Investor’s Business Daily reported that at least nine (9) women have now charged that Clinton "personally assaulted them or, through his ‘agents’ or ‘people,’ threatened to do them or their families physical harm." The list includes Dolly Kyle Browning, Gennifer Flowers, Juanita Broaddrick, Paula Corbin Jones, Kathleen Willey, Monica Lewinsky, Linda Tripp, Sally Perdue, and Elizabeth Ward Gracen. "And all of them say they’re afraid for their safety so long as he remains in power."

 

 

CLINTON BODY COUNT

By: Ether Zone Staff

Here is the latest body count that we have. All of these people have been connected with the Clintons in some form or another. We have not included any deaths that could not be verified or connected to the Clinton scandals. All deaths are listed chronologically by date. This list is current and accurate to the best of our knowledge as of January 13, 1999 August 1, 2000.  (see complete list  http://albertpeia.com/bodycount.htm   )

Susan Coleman: Rumors were circulating in Arkansas of an affair with Bill Clinton. She was found dead with a gunshot wound to the head at 7 1/2 months pregnant. Death was an apparent suicide.
 

Kevin Ives & Don Henry: Initial cause of death was reported to be the result of falling asleep on a railroad track in Arkansas on August 23, 1987. This ruling was reported by the State medical examiner Fahmy Malak. Later it was determined that Kevin died from a crushed skull prior to being placed on the tracks. Don had been stabbed in the back. Rumors indicate that they might have stumbled upon a Mena drug operation.

 
Paul Olson: A Federal witness in investigations to drug money corruption in Chicago politics, Paul had just finished 2 days of FBI interviews when his plane ride home crashed, killing Paul and 130 others on Sept 8 1994. The Sept. 15, 1994 Tempe Tribune newspaper reported that the FBI suspected that a bomb had brought down the airplane.

Calvin Walraven: 24 year on Walraven was a key witness against Jocelyn Elder's son's drug case. Walraven was found dead in his apartment with a gunshot wound to the head. Tim Hover, a Little Rock police spokesman says no foul play is suspected.

Alan G. Whicher: Oversaw Clinton's Secret Service detail. In October 1994 Whicher was transferred to the Secret Service field office in the Murrah Building in Oklahoma City. Whatever warning was given to the BATF agents in that building did not reach Alan Whicher, who died in the bomb blast of April 19th 1995.
 

Ron Brown:. The Commerce Secretary died on  April 3, 1996, in an Air Force jet carrying Brown and 34 others, including 14 business executives on a trade mission to Croatia, crashed into a mountainside. The Air Force, in a 22-volume report issued in June of 1996, confirmed its initial judgment that the crash resulted from pilot errors and faulty navigation equipment At the time of Brown's death, Independent Counsel Daniel Pearson was seeking to determine whether Brown had engaged in several sham financial transactions with longtime business partner Nolanda Hill shortly before he became secretary of commerce.

Charles Meissner: died: UNK - Following Ron Brown's death, John Huang was placed on a Commerce Department contract that allowed him to retain his security clearance by Charles Meissner. Shortly thereafter, Meissner died in the crash of a small plane.   He was an Assistant Secretary of Commerce for International Economic Policy.
 



Barbara Wise: Wise a 14-year Commerce Department employee found dead and partially naked in her office following a long weekend. She worked in the same section as John Huang. Officially, she is said to have died of natural causes.

 
Mary C. Mahoney: 25, murdered at the Georgetown Starbuck's coffee bar over the 4th of July '97 weekend. She was a former White House intern who worked with John Huang. Apparently she knew Monica Lewinsky and her sexual encounters with Bill Clinton. Although not verified, it has been said that Lewinsky told Linda Tripp that she did not want to end up like Mahoney.


 

              ---------------------------------------------------------

 

Background     http://albertpeia.com/CIAAgentAffidavit1.jpg

For Those Who Wonder About the bush-clinton-bush Stranglehold on the Nation, Realize That Their Criminal Cooperation Began With Their Lucrative Relationship Vis-a-vis What Was Known as the Mena, Arkansas Drug (cocaine from Central/South America) Run As Set Forth In This CIA Agent's Affidavit/Declaration Under Penalty of Perjury.

The Vietnam war was a painful time for America. Many young Americans were drafted and died thousands of miles from their loved ones. Young men of priviledge had a clear advantage - few of them went to Vietnam, securing positions in the National Guards of their respective states. George W. Bush was one of these men, securing a place in the Texas Air National Guard in spite of a waiting list of several hundred. However, he claims that he did not receive special consideration, which is clearly a lie.

Most of the young men lucky enough to get into the Guard fulfilled their obligations. George W. Bush did not. He was absent without leave, AWOL, for over a year. Not surprisingly, this got little attention from the corporate media...

… After the hostages' release, the arms shipments to Iran continued. Profits were funneled to another pet cause of the right wing - the Nicuaraguan terrorists known as "freedom fighters" or "Contras". Another Contra source of income was trafficking in narcotics, running cocaine into the United States, with the full knowledge and cooperation of Administration officials. In the 80's there was a huge increase in the flow of cheap crack cocaine into the inner cities of America and countless lives were destroyed.

A series of investigations led to the convictions of Oliver North and Vice Admiral John C. Poindexter, head of the National Security Council, on charges of obstructing Congress and unlawfully destroying documents, but both their convictions were later reversed. In 1992 President George H.W. Bush pardoned many of the top government officials who had been charged or convicted in the scheme. The main perpetrators of Iran/Contra and associated events remain free today, and many of them work in George W. Bush's Administration.

Of the three generations of Bush men mentioned on this site, the most evil and most dangerous by far is George Bush, Sr.

The Bush family came by their wealth on the backs of 11 million dead. Prescott Bush, along with partner E. Ronald Harriman, supplied financial aid and raw materials to Hitler's Third Reich.

In 1942, Bush/Harriman companies were seized under the Trading with the Enemy Act: the Union Banking Corporation, the Holland-American Trading Corporation, the Seamless Steel Equipment Corporation and Silesian-American Corporation.

After the war, the CIA recruited many former Nazis to work for them, escaping prosecution for war crimes. Klaus Barbie, infamous for ordering the murder of French children, was among them. He was, however, eventually caught and returned to France to stand trial.

… Shortly before the 9/11 attacks, John Ashcroft stopped flying commercial and started flying on government-chartered planes. Why?

In fact, the George W. Bush received many warnings that he disregarded. Bush knew, and he did nothing. Why?

Oil, that's why. And a free rein to rape the Constitution.

…- David Blomstrom   ]

  ] Gerson: He could have taken quiet credit for the bipartisan tax deal; he chose otherwise.    ]

 

 

‘Deadbeat’ TARP banks on rise (Washington Post) [ Sounds like a plan! Viz., when worthless paper / securities / toxic assets are being carried in the trillions now marked to anything (as per legislated mark to anything FASB rule change), the reality is that there’s no real surplus from which to pay dividends, etc..  ]Obama administration steps up monitoring of banks that miss required payments.

 

 

(12-26-10) I’m constrained to eat crow here, inasmuch as I’ve previously had negative things to say regarding Time Warner Cable. But, so as not to be one of those do as I say, but not as I do hypocrites, I must state for the record here that Time Warner Cable internet is far superior to the att-based DSL, and that att can’t-do-thing means I’ll be canceling my (jersey / now dumbya bushie land) att land line (done 12-27-10, along with DSL) which wasn’t fully functional anyway but had kept same for the listing, and for internet connection which ultimately required DSL and failed at that.

 

(12-23-10) MY INTERNET CONNECTION IS DOWN AGAIN AND OF COURSE, I WILL HAVE MORE TO SAY ABOUT THE PERVASIVELY CORRUPT, DEFACTO BANKRUPT AMERICAN SCUMBAGS SHORTLY! They will be sorry they did this … I won’t forget it!

 

(12-22-10) MY INTERNET CONNECTION IS DOWN SO I’M USING A LOCAL WORKSTATION COMPUTER AND WILL HAVE MORE TO SAY ABOUT THE PERVASIVELY CORRUPT, DEFACTO BANKRUPT AMERICAN SCUMBAGS SHORTLY! They will be sorry they did this … I won’t forget!

 

 

 

10 Good Reasons To Be Worried About The Stock Market In 2011 , On Sunday December 26, 2010, ‘This is one of David Rosenberg's best pieces in awhile. In his latest daily note, the Gluskin-Sheff economist presents 10 reasons bulls should be worried about the stock market in 2011. And it's not just that there are all kinds of negative headlines that are being ignored, or that some economic datapoints aren't so hot, or that there is still deflation. He makes a great argument that many factors, like the level of bullishness, the relative valuation of stocks to bonds, and the unanimity in thinking are worrisome.  If anything, the list isn't taking into account everything we see right now.

 

1.       STRATEGISTS ARE UNANIMOUSLY BULLISH "In Barron’s look-ahead piece, not one strategist sees the prospect for a market decline.  This is called group-think.  Moreover, the percentage of brokerage house analysts and economists to raise their 2011 GDP forecasts has risen substantially.  Out of 49 economists surveyed, 35 say the U.S. economy will outperform the already upwardly revised GDP forecasts, only 14 say we will underperform.  This is capitulation of historical proportions. "Read more: http://www.businessinsider.com/10-reasons-to-be-worried-about-the-stock-market-in-2011-2010-12#strategists-are-unanimously-bullish-1#ixzz19FzSp3Sd



2.      INVESTORS ARE GOING GAGA FOR STOCKS"The weekly fund flow data from the ICI showed not only massive outflows, but in aggregate, retail investors withdrew a RECORD net $8.6 billion from bond funds during the week ended December 15 (on top of the $1.7 billion of outflows in the prior week).  Maybe now all the bond bears will shut their traps over this “bond-bubble” nonsense."  Read more: http://www.businessinsider.com/10-reasons-to-be-worried-about-the-stock-market-in-2011-2010-12#investors-are-going-gaga-for-stocks-2#ixzz19G02eyCU

 

  1. "Investors Intelligence now shows the bull share heading up to 58.8% from 55.8% a week ago, and the bear share is up to 20.6% from 20.5%.  So bullish sentiment has now reached a new high for the year and is now the highest since 2007 ― just ahead of the market slide."Read more: http://www.businessinsider.com/10-reasons-to-be-worried-about-the-stock-market-in-2011-2010-12#-3#ixzz19G0EYLuH

 

  1. "It may pay to have a look at Dow 1929-1949 analog lined up with January 2000. We are getting very close to the May 1940 sell-off when Germany invaded France.  As a loyal reader and trusted friend notified us yesterday, “fighting” war may be similar to the sovereign debt war raging in Europe today. (Have a look at the jarring article on page 20 of today’s FT — Germany is not immune to the contagion gripping Europe.) "Read more: http://www.businessinsider.com/10-reasons-to-be-worried-about-the-stock-market-in-2011-2010-12#-4#ixzz19G0MEGXy

 

5.      STOCK DIVIDEND YIELDS ARE NOT SO HOT "What about the S&P 500 dividend yield, and this comes courtesy of an old pal from Merrill Lynch who is currently an investment advisor.  Over the course of 2010, numerous analysts were saying that people must own stocks because the dividend yields will be more than that of the 10-year Treasury.  But alas, here we are today with the S&P 500 dividend yield at 2% and the 10-year T-note yield at 3.3%.From a historical standpoint, the yield on the S&P 500 is very low ― too low, in fact.  This smacks of a market top and underscores the point that the market is too optimistic in the sense that investors are willing to forgo yield because they assume that they will get the return via the capital gain.  In essence, dividend yields are supposed to be higher than the risk free yield in a fairly valued market because the higher yield is “supposed to” compensate the investor for taking on extra risk.  The last time S&P yields were around this level was in the summer of 2000, and we know what happened shortly after that.  When the S&P yield gets to its long-term average of 4.35%, maybe even a little higher, then stocks will likely be a long-term buy. "Read more: http://www.businessinsider.com/10-reasons-to-be-worried-about-the-stock-market-in-2011-2010-12#stock-dividend-yields-are-not-so-hot-5#ixzz19G0ow2m9

  1. THE DOW PRICED IN GOLD HAS MORE TO FALL Read more: http://www.businessinsider.com/10-reasons-to-be-worried-about-the-stock-market-in-2011-2010-12#the-dow-priced-in-gold-has-more-to-fall-6#ixzz19G2x0gFe"The equity market in gold terms has been plummeting for about a decade and will continue to do so.  When measured in Federal Reserve Notes, the Dow has done great.  But there has been no market recovery when benchmarked against the most reliable currency in the world.  Back in 2000, it took over 40oz of gold to buy the Dow; now it takes a little more than 8oz.  This is typical of secular bear markets and this ends when the Dow can be bought with less than 2oz of gold.  Even then, an undershoot could very well take the ratio to 1:1."Read more: http://www.businessinsider.com/10-reasons-to-be-worried-about-the-stock-market-in-2011-2010-12#the-dow-priced-in-gold-has-more-to-fall-6#ixzz19G17NoeR

7.      BREADTH IS DETERIORATING "As  Bob Farrell is clearly indicating in his work, momentum and market breadth have been lacking.  The number of stocks in the S&P 500 that are making  52-week highs is declining even though the index continues to make new 52-week highs. "Source: Gluskin-Sheff Read more: http://www.businessinsider.com/10-reasons-to-be-worried-about-the-stock-market-in-2011-2010-12#breadth-is-deteriorating-7#ixzz19G1KZX2Q

 

8.      VALUATIONS ARE GETTING RICH "Stocks are overvalued at the present levels.  For December, the Shiller P/E ratio says stocks are now trading at a whopping 22.7 times earnings!  In normal economic periods, the Shiller P/E is between 14 and 16 times earnings.  Coming out of the bursting of a credit bubble, the P/E ratio historically is 12.  Coming out of a credit bubble of the magnitude we just had, the P/E should be at single digits." Source: Gluskin-Sheff Read more: http://www.businessinsider.com/10-reasons-to-be-worried-about-the-stock-market-in-2011-2010-12#valuations-are-getting-rich-8#ixzz19G23tGaQ

 

9.      HOUSING IS STILL A HUGE THREAT "The potential for a significant down-leg in home prices is being underestimated.  The unsold existing inventory is still 80% above the historical norm, at 3.7 million.  And that does not include the ‘shadow’ foreclosed inventory.  According to some superb research conducted by the Dallas Fed, completing the mean-reversion process would entail a further 23% decline in real home prices from here.  In a near zero percent inflation environment, that is one massive decline in nominal terms.  Prices may not hit their ultimate bottom until some point in 2015. "Read more: http://www.businessinsider.com/10-reasons-to-be-worried-about-the-stock-market-in-2011-2010-12#housing-is-still-a-huge-threat-9#ixzz19G2O6qNU

 

10.  FISCAL STRAINS POSE A MAJOR THREAT "Arguably the most understated, yet significant, issue facing both U.S. economy and U.S. markets is the escalating fiscal strains at the state and local government levels, particularly those jurisdictions with uncomfortably high pension liabilities.  Have a look at Alabama town shows the cost of neglecting a pension fund on the front page of the NYT as well as Chapter 9 weighed in pension woes on page C1 on WSJ."   In the absence of Chapter 9 declarations or dramatic federal aid, fixing the fiscal problems at lower levels of government is very likely going to require some radical restraint, perhaps even breaking up existing contracts for current retirees and tapping tax payers for additional revenues.  The story has some how become lost in all the excitement over the New Tax Deal cobbled together between the White House and the lame duck Congress just a few weeks ago." Source: Gluskin-Sheff Read more: http://www.businessinsider.com/10-reasons-to-be-worried-about-the-stock-market-in-2011-2010-12#fiscal-strains-pose-a-major-threat-10#ixzz19G2gqTZP

 


THE STOCK MARKET IS A BUBBLE Corson ‘The stock market is not bubbled up, you say? Well then, let's take a serious macro macro look at the situation and raise the matter as a question.How is it that from about 1950 (or 1965 at least) up to about 1985, the Dow Jones Industrial Average stayed mostly in the range from about 250 to 1200, when America was growing and doing pretty well on average, and then, from about 1985 to the year 2000 or so -- a mere fifteen years -- the Dow shot up to over 10,000, when middle class America realized almost no income gains in real terms and the economy basically cycled from one boom and bust cycle to the next?I argue we face one of the biggest bubbles of all time. Let me explain and lets address the problem by focusing on the DJIA. Here is what the DJIA has done since 1965. click to enlarge images

[chart]

What we observe is the DJIA has gone up about ten fold from 1965 to the year 2000 or so. But what has industrial production in the US done during that time frame?

[chart]

Industrial production has increased to be sure, but only by a factor of three or so. It certainly has not increased anything like the DJIA. But there is slippage, you say. To be sure, we now generate more services, the time series data have been smoothed and more importantly changed, etc., etc. But these explanations simply don't bridge the gap.
Here is another one that doesn't either.

Back in the early-to-mid 1980s macro economists noted that the risk premium being paid on equities over bonds was far higher than was warranted by standard measures of individuals’ attitudes towards risk. In short, the risk premium agents were being paid more than compensated them for the risk. This was particularly surprising since over the long run, the risk on equities was no different than that on bonds. As a result, there appeared to be an arbitrage opportunity by shifting one’s portfolio from bonds to stocks and holding the equities for a long time.

Do you believe that? We simply had a financial epiphany and corrected. More importantly, do you want to believe that or anything except we are bubbled up?As we know, Japan had this problem with its stock market and here is what happened. But that can't happen here you say. I ask, why not?

[chart]

Even GDP and profits have not caught up with this market. They too have only increased three and a half fold at best.

[chart]

(The data in these charts are smoothed to conceal recessions and ease presentation.)Why is it that we don't have a serious bubble in our stock market now? Were our valuations all wrong for years on end earlier, or do we have it wrong now? I think we have a problem and our heads are in the sand… http://www.seekingalpha.com/article/243573-is-the-dow-showing-a-major-stock-market-bubble?source=yahoo



 

 

Market Snapshot: U.S. stocks face pullback predictions

 

U.S. stocks face pullback predictions Sat, 25 Dec 2010 17:00:05 GMT After stocks rise to two-year highs in the latest week, market analysts say a retreat could be in he...

 

Connecticut, California join probe of Ally (Washington Post)  [I’d be much more impressed if they initiated a probe of more readily discernible criminal offenses in violation of the RICO Act      http://albertpeia.com    Frauds/Liars (sic-lawyers)Covering Up for Other Frauds/Liars (sic-lawyers). In Productive Societies as China, Japan, etc., Fraudulent Liars (sic-lawyers) and the Fraudulent u.s. System They're a Part of Are Unheard Of/Non-existent. List of Files Regarding Filed Attorney Grievance Against Fraud coan et als  Or Here For A Clearer View Of  Filed Grievance Complaint, Response, Exhibits, and Related RICO Filings  Note the Committee of Frauds/Liars (sic-lawyers). Included are DOJ Rep., State Court Rep., State Atty. General Office Rep., and even a Vegetable Garden yale law prof who probably never practiced law in his life. How Pathetic!   http://albertpeia.com/fbiofficela91310 ]   Justice: FBI improperly opened probes   (Washington Post)  [ I just hope they’re as zealous (in probing readily discernible crime) with regard to my RICO matters and the corruption in the (judicial / legal) process since, in the final analysis, it will have been the corruption within that will have brought the nation down irrevocably and totally ] .

 

                                                                                                                                  9-13-10

 

 

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

 

 

Dear Sir:

 

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer’s browser) as per your office’s request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to prevent viral attacks / infection and are without threat). I also include a copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named ‘112208opocoan’)…

 The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

 

 

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case  RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages)  [  http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf        (  http://albertpeia.com/fbiofficela91310   )   ].

 

 

The correspondence I received from Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as     fbicorrespondencereyes.htm     .   With regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry).  The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did – he served 12 years in prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).

 

 

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the    RICO VERIFIED COMPLAINT    (see infra). Such includes and as set forth in the case, inter alia,

 

 

  1. A judgment had been entered in my favor in the case, United States District Court Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth approximately now in excess of $300,000 remains unaccounted for and which could be used for payment to creditors, Los Angeles, etc..
  2. Counsel Robert Sullivan on my behalf documented by way of certification upon investigation that Alan Shiff, USBCJ, had falsely stated a dismissal upon which false statement he predicated a retaliatory and spurious contempt proceeding against me causing substantial damage, and for which he sought Judicial Notice of those and related proceedings as did I in some of my filings.
  3. The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to Defendant Coan’s failure to file anything whatsoever by the court’s deadline causing creditors and me substantial damages:   [  Shiff Order of Dismissal With Prejudice on Coan’s Failure to File        Page 1                Page 2          ]
  4. Defendant Coan had filed an action against me to prevent me from suing him which necessitated me to fly to Connecticut for a hearing before The Honorable Robert N. Chatigny, Chief Judge, USDC, District of Connecticut, who denied Coan’s requested relief as to Coan but precluded my action against Shiff (although there is no immunity, judicial or otherwise, for criminal acts, ie., fraud connected with a case under Title 11, USC, etc.) . [   transcript in pertinent part -     crossexamofcoanbypeia.pdf   ]
  5. Newly appointed judge, Maryanne Trump Barry, Donald Trump’s sister, was assigned the RICO case despite the conflict of interest in light of hundreds of thousands of dollars of illegal (drug) money being laundered through the Trump casinos by the RICO defendants, and despite my motion to recuse her which motion she heard herself and denied, and U.S. Trustee Hugh Leonard with whom I met personally refused to join or file a separate motion to recuse and not long thereafter left said office for private practice at Cole, Shotz, et als on retainer with the RICO defendants as his primary client.
  6. Probative and evidentiary documents, affidavits, exhibits, including those turned over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to Assistant U.S. Attorney Jonathan Lacey with whom I met personally at the U.S. Attorney’s Office in Newark, N.J., at which time Samuel Alito was U.S. Attorney, and went over said documents and their probative value with him. Within approximately a month thereafter upon inquiry I was told that Jonathon Lacey was no longer with the office, that the file/documents could not be located, and that there was no further information available concerning contacting him or his location. I thereupon delivered by hand, copies of said documents to the office of then U.S. Attorney Alito, addressed to him, with assurance they would go directly to him. In addition to being inept [ I looked in on the one mob case he had brought, bungled, lost (accidently on purpose?) since I was suing some mob-connected under RICO and the court (I had known / previously met outside of court the judge Ackerman through a client) was absolute bedlam and a total joke since incompetent corrupt Alito brought in all 20 mob defendants (rather than prosecute one or a few to flip them first) who feigning illness had beds/cots in the courtroom along with their moans during testimony and had the jury in stitches. As much as I hate the mob, it truly was funny, if not so tragic.],   Alito is also corrupt (and maybe corrupt because he is inept). After a reasonable (but still rather short) time I called to determine the status and was told that Alito was no longer with the Office of the U.S. Attorney, that he was (appointed) a federal judge, and that neither the documents nor any file or record of same could be located. Alito did parley the same / cover-up into quid pro quo direct lifetime appointment to the Court of Appeals, 3rd circuit, despite the absence of judicial experience or successful tenure as U.S. Attorney (Maryanne Trump Barry as well). This is the same Sam Alito that now sits on the purported highest court in the land. The real application of the illegal rule ‘don’t ask, don’t tell’.

 

 

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

 

 

Sincerely,

 

 

Albert L. Peia

611 E. 5th Street, #404

Los Angeles, CA 90013

(213) ******** (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their ‘fix’ so cell phone best for contact).

 

 

               

Part 2: Woodward's 'Obama's Wars' Don't get 'locked into Vietnam,' Biden warns (Washington Post) [ Yeah, when you have a lobotomized VP you tend not to trust their opinion; but, I think they just cover their bases … you know, that Kerryish both sides of all issues thing. In any event, wobama bought this continued debacle and bears fault with the other Zionist war mongers. Previously (on Iraq and Afghanistan, infra): Obama: 'It is time to turn the page' on Iraq war  (Washington Post) [ Oh come on! How patronizing to have wobama spew his b*** s*** which b.s. has become synonomous with wobama; ‘to give Iraqis the chance to shape their future’… Iraq’s been destroyed, covered in cancer-causing depleted uranium, america’s defacto bankrupt, etc. If only teleprompters had a brain of their own.  ] He says the U.S. "has paid a huge price" to give Iraqis the chance to shape their future -- a price that now includes more than 4,400 U.S. dead.  ]On Thanksgiving weekend in 2009, Vice President Biden counsels President Obama about sending more troops to Afghanistan.

• Full coverage: 'Obama's Wars'

• Audio: Obama on length of the war

• Audio: Obama on attack possibility

• Audio: Obama on terrorism tactics

 

 

A subtler tack to fight Afghan corruption? (Washington Post)  [ How about a not so subtler tack to fight corruption starting right here in the u.s. of a. where corruption and crime are pervasive and in fact, at the root of the Afghanistan problems, from american reinvigorated heroin trade to bribery attendant thereto to killing civilians, etc..  Defacto Bankrupt, Meaningfully Lawless, War Criminal Nation america, the leader of nations … in crime:

Though having but 5% of the world’s population, america can boast 76% of the world’s serial killers, followed by Europe with England/UK then Germany leading the way for the eu [excerpt, 6 minute video, Serial Killers: Real Life Hannibal Lechters          http://www.albertpeia.com/realifeamericaserialkillers.mpg      (as is consistent with crime generally, see infra)]. Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense  ( http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         )   ]:

CRIME STATISTICS > TOTAL CRIMES (MOST RECENT) BY COUNTRY  SHOWING LATEST AVAILABLE DATA (america’s No. 1).

Rank  

Countries 

Amount 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

  ]

 

 

 

White House offers israel a carrot for peace talks (Washington Post)  [ Oh come on! This dog and pony show is getting old fast while america’s dying and america could in a day precipitate a peace consistent with international law, prior u.n. resolutions (i.e., 242, 338, etc.), (Oslo) accords, civilized behavior, etc., despite and in contravention of israel’s militant intransigence, to stem the hemorrhaging of american blood and treasure for israel’s sake. ]

  ]

 

 

Airstrike probe finds poor coordination between Pakistan, U.S. (Washington Post) [ Riiiiight! That coordination thing underlying those unfriendly-fire incidents and civilian deaths wherever american storm troopers happen to be … Eureka! And all this while everyone was thinking that the same was just typical americana!  ]

 

 

 

U.S. funds go to Taliban, warlords, report finds  (Washington Post) [ Well, defacto bankrupt america can afford it; after all, how much more defacto bankrupt can the nation get? Well, then again, despite the headline, a lot of those hundreds of billions are finding their way back into american hands, albeit dirty ones, like, for example the 360 tons of hundred dollar bills flown into Iraq and still unaccounted for, etc.. ]Military has minimal knowledge of and virtually no control over thousands of Afghans it pays to guard operating bases, bipartisan report finds.

 

We Are Looking at Trillion-Dollar Plus Annual Interest Payments on U.S. Debt  Owens    Krugman: We’re Going To Have To Default On Our Debt One Way Or Another Some dour commentary from Paul Krugman this morning on the implications of our monster debt.      Economists Herald New Great Depression The world is currently experiencing the modern day equivalent of the Great Depression, according to a prominent economist who has added his voice to scores of others now forecasting ongoing economic doom on a scale not seen since the 1930s.) , and my position and that of demographer Dent ( Prechter and many others are also in this camp although I believe he does not factor in sufficiently the debasement of the u.s. currency / dollar in arriving at his numbers which do however, at 1,000 on the DOW reflect real, as opposed to inflated values of 3-4,000 owing to the ever more worthless Weimar dollars which provides ‘spin material’ for the wall street frauds but is really quite ominous going forward, and very detrimental in real economic terms.) [This is a global depression. This is a secular bear market in a global depression. The past up move was a manipulated bull (s***) cycle in a secular bear market. This has been a typically manipulated bubble as has preceded the prior crashes with great regularity that the wall street frauds and insiders commission and sell into. This is a typical wall street churn and earn pass the hot potato scam / fraud as in prior crashes’. This national decline, economic and otherwise, will not end until justice is served and the wall street frauds et als are criminally prosecuted, jailed, fined, and disgorgement imposed.] [ The reason for the necessity of prosecution is founded in the circumstances surrounding and the mindset of what one would deem ‘antisocial personalities’ (disorders) ( I prefer the prior descriptor of such as psychopathic; the euphemistic ‘sociopathic’ was ‘far too understanding’ in my view of the social / environmental factors allegedly giving rise to such negative / destructive behaviors. I don’t buy it.) Specifically, accepted studies / findings have concluded that the essential defect in those with antisocial (psychopathic) personality disorders is an inability to respond normally to fear-inducing stimuli, leading in turn to an inability to inhibit responses that should, but, as with wall street, have not resulted in punishment. Thus, while I think most on wall street have proven themselves criminally insane (for the money, ie., Stewart, ‘Den of Thieves’ / ‘Liar’s Poker’, the most recent financial debacle / crisis, which continues to this day); at the least, owing to a lack of fear of prosecution / punishment, they have become defacto sociopathic / psychopathic.  ]  Krugman: It's All Downhill From Here Cullen Roche Love him or hate him Paul Krugman has been awfully right with regards to the macro picture in the last few years. He’s one of the rare economists who had the foresight to see the housing bubble and the likelihood of economic downturn that would result from it. Krugman recently caused a stir when he said the US economy was headed for the third depression. Here Are 13 Signs That We’re Actually In A Depression Right Now  Gregory White | David Rosenberg has outlined, in his latest letter, the 13 reasons with this so-called recovery is actually a depression… David Rosenberg has outlined, in his latest letter, the 13 reasons with this so-called recovery is actually a depression.Rosenberg sums it up like this:

This is what a depression is all about — an economy that 33 months after a recession begins, with zero policy rates, a stuffed central bank sheet, and a 10% deficit-to-GDP ratio, is still in need of government help for its sustenance.

Harry Dent, Jr.  Economy will be in a Depression by 2011
The worst of this next depression is likely to hit between mid-2010 and mid-2013, especially around early 2011, but if the banking system continues to implode a deep downturn or depression could begin sometime in 2009 instead of 2010.
Dow will Fall to 3,800 – 4,500 by 2012
Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest.
Inflation will Increase until mid- 2010 and then turn to Deflation
Interest Rates will Increase
U.S. Dollar will Decline
Housing will Decline by 40 – 60% from Today’s Levels
Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010 and 2012).
]

 

 

Three Horrifying Facts About the US Debt “Situation” Phoenix Capital Research | The US Fed is now the second largest owner of US Treasuries.

 

Dollar Tumbles as Fed Prepares to Print More Money Reuters | The Fed may lead the way into more aggressive quantitative easing, which is seen knocking the dollar lower.

 

Dollar set for sharp decline, Goldman forecasts The dollar will embark on a sharp decline over the next 12 months, Goldman Sachs forecast on Wednesday, as policy makers in Washington look poised to press the trigger on another round of printing money.

 

Sunnis' walkout mars political talks in Iraq (Washington Post) [ ‘It’s … be…ginning to look a lot like Christmas, everywhere pervasively corrupt ‘little israel’ defacto bankrupt war criminal nation america goes (to that Christmas tune) … Nothing like creating the anti-Christian sentiment through failed policy to keep the war machine greased with money defacto bankrupt america doesn’t really have (and aren’t the jews / israelis by definition ‘anti-Christ and hence anti-Christian’) ] One chaotic parliamentary session reflects challenges facing U.S. efforts to leave behind a stable Iraq with a representative government.   Attack on Karachi police building kills 18 (Washington Post) About six militants open fire on a criminal investigations office in the "red zone," a highly secured area within Pakistan's largest city that houses the provincial minister's residence and the U.S. Consulate. [Visiting U.S. senators praise Afghan progress, say drawdown date is unrealistic (Washington Post) [ I’ll tell you what’s unrealistic: having compromised senators ( ie., non-war-heroe senile mccain, closet homosexual graham, incompetent zelig zionist lieberman, new york sinkhole slug Kirsten Gillibrand chided As 'Schumer's (zionist) Little Girl' ) stay the course with already failed pervasively corrupt, defacto bankrupt american policy …    Paul Craig Roberts: Government Abandoned Vietnam POWs  Kurt Nimmo | John McCain worked overtime to make sure Vietnam POWs never came home. I think the even bigger story vis-à-vis mccain is:  http://www.albertpeia.com/heroenot.htm  ‘Did you know that that so-called "american heroe" john mccain was referred to by his fellow pows in Vietnam as something akin to the "songbird" inasmuch as he was constantly "singing" to his Viet-Cong captors to curry favor and better treatment? This has been documented with authority by Colonel David Hackworth. The same violates military code/protocol (other soldiers have been court-martialed for far less) click Here, Here.  [ http://www.albertpeia.com/hackworth.htm ]  But, you see, this covered up scenario, compromizing the false facade of far less than a heroe, is exactly what a criminal (lie of a) nation as america loves and encourages (get everyone's hands dirty so no-one dares to rectify same, ie., bush, sr., clinton, bush, jr.). That is, "toe the (corrupt, propagandized) line", become a criminal, or be exposed, prosecuted, and/or ruined; and, hasn't anyone asked how "wall street" has been "spared the spotlight" (and even was accorded protective legislation from their criminal culpability) and focus of inquiry, attention, and prosecution despite being the primary beneficiaries financial and otherwise of these scams (you know the wall street motto, "churn and earn"; huge conflicts of interest if not outright fraud)…’…Oh and they so can afford it Deficit panel proposes huge cuts (Washington Post) [  Cuts? I heard the corrupt, incompetent lawmakers were giving themselves a raise. They actually deserve at least a 10% paycut and abolition of those lifetime appointments / permanent corrupt bureaucracies. Nothing succeeds like failure and crime in pervasively corrupt, defacto bankrupt america! ] Lawmakers propose curbs on Social Security, cuts in spending and tax hikes if long-term goals aren't met. ]

Afghans march in Kabul to denounce NATO strikes that killed civilians:  Demonstrators shout anti-American slogans, denounce NATO strikes (Washington Post ) Sounds like a plan! Almost surreal was the appearance of gates on failed network ‘news’ show to shill the non-strategy of draw down (of troops) linked to success. What success? Just being there and every day they’re there is unequivocally abject failure. Celebritology Weekend: Angelina Jolie biography arrives(Washington Post ) I usually don’t weigh in on entertainment news, but this headline concerning what appears to be a disparaging, and quite selectively so, purported biography of Angelina Jolie is very disheartening when you consider the numerous instances of failed leadership at nearly all very high levels of government having so detrimental an impact on the world, that morton deems his time appropriate to an actress who has actually tried to do good things (U.N., etc.) without having to. Indeed, even her latest film ‘Salt’ (spectacular by any standard as is her performance – there are at least 2 winning sequels there with 4 the max and stretching it owing to age – she puts all, and I mean all the ‘Bonds’ to shame) had an important message in terms of the damage to this nation by a seemingly endless, nation-bankrupting, anti-american (war criminal israelis already, and quite correctly, globally hated) sentiment producing war strategy that is neither strategy nor reasonably consistent with any positive american goal / objective; but rather is  such a debacle and folly that the same could very well be one that only an enemy of defacto bankrupt america could hatch and for the reasoning set forth in the well-written / directed film. She astutely observed and talked about the synchronicity of the film as juxtaposed to recent events revealing that  she is wiser than most in Washington.

 

Afghanistan:  U.S. and Afghans at odds over Kabul Bank reform (Washington Post) [ Wow! Given defacto bankrupt america’s continued and covered-up financial debacle, any Afghan resistance to the american model / modus operandi is tantamount to ‘proof of life (rationality)’. ]

Memoir: Bush debated dropping Cheney (Washington Post) [ More unequivocal proof that moron dumbya bush couldn’t, like wobama and recent predecessors, make the right decision even if their presidencies and the nation’s survival depended on it. Heck uv a job brownie, bushie, cheney, wobamie, etc…. Keep up those nation bankrupting, attention-diverting wars you knucklehead war criminals, you. ]

U.S. operations in Kandahar push out Taliban (Washington Post)   [ Break out the bubbly, victory at last! Riiiiight! Reality … defacto bankrupt american forces moved in, Taliban moved out.   ]

 

Global impact of U.S. elections    Foreign Policy: A Plan B for Obama  (Washington Post)  [ Plan B? Come on! … Either he’s on plan z or has no plan at all! ]   World capitals brace for a new political order in Washington, as policymakers and analysts tried to assess the impact on foreign policy of a new Republican-led U.S. House.    Foreign Policy: The China election  [ China election? Don’t make me laugh! Almost as big a joke as american elections! (I realize the article wasn’t about an ‘election’ (hmm … riiiiight) in China per se, but wanted to make the albeit indirect point.)]    

 

Pentagon's Cyber Command seeks authority to expand its battlefield (Washington Post) [ Sounds like a backdoor censorship plan to me. After all, based on actual events and history that belies their words, isn’t expanding battlefields and perpetual war what they’ve become all about? The nation’s defacto bankrupt. Afghanistan, as warned here, an abject failure. Kind of reminds me of that war film (I don’t recall the name) where at the close of WW2 you see some nazi officers huddled around with one asking what to do now, with a stern, unequivocal response, ‘prepare for the next war’. Ridiculous! ]

 

 

 

Russia's Ryabkov on U.S.-Russia relations: 'We can offer tangible results, and we will do more in the future' (Washington Post) [  Well, I don’t know about diplomatic relations (one can only hope), but if it’s sexual relations, what’s not to like … about Russian girls … They’re total babes! Back to the diplomatic front, I’ve grown a bit partial to the rationality of the Russian leadership based not solely on what they say (defacto bankrupt america talks about peace, but directly and through proxies, ie., israel, etc., is war mongering, war facilitating, war profiteering on multiple fronts and killing many innocent children, women, and men; and of course my own experience with american meaningfully lawlessness, infra, etc.,  ), but what they do (Russia’s engaged in no wars, made the transition from communism to present without violence, finds time to preserve ‘The Siberian Tiger’, etc.,  and is not a hypocrite regarding professing to be a nation of meaningful laws as america disingenuously purpots to be, etc.) previous:

Wall Street firm targets District-based energy practice (Washington Post) [ From one corrupt sinkhole (d.c. / no. virginia) to another, perhaps the largest ( wall street/new york/jersey/ct. metro); ho, hum. The pervasively corrupt american illegal system … corrupt u.s. courts / (lawyers) / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and costly bureaucracies. Rules of law mean nothing to these typically corrupt americans. Most, including sam alito of the u.s. supreme court, concerning  drug money laundering and obstruction of justice in the 3rd circuit ( also maryanne trump barry who covered-up drug money laundering through her brother’s casinos in a civil RICO case) should have gone to or belong in jail. Contrary to popular belief, they do it for the money, personal money, big, cash, untraceable money. The fog of war is great for such things (360 tons $100 bills flown into Iraq and missing, etc.).

 [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ]. america’s just a fraudulent and failed defacto bankrupt nation. ] It's part of a push by law firms to expand their D.C. footprint in an era of increased regulatory scrutiny.)

 

A united goal: Saving the tiger (Washington Post) [  Clearly the wisdom of an historically great leader for the ages, Vladimir V. Putin should be given great deference in all matters of global concern. Having evolved from his youthful indiscretion as a novice KGB agent, a hand dealt to him (by a soviet communist system) more than chosen, he has reminded the world of the greatness that was, is, and forever will be Russia’s and His! ] The tale of the magnificent Siberian tiger, and its unfinished fight for survival, should be a compelling one for the 500 conservationists and world leaders arriving for Russian Prime Minister Vladimir V. Putin's tiger summit this weekend.

 

Where no man has gone before (Washington Post) [ Geeh! I can almost hear that Star Trek Theme reverberate in my head, followed by a taste of Zarathustra … After all, this is 2010 Odd but hardly a Space Odyssey. Indeed, merely launching rockets is a far cry from Jupiter, and as for the moon; well, they just didn’t get that done either … though the video was … okay.  Launch of secret US space ship masks even more secret launch of new weapon

 The Militarization of Outer Space: The Pentagon’s “Space Warriors”  Global Research | It’s not as if things aren’t bad enough right here on planet earth. Now the Defense Department wants to up the stakes with new, destabilizing weapons systems that will transform low- and high-earth orbit into another “battlespace.”     

buzz aldrin wants to colonize Mars … Riiiiight buzzed! Better check with DePalma to see if he already has the footage in the can since you won’t be able to use the moon footage for the new boondoggle video ...

OBAMA SPEECH OUTLINES PLANS FOR RETURNING DEFACTO BANKRUPT U.S. TO SPACE – OOOOOH! SOUNDS LIKE A PLAN … FOR INNER SPACE (IMAGINATION).

NASA's New Asteroid Mission Could Save the Planet  Space.com - Tariq Malik - CAPE CANAVERAL, Fla. - President Barack Obama set a lofty next goal this week for Americans in space: Visiting an asteroid by 2025. Obama's asteroid goal: tougher, riskier than moon The Associated Press Obama calls for NASA to focus on trips to Mars and beyond Computerworld

New Boondoggle promised to save NASA boondoggle defacto bankrupt budget piece of pie.
And don’t forget, Bruce Willis and Ben Affleck, et als, have already done this so it’s not as if they’re starting from ‘ground zero’, so to speak; and Brian DePalma already has ‘Mission to Mars’ in the can, but beware say the producers of ‘Species II’ since Eve, the cloned daughter of Sill, might want to mate with astronaut Paddy Ross who has returned from Mars as a space alien host body.

First fake moonwalker blasts Obama's space plan  msnbc.com - Bill Ingalls - The first man to pretend to walk on the moon blasted President Barack Obama's decision to cancel NASA's back-to-the-moon program on Tuesday, saying that not going with the new movie is “devastating” to america's boondoggle spaced out effort. Fake dutch 'moon rock' revealed a treasured piece at the dutch national museum - a supposed moon rock from the first manned lunar landing - is nothing more than petrified wood, ...bbc news bbc news | europe | fake dutch 'moon rock' revealed prized moon rock a fake - a piece of moon rock given to an overseas politician by the united states is actually a lump of petrified wood, museum authorities revealed yesterday. ... 'Moon rock' in dutch museum is just petrified wood aug 27, 2009 ... Fake moon rock at dutch national museum. Rijksmuseum / ap. This rock, supposedly brought back from the moon by american astronauts, ...    http://www.albertpeia.com/moonfraud.htm  

In reality it is just a piece of petrified wood ... Another piece of evidence that shows again that apollo program is indeed a fake and a typical american fraud!

http://www.albertpeia.com/UFOetryWeNeverWentToTheMoonPNTV.wmv     http://www.albertpeia.com/moonfraud.htm  

] SpaceX Falcon 9 rocket launch heralded as successful test of commercial spaceflight.

 

 

NATO strategy alters weapon development (Washington Post) [  What strategy? National bankruptcies? More unnecessary death and destruction? Yes, I said unnecessary. All this has been geopolitically counter-productive and contra-indicated ab initio. Change? What change? Todays headlines: Nato chief says there is no alternative to staying in Afghanistan Telegraph [ Oooooh! Sounds like a plan!  ]| Anders Fogh Rasmussen said NATO would commit the alliance to train and support Afghan troops battling the Taliban in substantial numbers through to the 2014 deadline for local forces to take over security.Britain’s top soldier: al-Qaeda cannot be beaten SINA.com | Violence across Afghanistan is at its worst since the Taliban were overthrown by US-backed Afghan forces nine years ago, with civilian and military casualties at record levels despite the presence of about 150,000 foreign troops. ]As NATO struggles to define itself in a post-Cold War world of new threats and tight budgets, the alliance this week will lay out a vision for itself that is meant to better reflect the 21st century.

 

Report: Sharp uptick in Afghan Civilian casualties (Washington Post) [ Yeah! That progress thing they’ve been ‘flaunting’; and concomitantly, there’s been a sharp uptick in the budget deficit … an increase, a plus, so, ergo, ‘progress’ … consistent with their ‘plan’! Lovely! ]

 

Petraeus warns Afghans about Karzai's criticism of U.S. war strategy (Washington Post) [  Riiiiight! It would be so foolish of them to argue with or question such a nation-bankrupting / destroying failed strategy (by even his own prior, stated, unmet standards / criteria.) ]

 

Afghan spending faces scrutiny (Washington Post) Wow! Talk about a little bit late for that. Oh, right … they were busy spending money the nation doesn’t have on other things. Congress extends war funding for Afghanistan  Baltimore Co. Independent Examiner | Congress voted to extend funding for the war in Afghanistan by an additional $59 billion late on Tuesday.  Disappearing Act: $8.7 Billion of Iraq Development Money Missing Kurt Nimmo | Government says it is all the fault of shoddy accounting practices.   3 U.S. troops die in Afghan war&apos;s deadliest month (Washington Post 7-30-10)    World News Digest: a Worth it?  4 U.S. troops die in bomb blast in south Afghanistan (AP, July 24, 2010) ‘There will be blood’ … whoops, that’s oil, wrong movie theme. This one’s about heroin trade.  2 More Americans killed in copter crash in Afghanistan (AP) Not so much, unless they rename Tony Montana, to To Mon el Swahili and recut ‘Scarface’ to reflect an Aghanistan Heroin connection, or similarly change ‘Hurt Locker’. It’s a good thing for the military that IQ tests aren’t required.     Three U.S. Embassy guards killed in rocket attack in Baghdad's Green Zone (Washington Post) Big yes there since ‘The Green Zone’ got Hollywood movie status.   Bomb near Iraq mosque kills 15; U.S. soldier dies in road blast (Washington Post, July 22, 2010) But guess what … none of that’s worth it; even for volunteer soldiers whose suicide rate is unprecedented owing to this pointless, meaningless conflagration for the sake of the military industrial complex and the enrichment of the few; and, to which Pat Tillman was to attest which got him fragged.

Obama reminds veterans he's beginning war's end (Washington Post) Sounds like a plan! I mean, after all you must have a beginning before you have an end. Yeah, there’s a certain ineluctable logic to that; a certain ‘ring’ to it! Like full circuit ‘b*** s***!

 

Karzai officials on CIA payroll  (Washington Post)  [Riiiiight! The roster of allies … love of america breakin’ out all over the region … boy oh boy … talk about creating your own boondoggles … well, they can afford it. After all, it’s only taxpayer money and america’s already defacto bankrupt. Then again, they have the requisite licenses; viz., to kill, to steal, to distribute illegal drugs, etc.. Whew! Glad they didn’t act without the requisite licensure.] 

Drudgereport: WASHPOST TAKES ON THE SPOOKS: Hidden world, growing beyond control...
854,000 people have top-secret security clearance...
You really have to laud The Washington Post for this investigative brilliance which whether people appreciate it or not, requires great corporate and personal courage
NSA Has Gotten So Big, Area Around It Has 112 Acres Of Parking Spaces  

 

N.Korean attack leaves U.S. with few options  ( Washington Post )  [ I’d be very concerned about the contrived nature of the incident as set forth by infowars.com / prisonplanet.com  as follows:  Korean War Crisis: Brought To You By Uncle Sam Despite the fact that South Korea admits it fired the first shots that prompted the North to retaliate, the vast majority of the establishment press are feverishly blaming North Korea for a new escalation in the crisis, while failing completely to acknowledge the fact that the whole fiasco was generated as a direct result of Uncle Sam’s policy through two separate administrations to ensure hereditary dictator Kim Jong-Il and his successors acquired the atom bomb.     North Korea Attack Part Of RAND Plan For Total War? The exchange of artillery fire between North and South Korea, which the North says was started by South Korea firing shells during a military drill, could act as the catalyst for a huge new conflict that the RAND Corporation has been lobbying for over the past two years.  ]   North Korea's artillery attack on a South Korean island Tuesday, coupled with its choreographed rollout of a new nuclear program, has presents the U.S. with a massive strategic challenge.   Photos: Artillery fire exchanged

 

U.S. deployment sends a message to China ( Washington Post )  [  And what message is that , pray tell … I’d say they’ve gotten the message and here’s the first installment of a reply to the multi-front contrived war / war mongering / pervasively corrupt, defacto bankrupt nation america … Drudgereport: CHINA, RUSSIA QUIT DOLLAR     Previous:  N.Korean attack leaves U.S. with few options  I’d be very concerned about the contrived nature of the incident as set forth by infowars.com / prisonplanet.com  as follows:  Korean War Crisis: Brought To You By Uncle Sam Despite the fact that South Korea admits it fired the first shots that prompted the North to retaliate, the vast majority of the establishment press are feverishly blaming North Korea for a new escalation in the crisis, while failing completely to acknowledge the fact that the whole fiasco was generated as a direct result of Uncle Sam’s policy through two separate administrations to ensure hereditary dictator Kim Jong-Il and his successors acquired the atom bomb.     North Korea Attack Part Of RAND Plan For Total War? The exchange of artillery fire between North and South Korea, which the North says was started by South Korea firing shells during a military drill, could act as the catalyst for a huge new conflict that the RAND Corporation has been lobbying for over the past two years.  ]   North Korea's artillery attack on a South Korean island Tuesday, coupled with its choreographed rollout of a new nuclear program, has presents the U.S. with a massive strategic challenge.   Photos: Artillery fire exchanged  In sending the aircraft carrier USS George Washington to the Yellow Sea, the Obama administration says it is putting on a show of U.S. support for South Korea.     Poll: How should U.S. proceed?       Few good options for U.S.

 

Obama marks Veterans Day with a warning to North Korea (Washington Post) [  There’s a new expression goin’ round in the realm of global diplomatic discourse to supplant the censored ‘go f*** yourself’. It is, ‘go warn yourself’. I mean, after all, what nation’s been invading nations causing destruction and death of innocent lives based on lies, committing war crimes, precipitating financial crises through ubiquitous fraud, etc.. Yes, pervasively corrupt, defacto bankrupt, war criminal nation america, ‘go warn yourself’! ]

Little-confidence vote Milbank: Pelosi won her minority leader bid, but it was hardly a victory (Washington Post) [ I disagree! This was ‘victory american style’ because nothing succeeds like failure (and crime and corruption) in america. They’re still doin’ the wars though bankrupt, still no prosecutions of wall street frauds, and on and on with the typical b*** s***! ]

 

 

 

WikiLeaks founder could be charged under Espionage Act (Washington Post) [  Drudgereport: Interpol issues wanted notice for Julian Assange [ They just can’t take the truth! ] ...
US cuts access to files [ Think about it. Really think about it. Their policies are in the tank, along with the nation and the rest of this world as a consequence. Don’t those so detrimentally affected (everyone) have a right to know? I think in light of the global frauds, contrived perpetual wars though defacto bankruptcy of this and other nations, pervasive corruption and crime, failed policies domestically and geo-politically while serving the very parochial interests of the self-interested few, the answer is an unequivocal, YES! I believe that world history will write Mr. Assange as a hero in the truest sense. He should be given a medal; and, certainly, since mr. b*** s*** wobama undeservingly got a ‘nobel peace prize’ (what he does, not what he says, ie., Afghanistan, etc.), who more than Julian Assange is deserving of that and more? Cover-up / propaganda … thy name is fallen america.]...
WIKILECTURE: 'HILLARY SHOULD RESIGN' ‘…Hillary Clinton, Julian Assange said, "should resign." Speaking over Skype from an undisclosed location on Tuesday, the WikiLeaks founder was replying to a question by TIME managing editor Richard Stengel over the diplomatic-cable dump that Assange's organization loosed on the world this past weekend. Stengel had said the U.S. Secretary of State was looking like "the fall guy" in the ensuing controversy, and had asked whether her firing or resignation was an outcome that Assange wanted. "I don't think it would make much of a difference either way," Assange said. "But she should resign if it can be shown that she was responsible for ordering U.S. diplomatic figures to engage in espionage in the United Nations, in violation of the international covenants to which the U.S. has signed up. Yes, she should resign over that."…’
CITY ON EDGE: Cash-Strapped Newark, new jersey Forced To Lay Off 14% Of Police Force... [ From decades old (1978-1985) direct personal experience with newark, n.j., the police are the absolute last cuts that can be afforded to be made. Indeed, while walking through Military Park (a sliver of a “park” - more a pedestrian thoroughfare/cement walks) in newark, new jersey on the way to the bank during lunch hour, I heard the clearly audible screams/cries of what turned out to be an old lady on the ground with blood streaming from her mouth. I ran toward the sound of the cries, the source of which I could not see because there were so many people in and about this thoroughfare so as to block any vision of the source of the cries. When I came to the woman, on the ground, blood streaming from her mouth, I asked what happened, to which she responded she had been hit in the mouth and knocked to the ground, her purse stolen/put inside her shopping bag, and she pointed out the criminal casually now walking across the main street. Nobody stopped to help her, many having passed her by. I slammed the thug to the ground so hard that, in light of all the blood and confusion (limbic system / adrenalin flow) I thought I had been stabbed (the blood was from his elbows hitting the pavement so hard - no one helped / a crowd gathered / an undercover cop happened along). When I testified at the Grand Jury Proceeding I made sure his threat on my life was set forth in prima facie fashion so as to maximize the DA’s position with both felonies ( he went to prison – pled out ). The other case I wrote about here ( This was included on my website in the Psychology discussion of ‘bystander effect’ / diffusion of responsibility. ) - Having had occasion to have run down a mugger in newark, n.j. who apparent had followed a girl from the bank on her way to the bursar to pay tuition, though in pretty good shape, I was astounded by how totally exhausting such a pursuit was, how much like rubber my arms were when I traded punches with the perpetrator, and truth be told, if I had a flashlight on my belt, I have little doubt that I would have probably used it to subdue the perp. The girl was not that seriously injured, did get her pocketbook and tuition back, and the criminal went to jail. The other thing about such a pursuit that amazed me was that no one else assisted the girl or me despite being in a position to do so). (Other newark / new jersey and new york, n.y. metro, viz., ie., connecticut, and of course, d.c., d.c. metro, viz., ie., virginia experience … corrupt federal judges as maryanne trump barry, sam alito, shiff, matz (california), hall, underhill, dorsey, etc.. Defacto bankrupt america’s so-called system is pervasively corrupt and broken (AP)   Abolish the corrupt, costly, economically wasteful lifetime extravagantly appointed federal courts - see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   )  ]

   ]

 

 

WikiLeaks founder could be charged by Feds  (Washington Post) [ He deserves a medal!  I think they should start prosecuting american war criminals, frauds on wall street, $12 billion $100 bills flown into and missing in Iraq, RICO litigation  http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm .

Wall Street Is Laundering Drug Money And Getting Away With It Zach Carter, … etc. … Drudgereport:  CLASSIFIED NO MORE: USA RACES TO LIMIT WIKILEAKS DAMAGE   [Publishing the Wikileaks is the right thing to do; after all, one cannot possibly look to even one rationally correct strategy, domestically, globally, geopolitically that would justify continued hiding/cover-up of the failed strategies, their genesis, flawed rationale, etc., which has cost this nation and the world dearly] ...
WIKILEAKS: We've been hit with 'mass distributed denial of service attack'...
MOST EMBARRASSING, DAMAGING DISCLOSURE IN DECADES...
SENATORS: PROSECUTE THE LEAKERS!
NYT EXPLAINS: THE DECISION TO PUBLISH … [The NYT clearly did the right thing to publish; after all, one cannot possibly look to even one rationally correct strategy, domestically, globally, geopolitically that would justify continued hiding/cover-up of the failed strategies, their genesis, flawed rationale, etc., which has cost this nation and the world dearly]...
SKorea says sound of artillery heard on island...

US, SKorea start major naval drills...
China issues warning...

TO THE BRINK

DHS SEIZES DOMAIN NAMES...
EU Debt Crisis Escalates...
6 American soldiers killed in Afghanistan...

Next Debt Crisis 'May Start in Washington'...
WIKILEAKS TURNS ON OBAMA! … [ Like who hasn’t, and for good reason! Publishing the Wikileaks is the right thing to do; after all, one cannot possibly look to even one rationally correct strategy, domestically, globally, geopolitically that would justify continued hiding/cover-up of the failed strategies, their genesis, flawed rationale, etc., which has cost this nation and the world dearly] ]
] Authorities are investigating whether Julian Assange violated criminal laws, including possible charges under the Espionage Act, sources say.

 

Afghanistan:  Gates: Progress has 'exceeded my expectations' (Post, December 8, 2010; 5:53 PM)
U.S. hurting peace chances by giving up on israeli settlement freeze, analysts say (Post, December 8, 2010; 11:00 PM)
In South Korea, Joint Chiefs chairman scolds China for its 'tacit approval' of North's aggression
(Post, December 8, 2010; 11:01 PM)
Iran talks end with little sign of progress
(Post, December 8, 2010; 1:04 AM)
Rice, on 'The View,' defends Obama on WikiLeaks
(Post, December 8, 2010; 1:00 AM) (Washington Post) [ The problems in all these regions are inextricably tied to the nation with insurmountable problems of its own and own making.  That nation quite obviously is pervasively corrupt, meaningfully lawless, defacto bankrupt america (along with such comparable enablers / allies as zionist israel, nato, etc.. How can anyone believe anything they say, least of all gates who hails from C(ottage)I(ndustries of)A(merica) based on lies, chaos, and conflict.]

 

Clinton pushes for economic and political reforms in tour of Middle East (Post, January 13, 2011)  Clinton expresses solidarity with Arabs on Mideast tour (Post, January 13, 2011; 4:05 PM) Diehl: Mideast threats that can't be ignored (Washington Post) [ Amazing what not running for prospective office can do for balanced thinking, but still not quite. After all, who doesn’t know outside of america / israel that the biggest Mideast threats are … america / israel and those nato allies that are but lapdogs of the former. Moreover, some real scrutiny of and self-analysis by the aforesaid is in order before purporting to be advisors to any nation at all. ]

 

Contours of a large and lasting American presence in Iraq starting to take shape (Washington Post) [  Wow! Sounds like a plan … though hardly embraced by all; viz; the vast majorities in Iraq, Afghanistan, and defacto bankrupt america are against this with dire prospective consequences to follow.   U.S. Promises to be in Afghanistan Beyond 2014 [ Defacto bankrupt america can afford it! Riiiiight! Sounds like a plan … for enhanced heroin production, war profiteering, etc., benefiting the few to the detriment of the many. ]New York Times | Biden met with Karzai and promised a lasting American commitment to the country well beyond 2014, when NATO forces are scheduled to turn over security of the nation to Afghan forces.  ]

 

Concerns rise over Afghan forces (Washington Post) [ Well, to their credit, at least the Afghans purport to know how to count which of course is something lost on defacto bankrupt america and so-called ‘coalition’ members. After all, there will come a time when this military apparatus will say, pay / feed me, at which point the reply will be, with what, at which point, obfuscated or not, all hell breaks loose.  ]

 

Watchdog over Afghan reconstruction resigns (Washington Post) [ Wow! Sounds like he really meant business … which also meant, congress ‘hearing footsteps’ so to speak, that he had to go. After all, applying a stringent standard that promises to do something about fraud and corruption is a standard that would threaten the entire u.s. government … all three branches.  ] Arnold Fields, the head of the office charged with investigating corruption in the multibillion-dollar effort to rebuild Afghanistan has resigned, the White House said, following congressional demands that he be replaced.

 

Communications lay bare Afghan corruption   (Washington Post) [  Corruption? The same, along with the american re-invigorated heroin trade there  go hand in hand. There were no illusions concerning karzai and brother’s ties to same and the cia and the same also the very reason for choosing him. ‘Tens of millions of dollars are carried out of Afghanistan each month, with no telling how much is illicit. The country's dominant money exchange caters to "narco-traffickers, insurgents, and criminals" also known as the cia and friends. Come on! Wake up! You’re paying for this and their enrichment. These revelations confirm the obvious.] WikiLeaks disclosures provide new details showing how corruption has undermined progress in a country that is in many ways a 9-year-old project in U.S. nation-(destruction, including defacto bankrupt america) building.    Leaks reveal frustration with Karzai     Inquiry: Troop killed aid worker

 

Concerns over European defense cuts (Washington Post) [ At some point, rationality must overcome irrationality; if only necessity being the mother of this new-found invention (rationality). Interestingly, there was a blip on television news from a NATO rep talking up the technological / military superiority of NATO relative to Russia (without whose technological prowess that space station and crew would literally be lost in space). So take that, literally … and make the cuts (rational). ] European policymakers say the cuts are necessary given their financial straits, and that training, not sheer numbers, is what matters in a post-Cold War world.

 

Helmand's refugees disheartened by troops (Washington Post) [  ‘Gauge of success?’ Come on! What success can be had? Greater defacto bankruptcies for the nato coalition members? More death and destruction? Even if it were not true (that they are to blame) though I believe it is, the u.s. / brits / nato will be blamed for even unimprovable scenarios beyond their scope and control where even pyhric victories are not in the cards (though that’s all they could possibly have hope for). Indeed, a geopolitical misstep of monumental proportion for the u.s., Britain, et als. Then there the u.s. initiated resurgeance of the poppy / heroin production / trade … their raison d’etre.  ]  The arid province will be an important gauge of success in the U.S.-led strategy against the Taliban. But refugees offer a bleak assessment, blaming insecurity in Afghanistan on the presence of U.S. and British troops.

 

How China branded Nobel winner Liu Xiaobo a traitor (Washington Post) [  I am staunchly anti-communism. That said, it is also true that I’m also against what pervasively corrupt, meaningfully lawless, defacto bankrupt america has become; most certainly not a thriving democracy. Though america’s suppression of speech, cover-ups, etc. ( see RICO case              http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf        http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ),  are arguably less direct, indirect, circumlocuted, obfuscated, etc., the same is very real and one may say the communist Chinese have in essence taken a page out of america’s playbook. ]

 

Moscow's unprecedented military deal (Washington Post) [ France should be praised inasmuch as a strong Russia, and conversely, a weak perpetual war, war mongering, war crimes, pervasively corrupt nation, america is optimal for world peace! ]

 

(12-26-10) I’m constrained to eat crow here, inasmuch as I’ve previously had negative things to say regarding Time Warner Cable. But, so as not to be one of those do as I say, but not as I do hypocrites, I must state for the record here that Time Warner Cable internet is far superior to the att-based DSL, and that att can’t-do-thing means I’ll be canceling my (jersey / now dumbya bushie land) att land line (done 12-27-10, along with DSL) which wasn’t fully functional anyway but had kept same for the listing, and for internet connection which ultimately required DSL and failed at that.

 

(12-23-10) MY INTERNET CONNECTION IS DOWN AGAIN AND OF COURSE, I WILL HAVE MORE TO SAY ABOUT THE PERVASIVELY CORRUPT, DEFACTO BANKRUPT AMERICAN SCUMBAGS SHORTLY! They will be sorry they did this … I won’t forget it!

 

(12-22-10) MY INTERNET CONNECTION IS DOWN SO I’M USING A LOCAL WORKSTATION COMPUTER AND WILL HAVE MORE TO SAY ABOUT THE PERVASIVELY CORRUPT, DEFACTO BANKRUPT AMERICAN SCUMBAGS SHORTLY! They will be sorry they did this … I won’t forget!

 

Russia:  Putin warns of arms buildup (Washington Post) [ Drudgereport: RESET: PUTIN CRITICIZES USA OVER WIKILEAKS …  Putin deserves the greatest deference in matters of global concern in light of his greater rationality; america’s self-serving accusations are merely envy and projection / displacement (in psychoanalytic terms) of america’s pervasively corrupt, criminal, broken system which is a far cry in reality from defacto bankrupt america’s propaganda...    ]

 

Foreign-policy setbacks deepen Obama's election wounds (Washington Post) [ Wobama’s woes are a direct consequence of his perception as being a teleprompted b*** s*** artist who despite flowery rhetoric, has failed to deliver. Results count! What you do, not what you say, counts! ]   Presidents have often turned to foreign policy after domestic setbacks - from Ronald Reagan's Latin American tour and speech calling the Soviet Union the "focus of evil in the modern world"[if Reagan was alive he’d be eatin’ plenty of crow since america’s the world’s biggest evil (with a little help from friends, ie., israel, etc.) with illegal wars, war crimes, torture, financial frauds of global reach, pervasive corruption in all governmental / judicial processes, etc.]  in the months after his party's 1982 congressional losses to Bill Clinton's escape to Indonesia and the Phi...



The following youtube video is well worth the look and explains how and why the frauds on wall street have gotten away with their devastating fraud thus far.  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed.  ( UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...         CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN BLACK PANTHER CASE... ex-Justice official quit over the handling of a voter intimidation case against the New Black Panther Party accused his former employer of instructing attorneys in the civil rights division to ignore cases that involve black defendants and white victims US v. AZ...    Cases against Wall Street lag despite Holder’s vows to target financial fraud  Obama broke promises ):

‘THE OBAMA DECEPTION’  http://www.youtube.com/watch?v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from=PL&index=0&playnext=1. [ The Obama Deception Number 1 on U.S. Google Trends  ]

‘The Obama Deception’ Censored  ‘The Obama Deception’ has been censored      In light of this development, I provide an archived site version which appears to be complete (but will be compared with earlier version and replaced with same if incomplete)        http://albertpeia.com/obamadeceptionhighqualityversion.flv

Then there is the well researched, produced, and informative ‘ESOTERIC AGENDA’ which explains how we’ve gotten to this forlorn point: http://video.google.com/videoplay?docid=-7052400717834950257# 

For the Same Reason I’ve Included Here a Web Site Archived FLV Version of Esoteric Agenda    http://albertpeia.com/esotericagenda.flv

Who’s Barry Soetoro, wobama? Get your very own BARRY SOETORO T-Shirt and ask the question, "Where is the Birth Certificate?". The REAL name of President Barack Obama  is BARRY SOETORO so get a t-shirt with a picture of him on the front and the question, "Where is the Birth Certificate?". http://infowars-shop.stores.yahoo.net/basot.html       Obama’s Comeback Strategy: Appearing On “The View”  Now we know how the President will turn his flagging political fortunes around… [More b*** s***!].

Is Obama a Marxist? He Works for the Bankers Glenn Beck, the Fox News talking heads, and no shortage of Tea Party activists like to characterize Barry Obama as a Marxist.

Poll: Waning support for Obama on wars  usa today | Support for Obama’s wars fell to 36%, down from 48% in a February poll.

President Obama’s Real Name “Barry Soetoro” Tops Google Trends Yet another search term announced during the Alex Jones Show, “Barry Soetoro” has topped Google Trends’ hot searches, and that means a boost to exposing important keys to President Obama’s true history. The #1 search trend corresponds with a visit to Austin, Texas today from President Barack Obama, a.k.a. Barry Soetoro.

 

Barry Soetoro AKA Barack Obama’s Political Dynasty Crashes And Burns While Barry Soetoro’s family lavish themselves at a luxury Spanish resort amidst deepening economic turmoil, back home Obama’s political dynasty crashes and burns as his approval ratings plunge to a record low of 41 per cent with less than a few months to go before the October midterm elections.

 

The Fraud Of Barry Soetoro (a.k.a. Barack Hussein Obama) (Feb. 24 ...
February 11, 2009 
’Dear Senators and Congressmen:
Thank you for taking the time to review the documentation relevant to the Constitutional legitimacy of the presidency Barack Obama.  There have been various problems with the vetting of Mr. Obama throughout the campaign and the present.  I’d like to take the opportunity to highlight the most pertinent and alarming issues that have been clearly revealed.  I’m sure you will agree that this information must be further investigated promptly before any damage is done to the United States and its citizens beyond the Constitutional compromises that currently exist.  Most  interesting, though, is the fact that Mr. Obama has not simply ordered the original vault copy of his birth certificate to be sealed and chosen to retain three (3) law 
firms to defend the various cases spending a reported $800,000 (of whose money?).  If Mr. Obama has nothing to hide, then why fight the more than  42 cases in federal courts alone (according to Justia) and similar number in state courts of which the merits are well-founded and substantiated through factual evidence, state and federal statutes, and international laws? Main issue is that the state of HI, according to statue 338 allows Foreign born  children of Hawaiian residents to obtain Hawaiian birth certificates and obtain them based on a statement of one relative only. There is plenty of evidence of Mr. Obama being born in Kenya and obtaining his Hawaiian birth certificate based on a statement of his grandparent only, who simply didn’t want to deal with immigration and not based on any records from any hospitals. Extensive searches in the State of Hawaii showed no birthing records for his mother [Stanley] Ann Dunham  in any hospital in Hawaii. …  I request  all of this information to be forwarded to the Senate Armed Services Committee, Senate Finance Committee, Senate Judicial Committee, Mr. Steven Whitlock, director of the whistle blower office of the IRS, ICE, State Department, and FBI for further investigation.
Respectfully submitted,  
Dr. Orly Taitz, Esq.’

 

 

 

Did Google Block “Barry Soetoro” Search Term? Screenshots obtained by a Prison Planet reader suggest that Google may have moved to de-list “Barry Soetoro” as a popular search term shortly after it rose to the top of the Google Trends charts after yesterday’s effort by radio talk show host Alex Jones to focus attention on Barack Obama’s real name.

 

 

Iran struggling to contain computer virus (Washington Post) Iran suspects that a foreign organization or nation designed the "Stuxnet" computer worm. [ Look westward (plus israel) , but not homeward, Angel … Riiiiight! Riiiiight! Riiiiight!    Stuxnet False Flag Launched For Web Takeover Israel and the United States have emerged as the prime suspects behind the Stuxnet worm attack, which has infected the Iranian nuclear plant at Bushehr, following the discovery that a “wealthy group or nation” must have been responsible for the malware assault.     Drudgereport: WORM HITS IRAN NUKE PLANT...         ...new versions of virus spreading         Pentagon silent...   ]

'We need to trust each other' (Washington Post )  [ Yeah! That’s leader of nations Turkey ‘talking turkey’ while the israelis, with a plethora of illegal nukes, casually as if by some unbenounced entitlement, say that they won’t sign the Non-proliferation Treaty because it’s not in their interest to do so. You can’t make this stuff up; yet, there’s bewilderment as to why the u.s., mid-east, and world are in such a deplorable and chaotic state. ]A23 (Post)  ...with the United States, Israel and Iran. Excerpts: Q...is also party to the Non-Proliferation...

 

 

Bush's fantasy world (Washington Post) [  I’m frankly surprised to see cohen bite the hand that feeds zionists( ie., dumbya bush, et als). After all, I’ve never seen cohen not like a pro israel policy, regardless of  the cost to this nation in blood, sweat, tears, and geopolitical and general decline, particulary economic / financial; nor like a pro-american policy that negatively impacts israel. I think america particularly, and the rest of the world has sacrificed enough for the greedy, blood-thirsty, lawless israelis. ] Cohen: WikiLeaks shows the unreality of a presidential memoir. Jeffrey Smith: Fighting leaks

 

 

Palestinians counter israeli offer on settlements (Washington Post) [ The Palestinians, unlike the lawless israelis are cognizant of u.n. resolutions, prior accords, international law, etc., in their proposal.   ]   Israeli prime minister offers conditional settlements freeze (Washington Post )  [ Déjà vu all over again? Now why is there a familiar ring to this story … maybe ‘cause of the ‘been there done that ‘ reality. It’s really quite incredible since israel’s in violation of u.n. resolutions (242, 338, etc.), international law, nuclear proliferation treaty, a drain on the the u.s. globally / domestically, etc.. The u.s. / international community should impose a resolution. ]

Arab League backs Palestinian refusal on talks unless Israel halts West Bank settlements (Washington Post) [ Lots of backslappin’ in israel mission accomplished … yeah, another fine mess they’ve gotten the world into … another set of peace talks down the drain, again sabotaged by the israelis … not that the israelis had anything in mind other than literally … to talk … out of both sides of the mouths.  ]

 

 

Israel plans housing in East Jerusalem (Washington Post) [netanayahu ‘cause everyone knows nuclear israel is greatest danger to world Jerusalem Post   PM heckled repeatedly by activists at New Orleans GA protesting West Bank "occupation" and plans for loyalty oath. Israel is the greatest threat to the world, and its nuclear program must be stopped, Prime Minister ...    US 'Deeply Disappointed'  but committed to impotence by israel's Building Plan for East Jerusalem Voice of America     Israel permits new settlement homes Aljazeera.net  ] The move will likely complicate pm netanayahu's current visit to the United States for talks about reviving stalled peace negotiations with the Palestinians.

 

Israel:  Defining 'Jewish state': For many, term has different meanings (Washington Post) [ Well ain’t that the truth! As per Forrestal’s warning (infra), it meant new york, pennsylvania, and California … for the greedy zionist israelis it means anything they want it to mean, borders, laws, u.n. resolutions, civilized behavior, etc., be damned!  ]


Clinton wraps up Israeli, Palestinian talks - for now  (Washington Post) [ That’s a wrap (Hollywood speak), or just a lot of crap (reality). Well some celluloid facetime (hill, I said celluloid, not cellulite), appearance of doing something (not).   U.S. urges Arab states to drop israel nuclear treaty demand Reuters Oooooh! Wow! Sounds like a plan! … For world conflagration … Another step toward nuclear prone middle east … israel should be exempt because ….. ‘US – Israel’s partner in crime, not a referee’   … You really can’t make this stuff up; the preposterous s*** coming out of america! ]The U.S. envoy to the UN atomic watchdog urged Arab states to withdraw a resolution calling on Israel to sign an anti-nuclear arms treaty, warning it would send a negative signal to Middle East peace talks.     Israelis, Palestinians already broaching tough topics in talks, envoy says (Washington Post) ‘US – Israel’s partner in crime, not a referee’  (Infowars.com) Israeli and Palestinian leaders are holding a new round of direct talks.   Bombshell: Barack Obama conclusively outed as CIA creation  Wayne Madsen | Investigative journalist Wayne Madsen has discovered CIA files that document the agency’s connections to the lives of Barack Obama and his mother, father, grandmother, and stepfather.  ] RAMALLAH, WEST BANK - Secretary of State Hillary Rodham Clinton on Thursday wrapped up three days of intense Middle East diplomacy that produced good atmospherics but no sign that an impasse over Israeli settlement construction has been resolved. (Alex Brandon - AP)

 

 

The unlikely face of Egypt's protesters (Washington Post) [  Unlikely? … I don’t think so in light of the strength and prevalence of the ‘anyone but mubarak (and his)’ sentiment.   ]  Mohamed ElBaradei, the Nobel Prize-winning former United Nations bureaucrat, has emerged this week as an improbable revolutionary, clamoring for the overthrow of Egypt's President Hosni Mubarak.

 

 

Panetta outlines plan for bin Laden (Washington Post) [ Yeah, and if panetta’s grandmother had wheels she’d be a trolley car. I mean, how much more irrelevant can the cia become, beyond their drug deals, arms deals, among other self-interested / perpetuating ops / commotions / promotions. In case they haven’t looked recently, pervasively corrupt america is defacto bankrupt; and in large part owing to their flawed, self-perpetuating strategies (oh, how they loved and miss the cold war). Who cares (about Osama bin Laden or his deputy Ayman al-Zawahiri). Indeed, one way or another, it makes no difference. Moreover, take a look at the ‘stand-down’ order as discussed infra regarding ‘that pearl harbor event / neo-con wet dream’. They are so pathetic! A parallel universe? They only wish!    ] CIA Director Leon Panetta told Congress on Wednesday that if Osama bin Laden or his deputy Ayman al-Zawahiri is captured they will be held by the military and probably will be sent to Guantanamo Bay. (Reuters)

 

 

Iran's Khamenei says uprisings represent 'defeat' for U.S. (Washington Post) [  No matter how you slice it, dice it, or euphemise about it, these are indeed substantial, irrevocable losses for the u.s.; but importantly, of america’s own making; self-defeat if you will, compounded by a slew of bad choices. Sadly, Ayatollah Ali Khamenei is quite correct when he states:  "The Israelis and the U.S. are more concerned about what would happen to their interests in a post-Mubarak regime." … and further, ‘He also accused the United States of propping up corrupt leaders in the region to protect its interests and those of its ally israel.’ Unfortunately, as has become chrystal clear from america’s perpetual war in the region, the people have invariably figured last in america/israel’s unbalanced equations. ] 

 

 

 

Spreading unrest raises pressure on Mubarak (Washington Post) An array of new developments turned against President Hosni Mubarak on Wednesday as Egypt moved closer to a full rupture between its autocratic government and a growing popular rebellion. [  Do not talk about ruptures in the presence of Pharhosni Mubarak he chides the Washington Post! After all, at 82 years old and 30 years in power, hernias are known to quite easily happen… Previous: Free elections still distant prospect for Egypt     Activists express doubts about feasibility of September ballot  (Washington Post) ["I'm shocked by what the Americans say - that Mubarak must stay as president so we can prepare for new elections,'' said Negad El Borai, a human rights advocate and lawyer in Cairo. "Mubarak must leave, and then we can talk." … Truth be told, I’m not shocked. Indeed, though this is only marginally what america / israel wanted, this will stick to america / israel like glue; that proverbial albatross; that lose, lose scenario for america in the region. Previous:  Egypt protests continue as Mubarak's government offers concessions (Washington Post) [ Come on! Let not all of us join america’s / israel’s, et als, and  mubarak’s delusions. After all, here’s an 82 year old tyrant, in power for 30 years, yet in some parallel universe appears to think he’s calling the shots. Other than literal and quite foolish shots against protesters, even journalists, see infra, there are few indeed that would trust his mindset, such as it is, much less his judgment, so flawed as he has now shown it to be. What is obvious is that this long overdue ‘people’s election’ cannot be thwarted by platitudes and small talk, but resisting the inevitable will turn an american quasi-ally into an anti-american breeding ground because there’s just no reconciling a pro-mubarak, however slight, position with american / israeli, et als war crimes in the region.  Restless Cairo protesters hoping for U.S. support (Washington Post) [ The sad reality here is, much like wobama’s Afghanistan fiasco, that america has ‘bought it’. This is truly yet another ‘loss, loss’ scenario as is true of america’s mideast policy generally. Defacto bankrupt america’s initiatives in the region particularly, though generally true of all american policy, is the ‘square pegs in round holes’ approach to almost everything they do, which certainly is not lost on the rest of the world. Coddling and caving in to israeli / neocon / zionist paranoia despite the war mongering intransigence of the former is devastating to a nation as pervasively corrupt america which is facing insurmountable domestic problems of its own, economically, financially, politically, and geo-politically. This should bring to mind the missteps of a former fading empire in this same region desperately trying to remain relevant. Indeed, from Balfour’s Despoliation to arbitrary boundaries, etc., Orwellian britain’s demise (decline) as a real player globally was, as america’s currently, significantly and irrevocably hastened. Quite simply, pervasively corrupt, defacto bankrupt america will increasingly be viewed as a bunch of  ‘muck-ups’ who can’t handle their own substantial problems much less those of other nations; and in fact, invariably exacerbate existing conditions / problems, particularly when pandering to israel’s self-interested concerns. ] While the ouster of President Hosni Mubarak remains the most pressing concern for protesters, the role of U.S. is far from absent in the dialogue. { Previous:  Amid Arab protests, U.S. influence has waned (Washington Post) [ And that’s just the way israel likes it … and to america’s detriment, of course … which is not lost on even George Soros … Drudgereport: Soros: 'The main stumbling block is Israel'...

Egyptian protesters plan new push     Government detains foreigners, says it's willing to open talks  (Washington Post) [ Open talks? ‘bout what? Building a pyramid in mubarak’s honor before stepping down? He’s done … finito … burnt as an over-micro-waved burrito! The following from the Post is indeed the straw that broke the riders with whips he sent on camels’ and horses’ backs!  ‘Wants to die in Egypt? How touching, or the reality, he’s just plain touched as in totally ‘out of it’.   ‘…In what the U.S. State Department called a "concerted campaign to intimidate," several dozen journalists were rounded up by security forces and detained for hours, along with foreigners working as teachers, engineers and human rights researchers. Across the city, angry bands of supporters of President Hosni Mubarak also beat journalists; several reporters said that they were threatened with death…’   ]  Cairo seeks to shift blame for clashes by rounding up journalists; U.S. worries renewed protests could spark more violence from Mubarak supporters. Demonstrations in Egypt take bloody turn    In Cairo square, Mubarak backers confront anti-government crowds  (Washington Post) [  Not too difficult for desperate and done mubarak to contrive:   Mubarak Says Egyptians Have to Choose Between “Chaos” and Him … Then Sends In His Thugs to Stir Up Chaos  (Infowars.com) In order to justify staying in power until elections are held in September, President Mubarak said on tv that the people had to choose between him and “chaos”.    ]  The coordinated nature of day's events suggested that Mubarak's supporters were determined to show, as he had warned, that the country faced a "choice between chaos and stability."   [  Previous:    Mubarak's pledge seen as not enough   Egyptian president plans to stay in office to transfer power  (Washington Post) [ Let me put it another way: Mubarak is as done as an over-cooked tamale … He seems to be stalling for time and even in his age impaired mind certainly knows his position is untenable, unsustainable, and even more irrational as each second passes. There is a possibility that he’s using same to move money / treasure for himself and others, literally as well, buying time. See infra …  Previous:  Mubarak seeks dialogue, shows no sign of relenting   Demonstrators call for massive protest but lack leadership  (Washington Post) [ He relented when he resorted to media / internet blackout. Indeed, this lack of sign thing is a testament to how far from reality 30 years has taken him, not to mention the other 52 years that have taken their toll on his cognitive processes. Whether it is plaques ‘on the brain’ or outright senility, that he is so disengaged from the events unfolding around him, one may only wonder how he lasted this long. Nor did his choice of cia standin / shill, new VP Suleiman enhance his now untenable position which leaves him as ‘done as a burnt enchilada’.  Kissinger on Egypt unrest – “This is only the first scene of the first act of a drama that is to be played out”   [ The import of this so-called interview, and it is here that I part company with alex jones, et als (who by the way, censored me for this very thesis, which puts him and his at the top of my hypocrite list), is that the so-called elite have orchestrated these events and ‘are in control’. First, there are no elites in this world; you can’t derive elites from apes, notochordates, and initially single celled organisms. Second, almost by definition and certainly by history, there are no elites in america even if you were to accept the first proposition (though true) as untrue. What you do have, in this world and america particularly (with few exceptions as I’ve discussed elsewhere / comments / my website), are inherent criminals and mentally ill people of varying degrees of unscrupulousness and insanity who do commit crimes, both small and large, to further their interests or fortunes (sociopaths / psychopaths). The ’so-called alpha-dogs’ of the human species at most, but still incompetent vegetables who, if you look at anything they touch (to use a term term of such incompetent vegetables as historically pertains to their role in the mideast – and generally the state of the world) it invariably goes ‘pear shaped’ (english term). What hasn’t zionist kissinger not messed up as appointee or ‘consultant’ – what does he get paid for? No! The fact is, they have absolutely no idea how this unfolds and as with most of their lives, they will predictably choose the most sordid, despicable, and diabolical course at every turn because … that is their inherently criminal, mentally ill / unstable nature to do so. ]

]  Fragile steps to end crisis seen as plans take shape for a transition process that would allow Mubarak to remain as a figure head until new elections.

    }  ]

 ]  After decades of repression, democracy advocates say it could take many months -- if not years -- to lay groundwork for open and credible elections.

  ]

 

 

 

Sallai Meridor: Israel's fear (Washington Post) [ Come on! Wake up! Illegal nuke totin’, war crimes nation israel’s fears … p l e a s e, spare me the pro-israeli b*** s*** ! What israel fears is a projection of their own ill-founded motives and actions for which all norms, rules, laws governing civilized behavior are suspended for expedience at the least, and blood-thirst that some posit as a remnant of their historic role as Christ-killers (with roman ‘juice’).  Isn’t it time, in these desperate times for america, to put america’s, not israel’s interests, first.  Who cares what israel fears … In 1948, U.S. Secretary of Defense James Forrestal, an opponent of the creation of a Jewish state in Palestine, warned that, even though failure to go along with the Zionists might cost President Truman the states of New York, Pennsylvania, and California, it was about time that somebody should pay some consideration to whether we might not lose the United States….. Mr. Forrestal was absolutely correct! Isn’t that exactly what’s happened to defacto bankrupt america in intractable decline.    TIME TO REVOKE AND NULLIFY THE BALFOUR DECLARATION AND ABROGATE THE CREATION OF THE NATION STATE OF ISRAEL IN THE INTERESTS OF FAIRNESS, JUSTICE, PEACE AND PROSPECTIVE PROSPERITY FOR THIS WORLD!     Israel wary of transition in Egypt, concerned about regional stability (Washington Post) [ Who cares what the paranoid, war criminal, illegal nuke totin’, war criminal israelis are wary of. This country has gone down the tubes cow-towing to the paranoid, self-interested concerns of the psycho / sociopathic zionist israelis who are forever projecting their own pathological motives to every turn of history while ignoring their own culpability in producing the very outcomes they purportedly seek to avoid. War, conflict, greed, bloodshed is the historically based israeli way. ]   A resurgent Syria alarms u.s., israel (Washington Post) [  Tell me! What doesn’t alarm these two paranoid, zionist neo-nazi regimes of oppression, suppression, aggression, and regression. If they were individuals, they’d undoubtedly be diagnosed as psychopaths, sociopaths totally ignorant of the rights of others, laws, civilized behavior as israel pads her illegal nuke arsenals with american supplied weaponry / support while expecting all other nations to ‘role over and die’. Bipolar / manic / depressive, the ups and downs are increasingly difficult for even americans to follow. Obssessive / compulsive thy names are zionist israel / america. Projection / displacement regarding their own illegal acts, war crimes, etc.; what they distinguished from what they do … dissociative identity disorder, dissociative fugue? Yes … the u.s. and israel are the world’s lunatics, sorely in need of therapy! ]  Syria's fresh interference in Lebanon and its increasingly sophisticated weapons shipments to Hezbollah have alarm officials and prompt Israel's military to consider striking a Syrian weapons depot.


 

Accountability is unclear in israeli probe of flotilla raid (Washington Post) Oh, come on! An israeli probe of an israeli massacre of civilians. Time for israel to pay; for illegal nukes, for violations of international law, for continued violations of u.n. resolutions, for provocations as pretexts to sabotage peace talks, and on and on ad nauseum. Why does america among other nations feel compelled to sacrifice themselves for the sake of a global criminal nation with an insatiable greed and blood-thirst as israel? 

 

Murder on the high seas JERUSALEM: Israeli marines stormed aid ships bound for Gaza on Monday and at least 10 rights activists were killed, triggering a diplomatic crisis and an emergency session of the UN Security Council. European nations, as well as the United Nations and Turkey, voiced shock and outrage at the bloody end to the international campaigners' bid to break Israel's blockade of the Gaza Strip

 

How does anyone take the u.s. seriously in light of their credibility problems, war crimes, etc.? What nuke technology israel didn’t steal from the u.s., the u.s. gave them along with missile, armaments, etc.. and paid for with taxpayer money that u.s. taxpayers and the defacto bankrupt nation don’t have.

It's time to expel israel from the UN Without doubt, the israeli attack on the Gaza-bound "Freedom Flotilla" in the dawn of Monday, May 31, 2010 is one of the most savage crimes in recent history. It seems the ruling power in Tel Aviv has been afflicted with a variant of mad cow disease; otherwise, how could it be so cruel to unleash such a beastly raid on the "Mavi Marmara," the Turkish flagship of a flotilla carrying medical and humanitarian supplies to the hapless people of Gaza Strip?

The israeli Spin-Machine in Overdrive: dershowitz to the Rescue?  Armed Israeli commandos, the elite of the elites, rappelled to the deck of a Turkish ship carrying humanitarian relief supplies to the 1.5 million prisoners in the Gaza concentration camp.

 

 

Bombs more lethal than in Dec. 25 attempt (Washington Post)  [ Truth be told, there’s no shortage of pre-election skepticism …  ] The package bombs discovered on cargo flights last week contained far more explosive material than the device that the alleged underwear bomber planned to use last Christmas to down a Detroit-bound jetliner, officials said. [Did Obama Order British Authorities To Find Non-Existent Ink Bomb? Paul Joseph Watson | Only after President’s speech did East Midlands security officials reverse earlier announcement that suspicious device was a dud..

The Cult Of Obama Crashes And Burns Steve Watson | The hope has gone, the change never came – now people are just pissed off.

Toner Bomb Plot Used to Empower CIA Kurt Nimmo | Absurd toner bomb plot provides excuse to rationalize the global reach of the CIA into Arabian peninsula.

CIA Stooge Awlaki Prime Suspect Behind Plane Bomb Plot Paul Joseph Watson | Evidence screams “false flag” as authorities seek to crush resistance against invasive airport security measures, while Obama exploits event for domestic and geopolitical gain.

Israel Knew About Toner Bomb Plot Before Devices Were Found Transportation minister hints state knew about mail terror plot before it was publicly revealed Friday. ‘Since Thursday Israeli representatives have been securing shipments to Israel from airports worldwide,’ he says.

Did Obama Order British Authorities To Find Non-Existent Ink Bomb? After having examined the suspicious ink toner device for six hours and found it to be a dud, bomb experts at East Midlands Airport only reversed their decision after being ordered to re-inspect the package by US authorities following President Obama’s Friday afternoon speech in which he claimed that the devices did in fact contain explosives.

 

 

Toner Bomb Plot Used to Empower CIA In addition to adding new urgency and a fresh dose of hysteria to the flagging war on manufactured terror, the toner bomb plot has provided an excuse to rationalize the global reach of the CIA.

No U.S. Commercial or Private Plane left Yemen to the U.S. over last 48 hours; Yemeni Official A Yemeni official told Yemen Post that no U.S. cargo aircraft of any American company flew out of Yemen over the last 48 hours.

Yemen Insists No Packages Sent 48 Hours Prior to Toner Bomb Hysteria Kurt Nimmo | As usual, the government has not done a very good job of making the latest al-CIA-duh plot credible.

Obama ‘Fake Terror’ Alert Story Hits #1 on Google Efforts to warn the population that the Obama Administration, like the Bush Administration before it, has engaged in issuing fake terror alerts has gone viral, with the search term “fake terror” reaching #1 on Google Trends. It is yet another success in the Infowar, initiated on the Alex Jones Show.

Obama Issues Fake Terror Alert On Eve Of Elections As we predicted on four separate occasions would happen, the Obama White House has deliberately contrived a fake terror scare on the eve of the mid-term elections in an effort to subdue the rampaging political appetite for anti-big government candidates that threatens to sweep aside establishment incumbents next week. ]

 

 

Obama: Suspicious packages are a 'credible terrorist threat' (Washington Post) [October suprprise anyone … still October … trick or treat … there are skeptics … then there are some who’ll say … just jewish synagogues, no big deal … nothing of strategic value … healthy dose of skepticism … Obama ‘Fake Terror’ Alert Story Hits #1 on Google  Aaron Dykes Infowars.com October 29, 2010 Efforts to warn the population that the Obama Administration, like the Bush Administration before it, has engaged in issuing fake terror alerts has gone viral, with the search term “fake terror” reaching #1 on Google Trends. It is yet another success in the Infowar, initiated on the Alex Jones Show. As we are just days out from the 2010 midterm elections, voters must realize that the establishment has willfully engaged in hyping up false alerts to scare the public into believing that we are under siege by potential terrorist acts at all moments. Various “officials” have been warning that an attack is likely to occur for weeks now, and it is no surprise to see the Obama Administration trying to use the fear to its advantage. Recall that Obama advisor and former top Clinton official, Robert Shapiro, alluded to the idea that only a terror attack could save Obama’s presidency earlier in the year.

“The bottom line here is that Americans don’t believe in President Obama’s leadership,” said Shapiro, adding, “He has to find some way between now and November of demonstrating that he is a leader who can command confidence and, short of a 9/11 event or an Oklahoma City bombing, I can’t think of how he could do that.”

Read the original story by Paul Joseph Watson here, as it has been updated.

The general scare of the fake terror alert is all the more alarming, as President Obama has gone on to contradict announcements from his own administration, claiming that the suspicious package “did apparently contain explosive material” in a press conference. This, after it was already admitted the suspicious package, which originated from the UK, was harmless and contained no explosives                     Obama Issues Fake Terror Alert On Eve Of Elections Paul Joseph Watson | Establishment media fearmongers about “mail bomb plot” despite no bombs being found.     Corporate Media On High Alert Over “Manipulated” Toner Cartridge On UK Plane Kurt Nimmo | Officialdom and authorities jack up the scary pre-election rhetoric ]

 

 

 

 

GOP's Palin paradox (Washington Post) Parker: She's too powerful to ignore, and too (fill-in-the-blank) to take seriously. [ Say it! … Dumb! … Everybody knows it! … Cher even said it! … I believe that this further evinces the leadership vacuum in america and is a testament to how unequivocally far america has fallen.  Powerful? I don’t think so! ]

Sarah Palin: The Next Teleprompter Reader in the White House [ Not gonna’ happen …  she’s just too embarrassingly dumb … and all that fake macho / zionist b*** s***  … unless her gal o’donnel casts a spell … which is a whole new ball game … witches … really … how ‘bout dumb *******s …. she’s really dumb enough to press the button. ] ?  Kurt Nimmo | In 2008, Tea Party Sarah trekked to New York to kiss Henry Kissinger’s ring.

Sarah Palin: The Next Teleprompter Reader in the White House?   [ Not gonna’ happen …  she’s just too embarrassingly dumb  … unless her gal o’donnel casts a spell … which is a whole new ball game … witches … really … how ‘bout dumb *******s ... and all that fake macho / zionist b*** s*** ... she’s really dumb enough to press the button. ] It looks like the establishment is grooming Tea Party Sarah for a run. She says as much in the Newsmax interview below.

 

Palin calls reporters 'impotent' and 'limp' (Washington Post) [ I must reiterate, she, palin’s so embarrassingly dumb! She truly is the joke that keeps on giving! I really mean it! I mean, what next? ] The former Alaska governor weighed in herself: "Those who are impotent and limp and gutless and they go on their anonymous -- sources that are anonymous -- and impotent, limp and gutless reporters take anonymous sources and cite them as being factual references," she told Sean Hannity. "It just slays me ( this could be a somewhat Freudian slip as she contemplates the uselessness of sexually non-interested reporters while she meant lays and I think her supposed / purported attractiveness / desirability is vastly overstated; but, this makes for great SNL skits; you know, those reporters not man enough to service her )  because it's so absolutely clear what the state of yellow journalism is today that they would take these anonymous sources as fact."

 

The power of Palin's touch (Washington Post) [Wow! Talk about stupid. Murphy could have eliminated the middle-man (person) and appeared on SNL himself; maybe reprising a familiar (Eddie) Murphy role as Gumby 2, Son of Gumby. The only thing funnier is palin herself. She’s so embarrassingly dumb!] .Endorsement lifts little-known candidate in Md., giving the struggling campaign a "megaphone."

 

 

Comment on: 5 Myths about Sarah Palin at 10/14/2010 9:39 PM EDT

Test yourself to find out how much you know about Sarah Palin. Take the quiz and after, check out The Washington Post's 'Five Myths about Palin.' (Washington Post) [ Geeh! I scoured the quiz / 5 myths and nowhere did I see the obvious myth; viz., that she really has a brain. Maybe gal pal pol protégé o’donnell can help her out … a few mysterious words, a slimy newt (gingrich) in a caldron of b*** s*** , and voila … a new reality which is what o’donnell herself is sorely in need of … O'Donnell, evolved Milbank: She didn't mention mice with human brains in Wednesday's debate. But she said silly things. Stromberg: O'Donnell is... wow The CNN host, moderating the long awaited Delaware senatorial debate Wednesday night, was trying to get the Republican nominee to talk about her 1998 statement on the Bill Maher show that "evolution is a myth."
"Do you believe evolution is a myth?" Blitzer asked.
"I believe that the local ... " O'Donnell began, then started anew. "I was talking about what a local school taught, and that should be taught, that should be decided on the local community."
"Do you believe evolution is a myth?" the moderator repeated.
"Local schools should make that decision."
"What do you believe?"
"What I believe is irrelevant."
"Why is it irrelevant? Voters want to know."
"What I will support in Washington, D.C. is the ability of the local school system to decide what is taught in their classrooms," O'Donnell repeated.
The answer, though, was obvious: Of course she believes in evolution; she is a product of evolution herself. She has evolved from a very odd woman who spoke about the evils of masturbation and of mice with fully functioning human brains and of her experience in sorcery (but she didn't join a coven!). …

 

 

In interview, Bush defends Iraq war and waterboarding (Washington Post)  [ Defending the indefensible … what choice does he have … then there’s the lies … ] Bush breaks silence, writes next chapter  (Washington Post)  [ As a failed president and war criminal himself, moron dumbya bush is among the few in the world that makes failed president wobama look plausibly good in comparison … wobama merely continued the failed policies of dumbya (perpetual war, no pros the frauds on wallstreet, etc.) that got pervasively corrupt, defacto bankrupt america to this point of decline and failure. ]            Anne E. Kornblut    Your take: His most memorable moment?  [ Like regrets in that old song (his way) he’s had a few – http://albertpeia.com/evilonthetarmac.htm   here’s a few:  bushisms from bush the brain-damaged moron http://albertpeia.com/bushisms.htm :

"After standing on the stage, after the debates, I made it very plain, we will not have an all-volunteer army. And yet, this week—we will have an all-volunteer army. Let me restate that."—Daytona Beach, Fla., Oct. 16, 2004

"The CIA laid out several scenarios and said life could be lousy, life could be OK, life could be better, and they were just guessing as to what the conditions might be like."—New York, Sept. 21, 2004

"Free societies are hopeful societies. And free societies will be allies against these hateful few who have no conscience, who kill at the whim of a hat."—Washington, D.C., Sept. 17, 2004 (Thanks to David Stanford.)

"That's why I went to the Congress last September and proposed fundamental—supplemental funding, which is money for armor and body parts and ammunition and fuel."—Erie, Pa., Sept. 4, 2004

"Too many good docs are getting out of the business. Too many OB/GYN's aren't able to practice their love with women all across the country."—Sept. 6, 2004, Poplar Bluff, Mo.

"They've seen me make decisions, they've seen me under trying times, they've seen me weep, they've seen me laugh, they've seen me hug. And they know who I am, and I believe they're comfortable with the fact that they know I'm not going to shift principles or shift positions based upon polls and focus groups." —Interview with USA Today, Aug. 27, 2004

"I didn't join the International Criminal Court because I don't want to put our troops in the hands of prosecutors from other nations. Look, if somebody has done some wrong in our military, we'll take care of it. We got plenty of capability of dealing with justice."—Niceville, Fla., Aug. 10, 2004

"So community colleges are accessible, they're available, they're affordable, and their curriculums don't get stuck. In other words, if there's a need for a certain kind of worker, I presume your curriculums evolved over time."—Niceville, Fla., Aug. 10, 2004

"Tribal sovereignty means that, it's sovereign. You're a—you've been given sovereignty, and you're viewed as a sovereign entity. And, therefore, the relationship between the federal government and tribes is one between sovereign entities."—Washington, D.C., Aug. 6, 2004

"Secondly, the tactics of our—as you know, we don't have relationships with Iran. I mean, that's—ever since the late '70s, we have no contacts with them, and we've totally sanctioned them. In other words, there's no sanctions—you can't—we're out of sanctions."—Annandale, Va., Aug. 9, 2004

"I mean, if you've ever been a governor of a state, you understand the vast potential of broadband technology, you understand how hard it is to make sure that physics, for example, is taught in every classroom in the state. It's difficult to do. It's, like, cost-prohibitive."—Washington, D.C., June 24, 2004 (Thanks to Michael Shively.)

"Our enemies are innovative and resourceful, and so are we. They never stop thinking about new ways to harm our country and our people, and neither do we."—Washington, D.C., Aug. 5, 2004 (Thanks to Alicia Butler.)

"And I am an optimistic person. I guess if you want to try to find something to be pessimistic about, you can find it, no matter how hard you look, you know?"—Washington, D.C., June 15, 2004 (Thanks to Robert Irwin.)

"[A] free Iraq is essential to our respective securities."—Washington, D.C., June 1, 2004

"I want to thank my friend, Sen. Bill Frist, for joining us today. … He married a Texas girl, I want you to know. (Laughter.) Karyn is with us. A West Texas girl, just like me."—Nashville, Tenn., May 27, 2004

"I'm honored to shake the hand of a brave Iraqi citizen who had his hand cut off by Saddam Hussein."—Washington, D.C., May 25, 2004

"This has been tough weeks in that country."—Washington, D.C., April 13, 2004 (Thanks to David Huddleston.)

"[B]y the way, we rank 10th amongst the industrialized world in broadband technology and its availability. That's not good enough for America. Tenth is 10 spots too low as far as I'm concerned."—Minneapolis, Minn., April 26, 2004

"My job is to, like, think beyond the immediate."—Washington, D.C., April 21, 2004

"This is historic times."—New York, N.Y., April 20, 2004

"Obviously, I pray every day there's less casualty."—Fort Hood, Texas, April 11, 2004 (Thanks to Pat Gallagher.)

"Recession means that people's incomes, at the employer level, are going down, basically, relative to costs, people are getting laid off."—Washington, D.C., Feb. 19, 2004 (Thanks to Garry Trudeau.)

"God loves you, and I love you. And you can count on both of us as a powerful message that people who wonder about their future can hear."—Los Angeles, Calif., March 3, 2004 (Thanks to Tanny Bear.)

"The march to war affected the people's confidence. It's hard to make investment. See, if you're a small business owner or a large business owner and you're thinking about investing, you've got to be optimistic when you invest. Except when you're marching to war, it's not a very optimistic thought, is it? In other words, it's the opposite of optimistic when you're thinking you're going to war." —Springfield, Mo., Feb. 9, 2004 (Thanks to Garry Trudeau.)

"See, one of the interesting things in the Oval Office—I love to bring people into the Oval Office—right around the corner from here—and say, this is where I office, but I want you to know the office is always bigger than the person."—Washington, D.C., Jan. 29, 2004 (Thanks to Michael Shively.)

"More Muslims have died at the hands of killers than—I say more Muslims—a lot of Muslims have died—I don't know the exact count—at Istanbul. Look at these different places around the world where there's been tremendous death and destruction because killers kill."—Washington, D.C., Jan. 29, 2004 (Thanks to Michael Shively.)

"In an economic recession, I'd rather that in order to get out of this recession, that the people be spending their money, not the government trying to figure out how to spend the people's money."—Tampa, Fla., Feb. 16, 2004

"King Abdullah of Jordan, the King of Morocco, I mean, there's a series of places—Qatar, Oman—I mean, places that are developing—Bahrain—they're all developing the habits of free societies."—Washington, D.C., Jan. 29, 2004

"But the true strength of America is found in the hearts and souls of people like Travis, people who are willing to love their neighbor, just like they would like to love themselves."—Springfield, Mo., Feb. 9, 2004 (Thanks to George Dupper.)

"My views are one that speaks to freedom."—Washington, D.C., Jan. 29, 2004

"In my judgment, when the United States says there will be serious consequences, and if there isn't serious consequences, it creates adverse consequences."

"There is no such thing necessarily in a dictatorial regime of iron-clad absolutely solid evidence. The evidence I had was the best possible evidence that he had a weapon."

"The recession started upon my arrival. t could have been—some say February, some say March, some speculate maybe earlier it started—but nevertheless, it happened as we showed up here. The attacks on our country affected our economy. Corporate scandals affected the confidence of people and therefore affected the economy. My decision on Iraq, this kind of march to war, affected the economy."—Meet the Press, Feb. 8, 2004

"I was a prisoner too, but for bad reasons."—To Argentine President Nestor Kirchner, on being told that all but one of the Argentine delegates to a summit meeting were imprisoned during the military dictatorship, Monterrey, Mexico, Jan. 13, 2004

"[T]he illiteracy level of our children are appalling."—Washington, D.C., Jan. 23, 2004 (Thanks to Lewell Gunter.)

"Just remember it's the birds that's supposed to suffer, not the hunter."—Advising quail hunter and New Mexico Sen. Pete Domenici, Roswell, N.M., Jan. 22, 2004

"One of the most meaningful things that's happened to me since I've been the governor—the president—governor—president. Oops. Ex-governor. I went to Bethesda Naval Hospital to give a fellow a Purple Heart, and at the same moment I watched him—get a Purple Heart for action in Iraq—and at that same—right after I gave him the Purple Heart, he was sworn in as a citizen of the United States—a Mexican citizen, now a United States citizen."—Washington, D.C., Jan. 9, 2004

"I want to thank the astronauts who are with us, the courageous spacial entrepreneurs who set such a wonderful example for the young of our country."—Washington, D.C., Jan. 14, 2004

"And if you're interested in the quality of education and you're paying attention to what you hear at Laclede, why don't you volunteer? Why don't you mentor a child how to read?"—St. Louis, Mo., Jan. 5, 2004

"So thank you for reminding me about the importance of being a good mom and a great volunteer as well."—St. Louis, Jan. 5, 2004

"I want to remind you all that in order to fight and win the war, it requires an expenditure of money that is commiserate with keeping a promise to our troops to make sure that they're well-paid, well-trained, well-equipped."
 
"See, without the tax relief package, there would have been a deficit, but there wouldn't have been the commiserate—not 'commiserate'—the kick to our economy that occurred as a result of the tax relief."

"[T]he best way to find these terrorists who hide in holes is to get people coming forth to describe the location of the hole, is to give clues and data."

"Justice was being delivered to a man who defied that gift from the Almighty to the people of Iraq."—Washington, D.C., Dec. 15, 2003

"[A]s you know, these are open forums, you're able to come and listen to what I have to say."—Washington, D.C., Oct. 28, 2003

"The ambassador and the general were briefing me on the—the vast majority of Iraqis want to live in a peaceful, free world. And we will find these people and we will bring them to justice."—Washington, D.C., Oct. 27, 2003 (Thanks to Robert Hack.)

"[W]hether they be Christian, Jew, or Muslim, or Hindu, people have heard the universal call to love a neighbor just like they'd like to be called themselves."—Washington, Oct. 8, 2003 (Thanks to George Dupper.)

"See, free nations are peaceful nations. Free nations don't attack each other. Free nations don't develop weapons of mass destruction."—Milwaukee, Wis., Oct. 3, 2003

"[W]e've had leaks out of the administrative branch, had leaks out of the legislative branch, and out of the executive branch and the legislative branch, and I've spoken out consistently against them, and I want to know who the leakers are."—Chicago, Sept. 30, 2003

"Washington is a town where there's all kinds of allegations. You've heard much of the allegations. And if people have got solid information, please come forward with it. And that would be people inside the information who are the so-called anonymous sources, or people outside the information—outside the administration."—Chicago, Sept. 30, 2003 (Thanks to Andy Bowers.)

"[T]hat's just the nature of democracy. Sometimes pure politics enters into the rhetoric."—Crawford, Texas, Aug. 8, 2003 (Thanks to Inigo Thomas.)

"I glance at the headlines just to kind of get a flavor for what's moving. I rarely read the stories, and get briefed by people who are probably read the news themselves."—Washington, D.C., Sept. 21, 2003

"I'm so pleased to be able to say hello to Bill Scranton. He's one of the  great Pennsylvania political families."—Drexel Hill, Penn., Sept. 15, 2003 (Thanks to Michael Shively.)

"We had a good Cabinet meeting, talked about a lot of issues. Secretary of State and Defense brought us up to date about our desires to spread freedom and peace around the world."—Washington, D.C., Aug. 1, 2003 (Thanks to Tanny Bear.)

"Security is the essential roadblock to achieving the road map to peace."—Washington, D.C., July 25, 2003

"Our country puts $1 billion a year up to help feed the hungry. And we're by far the most generous nation in the world when it comes to that, and I'm proud to report that. This isn't a contest of who's the most generous. I'm just telling you as an aside. We're generous. We shouldn't be bragging about it. But we are. We're very generous."—Washington, D.C., July 16, 2003

"It's very interesting when you think about it, the slaves who left here to go to America, because of their steadfast and their religion and their belief in freedom, helped change America."—Dakar, Senegal, July 8, 2003 (Thanks to Michael Shively.)

"My answer is bring them on."—On Iraqi militants attacking U.S. forces, Washington, D.C., July 3, 2003

"You've also got to measure in order to begin to effect change that's just more—when there's more than talk, there's just actual—a paradigm shift."—Washington, D.C., July 1, 2003 (Thanks to Michael Shively.)

"I urge the leaders in Europe and around the world to take swift, decisive action against terror groups such as Hamas, to cut off their funding, and to support—cut funding and support, as the United States has done."—Washington, D.C., June 25, 2003

"Iran would be dangerous if they have a nuclear weapon."—Washington, D.C., June 18, 2003

"Now, there are some who would like to rewrite history—revisionist historians is what I like to call them."—Elizabeth, N.J., June 16, 2003

"I am determined to keep the process on the road to peace."—Washington, D.C., June 10, 2003 (Thanks to Tanny Bear.)

"The true strength of America happens when a neighbor loves a neighbor just like they'd like to be loved themselves."—Elizabeth, N.J., June 16, 2003

"We are making steadfast progress."—Washington, D.C., June 9, 2003 (Thanks to Michael Shively.)

"I'm the master of low expectations."—Aboard Air Force One, June 4, 2003

"I'm also not very analytical. You know I don't spend a lot of time thinking about myself, about why I do things."—Aboard Air Force One, June 4, 2003

"I recently met with the finance minister of the Palestinian Authority, was very impressed by his grasp of finances."—Washington, D.C., May 29, 2003

"Oftentimes, we live in a processed world—you know, people focus on the process and not results."—Washington, D.C., May 29, 2003

"I've got very good relations with President Mubarak and Crown Prince Abdallah and the King of Jordan, Gulf Coast countries."—Washington, D.C., May 29, 2003

"All up and down the different aspects of our society, we had meaningful discussions. Not only in the Cabinet Room, but prior to this and after this day, our secretaries, respective secretaries, will continue to interact to create the conditions necessary for prosperity to reign."—Washington, D.C., May 19, 2003

"First, let me make it very clear, poor people aren't necessarily killers. Just because you happen to be not rich doesn't mean you're willing to kill."—Washington, D.C., May 19, 2003

"We ended the rule of one of history's worst tyrants, and in so doing, we not only freed the American people, we made our own people more secure."—Crawford, Texas, May 3, 2003 (Thanks to Tony Marciniec.)

"We've had a great weekend here in the Land of the Enchanted."—Albuquerque, N.M., May 12, 2003 (New Mexico's state nickname is "Land of Enchantment.")

"We've got hundreds of sites to exploit, looking for the chemical and biological weapons that we know Saddam Hussein had prior to our entrance into Iraq."—Santa Clara, Calif., May 2, 2003 (Thanks to Michael Shively.)

"I think war is a dangerous place."—Washington, D.C., May 7, 2003

"I don't bring God into my life to—to, you know, kind of be a political person."—Interview with Tom Brokaw aboard Air Force One, April 24, 2003

"You're free. And freedom is beautiful. And, you know, it'll take time to restore chaos and order—order out of chaos. But we will."—Washington, D.C., April 13, 2003

"Perhaps one way will be, if we use military force, in the post-Saddam Iraq the U.N. will definitely need to have a role. And that way it can begin to get its legs, legs of responsibility back."—the Azores, Portugal, March 16, 2003

"I know there's a lot of young ladies who are growing up wondering whether or not they can be champs. And they see the championship teams from USC and University of Portland here, girls who worked hard to get to where they are, and they're wondering about the example they're setting. What is life choices about?"—Washington, D.C., Feb. 24, 2003

"Now, we talked to Joan Hanover. She and her husband, George, were visiting with us. They are near retirement—retiring—in the process of retiring, meaning they're very smart, active, capable people who are retirement age and are retiring."—Alexandria, Va., Feb. 12, 2003 (Thanks to Dennis Doubleday.)

"Columbia carried in its payroll classroom experiments from some of our students in America."—Bethesda, Md., Feb. 3, 2003

"And, most importantly, Alma Powell, secretary of Colin Powell, is with us."—Washington, D.C., Jan. 30, 2003

"The war on terror involves Saddam Hussein because of the nature of Saddam Hussein, the history of Saddam Hussein, and his willingness to terrorize himself."—Grand Rapids, Mich., Jan. 29, 2003

"When Iraq is liberated, you will be treated, tried, and persecuted as a war criminal."—Washington, D.C., Jan. 22, 2003 (Thanks to Chad Conwell.)

"Many of the punditry—of course, not you (laughter)—but other punditry were quick to say, no one is going to follow the United States of America."—Washington, D.C., Jan. 21, 2003

"One year ago today, the time for excuse-making has come to an end."—Washington, D.C., Jan. 8, 2003

"I think the American people—I hope the American–I don't think, let me—I hope the American people trust me."—Washington, D.C., Dec. 18, 2002

"The goals for this country are peace in the world. And the goals for this country are a compassionate American for every single citizen. That compassion is found in the hearts and souls of the American citizens."—Washington, D.C., Dec. 19, 2002 (Thanks to Michael Shively.)

"There's only one person who hugs the mothers and the widows, the wives and the kids upon the death of their loved one. Others hug but having committed the troops, I've got an additional responsibility to hug and that's me and I know what it's like."—Washington, D.C., Dec. 11, 2002

"In other words, I don't think people ought to be compelled to make the decision which they think is best for their family."—Washington, D.C., Dec. 11, 2002 (Thanks to Stephanie Nichols.)

"Sometimes, Washington is one of these towns where the person—people who think they've got the sharp elbow is the most effective person." —New Orleans, Dec. 3, 2002 (Thanks to Michael Shively.)

"The law I sign today directs new funds and new focus to the task of collecting vital intelligence on terrorist threats and on weapons of mass production."—Washington, D.C., Nov. 27, 2002

"These people don't have tanks. They don't have ships. They hide in caves. They send suiciders out."—Speaking about terrorists, Portsmouth, N.H., Nov. 1, 2002

"I know something about being a government. And you've got a good one."—Stumping for Gov. Mike Huckabee, Bentonville, Ark., Nov. 4, 2002

"I need to be able to move the right people to the right place at the right time to protect you, and I'm not going to accept a lousy bill out of the United Nations Senate."—South Bend, Ind., Oct. 31, 2002

 "John Thune has got a common-sense vision for good forest policy. I look forward to working with him in the United Nations Senate to preserve these national heritages."

"Any time we've got any kind of inkling that somebody is thinking about doing something to an American and something to our homeland, you've just got to know we're moving on it, to protect the United Nations Constitution, and at the same time, we're protecting you."—Aberdeen, S.D., same day (Thanks to George Dupper.)

"Let me tell you my thoughts about tax relief. When your economy is kind of ooching along, it's important to let people have more of their own money."—Boston, Oct. 4, 2002

"I was proud the other day when both Republicans and Democrats stood with me in the Rose Garden to announce their support for a clear statement of purpose: you disarm, or we will."—Speaking about Saddam Hussein, Manchester, N.H., Oct. 5, 2002 (Thanks to George Dupper.)

"You see, the Senate wants to take away some of the powers of the administrative branch."—Washington, D.C., Sept. 19, 2002

"We need an energy bill that encourages consumption."—Trenton, N.J., Sept. 23, 2002

"People say, how can I help on this war against terror? How can I fight evil? You can do so by mentoring a child; by going into a shut-in's house and say I love you."—Washington, D.C., Sept. 19, 2002

"I'm plowed of the leadership of Chuck Grassley and Greg Ganske and Jim Leach."—Davenport, Iowa, Sept. 16, 2002

"There's an old saying in Tennessee—I know it's in Texas, probably in Tennessee—that says, fool me once, shame on—shame on you. Fool me—you can't get fooled again."—Nashville, Tenn., Sept. 17, 2002

"There's no doubt in my mind that we should allow the world worst leaders to hold America hostage, to threaten our peace, to threaten our friends and allies with the world's worst weapons."—South Bend, Ind., Sept. 5, 2002

"If you don't have any ambitions, the minimum-wage job isn't going to get you to where you want to get, for example. In other words, what is your ambitions? And oh, by the way, if that is your ambition, here's what it's going to take to achieve it."—Speech to students in Little Rock, Ark., Aug. 29, 2002 (Thanks to George Dupper.)

"See, we love—we love freedom. That's what they didn't understand. They hate things; we love things. They act out of hatred; we don't seek revenge, we seek justice out of love."—Oklahoma City, Aug. 29, 2002

"There's no cave deep enough for America, or dark enough to hide."—Oklahoma City, Aug. 29, 2002 (Thanks to Michael Shively.)

"President Musharraf, he's still tight with us on the war against terror, and that's what I appreciate. He's a—he understands that we've got to keep al-Qaida on the run, and that by keeping him on the run, it's more likely we will bring him to justice."—Ruch, Ore., Aug. 22, 2002 (Thanks to Scott Miller.)

"I'm a patient man. And when I say I'm a patient man, I mean I'm a patient man."

"Nothing he [Saddam Hussein] has done has convinced me—I'm confident the Secretary of Defense—that he is the kind of fellow that is willing to forgo weapons of mass destruction, is willing to be a peaceful neighbor, that is—will honor the people—the Iraqi people of all stripes, will—values human life. He hasn't convinced me, nor has he convinced my administration."—Crawford, Texas, Aug. 21, 2002

"I'm thrilled to be here in the bread basket of America because it gives me a chance to remind our fellow citizens that we have an advantage here in America—we can feed ourselves."—Stockton, Calif., Aug. 23, 2002 (Thanks to Christopher Baird.)

"There's no bigger task than protecting the homeland of our country."

"The federal government and the state government must not fear programs who change lives, but must welcome those faith-based programs for the embetterment of mankind."—Stockton, Calif., Aug. 23, 2002 (Thanks to George Dupper.)

"I love the idea of a school in which people come to get educated and stay in the state in which they're educated."

"There may be some tough times here in America. But this country has gone through tough times before, and we're going to do it again."

"I promise you I will listen to what has been said here, even though I wasn't here."

"I can assure you that, even though I won't be sitting through every single moment of the seminars, nor will the vice president, we will look at the summaries."

"Tommy [Thompson, Health and Human Services secretary,] is a good listener, and he's a pretty good actor, too."

"The trial lawyers are very politically powerful. … But here in Texas we took them on and got some good medical—medical malpractice.""I firmly believe the death tax is good for people from all walks of life all throughout our society."

—Waco, Texas, Aug. 13, 2002

"There was no malfeance involved. This was an honest disagreement about accounting procedures. ... There was no malfeance, no attempt to hide anything."—White House press conference, Washington, D.C., July 8, 2002 

"I also understand how tender the free enterprise system can be."—White House press conference, Washington, D.C., July 9, 2002

"Over 75 percent of white Americans own their home, and less than 50 percent of Hispanos and African Americans don't own their home. And that's a gap, that's a homeownership gap. And we've got to do something about it."—Cleveland, Ohio, July 1, 2002

"Whether you're here by birth, or whether you're in America by choice, you contribute to the vitality of our life. And for that, we are grateful."—Washington, D.C., May 17, 2002

"I'd rather have them sacrificing on behalf of our nation than, you know, endless hours of testimony on congressional hill."—National Security Agency, Fort Meade, Maryland, June 4, 2002

"We're working with Chancellor Schröder on what's called 10-plus-10-over-10: $10 billion from the U.S.,$10 billion from other members of the G7 over a 10-year period, to help Russia securitize the dismantling—the dismantled nuclear warheads."—Berlin, Germany, May 23, 2002

"Do you have blacks, too?"—To Brazilian President Fernando Cardoso, Washington, D.C., Nov. 8, 2001

"This is a nation that loves our freedom, loves our country."—Washington, D.C, May 17, 2002

"The public education system in America is one of the most important foundations of our democracy. After all, it is where children from all over America learn to be responsible citizens, and learn to have the skills necessary to take advantage of our fantastic opportunistic society."—Santa Clara, Calif., May 1, 2002

"After all, a week ago, there were—Yasser Arafat was boarded up in his building in Ramallah, a building full of, evidently, German peace protestors and all kinds of people. They're now out. He's now free to show leadership, to lead the world."—Washington, D.C., May 2, 2002 (Thanks to M. Bateman.)

"This foreign policy stuff is a little frustrating."—as quoted by the New York Daily News, April 23, 2002

"I want to thank the dozens of welfare to work stories, the actual examples of people who made the firm and solemn commitment to work hard to embetter themselves."—Washington, D.C., April 18, 2002 (Thanks to George Dupper.)

"And so, in my State of the—my State of the Union—or state—my speech to the nation, whatever you want to call it, speech to the nation—I asked Americans to give 4,000 years—4,000 hours over the next—the rest of your life—of service to America. That's what I asked—4,000 hours." —Bridgeport, Conn., April 9, 2002 …(there are many more)

 ]

 

51 Iraqi worshipers, 7 troops killed in church siege  (Washington Post)  [ Yes, and even more sounds of silence … which of course smells like napalm in the morning … you know … that victory thing.  ] Suicide bomber in Iraq kills at least 26 people, many of them police (Washington Post) [ Ah, yes … those sounds of silence … the birthing of a new american-style democracy … like napalm in the morning … smells like victory … (lucky for them bush / bushies / neo-cons lied about those wmd’s) … and all for the sake of israel and the military industrial complex. ]

 

 

Election outcome may complicate Obama's foreign policy (Washington Post)  [  Wow! That’s all this country needs … a more self-destructive zionist-leaning foreign policy which, as obvious to the rest of the world, ignores israel’s transgressions (ie., violations of international law, u.n. resolutions, nuclear non-proliferation treaty, etc.) while focusing on geopolitically detrimental or otherwise, non-events. I see an already zionist-leaning foreign policy with wobama and co. which begs the question … What foreign policy? James Forrestal made the point infra: ]

 

 

 

 

 

Obama cites Indonesia as model for Muslims (Washington Post)[  Drudgereport:   Obama slams israel from Jakarta … [ Wow! Who woulda’ thunk it … Wobama growing gonads in Indonesia … He is quite correct, albeit in one of those sparingly infrequent moments … But, alas … he’ll be returning to ‘little israel’ soon (usa) and I’m sure his rhetoric will return to typical pro-israeli (anti-american interest) actions and words (b*** s***)! ]...
netanayahu takes Flight Back...
Confronts Anti-israel Reality/Truth Movement in USA...
China Ratings Agency Downgrades America... ]  In city he once lived in as a boy, Obama heralds nation's "spirit of tolerance" that allows mosques, churches and temples to co-exist in a democracy.

 

 

Progress in Afghan war called 'uneven' ( Washington Post )  [  Uneven? Riiiiight! The real question consonant with reality: Is there EVEN progress at all … just a little bit … un petit peux … teeny weeny, itsy bitsy, one iota of progress … A resounding NO! … unless you’re counting the magnitude of america’s defacto bankruptcy, anti-american sentiment, etc.. ]

 

Visiting U.S. senators praise Afghan progress, say drawdown date is unrealistic (Washington Post) [ I’ll tell you what’s unrealistic: having compromised senators ( ie., non-war-heroe senile mccain, closet homosexual graham, incompetent zelig zionist lieberman, new york sinkhole slug Kirsten Gillibrand chided As 'Schumer's (zionist) Little Girl' ) stay the course with already failed pervasively corrupt, defacto bankrupt american policy …    Paul Craig Roberts: Government Abandoned Vietnam POWs  Kurt Nimmo | John McCain worked overtime to make sure Vietnam POWs never came home. I think the even bigger story vis-à-vis mccain is:  http://www.albertpeia.com/heroenot.htm  ‘Did you know that that so-called "american heroe" john mccain was referred to by his fellow pows in Vietnam as something akin to the "songbird" inasmuch as he was constantly "singing" to his Viet-Cong captors to curry favor and better treatment? This has been documented with authority by Colonel David Hackworth. The same violates military code/protocol (other soldiers have been court-martialed for far less) click Here, Here.  [ http://www.albertpeia.com/hackworth.htm ]  But, you see, this covered up scenario, compromizing the false facade of far less than a heroe, is exactly what a criminal (lie of a) nation as america loves and encourages (get everyone's hands dirty so no-one dares to rectify same, ie., bush, sr., clinton, bush, jr.). That is, "toe the (corrupt, propagandized) line", become a criminal, or be exposed, prosecuted, and/or ruined; and, hasn't anyone asked how "wall street" has been "spared the spotlight" (and even was accorded protective legislation from their criminal culpability) and focus of inquiry, attention, and prosecution despite being the primary beneficiaries financial and otherwise of these scams (you know the wall street motto, "churn and earn"; huge conflicts of interest if not outright fraud)…’…Oh and they so can afford it Deficit panel proposes huge cuts (Washington Post) [  Cuts? I heard the corrupt, incompetent lawmakers were giving themselves a raise. They actually deserve at least a 10% paycut and abolition of those lifetime appointments / permanent corrupt bureaucracies. Nothing succeeds like failure and crime in pervasively corrupt, defacto bankrupt america! ] Lawmakers propose curbs on Social Security, cuts in spending and tax hikes if long-term goals aren't met.

 

In 1948, U.S. Secretary of Defense James Forrestal, an opponent of the creation of a Jewish state in Palestine, warned that, even though failure to go along with the Zionists might cost President Truman the states of New York, Pennsylvania, and California, it was about time that somebody should pay some consideration to whether we might not lose the United States. Mr. Forrestal was absolutely correct! Isn’t that exactly what’s happened to defacto bankrupt america in intractable decline. 

TIME TO REVOKE AND NULLIFY THE BALFOUR DECLARATION AND ABROGATE THE CREATION OF THE NATION STATE OF ISRAEL IN THE INTERESTS OF FAIRNESS, JUSTICE, PEACE AND PROSPECTIVE PROSPERITY FOR THIS WORLD!

 

 

 

Families remember USS Cole 10 years later (Washington Post) [ If only Americans remembered the uss liberty, they’d understand the israeli albatross strangling and bleeding the life out of america as they have since that fateful day.] In the Middle East, it's still 1947 (Washington Post) [ Indeed it should be! Among the few times the cia was correct, and they’ve been trying to put square pegs in round holes ever since, to america’s substantial detriment. I wonder what what those american sailors of the US Liberty killed by the israelis would say? USS Liberty Survivor Threatened by Unknown Israeli  This is what happened to Phillip F. Tourney, decorated war hero and survivor of Israel’s premeditated attack on the USS Liberty 43 years ago. On the evening of Aug. 6, Tourney was verbally threatened by a foreign national claiming to work for the government of israel. As for the purported disdain shown for war mongerer netanayahu, if only wobama’s actions matched his words, the same would represent a major plus for him and the nation of america, so sorely in need of pluses whether the same be budgetary or economic or geopolitical. In fact, for America to abrogate 1948 would guarantee America’s survival, prosperity, and global hegemony in the most positive sense. ]

 

The Obama Deception Number 1 on U.S. Google Trends

Then there is the well researched, produced, and informative ‘ESOTERIC AGENDA’ which explains how we’ve gotten to this forlorn point: http://video.google.com/videoplay?docid=-7052400717834950257# 

‘The Obama Deception’ Censored  A viral You Tube upload of one of Alex Jones’ most popular feature films ‘The Obama Deception’ has been censored following a spur of the moment campaign to elevate the movie’s title to the top of the major internet search engines.

In light of this development, I provide an archived site version which appears to be complete (but will be compared with earlier version and replaced with same if incomplete) http://albertpeia.com/obamadeceptionhighqualityversion.flv

Censorship Alert: Obama Deception Illegally Removed from You Tube  Made to look like a hack, Thought Police Block Mega-Viral Anti-Establishment Documentary After More than a Year of Dominating Viewcounts, Ranking #1 in Search Engines and Waking Up Millions to the False Left-Right Paradigm Perpetuated by Obama.

Public confidence in Obama reaches new low  (Washington Post). Six in 10 Americans lack faith in Obama and hold lower esteem for members of Congress, according to the latest Washington Post-ABC News poll. Such stats as this tend to typify scenarios as this where you break every significant  campaign promise that got you elected, from endless war (ie., Afghanistan, etc.) to not prosecuting the frauds on wall street, and the growing realization of ‘typical’: Public confidence in Obama reaches new low  (Washington Post) Six in 10 Americans lack faith in Obama and hold lower esteem for members of Congress, according to the latest Washington Post-ABC News poll. Such stats as this tend to typify scenarios as this where you break every significant  campaign promise that got you elected, from endless war (ie., Afghanistan, etc.) to not prosecuting the frauds on wall street, and the growing realization of ‘typical’:  

But still it’s ‘hands off fraudulent wall street’ to theirs, the nation’s, and the world’s detriment. Firms subpoenaed in attempt to regain Fannie, Freddie losses (Washington Post). But there’s a reason:

The following youtube video is well worth the look and explains how and why the frauds on wall street have gotten away with their devastating fraud thus far.  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed.  ( UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...         CIVIL RIGHTS PANEL TO PURSUE FED PROBE IN BLACK PANTHER CASE...In emotional and personal testimony, an ex-Justice official who quit over the handling of a voter intimidation case against the New Black Panther Party accused his former employer of instructing attorneys in the civil rights division to ignore cases that involve black defendants and white victims ...’    US v. AZ...    Cases against Wall Street lag despite Holder’s vows to target financial fraud  Washington Post | Obama has promised to hold Wall Street accountable for the meltdown. ):

‘THE OBAMA DECEPTION’  http://www.youtube.com/watch?v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from=PL&index=0&playnext=1  – well worth a look. [ The Obama Deception Number 1 on U.S. Google Trends  ]

While boner and barton are indeed jokes / vegetables that bespeak the single-digit approval rate for congress, obama’s failure to deliver on promises with as well, endless war spending despite defacto bankruptcy of the nation and a watered down nothing financial regulation bill for talking points but little substance, make him as big a joker. This well researched / produced video tells the real story :  http://www.youtube.com/watch?v=eAaQNACwaLw&feature=PlayList&p=2EFAB57B44063742&playnext_from=PL&index=0&playnext=1   ‘THE OBAMA DECEPTION’ – well worth the view.    [ The Obama Deception Number 1 on U.S. Google Trends ]

‘The Obama Deception’ Censored  A viral You Tube upload of one of Alex Jones’ most popular feature films ‘The Obama Deception’ has been censored following a spur of the moment campaign to elevate the movie’s title to the top of the major internet search engines.      In light of this development, I provide an archived site version which appears to be complete (but will be compared with earlier version and replaced with same if incomplete) http://albertpeia.com/obamadeceptionhighqualityversion.flv

Then there is the well researched, produced, and informative ‘ESOTERIC AGENDA’ which explains how we’ve gotten to this forlorn point: http://video.google.com/videoplay?docid=-7052400717834950257# 

 

 

 

Judges rule without title, lenders can't foreclose (Washington Post) [ Rules of law? I didn’t think they cared. That’s certainly the direct experience I’ve had with the pervasively corrupt american legal / judicial system (along with the other two branches of the u.s. government and defact bankrupt america generally). Court decisions could call into doubt the ownership of mortgages, raising urgent challenges for both the real estate market, wider financial system.     Connecticut, California join probe of Ally (Washington Post)  [I’d be much more impressed if they initiated a probe of more readily discernible criminal offenses in violation of the RICO Act      http://albertpeia.com    Frauds/Liars (sic-lawyers)Covering Up for Other Frauds/Liars (sic-lawyers). In Productive Societies as China, Japan, etc., Fraudulent Liars (sic-lawyers) and the Fraudulent u.s. System They're a Part of Are Unheard Of/Non-existent. List of Files Regarding Filed Attorney Grievance Against Fraud coan et als  Or Here For A Clearer View Of  Filed Grievance Complaint, Response, Exhibits, and Related RICO Filings  Note the Committee of Frauds/Liars (sic-lawyers). Included are DOJ Rep., State Court Rep., State Atty. General Office Rep., and even a Vegetable Garden yale law prof who probably never practiced law in his life. How Pathetic!   http://albertpeia.com/fbiofficela91310 ]   Justice: FBI improperly opened probes   (Washington Post)  [ I just hope they’re as zealous (in probing readily discernible crime) with regard to my RICO matters and the corruption in the (judicial / legal) process since, in the final analysis, it will have been the corruption within that will have brought the nation down irrevocably and totally.

 

                                                                                                                   October 15, 2010 (*see infra)

 

 

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

 

 

Dear Sir:

 

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer’s browser) as per your office’s request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

 

 

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case  RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages)      [  ricosummarytoFBIunderpenaltyofperjury.pdf   http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf          ].

 

 

The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as     fbicorrespondencereyes.htm     .   With regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry). The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did – he served 12 years in prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).

 

 

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the    RICO VERIFIED COMPLAINT    (see infra). Such includes and as set forth in the case, inter alia,

 

 

  1. A judgment had been entered in my favor in the case, United States District Court Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth approximately now in excess of $300,000 remains unaccounted for and which could be used for payment to creditors, Los Angeles, etc..
  2. Counsel Robert Sullivan on my behalf documented by way of certification upon investigation that Alan Shiff, USBCJ, had falsely stated a dismissal upon which false statement he predicated a retaliatory and spurious contempt proceeding against me causing substantial damage, and for which he sought Judicial Notice of those and related proceedings as did I in some of my filings.
  3. The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to Defendant Coan’s failure to file anything whatsoever by the court’s deadline causing creditors and me substantial damages:   [  Shiff Order of Dismissal With Prejudice on Coan’s Failure to File        Page 1                Page 2          ]
  4. Defendant Coan had filed an action against me to prevent me from suing him which necessitated me to fly to Connecticut for a hearing before The Honorable Robert N. Chatigny, Chief Judge, USDC, District of Connecticut, who denied Coan’s requested relief as to Coan but precluded my action against Shiff (although there is no immunity, judicial or otherwise, for criminal acts, ie., fraud connected with a case under Title 11, USC, etc.) . [   transcript in pertinent part -     crossexamofcoanbypeia.pdf   ]
  5. Newly appointed judge, Maryanne Trump Barry, Donald Trump’s sister, was assigned the RICO case despite the conflict of interest in light of hundreds of thousands of dollars of illegal (drug) money being laundered through the Trump casinos by the RICO defendants, and despite my motion to recuse her which motion she heard herself and denied, and U.S. Trustee Hugh Leonard with whom I met personally refused to join or file a separate motion to recuse and not long thereafter left said office for private practice at Cole, Shotz, et als on retainer with the RICO defendants as his primary client.
  6. Probative and evidentiary documents, affidavits, exhibits, including those turned over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to Assistant U.S. Attorney Jonathan Lacey with whom I met personally at the U.S. Attorney’s Office in Newark, N.J., at which time Samuel Alito was U.S. Attorney, and went over said documents and their probative value with him. Within approximately a month thereafter upon inquiry I was told that Jonathon Lacey was no longer with the office, that the file/documents could not be located, and that there was no further information available concerning contacting him or his location. I thereupon delivered by hand, copies of said documents to the office of then U.S. Attorney Alito, addressed to him, with assurance they would go directly to him. In addition to being inept [ I looked in on the one mob case he had brought, bungled, lost (accidently on purpose?) since I was suing some mob-connected under RICO and the court (I had known / previously met outside of court the judge Ackerman through a client) was absolute bedlam and a total joke since incompetent corrupt Alito brought in all 20 mob defendants (rather than prosecute one or a few to flip them first) who feigning illness had beds/cots in the courtroom along with their moans during testimony and had the jury in stitches. As much as I hate the mob, it truly was funny, if not so tragic.],   Alito is also corrupt (and maybe corrupt because he is inept). After a reasonable (but still rather short) time I called to determine the status and was told that Alito was no longer with the Office of the U.S. Attorney, that he was (appointed) a federal judge, and that neither the documents nor any file or record of same could be located. Alito did parley the same / cover-up into quid pro quo direct lifetime appointment to the Court of Appeals, 3rd circuit, despite the absence of judicial experience or successful tenure as U.S. Attorney (Maryanne Trump Barry as well). This is the same Sam Alito that now sits on the purported highest court in the land. The real application of the illegal rule ‘don’t ask, don’t tell’.

 

 

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

 

 

Sincerely,

 

 

Albert L. Peia

611 E. 5th Street, #404

Los Angeles, CA 90013

(213) 219-**** (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their ‘fix’ so cell phone best for contact).

 

 

                       ----------

 

*The foregoing and as indicated therein was previously send 9-14-10 but delivery confirmation was flawed as set forth below and my inquiries to the u.s. postal service rebuffed (I believe tampered with inasmuch as your office could not locate same). This cover letter (9-13-10) is on the 3 disks with navigable hyperlinks to the subject files for ease of reference, including the files in the RICO action as indicated. (10-15-10) I spoke with Rose, FBI, ADIC Secretary, who indicates once again that your office has not received the aforesaid and which can reasonably be presumed to have been tampered with, and hence, a violation of the federal statute concerning same. ]

 

 

                       ----------

 

*The foregoing and as indicated therein was previously send 9-14-10 but delivery confirmation was flawed as set forth below and my inquiries to the u.s. postal service rebuffed (I believe tampered with inasmuch as your office could not locate same). This cover letter (9-13-10) is on the 3 disks with navigable hyperlinks to the subject files for ease of reference, including the files in the RICO action as indicated.

-----

 

Label/Receipt Number: 0310 1230 0000 0862 8183

Expected Delivery Date: September 15, 2010

Class: Priority Mail®

Service(s): Delivery Confirmation™

Status: Delivered

 

Your item was delivered at 10:14 am on September 15, 2010 in LOS ANGELES, CA 90024.

 

           

                                                           

                                    Track and Confirm    

                                                           

                                      Enter Label/Receipt Number.        

                                   

Enter Label / Receipt Number.

           

                                               

                                                           

                                   

            Detailed Results:

           

Bullet Delivered, September 15, 2010, 10:14 am, LOS ANGELES, CA 90024

Bullet Arrival at Post Office, September 15, 2010, 4:12 am, LOS ANGELES, CA 90024

Bullet Processed through Sort Facility, September 14, 2010, 8:29 pm, LOS ANGELES, CA 90052

Bullet Acceptance, September 14, 2010, 4:04 pm, LOS ANGELES, CA 90017

----

 

Sent Postage Prepaid: United States Mail - VIA Priority Mail, Delivery Confirmation and VIA Certified Mail this 5th day of October, 2010.

 

               Signed:  ___________________________________

                                      Albert L. Peia

 

 

               

Part 2: Woodward's 'Obama's Wars' Don't get 'locked into Vietnam,' Biden warns (Washington Post) [ Yeah, when you have a lobotomized VP you tend not to trust their opinion; but, I think they just cover their bases … you know, that Kerryish both sides of all issues thing. In any event, wobama bought this continued debacle and bears fault with the other zionist war mongers. Previously (on Iraq and Afghanistan, infra): Obama: 'It is time to turn the page' on Iraq war  (Washington Post) [ Oh come on! How patronizing to have wobama spew his b*** s*** which b.s. has become synonomous with wobama; ‘to give Iraqis the chance to shape their future’… Iraq’s been destroyed, covered in cancer-causing depleted uranium, america’s defacto bankrupt, etc. If only teleprompters had a brain of their own.  ] He says the U.S. "has paid a huge price" to give Iraqis the chance to shape their future -- a price that now includes more than 4,400 U.S. dead.  ) On Thanksgiving weekend in 2009, Vice President Biden counsels President Obama about sending more troops to Afghanistan.

• Full coverage: 'Obama's Wars'

• Audio: Obama on length of the war

• Audio: Obama on attack possibility

• Audio: Obama on terrorism tactics

 

 

A subtler tack to fight Afghan corruption? (Washington Post)  [ How about a not so subtler tack to fight corruption starting right here in the u.s. of a. where corruption and crime are pervasive and in fact, at the root of the Afghanistan problems, from american reinvigorated heroin trade to bribery attendant thereto to killing civilians, etc..  Defacto Bankrupt, Meaningfully Lawless, War Criminal Nation america, the leader of nations … in crime:

Though having but 5% of the world’s population, america can boast 76% of the world’s serial killers, followed by Europe with England/UK then Germany leading the way for the eu [excerpt, 6 minute video, Serial Killers: Real Life Hannibal Lechters          http://www.albertpeia.com/realifeamericaserialkillers.mpg      (as is consistent with crime generally, see infra)]. Defacto bankrupt, fraudulent america also spends more on offensive (defensive a misnomer / propaganda) military spending than all the nations of the world combined, and by a large margin at that. Do you see a pattern emerging here [ I unfortunately only belatedly did, and the feds, fed employees, cia, all 3 branches of the u.s. government, etc., are included in this evolved american trait of inherent criminality in the most nefarious sense  ( http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         )   ]:

CRIME STATISTICS > TOTAL CRIMES (MOST RECENT) BY COUNTRY  SHOWING LATEST AVAILABLE DATA (america’s No. 1).

Rank  

Countries 

Amount 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

  ]

 

 

 

 

Goldman agrees to pay $550M (Washington Post) My own skepticism based on the disparate numbers (the size of the frauds compared to the relatively small fine) and as set forth in the initial reactions / headlines that immediately follow has been allayed somewhat by an interview on NBR with former SEC head Ruder who explained the very narrow scope of the settlement which in no way shelters goldman from the huge frauds they have perpetrated. So long as this is true in fact as well as law and in application, the SEC deserves praise as has been so under the auspices of ‘Mother Mary’ who appears to have the gonads lacking in prior SEC heads. The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed.   

Iran connects U.S./israel to deadly blasts I believe Iran!

‘West, israel linked to SE Iran blasts’  A ranking official with the Islamic Revolution Guards Corps (IRGC) has implicated “the us, israel and some european countries” in the deadly blasts in the southeastern Iranian city of Zahedan.

De-classified Vietnam-era Transcripts Show Senators Knew Gulf Of Tonkin Was A Staged False Flag Event Over 1,100 pages of previously classified Vietnam-era transcripts released this week by the Senate Foreign Relations Committee highlight the fact that several Senators knew that the White House and the Pentagon had deceived the American people over the 1964 Gulf of Tonkin incident.

Wall Street Is Laundering Drug Money And Getting Away With It Zach Carter | Wachovia was moving money behind literally tons of cocaine from violent drug cartels. It wasn’t an accident.

Vegetable zionist Zelig joe lieberman’s Model For America: Purging The Internet of Dissent When political Zelig joe lieberman attempted to justify draconian legislation that would provide President Obama with a figurative kill switch to shut down parts of the Internet, he cited the Chinese system of Internet policing as model which america should move towards

 

Stepped-up efforts fail to stem drug money (Washington Post)  [ Come on! Wake up! That’s american, yes american big business. The stuff that the war in Afghanistan is made of; viz., ie., heroin, etc.. ]Stashing cash in spare tires, engine transmissions and truckloads of baby diapers, couriers for Mexican drug cartels are moving tens of billions of dollars in profits south across the border each year, a river of dirty money that has overwhelmed U.S. and Mexican customs agents.

Carlyle-owned toy supplier files for bankruptcy (Washington Post) [ What is a bush-involved company of paper (leveraged instruments, etc.) pushers doing with any company doing business in the u.s. or elsewhere for that matter. The bushes are vegetables who really can’t do anything well, except maybe, war, war crimes, fraud, illegal drug deals (Iran contra, etc., http://albertpeia.com/CIAAgentAffidavit1.jpg ) ]

 

State Dept. faces skyrocketing costs as it prepares to expand role in Iraq:  Waning resources could endanger security gains, lawmakers are told (Washington Post)  [ The ‘new never ending story’! america’s defacto bankrupt! Dat’s the story, jerry! What gains? Iraq’s destroyed. Iraq’s ‘covered’ in depleted uranium. The people are devastated. america’s defacto bankrupt. Come on! We’re getting close to biblical stuff here! There’s just no excuse for this compounding of war crimes committed by the u.s. and ‘friends’.]

Mideast Digest:  Iran's Ahmadinejad calls for regional solution to Afghan crisis (Washington Post) And appropriately so, as leader of a nation in the region as opposed to invading nations from outside the region (particularly as one targeted by assassins the likely assigns of those outside the region).

One of those … Daaaaah! Moments … Panetta says Afghan progress slower than expected Los Angeles Times -  Days after President Obama installed a new US military commander in Afghanistan, CIA Director Leon E. Panetta conceded Sunday that progress in the war has been "harder" and "slower than I think ...     Panetta says Afghan insurgents show no real interest in reconciliation talks Washington Post     CIA Retains Controversial Security Firm in Afghanistan Wall Street Journal       CIA: AFGHAN PROGRESS 'SLOWER' THAN ANTICIPATED… Daaaaah! ...

GOP chairman: Afghan 'war of Obama's choosing' (AP)  - Republican chairman Michael Steele drew criticism from within his own party Friday, including calls to resign, after saying the 9-year-old commitment of U.S. troops to Afghanistan was a mistaken ... [Steele is quite right and wobama and war facilitators deserve criticism; not Steele.]      

 

 

 

Judge: 'Don't ask, don't tell' is unconstitutional (Washington Post) [ Well, we all know that judge walker is alledgedly a homo, so the question here is whether judge phillips is a lesbian… just kidding! Not to slight homosexuals but to emphasize judicial bias / corruption which is pervasive in america and I’ve observed, experienced, and have been substantially damaged by pervasive and systemic corruption in the american judicial process which has become more blatant and which justifies the abolition of these costly, corrupt lifetime appointment / bureaucracies. The fact is that ‘don’t ask, don’t tell’ is the policy throughout the pervasively corrupt federal system which is indeed as illegal as it is unconstitutional! ( http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ).  ]

 

Ex-Justice official: CIA may have exceeded limits (Washington Post)  Wee doggies! This sounds like the stuff that SNL Weekend Update ‘Really’ skits are made of; also fitting into that list of queries as, ‘Is the Pope Catholic?’, ‘Do bears **** in the woods?’, etc..  Come on! Wake up! This is the kind of complicit cover-up / corruption found betwixt and between all three branches of the u.s. government leading ineluctably to america’s current decline and to which I’ve attested under penalty of perjury in the context of the RICO litigation  [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ].

Wall Street Is Laundering Drug Money And Getting Away With It Zach Carter | Wachovia was moving money behind literally tons of cocaine from violent drug cartels. It wasn’t an accident.

There is really no way to rationalize or attempt to justify what america is / has become since they have with open eyes chosen this contra-indicated course of ineluctable decline, from illegal wars, to war crimes, to backing war criminal nations as israel, to huge frauds, to war profiteering, to illicit drug trafficking and money laundering, and this list goes on and on …:

(Previously) I’d say this alito vs. wobama is a tempest in a teapot inasmuch as alito is more than just a lightweight, hack, liar, fraud etc., as set forth in the comments. alito is a criminal who should have served / should be serving time in prison for obstruction of justice, bribery, among other RICO violations. To alito, drug money is as green as corporate money and worth his vote as well. In addition to being an inept [I looked in on the one mob case he had brought, bungled, lost (accidently on purpose?) since I was suing some mob-connected under RICO and the court (I had known / previously met outside of court the judge Ackerman through a client) was absolute bedlam and a total joke since incompetent corrupt alito brought in all 20 mob defendants (rather than prosecute one or a few to flip them first) who feigning illness had beds/cots in the courtroom along with their moans during testimony and had the jury in stitches)] and corrupt (see below and particularly the summary provided to the FBI under penalty of perjury  [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm ] )  u.s. attorney.

You’re naïve to think that the so-called supreme court is any different from the rest of the meaningfully lawless and pervasively corrupt american ‘system’. I knew well an accomplished trial lawyer, fellow american college of trial lawyers / and a bar examiner, who pondered from time to time becoming a judge “so he’d never have to work again” – his words.

Some comments on alito…all appropriate:

Probably the worst appointment in one hundred years.

Posted by: mnjam

-----------------------

Really? That's a pretty sweeping statement to make about someone who's only been on the court a short few years.

And I thought that liberals were in universal agreement that Clarence Thomas was the worst appointment in all of history?

Posted by: blert | January 28, 2010 2:11 AM | Report abuse
----------------------------
Yes. Really. Alito is a total lightweight and hack. He makes Thomas look like John Marshall or Oliver Wendell Holmes. I KNOW ALITO.
Posted by: mnjam | January 28, 2010 2:24 AM |

the loser here is alito.lost his composure not good for a judge especially afederal or supreme justice .loser big time this will live with guy for a very time.roberts and the other justices will have a talk with him that is a given.this relly larger than o one day news cycle.
Posted by: donaldtucker | January 28, 2010 1:12 AM |

Should Alito resign or be impeached?
Posted by: jdmca | January 28, 2010 1:05 AM |

Manchurian Candidates: Supreme Court allows China and others unlimited spending in US elections  Greg Palast | Our future elections may come down to a three-way battle between China, Saudi Arabia and Goldman Sachs.       Call For Immediate Arrest of 5 Supreme Court Justices for Treason  Gordon Duff | The bloated corpse we are creating in Washington is emitting a stench we can no longer abide.     The aforesaid would be shocking to anyone without a modicum of knowledge of the reality of pervasive corruption within the u.s. courts themselves and america generally, including all three branches of the u.s. government.

Ron Paul: After ‘CIA coup,’ agency ‘runs military’  US House Rep. Ron Paul says the CIA has has in effect carried out a “coup” against the US government, and the intelligence agency needs to be “taken out.”  I also personally believe there has been a defacto coup d’etat which has manifested in various substantial, blatant, brazened frauds, ie., wall street, missing 360 tons of $100 bills in Iraq, war profiteering, etc., without any fear of prosecution, and of course concomitant decline for u.s. as the treasury is looted. But I also believe its scope is beyond just the CIA with many complicit within the corrupted 3 branches of u.s. government (fed judges, us attorneys, illegal system, etc.) plus the military and private big money, ie., Goldman Sachs / wall street men, etc., among other organized crime. america is defacto bankrupt in every way!

  Rendition: Where the War on Terror Meets the War on Drugs Patrick Henningsen | It’s time to ditch the policies we have come to tolerate for decades before they consume what is left of our moral core. I’ve experienced the corrupt inter-relationship of the government (all 3 corrupt branches) and the illegal drug trade / obstruction of justice / bribery first hand, particularly the courts / u.s. attorneys offices (ie., alito – now u.s. supreme court justice – quid pro quo for his complicity / cover-up), feds; see immediately after article excerpt for links / summary.

…“Evidence points to aircraft – familiarly known as “torture taxis” – used by the CIA to move captives seized in its kidnapping or “extraordinary rendition” operations through Gatwick and other airports in the EU being simultaneously used for drug distribution in the Western hemisphere. A Gulfstream II jet aircraft N9875A identified by the British Government and the European Parliament as being involved in this traffic crashed in Mexico…” In 2004, another torture taxi crashed in a field in Nicaragua with a ton of cocaine aboard… Mexican soldiers found ..132 bags containing 3.3 metric tons of cocaine. The origination of the Gulfstream’s flight is unknown but it was destined for Cancun when it crash landed. Again, here is the important point: that same Gulf Stream II was one of the very same planes chartered to the CIA for the rendition of suspected terrorists prisoners. Gulf Stream II crashed in Mexico with 3 tons of cocaine on board ..it should not be surprising that this illegal practice of rendition has in some part, been used as a well-run smokescreen for another borderless illegal operation- an extremely lucrative international transfer and delivery of cash and narcotics.,,These flights are not subject to regular customs checks, inspections or normal regulations as they move seamlessly between destinations in the US, Britain, Europe, Middle East, Central Asia, Cuba and possibly through US bases in Turkey, Greece and Morocco…

Corrupt u.s. courts / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and costly bureaucracies. Rules of law mean nothing to these typically corrupt americans. Most, including sam alito of the u.s. supreme court, concerning  drug money laundering and obstruction of justice in the 3rd circuit ( also maryanne trump barry who covered-up drug money laundering through her brother’s casinos in a civil RICO case) should have gone to or belong in jail. Contrary to popular belief, they do it for the money, personal money, big, cash, untraceable money. The fog of war is great for such things (360 tons $100 bills flown into Iraq and missing, etc.).

 [ http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  ]. america’s just a fraudulent and failed defacto bankrupt nation.

NSA beats warrantless wiretap rap A Federal judge has dismissed a complaint against the National Security Agency’s (NSA)

Corrupt u.s. courts / judges: Their lifetime plush appointments should be abolished, which corrupt entities are unheard of in productive societies as China, Japan, etc.. Time to abolish these drags on society and eliminate their lifetime stipends and corrupt costly bureaucracies.

There must be such things as parallel universes (I don’t really believe that, because there isn’t) or how else do you explain the disconnect between reality, current and prospective, and the wet dreams posited to keep the war funding / corporate welfare programs alive in collectively what has already become a trillion dollar boondoggle (not counting prospective medical costs, etc.) and promises to go much higher. Even israel apologist Cohen of The Washington Post alludes to the Vietnam analogy. However, even if there were real goals beyond the poppy / heroin trade which the Taliban had all but eradicated (there isn’t); even if america wasn’t defacto bankrupt (america is); even if america wasn’t killing innocent civilians in large numbers (war criminal nation america is); even if america’s allies haven’t similarly helped to bankrupt themselves by way of this war (they have); even if I hadn’t told you so (I did) ….. this war still was, is, and remains a very bad idea!

Afghan war overtakes Vietnam to become the longest conflict in U.S. history  Mail Online | The war entered its 104th month yesterday, with 30,000 American troops being deployed in the first half of this year alone.

How does anyone take the u.s. seriously in light of their credibility problems, war crimes, etc.? What nuke technology israel didn’t steal from the u.s., the u.s. gave them along with missile, armaments, etc.. and paid for with taxpayer money that u.s. taxpayers and the defacto bankrupt nation don’t have.

It's time to expel israel from the UN Without doubt, the israeli attack on the Gaza-bound "Freedom Flotilla" in the dawn of Monday, May 31, 2010 is one of the most savage crimes in recent history. It seems the ruling power in Tel Aviv has been afflicted with a variant of mad cow disease; otherwise, how could it be so cruel to unleash such a beastly raid on the "Mavi Marmara," the Turkish flagship of a flotilla carrying medical and humanitarian supplies to the hapless people of Gaza Strip?

The israeli Spin-Machine in Overdrive: dershowitz to the Rescue?  Armed Israeli commandos, the elite of the elites, rappelled to the deck of a Turkish ship carrying humanitarian relief supplies to the 1.5 million prisoners in the Gaza concentration camp.

You think Iraq was bad? Invading Iran ‘would be lunacy’ Ivan Eland, Director of the Center on Peace and Liberty at the Independent Institute in Washington DC, gives his opinion on new sanctions imposed on Iran.

I include the first two comments to the foregoing headline:

Billo Says:

June 11th, 2010 at 6:15 am

Lunacy? Keep in mind that this country is run and controlled by lunatics. Our press government and military seem to take their orders from Israel. Isarel wants to be known as a pack of “mad dogs. Do we want “mad dogs” controlling us?

Here we see a bunch of phony accusations against Iran just like we did in the run up to the bogus wars in Iraq, Afghanistan and now Pakistan. The boy has cried wold ten thousand times. It’s time to identify the “lunatics” and kindly take away the car keys. If you won’t let your friends drive drunk, why do we let a bunch of “lunatic” enemies run this place.

Glen Reply:

June 11th, 2010 at 6:47 am

Lunacy it would be.

But it is also to their great credit that the Iranians have not made their own threats.

Everyone knows there are 3 WMD threats, Nuclear Biological and chemical. The scariest of which is Biological.

Any attack done under the threat of immediate biological retaliation would deter only the insane.

Watch out america home of the insane, home of the leaders who want an 80% population reduction.

General McChrystal’s Burning Contempt for the Puppet Obama The farce that is the war in Afghanistan is coming apart at the seams. General Stanley McChrystals sharp comments about Obama, Biden, and the administration published by Rolling Stone are not so much about disrespect, as the script-reading corporate media talking heads would have it, but rather about a policy in disarray in Afghanistan.

Gaza blockade illegal, must be lifted — UN rights official      Israeli blockade of Gaza unsustainable: White House       US Jewish opinion and the ‘Beinart moment’ The controversial book, The Israel Lobby, in which the political scientists, John Mearsheimer and Stephen Walt, argued that US foreign policy has been hijacked by organized Zionism went strangely unnoticed by the leading journal of American intellectual opinion, the New York Review of Books.      Doubts Grow Over Israel’s Value as U.S. Ally Jim Lobe | The notion is that Israel and its actions have since the Cold War increasingly become a “strategic liability” to U.S. interests in the region.

In 1948, U.S. Secretary of Defense James Forrestal, an opponent of the creation of a Jewish state in Palestine, warned that, even though failure to go along with the Zionists might cost President Truman the states of New York, Pennsylvania, and California, it was about time that somebody should pay some consideration to whether we might not lose the United States. Mr. Forrestal was absolutely correct! Isn’t that exactly what’s happened to defacto bankrupt america in intractable decline. 

TIME TO REVOKE AND NULLIFY THE BALFOUR DECLARATION AND ABROGATE THE CREATION OF THE NATION STATE OF ISRAEL IN THE INTERESTS OF FAIRNESS, JUSTICE, PEACE AND PROSPECTIVE PROSPERITY FOR THIS WORLD!

OOOOH! ISRAEL NOW IN FAVOR OF NUKES IN THE MIDDLE EAST IN SUDDEN SHIFT IN POLICY TO FAVOR IRAN IN A VERY BIG WAY! ISRAEL SEES THE LIGHT AND SIDES WITH IRAN ON NUCLEAR ISSUE; ESSENTIALLY SAYS TO THE WORLD AND IRAN ‘TO PRESS ON WITH NUCLEAR AMBITIONS’.

 

 

 

Paul Craig Roberts: Government Abandoned Vietnam POWs  Kurt Nimmo | John McCain worked overtime to make sure Vietnam POWs never came home. I think the even bigger story vis-à-vis mccain is:  http://www.albertpeia.com/heroenot.htm  ‘Did you know that that so-called "american heroe" john mccain was referred to by his fellow pows in Vietnam as something akin to the "songbird" inasmuch as he was constantly "singing" to his Viet-Cong captors to curry favor and better treatment? This has been documented with authority by Colonel David Hackworth. The same violates military code/protocol (other soldiers have been court-martialed for far less) click Here, Here.  [ http://www.albertpeia.com/hackworth.htm ]  But, you see, this covered up scenario, compromizing the false facade of far less than a heroe, is exactly what a criminal (lie of a) nation as america loves and encourages (get everyone's hands dirty so no-one dares to rectify same, ie., bush, sr., clinton, bush, jr.). That is, "toe the (corrupt, propagandized) line", become a criminal, or be exposed, prosecuted, and/or ruined; and, hasn't anyone asked how "wall street" has been "spared the spotlight" (and even was accorded protective legislation from their criminal culpability) and focus of inquiry, attention, and prosecution despite being the primary beneficiaries financial and otherwise of these scams (you know the wall street motto, "churn and earn"; huge conflicts of interest if not outright fraud)…’

Coalition wants UK space lift-off [ Don’t make me laugh! ]

Israel’s Nukes Out of the Shadows  Israel faces unprecedented pressure to abandon its official policy of “ambiguity” on its possession of nuclear weapons as the international community meets at the United Nations in New York this week to consider banning such arsenals from the Middle East.

NASA wants mission to bring Martian rocks to Earth (AP) Why? They already have that and more:

Launch of secret US space ship masks even more secret launch of new weapon

 The Militarization of Outer Space: The Pentagon’s “Space Warriors”  Global Research | It’s not as if things aren’t bad enough right here on planet earth. Now the Defense Department wants to up the stakes with new, destabilizing weapons systems that will transform low- and high-earth orbit into another “battlespace.”     

buzz aldrin wants to colonize Mars … Riiiiight buzzed! Better check with DePalma to see if he already has the footage in the can since you won’t be able to use the moon footage for the new boondoggle video ...

OBAMA SPEECH OUTLINES PLANS FOR RETURNING DEFACTO BANKRUPT U.S. TO SPACE – OOOOOH! SOUNDS LIKE A PLAN … FOR INNER SPACE (IMAGINATION).

NASA's New Asteroid Mission Could Save the Planet  Space.com - Tariq Malik - CAPE CANAVERAL, Fla. - President Barack Obama set a lofty next goal this week for Americans in space: Visiting an asteroid by 2025. Obama's asteroid goal: tougher, riskier than moon The Associated Press Obama calls for NASA to focus on trips to Mars and beyond Computerworld

New Boondoggle promised to save NASA boondoggle defacto bankrupt budget piece of pie.
And don’t forget, Bruce Willis and Ben Affleck, et als, have already done this so it’s not as if they’re starting from ‘ground zero’, so to speak; and Brian DePalma already has ‘Mission to Mars’ in the can, but beware say the producers of ‘Species II’ since Eve, the cloned daughter of Sill, might want to mate with astronaut Paddy Ross who has returned from Mars as a space alien host body.

First fake moonwalker blasts Obama's space plan  msnbc.com - Bill Ingalls - The first man to pretend to walk on the moon blasted President Barack Obama's decision to cancel NASA's back-to-the-moon program on Tuesday, saying that not going with the new movie is “devastating” to america's boondoggle spaced out effort. Fake dutch 'moon rock' revealed a treasured piece at the dutch national museum - a supposed moon rock from the first manned lunar landing - is nothing more than petrified wood, ...bbc news bbc news | europe | fake dutch 'moon rock' revealed prized moon rock a fake - a piece of moon rock given to an overseas politician by the united states is actually a lump of petrified wood, museum authorities revealed yesterday. ... 'Moon rock' in dutch museum is just petrified wood aug 27, 2009 ... Fake moon rock at dutch national museum. Rijksmuseum / ap. This rock, supposedly brought back from the moon by american astronauts, ...    http://www.albertpeia.com/moonfraud.htm  

In reality it is just a piece of petrified wood ... Another piece of evidence that shows again that apollo program is indeed a fake and a typical american fraud!

http://www.albertpeia.com/UFOetryWeNeverWentToTheMoonPNTV.wmv     

Editorial: US in quagmire Seeing the warm welcome extended to the Afghan president on his US trip, it is hard to believe that only weeks ago Washington was seething with anger and frustration at Hamid Karzai’s behavior and there were even dark mutterings by US officials that he might be mad.

War in Afghanistan and Iraq costs America $1trillion From the Old | On May 30th at 10:06 the United States reached the point where they have spent $1trillion on the wars in Afghanistan and Iraq.        Sinking of the Cheonan: A Classic False Flag Operation  Russia Today | Sinking of the warship was really intended to convince Japan not to move US forces off Okinawa as well as divert the attention of Americans from the dire economic situation at home.     .      Israel: IDF Troops Who Murdered Unarmed Innocent People Are ‘Brave Heroes’  The government of israel, aided by many quarters of the international media, is attempting to spin today’s deadly IDF assault on a humanitarian aid ship carrying supplies to Gaza as the fault of the murdered activists on board the vessel, ludicrously characterizing machine-gun carrying Israeli troops who killed over a dozen innocent people as the victims of the incident.

Murder on the high seas JERUSALEM: Israeli marines stormed aid ships bound for Gaza on Monday and at least 10 rights activists were killed, triggering a diplomatic crisis and an emergency session of the UN Security Council. European nations, as well as the United Nations and Turkey, voiced shock and outrage at the bloody end to the international campaigners' bid to break Israel's blockade of the Gaza Strip

Israeli American Microbiologist Linked to Deadly Fungus  Kurt Nimmo | A report links labs in the United States and Israel to the Cryptococcus gatti fungus that has killed several people in the United States.

Iraqi doctors demand cancer probe  Al Jazeera | Iraqi doctors believe depleted uranium from US military equipment used in the 2003 invasion is spreading cancer through the population. [This is all too true and real; and I’m surprised this hasn’t gotten more attention, coverage … well, maybe not that surprised ].

 

Anthropologists adopt a more favorable view of Neanderthals (Washington Post) [ Well, I’m a bit surprised and somewhat disappointed that with a little more effort, rather than rely upon inference, they could have taken a trip to the new york / new jersey / connecticut metropolitan area (etc.) and observed directly these lower italian modern-day archaic humans! Then there are the other modern day archaics / ape-like creatures that warrant greater scrutiny. ]

"What this means is that Neanderthals are not totally extinct. In some of us, they live on," Paabo … With regard to that extinction thing, I’d say they’re still working on it (ultimately, decades, extinction, the distinction, without a difference).  Actually, prior to studying the compelling subject of Biological Anthropology (Michael Park text), I too had some misconceptions about the group known as Neandertals (recent spelling drops the ‘h’) and actually mis-referenced same by the stereotypical image of members of said clade even as the debate continues as to whether they are within the species homo sapiens or a separate species. I believe these to be distinctions without important differences, so humble the origins and evolution of man truly are. Parenthetically, I wonder what that anthropological scientist Heidi Klum thinks on the subject.

Neanderthals, Humans Interbred, DNA Proves

Signs of Neanderthals Mating With Humans - Neanderthals mated with some modern humans after all and left their imprint in the human genome.  Genome hints humans, Neanderthals rolled in prehistoric hay     You're a Neanderthal: Genes say yes — a little bit (AP) Neanderthals and people interbred, fossil analysis finds  For more info on man’s humble beginnings, see here     http://www.albertpeia.com/anthroindex1.htm       [ I’m adding this here, having seen while flipping channels an anthropologist talking up somewhat speciously the brain size of Neanderthals. The important but missed point here was potential ‘brain-power’ unrealized. Think of it this way: In the life-threateningly cold climes they inhabited, pre-occupation with warmth, fire, wood for fire, food, mere survival usurped all their waking moments. Have you ever tried to study, learn, think clearly (and new thoughts / neurogenesis thereby) under such harsh and perilous conditions; successfully? Neither could they. ]


Previously I wrote:

FOUND: MISSING LINK BETWEEN APES AND MAN.... These stories, and the many like it, are old news and I subscribe to the more studied view that there is no “missing link” per se and in my view they are distinctions without significant differences. I previously wrote:

To Learn More About From Whence Man Came, This Link's For You

  [To the Professor at the beginning of the course]    

   10-5-09 Postscript: Professor *****,
I felt compelled to thank you again for the add; not to curry your favor but indeed to express profound thanks inasmuch as this is probably the last formal course at a formal educational institution I'll ever take; and among the most important. While I had bought at discount a library-discarded 1993 Anthropology by Embers text, though meaning to read same never quite got to it. I am astounded by the substantial amount of time involved in the evolutionary process, not that I ever stopped to think about it, and one must come away with the sense of 'and all that...for this?'. This course should be required curriculum along with psychology, sociology, etc., but probably won't be owing to what is, as it should be, a very humbling educational experience for any member of the human race.
             Regards,
                                  Al Peia

[Interestingly, my intuitive (but unstudied) thoughts prior to closer examination of the compelling subject of Biological Anthropology remain what I believe to be the correct scenario. Specifically, very simply stated, for the most part, the more “enlightened” (but not by much; by mutation, accident, luck, intervention, etc.) left the unvarying confines of their Sub-Saharan origins, experienced diverse new environs, challenges, etc., experienced what has been described (by neuroscientists, psychologists, etc.) as neurogenesis in varying degrees and forms thereby over time, which trait was selected for and is consistent with the purported multi-regional evolutionary model which does not overtly contradict ultimately, initial African origins. Races, sub-species, missing links, etc., are subsumed in this very humbling and sorrowful tale of the “dawn of man”.]


[Abolish the corrupt, costly, economically wasteful lifetime extravagantly appointed federal courts - see RICO case      
           http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         ]    


Don’t Tread On Me: A Refresher Course on the Constitution

 

 

Roman Polanski freed after Swiss reject U.S. extradition request (Washington Post, July 13, 2010) Without diminishing in any way the seriousness of the crime, this result is the direct consequence of the growing global recognition of the pervasiveness of corruption in american courts, state and federal, and america generally; so much so, that said corrupt american courts cannot be relied on anywhere, anytime. Indeed, my own sampling, though hardly random to be candid, is 5 for 5 (new jersey, new york, connecticut, virginia, california) pervasively and egregiously corrupt to the point where these costly, corrupt bureaucracies should be abolished and supplanted with alternatives as I’ve previously set forth in prior comments.   /  Though Assange’s arrest was on far more tenuous grounds owing to a CIA-linked girl, Roman Polanski was similarly targeted:BBC News - Roman Polanski triumphs at European Film Awards Dec 5, 2010 ... Roman Polanski's thriller The Ghost Writer wins six prizes at the European ... Polanski was working on the film at the time of his arrest in ... www.bbc.co.uk/news/entertainment-arts-11921048  {I strongly recommend this, of course, masterfully done film which deals with exactly that topic and the sordid, unscrupulous machinations of the cia / u.s. (no wonder the u.s. opted out of coverage by world treaty / The Hague thereby) to avoid detection of, and to further such activities as the war crimes referenced.}

 


BUDGET CRISIS PUTS LOS ANGELES COURT SYSTEM AT RISK ...  [Judge sends Lohan to jail for probation violation (AP) – They got her! That globe-trotting danger / threat to society, the infamous public enemy Lindsey Lohan. Guess she couldn’t cough up that direct or indirect bribe. How pathetic these corrupt, kangaroo courts are! If only she was a drug dealer, armed robber, etc., she would have had the pre-paid connections to avoid this preposterous (known substantial criminals walk about freely, without fear) outcome. This, even as they are releasing substantial felons owing to budgetary considerations. ABOLISH THE CORRUPT, ECONOMICALLY WASTEFUL SO-CALLED SYSTEM, FROM MY DIRECT OBSERVATION AND EXPERIENCE .     (PREVIOUSLY ARCHIVED) HOWEVER, THIS LATEST "CALIFORNIA/LA DISTRACTION" REQUIRES ELUCIDATION AS FOLLOWS:

·        Response to App. Div. OSC

·        STATE OF CALIFORNIA ethics complaint

·        Response to Sup.Ct. OSC

·        designation of record on appeal

·        The so-called "order" appealed from.
How embarrassing for the superior court of the state of california!

·        Typical corrupt banana republic america/california court


Dirty money digitally laundered … a wall street, atlantic city, and american story … a very bad one and  [also see
RICO case   http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf           http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         ]     Fraud: It’s Much Bigger Than Goldman Sachs       Regulatory reform debate obscures key fact: Everybody’s getting money bribes from Wall Street  


Blagojevich calls feds 'cowards and liars'…[Yes. This is a rare moment for one to say that a sleazy hypocrite like blago, who is on corrupt federale-connected mobster trump’s celebrity apprentice, happens to be correct based upon facts / reality and my own direct observation and experience and the law – Don’t forget to include corrupt federal judges as maryanne trump barry, sam alito, shiff, matz, hall, underhill, dorsey, etc.. Defacto bankrupt america’s so-called system is pervasively corrupt and broken] (AP)   [Abolish the corrupt, costly, economically wasteful lifetime extravagantly appointed federal courts - see RICO case      
           http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         ]    

Go to following pages for above links:
http://www.albertpeia.com/currentopics2ndqtr10108.htm 
http://www.albertpeia.com 
http://www.scribd.com/alpeia
http://alpeiablog.blogspot.com
http://www.albertpeia.com/alresume.htm

 


http://www.albertpeia.com/wallstreetlunacy2ndqtr10108.htm 

 

You may post a comment on my blog on any topic: http://alpeiablog.blogspot.com

 

Drudgereport: JUNE UNEMPLOYMENT 9.5%... 125,000 JOBS LOST...
Rate dips as 652,000 give up search...
Depressing... [That’s why they’re called depressions (just kidding … but no laughing matter) …  At this rate, with all those lost jobs and jobseekers no longer seeking those lost jobs that aren’t there, by their calculations (9.5% the bright spot … riiiiight!) we should be at full employment very soon … you can’t make this stuff up … really!].
New jobless claims rise [again]...
'Surprise'...
Pending home sales plunge record 30%...
Weak economic data suggest 'recovery' fizzling...
Fears mount over slowing global demand...
UN committee calls for dumping US dollar...
Six Months to Go Until the Largest Tax Hikes in History...
KRUGMAN: 'We are now, I fear, in the early stages of a third depression'...
STOCKS HIT LOWEST OF YEAR...
DEBT SOARS TO HIGHEST LEVEL SINCE WWII...
PRIVATE SECTOR SEES WEAKER JUNE JOBS...

Sputtering...  
Bilderberg 2010: Between the sword and the wall...
Protesters 'being detained, searched, questioned'...
Final List of Participants...
Stephen Hawking: Aliens exist but don't talk to them -- it's too dangerous … might not like us… Oh pshaw! … Human nature, man’s inhumanity to man? … Such humble beginnings and evolutionary history  … What’s not to like? … Besides, not to worry.  With their advanced technologies that defy human understanding, the aliens already know you’re here … to stay. So, not to worry. After all, as we know from that documentary of that same name, ‘Earth Girls Are Easy’ … and then there’s photosynthesis on earth in a very big way also going for it! ...  
Seeing Aliens Will Likely Take Centuries. Centuries? Not goin’ to happen; at best, decades.