2-6-12 POSTS 

 

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Low-skilled workers hit hard by recession Although the nations job market is slowly recovering, workers with few educational credentials continue to struggle. By disproportionate numbers, these Americans have given up looking for work, making the nations recovery appear better than it is. (Washington Post) [ Not just the low-skilled! Yes, there are those who’ve given up looking for work; but, even more important are those numbers of americans that the government presumptively, self-servingly, and meretriciously has said have given up looking for work; which, of course, in an election year is great for that fictitiously spun unemployment rate now conveniently ‘improved’ to 8.3%. Balderdash! The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!  Train Reading: The Stock Market Is (Criminally) Insane The Wall Street Journal  , [ STOCKS RALLY DESPITE BAD NEWS: Here's What You Need To Know Business Insider , http://albertpeia.com/22signsglobalrecessiondepression.htm  ] Huge suckers rally with across the board media et als complicity (infra). This will all end quite badly and is much like the floating on air stock price scenario that preceded the dot.com and most recent, continuing debacles. This global suckers rally is based on market frothing hopium for unaffordable, contraindicated, failed QE/wall street only welfare (which is being injected sub rosa, see infra), bad news, fraud, b***s***, and desperation alone, as suckers rallies ushered in the new year in a most preposterous fashion [Forget the January Effect”… Instead Skousen http://www.investmentu.com/2010/December/january-effect-vs-siegel-indicator.html  http://albertpeia.com/forgetthejanuaryeffect.htm  , INVESTORS, SKIP THE 'JANUARY INDICATOR' FOR STOCKS Jan. 26, 2012 Mark Hulbert [ the frauds on wall street still shootin for the superstitious so-called January effect based on based on market frothing hopium for unaffordable, contraindicated, failed QE/wall street only welfare, bad news, fraud, b***s***, and desperation alone to suck suckers in and keep suckers sucked in! Dont be their fool! Mohammed El Erian gets this and to Frank Motek 1070am relates that hes using the up moves to reduce risk assets / stocks / exposure, in other words, hes selling the rallies which is sound advice. The fundamentals/realities, current and prospective, are worse than ever. There are no systems/formulas for these unprecedentedly dire times. Dont be their sucker! This is an especially great opportunity to sell / take profits because theres much, much worse to come! Heres a simple chart of the Dows history  http://albertpeia.com/dowjonesindavghistory.htm  . Keep in mind how lowly the dollars become in terms of purchasing power and relative to metals as ie., gold, etc.. Dont be scammed by the frauds on wall street, et als.] with lingering intoxication an explanation as the printing presses and issuance of worthless insurmountable debt paper are in full throttle globally (a testament to global blindness as the blind follow the blind) making this impending disaster at this time an especially great opportunity to sell / take profits because theres much, much worse to come! jersey-lautenberg based adp with 100% better than expectations private sector jobs number? Nobody thinks so (infra)! Scandal scarred commerce department data? Labor dept. ue claims / ue numbers? Only a fool believes what they say! ( After One Month Respite, Pink Slips Are Flying Again, Lies, Damned Lies, and (Unemployment) Statistics Mac Slavo | The actual unemployment rate in the United States is in excess of 22%.  NFP Payrolls At 200K, Expected At 155K; Unemployment Rate Drops To 8.5%, Labor Force Participation At Lowest Since 1984.. Yet the unemployment rate trickery still continues, with labor force participation (prior revised), now at a 27 year low of 64%, and the labor force itself declined by 50K from 153,937 to 153,887. In fact, persons not in the labor force have increased by 7.5 million since January 2007! Bottom line - dropping out of labor statistics is the new killing it.  http://www.albertpeia.com/laborparticipationrate.jpg ,  ) The same for the conference board which came in with 100% better than expected consumer confidence, which is preposterous even taking into consideration the ultimate bootstrap bubble stock price weighting in same. The lack of politicians at S&P/Case/Shiller showed a different picture: house prices in 20 major metropolitan areas declined 1.2 percent on an unadjusted basis in October after falling 0.7 percent the prior month. ( US Economic Data Reporting Now Officially A Farce: Every Economic Data Point Prints 4+ Std Devs Above Consensus Zero Hedge ) Watch for more fake reports / data / and spin in their infinite political desperation both here and across the sea, and suckers rallies to suck suckers in and keep suckers sucked in! [ The Currency Wars http://www.albertpeia.com/rickardsgrantboltoninterviewvideo.htm  ,  David Rosenberg On The Depression, The ECB, MF Global As A Canary In The Coalmine... All With A Surprise Ending,  This is No Cyclical Recession It is a Secular DE-pression MF GLOBAL EXPLAINED http://www.youtube.com/watch?v=jLt05sN7vK0&feature=player_embedded  [causal links between OTC derivatives, the financial crisis of 2008, Alan Greenspan, Robert Rubin, Larry Summers, Jon Corzine and MF Global, Quantitative Easing Explained  http://www.youtube.com/watch?v=PTUY16CkS-k  ,   Famed economist predicts economic calamity in 2012. See the evidence.   http://w3.newsmax.com/a/aftershockb/video.cfm   50% unemployment & 90% Dow crash also predicted. Newsmax   ,  Economic / Financial Collapse Imminent Stansberry  Investment Advisory http://www.albertpeia.com/stansberrysinvestmentadvisory.flv    Harry Dent, Jr. Economy will be in a Depression by 2011 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. U.S. Dollar will Decline Housing will Decline by 40 60% from Todays Levels Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010 and 2012). , ‘…technical pattern is predicting the S&P plunges to 935Bank of America via Zero Hedge  Mary Ann Bartels, Bank of America's Head of Technical and Market Analysis , 935 is nothing; the S&P 500 will crash to 579.57United-ICAP's Walter Zimmerman (via WSJ's Tom Kilgore) is a technical analyst who has been looking at the charts and they're telling him that the S&P is headed for 579.57…’   ,  The Financial Crisis Of 2008 Was Just A Warm Up Act For The Economic Horror Show That Is Coming  http://theeconomiccollapseblog.com http://albertpeia.com/2008crisisjustwarmupforcomingcollapse.htm The people out there that believe that the U.S. economy is experiencing a permanent recovery and that very bright days are ahead for us should have their heads examined.  Unfortunately, what we are going through right now is simply just a period of "hopetimism" between two financial crashes.  Things may seem relatively stable right now, but it won't last long.  The truth is that the financial crisis of 2008 was just a warm up act for the economic horror show that is coming.  Nothing really got fixed after the crash of 2008.  We are living in the biggest debt bubble in the history of the world, and it has gotten even bigger since then.  The "too big to fail" banks are larger now than they have ever been.  Americans continue to run up credit card balances like there is no tomorrow.  Tens of thousands of manufacturing facilities and millions of jobs continue to leave the country.  We continue to consume far more than we produce and we continue to become poorer as a nation.  None of the problems that caused the crisis of 2008 have been solved and we are even weaker financially than we were back then.  , Presenting The "Rise Of The HFT Machine" - Visual Confirmation How SkyNet Broke The Stock Market On US Downgrade DayZero Hedge has not been focusing much on the topic of our broken equity markets recently because if by now, following over three years of coverage, someone is not aware just how fragmented, manipulated and largely broken the market truly is, they never will. Yet every now and then it worth reminding readers who may have stumbled on this blog recently, just how bad things are in graphic format. Our friends at Nanex, who are by far the best forensic analysts of everything that is busted with the US stock market, have completed a masterpiece analysis showing the churning (packet traffic) in the various fragmented US market venues, from the NYSE to the Nasdaq to BATS and so forth, on a daily basis beginning in January 2007 and continuing through today. While the "rise of the HFT machine" over the past 5 years, following the adoption of Reg NMS, will hardly be a surprise to most, what is stunning is the first animated confirmation of the market terminally breaking on August 5, 2011, the day the US was downgraded, an observation that first was made right here on Zero Hedge. Which begs the question: what really happened in the stock market on August 5, 2011 when the US was downgraded to AA+, when everything literally broke, who is intervening constantly in the stock market, and why are they doing so via various HFT intermediary mechanisms? ,    Contrary to Government Claims of 243,000 Jobs Created, Hundreds of Thousands of Jobs Were Actually LOST In January Washingtons Blog | Government Misrepresents Employment Picture. , Citigroup: Risk of Greek Exit From Euro Has Risen to 50%  The Wall Street Journal ,  Fixed-Income ETFs Rally Despite Europe's Pending Recession  Motley Fool  , Greece Has No Idea What Its Gotten Itself Into February 6th, 2012 http://gainspainscapital.com ..  the next round of the Euro Crisis is now at our doorstep. Indeed, this latest short-covering rally in the Euro (Euro shorts were at a record high) looks ready to end and reverse ..  ,  , Guest Post: What If We're Beyond Mere Policy Tweaks?The mainstream view uniting the entire political spectrum is that all our financial problems can be fixed by what amounts to top-down, centralized policy tweaks and regulation: for example, tweaking policies to "tax the rich," limit the size of "too big to fail" financial institutions, regulate credit default swaps, lower the cost of healthcare (a.k.a. sickcare), limit the abuses of student loans to pay for online diploma mills, and on and on and on. But what if the rot is already beyond the reach of more top-down policy tweaks? Consider the recent healthcare legislation: thousands of pages of obtuse regulations that require a veritable army of regulators staffing a sprawling fiefdom with the net result of uncertain savings based on a board somewhere in the labyrinth establishing "best practices" that will magically cut costs in a system that expands by 9% a year, each and every year, a system so bloated with fraud, embezzlement and waste that the total sum squandered is incalculable, but estimated at around 40%, minimum....The painful truth is that we are far beyond the point where policy/legalist regulatory tweaks will actually fix what's wrong with America. The rot isn't just financial or political; those are real enough, but they are mere reflections of a profound social, cultural, yes, spiritual rot. This is the great illusion: that our financial and political crises can be resolved with top-down, centralized financial reforms of one ideological flavor or another. It is abundantly clear that our crises extend far beyond a lack of regulation or policy tweaks. We cling to this illusion because it is easy and comforting.. , Negative Bank Preannouncements BeginWe are not even half way into the quarter, and the negative preannouncements for financials have already begun:MACQUARIE SAYS `SUBSTANTIALLY LOWER LEVELS' OF CLIENT ACTIVITY BLOOMBERG , Guest Post: Bringing The "Not In The Labor Force" Mystery To LightVolumeless Equity Recovery Ignores Broad Risk Asset Derisking ,  San Fran Fed Finds Fiscal Stimulus Has Little Impact During Periods Of Economic GrowthIt has only been a week since we discussed the San Francisco Fed's research group admitted that water was wet Fed policy will be unable to impact unemployment since the cyclical changes are more structural leading to jobless recoveries as fat is removed from the system. , Guest Post: Illusion Of Recovery - Feelings Versus FactsThe last week has offered an amusing display of the difference between the cheerleading corporate mainstream media, lying Wall Street shills and the critical thinking analysts. What passes for journalism at CNBC and the rest of the mainstream print and TV media is beyond laughable. , MF Global Trustee Finds That Company "Did Not Always Record Cash Movements"The MF Global Trustee has just released their preliminary report on the progress in uncovering where the vaporized cash went. Bloomberg notes:#1MF GLOBAL DIDN'T ALWAYS RECORD CASH MOVEMENTS, TRUSTEE SAYS#2TRUSTEE SAYS MF HAD SHORTFALL IN COMMODITIES FUNDS START OCT 26#3MF BROKERAGE TRUSTEE TRACED $105 BLN IN CASH MOVEMENT#4MF COMPUTERS COULDN'T TRACK VOLUME IN FINAL DAYS, TRUSTEE SAYSOf course, we know that MF Global is the only company to not follow Fiduciary Principles 101 (client cash commingling) but also Accounting 101 (T square, debits, credits, and all that boring and apparently irrelevant in a time of uber-kleptocracy, stuff) leaving us wondering just how much of that unrecorded cash may be found in unrecorded suitcases in unrecorded bank vaults.  , "No Country For Old Men?" Bernanke Plan To Exterminate Savers Is UnsustainableBernanke's recognition of his penalizing savers with low rates as an 'issue for people' sparked an interesting note from the WSJ on how sensible and stoic savers are being herded (unsafely) into risky investments , Greek PM Demands Report On Default, Eurozone Exit ConsequencesFeds Bullard: Extended Zero Rate stance A Looming Disaster Feb 6th, 2012 (MNI) , Greece lets another deadline slip in bailout poker Feb 6th, 2012 (Reuters) , Illusion of Recovery: Feelings Versus Facts The Burning Platform | The false storyline last week was the dramatic surge in new jobs., 8.3% Unemployment Lie Greg Hunter | The most recent unemployment number is a total lie, and that lie was repeated all over the mainstream media (MSM). , Is Obama's Peace Prize About To Be Confiscated? Nobel Peace Prize Jury Under Investigation  ,  Goldman Turns Bearish: Squid Releases Top Trades For 2012... And It's Not Pretty the squid is bearish. Which is bad news , Market Rally Won't Last Long  Forbes ,  The Worldwide Depression/Recession Of 2012   Jeff Harding,  STOCKS RISE DESPITE MORE BAD NEWS: Here's What You Need To Know Business Insider Sam Ro As Greece inches toward default and the sufficiency of Europe's EFSF bailout fund is called into question, everyone's worst nightmares of Europe's debt debacle escalating to a systemic crisis could be nearing reality. , The most accurate forecaster on the Street thinks stocks are going downAdam ParkerBloomberg Morgan Stanley's Adam Parker was crowned the most accurate forecaster when the S&P 500 closed 2011 within a handful of points of his year-end target of 1,238. His 2012 year end target calls for stocks to fall to 1,167.  He sees a global economic slowdown hitting corporate profits hard. , An eerie technical pattern is predicting the S&P plunges to 935Bank of America via Zero Hedge  Mary Ann Bartels, Bank of America's Head of Technical and Market Analysis , 935 is nothing; the S&P 500 will crash to 579.57United-ICAP's Walter Zimmerman (via WSJ's Tom Kilgore) is a technical analyst who has been looking at the charts and they're telling him that the S&P is headed for 579.57.  And there's one thing that'll cause the markets to tip: Europe. If the history of debt tells us anything it is that one cannot solve a debt crisis by lending more money to the bankrupt and the insolvent, Zimmerman says. , As it stands, the dollar is toast Laura4Smith Euro Pacific Capital's John Browne thinks the U.S. dollar will soon lose credibility, thanks to manipulation by the Fed. , Persistent delevering will cause the whole world to implode Bloomberg TV Bill Gross kicked 2012 with a particularly gloomy letter. , Home prices will fall another 20% Bloomberg In his latest note, Gary Shilling lays out his 20 investment themes for 2012.Theme #12 calls for home prices to continue plummeting, falling another 20% over the next several years.  This is on top of the 33% drop we've already seen. , Greece will hard default and bring everyone else down with it Nomura's permabear Bob Janjuah had some cheery things to say about Greece and it's effect on the markets."The real pain may only be seen in March, when I expect the hard Greece default to happen. In Q1 I expect the S&P will trade down to/below 1000, and core US, UK and German government Bond yields will be closer to 1.5% than 2%." , China is headed for a hardlanding SocGen's Albert Edwards thinks 2013 will be better than 2012.  But that's only because he believes 2012 could be the worst year ever. , The US economy is about to tank ECRI's Lakshman Achutan hasn't budged on his recession call, and he has been taking a lot of heat for it. Here's a quote from a recent press release (via Doug Short): "If you think this is a bad economy, you havent seen anything yet. And that has profound implications for both Main Street and Wall Street.", Graham Summers Weekly Market Forecast (Has the Can Hit the Wall? Edition)  http://gainspainscapital.com  January 17th, 2012  As usual, bad news was released over the weekend when the least number of people are paying attention The answer is a Crisis that will make 2008 look like a picnic.This is coming its only a matter of when…’  17 Facts About The Decline Of The U.S. Auto Industry That Are Almost Too Crazy To Believe http://theeconomiccollapseblog.com  http://albertpeia.com/declineusautoindustry.htm   ( Warning Signs That We Should Prepare For The Worst   http://albertpeia.com/prepareforworst.htm ) Very few things illustrate how dramatically America has been deindustrialized than the stunning decline of the U.S. auto industry. ,  RealClearMarkets - Gary Shilling: New Global Recession Is Here (Its actually a depression and no nation will be spared!) http://www.marketwatch.com/story/shilling-says-new-global-recession-is-here-2012-01-20?link=MW_story_popular By Howard Gold NEW YORK (MarketWatch) For most economists, the main question is whether we will have a new recession. For Gary Shilling, the only question is how big. ,  20 Signs That Europe Is Plunging Into A Full-Blown Economic Depression  The American Dream | An economic nightmare is descending on Europe. http://albertpeia.com/20signsofeuropedepression.htm  ,  Guest Post: Counterfeit Money, Counterfeit PolicyCounterfeiting is illegal because it is the false creation of value. The counterfeiter takes low-value paper and turns it into high-value money, which is fundamentally a claim on the real productive value of the economy that issues the currency and recognizes it as a proxy means of exchanging that productive value. Counterfeiting is illegal because the counterfeiter creates no additional value--he creates only the proxy for value. Creating real value--adding meaningful goods or services to the economy--is tedious, hard work. How much easier to simply transform near-worthless paper into a claim on actual goods and services.  If this is illegal, then would somebody please arrest the Board of the Federal Reserve for counterfeiting? The Fed has blatantly printed money without creating any real value to back up their added claims on productive value. Hence they are counterfeiting, pure and simple. A government based on rule of law would arrest these fraudsters and cons at the earliest possible convenience. , Survey: home prices declined in 19 of 20 cities in November; prices back to 2003 levels Jan 31st, 2012 (AP)  ,  Drug war hypocrisy: drug traffickings big money benefits Big Brother and corrupt banksters  PF Louis | The hypocrisy of the war on drugs is centers on the amount of drug trafficking that benefits the CIA and international banking system. Natural News February 1, 2012  [  http://albertpeia/americangovernmentdrugtrafficking.htm     http://albertpeia/americascorruptiondrugtrade.htm   ]  The hypocrisy of the war on drugs is outrageous when compared to the amount of drug trafficking that benefits the CIA and international banking system. The son of a convicted notorious mobster, John Gotti Jr, when asked in court if the family still dealt drugs cracked, No, we cant compete with the government., The Markets Since Their 2000 Highs: We're Not Bouncing Back  http://www.bullfax.com/?q=node-markets-their-2000-highs-were-not-bouncing-back  ... [ Actually the picture is even worse if the real inflation rate used. Wall street is total fraud and b***s***! Keep in mind, ina addition to loss of principle, the flux / worry takes its toll on health as well as productivity. http://albertpeia.com/3real1.png  http://albertpeia.com/3real2.png   http://albertpeia.com/3real3.png   http://albertpeia.com/3real4.png  ]  , Market Preview: Insiders (Getting) Out!!!!!?   , The Fed's Dirty Little Secret - QE3 is Already Here ETFguide [ And with all its contraindicated ponzi / inflationary implications. ] ,  45% Of Greeks Have Never Used The Internet{ These stats are rather shocking to me and surely pathetic. Note Iceland, which has come back after being ravaged by the banksters. http://albertpeia.com/greeksinternet.jpg  } , Europe's "Great Deleveraging" Has Only Just BegunWhile Europe's financial services sector equity prices have retraced almost half of their May11 to Oct11 losses as we are told incessantly not to underestimate the impact of the LTRO, Morgan Stanley points out the other side of the balance sheet will continue to sag. While short-term liquidity (at least EUR-based liquidity as USD FX Swap lines are back at record highs this week) , Guest Post: Fraudulent Debt = Counterfeit MoneyLet's compare three financial criminals. The first is an old-fashioned counterfeiter who doctors up paper and runs a printing press to produce fake currency. The second criminal borrows money based on a fraudulent asset and phantom future income. ,   Goldman, Blackstone, Glencore and Facebook. What do they have in common? They all sold the Top.  : thetrader : 02/02/2012 Smart money selling again. ,  Drug war hypocrisy: drug traffickings big money benefits Big Brother and corrupt banksters  PF Louis | The hypocrisy of the war on drugs is centers on the amount of drug trafficking that benefits the CIA and international banking system. Natural News February 1, 2012  [  http://albertpeia/americangovernmentdrugtrafficking.htm     http://albertpeia/americascorruptiondrugtrade.htm   ]  ,  House prices hit post-bubble low Washington Post | What Obama didnt mention in his SOTU address the housing bust has reached a new all-time low ,  Obamas Economic Approval Just 36 Percent Campaign2012 | Only 36 percent of likely voters grade the administrations handling of the economy at good or excellent.  , Bribery, compromised officials leave indicted financial-crime suspects free from prosecution under Holders DOJ  Daily Caller  By Matthew Boyle   http://dailycaller.com/2012/02/01/bribery-compromised-officials-leave-indicted-financial-crime-suspects-free-from-prosecution-under-holders-doj/#ixzz1lI97L3C5 | A U.S. Justice Department source has told The Daily Caller that at least two DOJ prosecutors accepted cash bribes from allegedly corrupt finance executives. A U.S. Justice Department source has told The Daily Caller that at least two DOJ prosecutors accepted cash bribes from allegedly corrupt finance executives who were indicted under court seal within the past 13 months, but never arrested or prosecuted.  ,  FULL COVERAGE OF JUSTICE DEPT. SCANDALS   http://topics.dailycaller.com/politics/justice-department.htm  http://albertpeia.com/dojscandals.htm , I Cant Take It Anymore! When Will The Government Quit Putting Out Fraudulent Employment Statistics?  http://theeconomiccollapseblog.com  http://albertpeia.com/governmentfraudulentemploymentstats.htm  On Friday, the entire financial world celebrated when it was announced that the unemployment rate in the United States had fallen to 8.3 percent. That is the lowest it has been since February 2009, and it came as an unexpected surprise for financial markets that are hungry for some good news.  According to the Bureau of Labor Statistics, nonfarm payrolls jumped by 243,000 during the month of January.  You can read the full employment report right here.  Based on this news, pundits all over the world were declaring that the U.S. economy is back.  Stocks continued to rise on Friday and the Dow is hovering near a 4 year high.  So does this mean that our economic problems are over?  Of course not.  A closer look at the numbers reveals just how fraudulent these employment statistics really are.  Between December 2011 and January 2012, the number of Americans "not in the labor force" increased by a whopping 1.2 million.  That was the largest increase ever in that category for a single month.  That is how the federal government is getting the unemployment rate to go down.  The government is simply pretending that huge numbers of unemployed Americans don't want to be part of the labor force anymore.  As you will see below, the employment situation in America is not improving.  Yet everyone in the mainstream media is dancing around as if the economic crisis has been cancelled.  I can't take it anymore!  It is beyond ridiculous that so many intelligent people continue to buy in to such fraudulent numbers  http://albertpeia.com/Labor-Force-Participation-Rate-440x264.png  , http://albertpeia.com/Employment-Population-Ratio-440x264.png ,  Long-Term Unemployment Remains High, Millions Leave Labor Force Matt Cover | Number of long-term unemployed was unchanged at 5.5 million in January, near its record .. , Daves Daily: http://www.etfdigest.com  CONTROVERSIAL JOBS REPORT STOKES BULLS February 03, 2012 The jobs report Friday was a ginned-up number but the media and algos dont look under the hood much it seems. Yes, the unemployment rate fell to 8.3% and 243K new jobs were created and perhaps the number itself will boost confidence.My favorite book from college statistics was How to Lie with Statistics. I believe the Bureau of Labor Statistics (BLS) may have ripped a chapter or two from the book. The details were interesting and little reported because the media has soap to sell. First a whopping 1.2 million people vanished from the labor force in 2011. That is a massive seasonal/consensus driven adjustment. The BLS assumes those people aged 55 and higher died from the 2010 consensus. (So much for living longer in the USA!)This means the labor force fell to a 30 year low of 63.7%. Around 113K of the gain in employment came from low wage jobs according to CRT Capital Group. Also part-time jobs rose by 699K, the third highest in history, while only 80K full-time jobs were created. Finally, the ISM Services Report, which rose to 56.8 from 52.6, included an increase in sector employment from 49.8 to 57.3, but perhaps didnt include large sector bank layoffs. Other skeptics included PIMCOs Bill Gross who tweeted: http://albertpeia.com/grosstweet.htm  Respected TrimTabs detailed analysis which mocks the BLS and well regarded blogger Jesses Café Americain.Lack of in-depth or accurate reporting aside, the stock market loved the report as it was dummy up time in the media. Other data included rising Factory Orders but missed expectations (1.1% vs 1.8% previous & 1.5% consensus)…’ , Obamas economic policies have created a nation of jobless citizens dependent on government handouts Natural News | Its no secret that the U.S. national debt is poised to increase by more than $6 trillion during President Obamas first four years in office., Record 1.2 Million People Fall Out Of Labor Force In One Month, Labor Force Participation Rate Tumbles To Fresh 30 Year Low A month ago, we joked when we said that for Obama to get the unemployment rate to negative by election time, all he has to do is to crush the labor force participation rate to about 55%. Looks like the good folks at the BLS heard us: it appears that the people not in the labor force exploded by an unprecedented record 1.2 million. No, that's not a typo: 1.2 million people dropped out of the labor force in one month! So as the labor force increased from 153.9 million to 154.4 million, the non institutional population increased by 242.3 million meaning, those not in the labor force surged from 86.7 million to 87.9 million. Which means that the civilian labor force tumbled to a fresh 30 year low of 63.7% as the BLS is seriously planning on eliminating nearly half of the available labor pool from the unemployment calculation.. , Implied Unemployment Rate Rises To 11.5%, Spread To Propaganda Number Surges To 30 Year High   Sick of the BLS propaganda? Then do the following calculation with us: the US civilian non-institutional population was 242,269 in January, an increase of 1.7 million month over month: apply the long-term average labor force participation rate of 65.8% to this number (because as chart 2 below shows, people are not retiring as the popular propaganda goes: in fact labor participation in those aged 55 and over has been soaring as more and more old people have to work overtime, forget retiring), and you get 159.4 million: that is what the real labor force should be. The BLS reported one? 154.4 million: a tiny 5 million difference. Then add these people who the BLS is purposefully ignoring yet who most certainly are in dire need of labor and/or a job to the 12.758 million reported unemployed by the BLS and you get 17.776 million in real unemployed workers. What does this mean? That using just the BLS denominator in calculating the unemployed rate of 154.4 million, the real unemployment rate actually rose in January to 11.5%. Compare that with the BLS reported decline from 8.5% to 8.3%. It also means that the spread between the reported and implied unemployment rate just soared to a fresh 30 year high of 3.2%. And that is how with a calculator and just one minute of math, one strips away countless hours of BLS propaganda. , Marc Faber: "Ron Paul Would Be A Very Good President"While Marc Faber shares the usual stock of insightful market commentary, together with timing inflection points, and extended thoughts in the attached Bloomberg TV clip, it is the fact that he has officially joined Bill Gross, and so many others, in supporting the candidacy of Ron Paul as president. It is rather sad that only those who see beyond the surface of the current pyramid scheme facade, are bold enough to endorse the only man who is right for the White House. Fast forward to 15 minutes into the video to hear Marc Faber: "Ron Paul would be a very good president.", Europe Celebrates Its Latest Recession With Record High Gas PricesIs China's Yield Curve Signaling A Harder Landing?Guest Post: Counterfeit Value Derivatives: Follow The Bouncing BallAccording to the Bank of International Settlements, as of June 2011 total over-the-counter derivatives contracts have an outstanding notional value of 707.57 trillion dollars, ( 32.4 trillion dollars in CDSs alone). Where does this kind of money come from, and what does it refer to? We dont really know, because over-the-counter derivatives are not transparent or regulated. With regulated economic markets, when an underlying real asset is impaired (i.e. the company in question is bankrupt, the mortgage has defaulted, etc.), market value is assessed, default insurance is paid up to replacement or full value, bond holders and stock holders make claims on remaining value and the account is closed. There is no need for bailouts because order and proportion of compensation has been established and everything is attached to the value of the underlying asset. When the unreal, counterfeit economy intrudes, you now have a situation where a person can put in an unregulated, but recognized, claim to be paid a thousand times over in case of impairment. Say market participants have negotiated for a bankrupt company a 70% payback for bondholders and (36% payback for insurance claims), and I come with not one but rather 1,000 CDS claims demanding to be paid for each CDS. , Deconstructing The "Massive Beat" in Employment Data : ilene : 2-3-12  If last week's tax data is indicative of what's ahead this month, the "good news" won't be sustained.  , Why U.S. Unemployment Rate Is 12.1%   http://www.bullseyemicrocaps.com/?p=46058 February 2, 2012 Carlos X. Alexandre: There are plenty of ways of looking at the unemployment numbers, and U3 is the official unemployment rate. The U6 measurement is often mentioned to highlight the precarious condition of the job market in America in a broader sense, and according to the Bureau of Labor Statistics (BLS), the official rate is 8.5% while U6 stands at 15.5%. The definition for U6 is as follows: Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force. I must acknowledge that the BLS has made modifications to its methods (pdf) over the years, but I used their numbers as published…’ , Why the Notions of Systemic Failure or Going to Zero Are On Par with Bigfoot and Unicorns for Most Investors  http://gainspainscapital.com February 2nd, 2012 I wanted to take a moment to address the notion of serious collapse and/or systemic failure...Most professional traders are usually under the age of 40 (in fact theyre typically in their mid to late 20s). 1) Didnt experience the 1987 Crash 2) Have never seen a Crisis that the Fed/ IMF/ etc. couldnt handle..Most institutional traders today operate, for the most part, based on trading models. These models, in general, are quantitative and based on correlations and patterns, not qualitative judgments..asset managers and other institutional investors, the vast majority of whom are under the age of 50 or so.Based on this age demographic, we find that there is an entire generation of investment professionals (aged 35-50+) who: 1)  Have never witnessed nor invested during a bear market in bonds 2)  Have never witnessed, nor invested during a credit market collapse 3)  Have never witnessed a secular shift in the global economyConsequently, the vast majority of professional investors are unable to contemplate truly dark times for the markets..Here are just a few worth considering: 1)  US commercial banks currently sit atop $248 TRILLION in derivatives 2)  The US Federal Reserve is now buying 91% of all long-term new US debt issuance (at the same time China and Russia are dumping US bonds) 3)  Japan already spends roughly half of its annual -tax revenues on debt payments and has relied on debt issuance more than tax revenues to fund its budget for four years now (how much longer can this last?) 4)  Europes entire banking system is leveraged at 26 to 1 (Lehman Brothers was leveraged at 30 to 1 when it failed) Folks, bad times are coming. It doesnt matter what the trading programs or professionals thinking about it the math simply doesnt add up …’   ,   .Daves Daily: http://www.etfdigest.com   FACEBOOK IPO THE WORST KEPT SECRET ON WALL STREET February 01, 2012 [ As per Dave, infra, note the continued prior data revised downward in this continuing data ponzi scheme along with a multitude of other ponzi schemes; and, let me add, I dont believe their data in any event, here and in europe, particularly that contrived / manipulated for this election year. ]  Yes, the copy that follows has little to do with Facebook. After all what do we really know about it? The much watched ISM Manufacturing Data (54.1 vs 54.5 consensus and previous 53.1 revised lower) stimulated bulls Wednesday. Cynics believe auto manufacturers are just stuffing inventory to dealers. Well see if these cars get sold or not. One thing is clear; its easier to buy a car for consumers given industry self-financing than it is to buy a home period. If you have a pulse, you can buy a car. (See U.S. Sector, Stocks & Bond ETFs for GM and linked ETF XLI) Plus owning a new can be more satisfying than most things at least until the new car smell wears off and payments accumulate. Bulls did rally stocks from the opening bell on global manufacturing data including the U.S. ISM report. News that Chinas PMI was slightly higher than expected (50.5 versus 50.4 previous) as was Europes (48.8 versus 46.9) was part of the stimulant. It may mean no manufacturing slowdown in those regions. Further the eurozone news that Greek debt negotiations with its bond holders would be resolved soon was also bullish. But, later it was announced a settlement may not occur until next week. Where have we heard this stuff before? (See Overseas Sectors & ETFs below for FXI, EZU and EFA).U.S. ADP Employment Data was rather confusing showing a jobs gain of 170K versus the previously revised data (325K to 292K). So jobs gained were weaker but bulls didnt seem to mind. Construction Spending increased 1.5% but here too, previous data was revised sharply lower to .4% from 1.2% making Wednesdays data seem better than it really was…’ , AMR wants to cut 13,000 jobs, pensions , JOSH KOPELMAN: I THINK 2012 WILL LOOK MORE LIKE 2008 THAN 2011 Erick Schonfeld http://techcrunch.com/2011/11/26/josh-kopelman-i-think-2012-will-look-more-like-2008-than-2011   , Greece Warns It Will Soon Be In "Condition Of Absolute Poverty"Market Round-Trips To Yesterday's Open"I'm Bill Gross And I Endorse Ron Paul For President""Hours" Downgraded To "Days" - Greek Deal No Longer "Any Hour Now"As A Reminder, The President's Mortgage Plan Is "Dead On Arrival"GM Channel Stuffing Resumes, January Dealer Inventory Second Highest EverJust as we thought GM's channel stuffing days may be coming to an end, and the company may finally be normalizing its inventory management, here come January numbers, where we learn that in addition to car sales declining by 6% compared to a year ago, at 167,962 vehicles sold (of note: "Retail deliveries declined 15 percent compared with the same month a year ago and accounted for 70 percent of GM sales"), it was the all critical month end dealer inventory that caught our attention. And unfortunately as the skeptics expected, GM is back to its old tricks, as dealer inventories rose once again, this time by over 36k units, or the second highest in its post-reorg history, to a near record 619,455 vehicles stored with dealers. This is just the second highest ever in fresh start GM history, second only to November's 623,666. The January-end number represents 89 days supply, but more importantly the recent spike in restocking, which was seen with all other major car dealers, explains the ongoing "expansion" in the US economy as measured by indices such as the ISM. Eventually, when the end demand for these dealer parked vehicles does not materialize.. , Guest Post: Our Counterfeit EconomyBorrowing money based on imaginary future surpluses is a higher form of counterfeiting. And that is precisely what the U.S. is doing, borrowing immense sums at every level, private, corporate and State/Federal, all leveraged against phantom future surpluses, even as the economy requires some 10% of its supposed output (GDP) to be borrowed and spent on consumption each and every year just to run in place, i.e. the Red Queen's Race (Bernanke, Goldilocks and The Red Queen January 10, 2011). In other words, the U.S. economy is running a massive deficit, and squandering the vast sums being borrowed on consumption and mal-investments. Once you rely on more borrowing against imaginary future surpluses to fund your current expenses, then eventually the costs of servicing that debt exceeds any possible future surplus. The last-ditch "fix" is to simply print units of money (or borrow it into existence like the Federal Reserve)--counterfeiting, pure and simple-- and deceive the market for a time via the illusion that the freshly printed units of money are actually backed by productive value or surplus. As history has shown, eventually the market discovers the actual value of this counterfeit money, i.e. near-zero, and the system implodes. Once there is no more "free money" to fund consumption and mal-investment, then the reality of systemic insolvency is revealed to all. You cannot counterfeit actual surplus value generated by productive assets, you can only counterfeit proxy claims on future surplus. , Some Good News For Those of Us Who Are Sick of the Corruption February 1st, 2012 http://gainspainscapital.com  http://albertpeia/americascorruptiondrugtrade.htm   http://albertpeia.com/fbimartinezcongallard.htm   http://albertpeia.com/stansberrycorruptiondeclineofamerica.htm  At some point someone will talk and thats when things will get interesting.The last four years have been something of a high-water mark for corruption in the US. Whether its Solyndra, Congresss insider trading, MF Global, the countless pork spending bills from Congress, or any number of the other hundred or so incidents that have made decent ordinary people outraged, weve definitely entered a period in which everyone knows the deal: the power elite live by a different set of laws than the rest of us.A record 64 percent of American adults surveyed by Gallup in a poll released Monday rated the honesty and ethical standards for members of Congress as low or very low Wall Street CEO or member of Congress might go to jail, the confessions are going to start coming fast and furious. This will have a seismic shift on the lobbying/ crony capitalism/ back-room deals that currently define American politics. That shift is already beginning (note that Goldman Sachs CEO hired a defense attorney and Ben Bernanke is trying to present himself as a man of the people).  Also, consider the recent slip up by an MF Global executive under oath.Granted, were not yet at the point where people area actually getting nailed for the crimes theyve committed ,     Dead Market Exhibit A: January VolumeGold, Silver Winning 2012 Asset Return Race With 11 Months LeftChicago ISM sank to 60.2 in Jan, well below market expectations of 63.0, vs 62.2 in Dec. Jan 31st, 2012 Amazon Slides After Missing Revenues Expectations, Guides Much LowerCalifornia To Run Out Of Cash In One Month, Controller WarnsGreece Calls Crisis Meeting As Debt Talks StallEuro Zone Jobless Hits Highest Level Since Birth of Euro Jan 31st, 2012 (CNBC) Labor Unions Demand Escalation Of Trade War With China, Ask Obama To Restrict Chinese Auto Part ImportsGreece Releases New Proposal With Even Greater Losses To Creditors Durden , Prophetic Economist Warns, Its Curtains for the US. Prepare. (Moneynews) Katrina Turner , STOCKS GO NOWHERE ON MORE DISAPPOINTING DATA: Here's What You Need To Know Business Insider , US S&P Case-Shiller home prices -0.7% in Nov for 20-cities index, -3.67% y/y, weaker than market expectations. Jan 31st, 2012 , SPX Update: Bears Fire a Shot Across the Bow  By Jason Haver Jan 31, 2012 , 47 Signs That China Is Absolutely Destroying America On The Global Economic Stage  http://theeconomiccollapseblog.com  http://albertpeia.com/47signschinadestroyingamericaoneconomicstage.htm  ,   Senators: Get Rid of Dollar Bills The Wall Street Journal [ Given the dollar debasement policies, theyre kind of like those nuisance pennies, and, as fiat paper currency, dont even have the value of copper to fall back on. ] , Exxon Leads DJIA Losers On Tepid DayWall St. Cheat Sheet [ Increased costs the reason, the flip side of that debased dollar manipulation thats artificially propped earnings, particularly for those multi-nationals. ]  ,    Investors: There's Increased Probability of a Correction  Minyanville Chris Vermeulen Jan 30, 2012 Eventually equities will start to underperform. At that point, gold will be in the final stages of its bubble, and the term "parabolic" could likely be applied. Read more: http://www.minyanville.com/businessmarkets/articles/gold-prices-price-of-gold-federal/1/30/2012/id/39109#ixzz1kzPLaKZl , Daves Daily: http://www.etfdigest.com  BULLS KEEP JANUARY ASCENT INTACT January 30, 2012   Eurozone news took markets lower early as Portugals bond yields rose sharply and there still is no accord on Greek debt with private lenders. News from the eurozone remains .. natural to suspect some end-of-month window dressing. U.S. stocks began to rally off triple digit DJIA lows led primarily by technology after Europe closed (funny how that happens). Burlington Northern stated the economy was growing slowly and they were adding employees and railroad cars to meet perceived demand. This helped stimulate stocks overall even though it was little help to the transport sector (IYT) which closed the day down .43%In housing market news was this eye-opening story that Freddie Mac was betting big time against its own customers. Or, as the story headline goes, When Homeowners Lose, Freddie Mac Wins. Betting against your own customers isnt anything new on Wall Street, something begun by then Goldman Sachs CEO Robert Rubin in the 90s. But for the government to do so states the obvious conflict. Also in the news was the government has increased loss projections for the auto bailout to $27 billion... http://i238.photobucket.com/albums/ff171/flyfry/new%20album/image004-114.jpg  .. These stories hardly seem bullish..consumer spending was lower…’ , Conflicting Signals? Four Questions Facing The Market Forbes Charles Biderman, Contributor  [ Mr. Biderman provides an astute backdrop to the ongoing debacle, but fails to properly access and attribute the fact/reality that in many ways fraudulent wall street is the government as weve lamentably seen in the form of paulsen, rubin, geithner, bernanke, goldman saches, etc., and certainly when it counted for wall street at everyone elses expense; and, the absence of high level prosecutions further testament to that factual reality. See here as well: Nothing Has Changed, But Bulls Are Becoming More Bullish    Forbes Charles Biderman, Contributor http://www.forbes.com/sites/investor/2012/01/23/nothing-has-changed-but-bulls-are-becoming-more-bullish/?partner=yahootix  This article is an incisive yet brief look at the source of funds for the upside biased stock manipulation and an important read from Forbes / Biderman   ]  Again and again I have to keep reminding myself that most portfolio managers, as well as individual investors, firmly believe that not only can the U.S. economy grow its way out of its current mess, but that the U.S. economy has already begun that process.The fact that the Fed continues to create $100 billion of new money each month to support the economy is not as important to them as is the cumulative 60% growth in the federal deficit since 2008. Also irrelevant is that take home pay net of inflation is and has been declining on a year over year basis for the past several months…’ , REGARDING SOCIAL PROGRAMS AND GOVERNMENT OUTLAYS: THE MONEY SIMPLY ISNT THERE January 30th, 2012 http://gainspainscapital.com , Fannie Mae, Freddie Mac Shown as Mortgage Market Predators : rcwhalen : 01/30/2012 This morning, NPR and ProPublica, began reporting on financial transactions at Freddie Mac that bet against homeowner refinancing with their portfolio. , The Market Could Soon Bottom (And Nobody Knows It)  Minyanville David Banister Jan 30, 2012 , The Baltic Dry Meltdown Continues The Wall Street Journal , Making Money On Poverty: JP Morgan Makes Bigger Profits When The Number Of Americans On Food Stamps Goes Up http://theeconomiccollapseblog.com  http://albertpeia.com/makingmoneyonpoverty.htm , Guest Post: The Price of Growth Are we better off if a near-term recovery comes at the expense of our future security? The prudent among us would disagree. , Long-Dated VIX Still Priced For Depression RiskSan Francisco Fed Admits Bernanke Powerless To Fix Unemployment Problem Europe Has Worst Day In Six Weeks Zero HedgeIt's Official: German Economy Minister Demands Surrender Of Greek Budget Policy, Says It Is First Of Many Such Sovereign "Requests"Greece Politely Declines German Annexation Demands  , Daves Daily: http://www.etfdigest.com 1-26-12  ‘…phony CPI because authorities want you to pretend you neither use heating oil, gasoline or even food for that matter. Theyve reconfigured the CPI more times than congress votes on a new debt ceiling. And, they do this to deceive but also to lower entitlement spending. Imagine all those government workers on COLAs and Social Security recipients who just stare at their heating and electric bills in disbelief. Whats a nice T-bone cost nowadays anyway? Its the dropping price of tech toys and quality improvements they focus on that matters now. Economic data was mostly disappointing versus estimates. Jobless Claims were up more than expected (377K vs 370 exp. & prior revised higher as usual to 356K); Durable Goods Orders also missed (+.3% vs +2.2% exp. & prior 4.3%); Leading Indicators missed (+.4% vs +.7% exp. & prior +.5%); and, New Home Sales also disappointed (307K vs 320K exp. & prior 314K prior)…’ , INVESTORS, SKIP THE 'JANUARY INDICATOR' FOR STOCKS Jan. 26, 2012 http://www.marketwatch.com/video/asset/investors-skip-the-january-indicator-for-stocks-2012-01-26/D6D6B044-07E7-455A-A669-F97B87EE8452#!D6D6B044-07E7-455A-A669-F97B87EE8452 What's known as the "January indicator" says a positive month often yields gains for the year. But the indicator isn't what it's cracked up tobe,according to Market Watch's MarkHulbert , IfTheEconomyIsImproving(Not!)...  http://albertpeia.com/economynotimproving.htm  ,  Market Preview: The Fed's Stealth Bailout of Europe TheStreet , I Present To You The First Probable US Commercial Real Estate Insolvency Of Many To Come Middleton : 01/26/2012 GGP part deux, as the hopium high sold by US regulators that allowed banks and borrowers to pretend bad loans were good wears off and reality sets in.. , Daves Daily: http://www.etfdigest.com 1-27-12 GDP DATA CONFIRMS SLOW GROWTH  GDP data was released Friday revealing headline economic growth of 2.8% versus consensus of 3.1%. Real economic growth after inflation was only 1.7% for 2011. Negatively affecting the data were lower state and local government spending, private inventory investment and, believe it or not, federal government spending. While the all-important, and much watched by the Fed, PCE (Personal Consumption Expenditures) was higher it was a disappointment overall. This may reflect what the Fed saw in the data (weak growth) which then caused them to keep interest rates low for a long period. They must worry this slow growth condition is going to be with us for a long time. This is hardly encouraging.The month of January has only a couple of trading days left. Even with Fridays poor performance the month is still scoring outsized gains for most stock sectors. Consumer Sentiment data has stock prices as a high component, so its not surprising the measure was 75 versus 74 expected , Largest Central Banks Now Hold Over 15 Trillion in Fictitious Capital : ilene : 01/27/2012 , The Silent Anschluss: Germany Formally Requests That Greece Hand Over Its Fiscal IndependenceEndgame Begins - UK "Foreign Office Sources Say Merkel Now Thinks Greece Will Default"Friday Tragedy: The US Debt Limit ExplainedFitch Gives Europe Not So High Five, Downgrades 5 Countries... But Not France Naturally no downgrade of France. French Fitch won't downgrade France. , 16 Statistics Which Show That The Number Of Americans Dependent On The Government Is At An All-Time High   http://theeconomiccollapseblog.com   http://albertpeia.com/16statsamericansdependentongov.htm   ,  Largest Central Banks Now Hold Over 15 Trillion in Fictitious Capital : ilene : 01/27/2012 A strong yen strikes again. , Fed Won't Admit it - But QE3 is Already in Force ETFguide  Simon Maierhofer  ..True, there is no QE3 (yet) in the form of QE1 or QE2. QE stands for quantitative easing and quantitative easing happens when a central bank buys financial assets to inject money into the economy. Even though it's not called QE3, the Fed is right now making billions of dollars available to buy financial instruments. We're not talking about Operation Twist here; we're talking about a covert operation that's essentially a U.S. bailout of Europe.. the S&P has reached (and exceeded) the initial up side target and is starting to create a sell signal similar to the May 2011 top.. , Greenspan's Successor Pushing On A String Forbes , ECONOMY DISAPPOINTS, EUROPE GETS DOWNGRADED, MARKETS GO NOWHERE: Here's What You Need To KnowBusiness Insider , All Central Bank Balance Sheets Are Exploding Higher, Or Engaged In QE Jan 27th, 2012 (The Big Picture) The degree to which central banks around the world are printing money is unprecedented …’ Economists React: GDP 'Less Impressive Than It Looks'at The Wall Street Journal , Euro Zone Money Supply Offers Grim Newsat The Wall Street Journal , Q4 GDP Misses Estimates, Inventory Stockpiling Accounts For 1.9% Of 2.8% Q4 US Economic Growth The US economy grew at a 2.8% annualized pace in the supposedly blistering fourth quarter, yet the number was a disappointment not only in that it missed estimates of 3.0% (and far higher whisper numbers) but when one looks at the components, where a whopping 1.94% of the upside was attributable to a rise in inventories as restocking took place. And as everyone knows in this day and age a spike in inventories only leads to sub-cost dumping a few months later. In other words, the economy grew at a 0.8% pace ex inventories. Yet for all intents and purposes, this is considered "growth." , Frontrunning: January 27 Durden on 01/27/2012 · Greek Debt Wrangle May Pull Default Trigger (Bloomberg) · Italy Sells Maximum EU11 Billion of Bills (Bloomberg) · Romney Demands Gingrich Apology on Immigration (Bloomberg) · Chinas Residential Prices Need to Decline 30%, Lawmaker Says (Bloomberg) · EU Red-Flags 'Volcker' (WSJ) · EU Official Sees Bailout-Fund Boost (WSJ) · EU Delays Bank Bond Writedown Plans Until Fiscal Crisis Abates (Bloomberg) · Germany Poised to Woo U.K. With Transaction Tax Alternative (Bloomberg) · Ahmadinejad: Iran Ready to Renew Nuclear Talks (Bloomberg) · Monti Takes On Italian Bureaucracy in Latest Policy Push to Revamp Economy (Bloomberg) ,  Juncker Breaks Away From Propaganda Pack, Says Euro Default Will Lead To ContagionRoubini's Bearish Forecast Is Bullish For GoldHe said, Rising commodity prices, uncertainty in the Middle East, the spreading European debt crisis, increased frequency of extreme weather events and U.S. fiscal issues are persistent problems that will continue to spur market volatility and sway asset prices in the global economy. This is great news for gold. Goldman Sachs noted in a report on Jan. 13th that futures will advance to $1,940 an ounce in 12 months.  Morgan Stanley forecasts the yellow metal will climb to a record of $2,175 by 2013, said analysts Peter Richardson and Joel Crane in their research report. , IceCap Asset Management: No Country For Old MenMost Canadian pension funds are banking on 7% annual returns forever. Over the next few years, this unrealistic expectation will cost the respective governments and companies millions in shortfalls. In the USA, the California Public Employees Retirement System assumes it will earn over 7.75% annual returns. This false hope will result in over $6 billion a year in lower than expected investment income, that will also have to be paid by the financially challenged state (ie. taxpayers). , Stephen Roach Explains How The Fed Is Pulling The Wool Over Our Eyes   ,  The Fed Cannot Move Without a Crisis And One is Coming  http://gainspainscapital.com    January 26th, 2012 Well the Fed disappointed as I stated it would. How anyone could be surprised by this is beyond me. The Fed was admitting that the consequences of QE rendered it less attractive as an option as far back as May 2011.Moreover, the last six months have shown the Fed to be relying heavily on verbal intervention rather than direct monetary intervention. Every FOMC meeting (and any time the market takes a dive) some Fed official steps forward and promises that the Fed stands ready to help if needed.The reasons for this are three fold: #1)  Why bother with monetary intervention when you can get the same effect from verbal intervention? #2)  The Fed is too politically toxic now to simply unveil a massive new monetary scheme without a Crisis hitting first. #3)  The Fed is well aware of the consequences of QE (higher food and gas prices) and while it focuses on CPI as the measure of inflation, the political pressure engendered by higher costs of living are certainly on the Feds radar. In plain terms, the bar for more QE is set much, much higher than the vast majority of analysts realize. The reason is that the Fed can no longer simply prime up the printing presses if the economy takes a dip.  , Median Single Family Home Price in Terms of Gold Jan 27th, 2012 (Chart of the Day) Severely depressed real estate prices continue to be a concern for investors. For some perspective on the magnitude of the decline in home prices, todays chart presents the median single-family home price divided by the price of one ounce of gold. This results in the home / gold ratio or the cost of the median single-family home in ounces of gold. For example, it currently takes a relatively low 105 ounces of gold to buy the median single-family home. This is dramatically less than the 601 ounces it took back in 2001. When priced in gold, the median single-family home is down over 80% from its 2001 peak, remains well within the confines of a six-year accelerated downtrend and remains very near its 1980 trough. http://albertpeia.com/housegold.gif  ,  The Man Without A Plan  http://theeconomiccollapseblog.com http://albertpeia.com/omanwithoutaplan.htm  Barack Obama is a man without a plan.  , Newt Gingrich promises to build a moon colony by 2020; make it a U.S. state [ Wow! Absolute proof that the slimy newts not dealing with a full deck. Say anything? This takes the cake! The idea man? Sure, all he needs is Aladdins lamp and infinite capital! Oh yeah, reality nothwithstanding, nasa boondoggles sell well in Cape Canaveral, Florida (and Houston, Texas). Note, he couldnt just go to the moon for the first time (that fake video with the flag waving in the moons windy atmosphere yet another example as on fraudulent wall street of that pervasively addictive hopium) Americas debt woe is worse than Greeces News (CNN) Our government is utterly broke. There are signs everywhere one looksThe governments total indebtedness is $211 trillion

 

 

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Gerson: Poor pay the price for Obama’s policies (Washington Post) [ True enough, consistent with the converse of ‘a rising tide lifts all boats’; viz., a falling tide sinks them (all). Yet, he’ll get their vote regardless of his recklessness and his specific damage to them. Why? Because once again, campaign rhetoric unchallenged and belied by failure to live up to his campaign rhetoric / promises / lies / b***s*** from last time around. Even that so-called safety net in an insurmountably debt-ridden defacto bankrupt nation is no safety net at all. In fact, despite the statistical / manipulative skullduggery, the costs of those window dressed make-shift jobs (temps, ‘projects’, etc.), though election year expedient, were downright unaffordably uneconomic. Wake up! ).   (34 Shocking Facts About U.S. Debt That Should Set America On Fire With Anger  http://theeconomiccollapseblog.com  http://albertpeia/34shockingfactsaboutusdebt.htm  ‘We have all been lied to.  For decades, the leaders of both major political parties have promised us that they can fix our current system and that they can get our national debt under control.  As the 2012 election approaches, they are making all kinds of wild promises once again.  Well you know what?  It is all a giant sham.  The United States has gotten into so much debt that there will be no coming back from this.  The current system is irretrievably broken… Professor Laurence J. Kotlikoff, the U.S. is facing a "fiscal gap" of over 200 trillion dollars in the future.  The following is a brief excerpt from a recent article that he did for CNN...The government's total indebtedness -- its fiscal gap -- now stands at $211 trillion.. The fiscal gap is the difference, measured in present value, between all projected future spending obligations -- including our huge defense expenditures and massive entitlement programs, as well as making interest and principal payments on the official debt -- and all projected future taxes…#33 If you add up all forms of debt in the United States (government, business and consumer), it comes to more than 56 trillion dollars.  That is more than $683,000 per family…).  america’s totally broke! Really! No joke! Drug war hypocrisy: drug trafficking’s big money benefits Big Brother and corrupt banksters  PF Louis | The hypocrisy of the war on drugs is centers on the amount of drug trafficking that benefits the CIA and international banking system. Natural News February 1, 2012  [  http://albertpeia/americangovernmentdrugtrafficking.htm     http://albertpeia/americascorruptiondrugtrade.htm  http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm    http://albertpeia.com/fbimartinezcongallard.htm  
http://albertpeia.com/stansberrycorruptiondeclineofamerica.htm ]  ‘The hypocrisy of the war on drugs is outrageous when compared to the amount of drug trafficking that benefits the CIA and international banking system. The son of a convicted notorious mobster, John Gotti Jr, when asked in court if the family still dealt drugs cracked, “No, we can’t compete with the government.”

 

White House was warned about Solyndra layoffs E-mails show Energy Dept. asked firm in October 2010 to delay news of layoffs until after midterm vote. (WP) [ Those unaffordably costly jobs { to pad stats - Drudgereport: Obama Economists Admit: 'Stimulus' Cost $278,000 per Job...  }  and those unaffordably costly cars { to pad sales - Drudgereport (on Government Motors): REPORT: Chevy Volt Costing Taxpayers Up to $250K Per Vehicle...  CAVUTO: Volt sales inflated with taxpayer fleet buys...  }  The wrong call on Keystone On substance, approving the pipeline project should’ve been easy for the administration. (Washington Post) [ For the Editorial Board (or anyone else), their’s is the right call. In truth, I’d have been somewhat surprised by this misguided action of the administration even if the nation was not in dire straits in almost every way imaginable; particularly, financially, economically, and structurally (including infrastructurally). hillary clinton? Oh yeah, that ‘chicago mercantile’ commodities wizard that turned some nominal sum ($3-7,000) into in excess of $100,000 in a rather short period of time (The Wall Street Journal’s expert concluded someone was giving the clintons money). Quite frankly, I’m a bit surprised she was involved at all in the process; being the first Secretary of State in memory to have done so. After all, she’s been so integrally involved in fomenting the prevalent anti-american sentiment throughout the world with great éclat. Then there’s america’s defacto bankruptcy. That’s gotta’ be the ‘last straw’ militating against this imprudent decision. Other astute financial people / commentators / analysts were also a bit ‘shaken’ (by the misstep) but ‘not stirred’ (typical failed americana)  http://albertpeia/34shockingfactsaboutusdebt.htm   ,  Obama continues trend of turning to budget director in time of trouble Lew’s replacement of Daley as chief of staff reflects anticipation of fight with Congress on payroll tax. (Washington Post) [ Let’s not sugar-coat the reality here! Given america’s defacto bankruptcy and wildly profligate spending by wobama exceeding by far all others (and the last several combined) thereby exacerbating america’s dire predicament  (Dire predicament, forecast, time to ‘get out of Dodge (america)’  http://albertpeia.com/forecastusdebtgetoutofdodge.htm  ) it was nothing short of pathetic to hear of wobama’s pre-election year military budget cuts while bragging that his military budget allocation still exceeds that of bush failure 2. Some companies won’t even hire until wobama’s out ( Drudgereport:  COMPANY SHOCK: 'WE'RE NOT HIRING UNTIL OBAMA GONE'  ) , the ‘budget director’ for his ‘knowledgeable budgetary skills’ is hardly palatable reality even to as gullible an american public as we’ve come to know. There’s a bit more to this story that needs sayin’. Romney’s money problem His nomination may be near, but his routine is getting a bit rich. (Washington Post) [ Yet another of those ‘aw come on Mr. Milbank moments’. I mean really. Wobama’s are as ‘rich’, disingenuous to say otherwise, and his routine, namely b***s***, is past ‘getting old’. After all, wobama can’t run on his clear record of failure as bush failure 3 with what turns out as before, b***s*** alone. The problem is that there’s nothing that can be said of the republican offerings (except Ron Paul) for which it can’t be said of wobama that he’s been there, done that in contravention of all prior campaign promises, to the substantial detriment of the nation. Even his new ‘displacement’ as chief of staff’s a ‘wall street inside man’ (Drudgereport: FLASHBACK: Daley planned to leave AFTER election...  ,  Michelle (a black) distressed about power of 'white Irish Catholic'...  ,  New Obama Chief of Staff: Former Hedge Fund Exec at CITI, Made Money off Mortgage Defaults... (even Castro’s correct on this obvous point regarding the duplicitous wobama ) Castro: 'Robot' better than Obama, Republicans... UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE... WP ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.         . Obama missing the mark on defense? President Obama’s defense strategy — and the assumptions underlying it — need a closer look. (Washington Post) [ I really don’t know what the editorial board really is; but that’s the only reason I’m commenting here (on this one) given their most recent, shocking ‘contributions’ to the discourse. First, let’s begin with a  fundamental reality; viz., america is hopelessly and insurmountably defacto bankrupt. Second, I’d like to know how these unaffordably expensive military industrial complex (warned against by the great but substantially underrated President General Eisenhower) welfare programs have succeeded in accomplishing anything but the defacto bankruptcy of this nation, created fortunes for the war profiteering few, while fomenting (justifiable) anti-american sentiment globally (that ‘destructive thing’ that rational people abhor). Third, $489 billion in cuts over 10 years (however ‘sold’, ie., ‘new strategy’) is nothing relative to the enormity and insurmountability of the nation’s debt. What need’s a closer look is not so much the ‘new strategy’; but rather that failed abhorrent old strategy, however repackaged, and those who made it. After all, it doesn’t matter so much what they say, as it does what they do. A glaring example is the ‘war on drugs’ given america’s unequivocal involvement in same (infra). As for wobama missing the mark on defense, there isn’t anything whatsoever that wobama hasn’t missed the mark on. Obama flush with financial sector cash The president has managed to raise more money this year from the sector than any GOP contender. (WP) [ So much for obama and OWS; but how ‘bout wobama and obs … yes, more ‘obama b*** s*** ! The quid pro quo … the bribe …  Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog Roche 'The worst part of it  ...Obama, who vowed change, has done almost nothing to fix any of it and in fact continues most of the policies that helped get us here in the first place’  ‘INSIDE JOB’ Ferguson wins Oscar for Documentary on the unprosecuted massive extant fraud in the (many) TRILLIONS by the frauds on wall street ( and declares with oscar in hand that not one high level wall street exec has been prosecuted … despite ‘earning’ billions from the fraud )THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv ,    

 

 

http://www.albertpeia.com/todayspage.htm  
http://albertpeia.com/fbimartinezcongallard.htm  

http://albertpeia.com/stansberrycorruptiondeclineofamerica.htm

 

 

House panel weighs insider-trading bill House committee members debated whether they should pass an insider-trading measure targeted at themselves.  (Washington Post) [ Yeah … that’s a tough call …   Bachmann received federally backed loanWeeks before Michele Bachmann called for dismantling federally subsidized loan programs, she and her husband signed for a $417,000 mortgage. (Washington Post) [ In my MBA thesis (MBA Finance, 1977, NYU GBA), among my conclusions was that ‘timing was everything in stock market investing’. Yes, indeed, you must time the market to be successful, though such position was squarely opposed to a panoply of ‘mechanized approaches’ (ultimately that latter being a rationale to separate you from your money, regardless. In fact, today more than ever, buy and hold’s a sure loser even without the crashes when measured against a ‘real price deflator’ that takes into account the real rate of inflation. Well, in her defense she could always argue that the legislated ban on congressional insider trading hadn’t been passed yet … just kidding! Actually, we all know that just applied to stocks anywho. And, until the congress says those things that are illegal for everyone else are illegal for congress, such illegal activity is not really illegal; for them only, that is. No one’s above the law? Not so in pervasively corrupt, defacto bankrupt america where a clearly illegal act is not illegal for them unless they themselves say it’s to be prospectively considered illegal for them. Ethics? Silly boys and girls, as in , ‘don’t be silly!’. Congressional earmarks sometimes used to fund projects near lawmakers' properties EXCLUSIVE | Thirty-three members of Congress have steered more than $300 million in earmarks and other spending provisions to dozens of public projects that are next to or within about two miles of the lawmakers own property, according to a Washington Post investigation. Earmarks alive and well, probe finds A study of defense bill identifies 115 proposals as earmarks, including 20 by GOP freshmen who campaigned against the pet projects. (Washington Post) [ Such things do wonders for property values; even the most ill-chosen properties. Lesson: If you dont know a damn thing about much of anything, ie., finance, real estate, business, etc., run for and be part of congress to make being stupid not matter. I think a more telling example of self-dealing are those steady raises and increased benefits packages that congress continued to vote for themselves despite what we all now know to be jobs so poorly done that the nation is now hopelessly and insumountably broke in every way that could possibky be imagined. FULL COVERAGE OF JUSTICE DEPT. SCANDALS   http://topics.dailycaller.com/politics/justice-department.htm  http://albertpeia.com/dojscandals.htm , I Cant Take It Anymore! When Will The Government Quit Putting Out Fraudulent Employment Statistics?  http://theeconomiccollapseblog.com  http://albertpeia.com/governmentfraudulentemploymentstats.htm 

 

The Markets Since Their 2000 Highs: We're Not Bouncing Back  http://www.bullfax.com/?q=node-markets-their-2000-highs-were-not-bouncing-back  ... [ Actually the picture is even worse if the real inflation rate used. Wall street is total fraud and b***s***! Keep in mind, in addition to loss of principal, the flux / worry takes its toll on health as well as productivity. ] 02/02/2012 By Doug Short:   The January Effect in 2012 was quite strong, and the U.S. markets have continued the rally that began last October. But let's take a step back and review the performance of the major US indexes in the 21st century through the end of January 2012. Here is an update in response to a standing request from David England, a professor who has developed a popular college level stock market classes at John A. Logan College in Carterville, Illinois. David is also the founder of thetraderseye.com. In his upcoming presentations, he wants to disprove the standard message of Wall Street, "Don't worry! The market will always come back." I furnished David with some charts, and I shared them with regular visitors to my Advisor Perspectives pages. Specifically, David had asked for real (inflation-adjusted) charts of the S&P 500, Dow 30, and Nasdaq Composite. So I created two overlays one with Complete Story »   [ The following are important charts from Doug Short:

http://albertpeia.com/3real1.png

http://albertpeia.com/3real2.png

 

http://albertpeia.com/3real3.png

 

http://albertpeia.com/3real4.png

 

 

 

 

 

I Can’t Take It Anymore! When Will The Government Quit Putting Out Fraudulent Employment Statistics?  http://theeconomiccollapseblog.com  http://albertpeia.com/governmentfraudulentemploymentstats.htm 

 

 

 

 

The Financial Crisis Of 2008 Was Just A Warm Up Act For The Economic Horror Show That Is Coming  http://theeconomiccollapseblog.com http://albertpeia.com/2008crisisjustwarmupforcomingcollapse.htm

 

 

A Decade of Decline in Equity Markets Faisal Humayun [ This is a must read and explains how the markets been artificially propped, the dow relative to hard assets, ie., gold (dow/gold ratio), has actually crashed 78%, and comparable prospects for the next decade, etc.. ‘…The Dow Jones Index was trading at 11,357 levels at the beginning of the year 2000. More than a decade later (as of beginning July 2011), the index is at 12582. Therefore, the index has gained 11% in the last ten years…’ Yet, the inflationary dollar (declining) debasement rate was 31%. (-31%) Meanwhile, the frauds on wall street are churnin and earnin like never before at lightning computerized speeds enabling the high-frequency trades that are commissioned in unprecedented large volumes; a big net negative in real economic terms.Check out this inflation calculator:http://www.albertpeia.com/inflationcalculator.htm   Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen  In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events that warns of phase II of the global crisis.

Once again I see all the canaries in the mine, which warned of the 2008 crisis. My just released book, Financial Apocalypse , provides the clues and the road map, with charts, of how my  indicators successfully predicted the meltdown that occurred in the fall of 2008. This book is a guide for detecting the next crisis whenever it occurs.  History repeats, or at minimum, it rhymes.

My work shows that the new recession has started. The May 9 issue of the Wellington Letter was headlined:  Return of the Double-Dip.  At the time, economists were looking for a great economy in the second half. Now they talk about a soft patch.  Over the past 33 years, we have called the start of every recession, often on the exact month, or within one month, of the official start as determined one year later by the official arbiter of recession, the National Bureau of Economic Research (NBER).

How can we be in recession now when the GDP still shows growth? Because of improper inflation adjustments. Real GDP growth, the headline number, is nominal growth minus the rate of inflation. However, inflation is far understated for political reasons.

Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as growth, is actually price increases. Actual inflation, according to free market economists who calculate inflation as it was done in 1980 before the politician re-engineered it, is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction.

When the current euphoric earnings forecasts of Wall Street finally reflect that via significant earnings downgrades, the stock market will see a serious adjustment as well.

On July 18, Goldman Sachs (GS) substantially lowered its economic growth forecast. Marketwatch.com had this headline:  Goldman Sachs slashes Economic Forecasts. The next step will be for them to substantially reduce earnings forecasts for the S&P 500.

Will the phase II be as bad as the 2008 crisis? The last crisis was confined to the private sector, i.e. financial institutions. The next one will be involve the threatened default of entire countries. The last time, the central banks bailed out the financial firms and even Warren Buffett bailed out several firms. Who is big enough to bail out entire countries? Or will the term of too big to fail turn to too big to bail?…’

 

 

 

http://www.albertpeia.com/todayspage.htm  
http://albertpeia.com/fbimartinezcongallard.htm  

http://albertpeia.com/stansberrycorruptiondeclineofamerica.htm

 

 

 

Bachmann received federally backed loanWeeks before Michele Bachmann called for dismantling federally subsidized loan programs, she and her husband signed for a $417,000 mortgage. (Washington Post) [ Timing’s everything! In my MBA thesis (MBA Finance, 1977, NYU GBA), among my conclusions was that ‘timing was everything in stock market investing’. Yes, indeed, you must time the market to be successful, though such position was squarely opposed to a panoply of ‘mechanized approaches’ (ultimately that latter being a rationale to separate you from your money, regardless. In fact, today more than ever, buy and hold’s a sure loser even without the crashes when measured against a ‘real price deflator’ that takes into account the real rate of inflation. Well, in her defense she could always argue that the legislated ban on congressional insider trading hadn’t been passed yet … just kidding! Actually, we all know that just applied to stocks anywho…riiiiight! And, until the congress says those things that are illegal for everyone else are illegal for congress, such illegal activity is not really illegal; for them only, that is. No one’s above the law? Not so in pervasively corrupt, defacto bankrupt america where a clearly illegal act is not illegal for them and their’s (see infra) unless they themselves say it’s to be prospectively considered illegal for them. Ethics? Silly boys and girls, as in , ‘don’t be silly!’.

 

The Markets Since Their 2000 Highs: We're Not Bouncing Back  http://www.bullfax.com/?q=node-markets-their-2000-highs-were-not-bouncing-back  ... [ Actually the picture is even worse if the real inflation rate used. Wall street is total fraud and b***s***! Keep in mind, in addition to loss of principal, the flux / worry takes its toll on health as well as productivity. ] 02/02/2012 By Doug Short:   The January Effect in 2012 was quite strong, and the U.S. markets have continued the rally that began last October. But let's take a step back and review the performance of the major US indexes in the 21st century through the end of January 2012. Here is an update in response to a standing request from David England, a professor who has developed a popular college level stock market classes at John A. Logan College in Carterville, Illinois. David is also the founder of thetraderseye.com. In his upcoming presentations, he wants to disprove the standard message of Wall Street, "Don't worry! The market will always come back." I furnished David with some charts, and I shared them with regular visitors to my Advisor Perspectives pages. Specifically, David had asked for real (inflation-adjusted) charts of the S&P 500, Dow 30, and Nasdaq Composite. So I created two overlays one with Complete Story »   [ The following are important charts from Doug Short:

http://albertpeia.com/3real1.png

http://albertpeia.com/3real2.png

 

http://albertpeia.com/3real3.png

 

http://albertpeia.com/3real4.png

 

 

 

 

 

I Can’t Take It Anymore! When Will The Government Quit Putting Out Fraudulent Employment Statistics?  http://theeconomiccollapseblog.com  http://albertpeia.com/governmentfraudulentemploymentstats.htm 

 

 

 

The Financial Crisis Of 2008 Was Just A Warm Up Act For The Economic Horror Show That Is Coming  http://theeconomiccollapseblog.com http://albertpeia.com/2008crisisjustwarmupforcomingcollapse.htm ‘The people out there that believe that the U.S. economy is experiencing a permanent recovery and that very bright days are ahead for us should have their heads examined.  Unfortunately, what we are going through right now is simply just a period of "hopetimism" between two financial crashes.  Things may seem relatively stable right now, but it won't last long.  The truth is that the financial crisis of 2008 was just a warm up act for the economic horror show that is coming.  Nothing really got fixed after the crash of 2008.  We are living in the biggest debt bubble in the history of the world, and it has gotten even bigger since then.  The "too big to fail" banks are larger now than they have ever been.  Americans continue to run up credit card balances like there is no tomorrow.  Tens of thousands of manufacturing facilities and millions of jobs continue to leave the country.  We continue to consume far more than we produce and we continue to become poorer as a nation.  None of the problems that caused the crisis of 2008 have been solved and we are even weaker financially than we were back then.  So why in the world are so many people so optimistic about the economy right now?

Just take a look at the chart posted below.  It shows the growth of total debt in the United States.  During the financial crisis of 2008 there was a little "hiccup", but the truth is that not much deleveraging really took place at all.  And since the recession "ended", total credit market debt has gone on to even greater heights....

http://albertpeia.com/Total-Credit-Market-Debt-Owed-440x264.png

So what does this mean for the future?

Well, if a small "hiccup" in the debt bubble caused so much chaos back in 2008, what is going to happen when this debt bubble finally bursts?

That is something to think about.

Sadly, most Americans seem oblivious to all of this.

If you go out to malls in the wealthy areas of America today, people are charging up a storm.  In all, Americans charged a whopping 2.5 trillion dollars on their credit cards during 2011.  Way too many people have already forgotten the lessons that we all learned back in 2008.

Of course some Americans pay off their credit cards every month, but way too many Americans are not doing that.  In 1980, Americans were carrying 54 million dollars in revolving credit balances.  Today, Americans are carrying 794 million dollars in revolving credit balances.

And student loan debt is an even bigger bubble than credit card debt is.  As I have written about previously, total student loan debt in America is rapidly approaching a trillion dollars.

So it looks like U.S. consumers have not learned to stay away from debt.

That is not good.

Well, what about the banks?

Has the financial system learned any lessons since 2008?

No, not really.

Sadly, the "too big to fail" banks are now even bigger than ever.  The total assets of the six largest U.S. banks increased by 39 percent between September 30, 2006 and September 30, 2011.  If they were to fail today, they would be even more of a threat to our financial system than they were back in 2008.

And our major banks continue to be very highly leveraged.  In fact, major banks all over the world are absolutely swamped with debt.

The following statistics come from Zero Hedge....

The U.S. banking system is leveraged 13 to 1.

The Japanese banking system is leveraged 23 to 1.

The French banking system is leveraged 26 to 1.

The German banking system is leveraged 32 to 1.

These are insane levels of leverage, and they are just inviting another major financial crisis.

Do you all remember Lehman Brothers?  The fact that they were leveraged so highly is what did them in back in 2008.  When the value of their holdings declined by just a little bit they were totally wiped out.

Well, during this next financial crisis large financial institutions are going to be wiped out all over the world.  Major banks all over the globe are going to be crying out for more bailouts when things take a turn against them.

They are making the exact same mistakes that they made before, and they are going to be expecting more government handouts when things go bad.

Will we ever learn?

So obviously the banking system has not learned any lessons.

What about the federal government?

Well, if you follow my blog regularly, you know that I love to write about how horrific U.S. government debt is.

Unfortunately, over the past four years things have gotten so much worse.

Back in 2008, the U.S. national debt crossed the 10 trillion dollar mark.

Just recently, it crossed the 15 trillion dollar mark.

So now we are in a much weaker position financially to respond to another major financial crisis.

Just check out the chart posted below.  This is a recipe for national financial suicide....

http://albertpeia.com/Federal-Government-Debt-440x264.png

During fiscal 2011, the Obama administration stole close to 150 million dollars from our children and our grandchildren every single hour.

At the moment, the legacy of debt that we are passing on to future generations is sitting a grand total of $15,351,406,294,640.49.

But keep in mind that it is going up every single hour.

Meanwhile, our ability to service that debt is declining.  We are rapidly getting poorer as a nation.

During 2011, the amount of money that left the United States exceeded the amount of money that entered the United States by more than a half a trillion dollars.

This gap is called a trade deficit, and it is absolutely ripping our economy to shreds.

For a moment, imagine Uncle Sam standing next to a giant pile of money on a map of the United States.  Then imagine a half a trillion dollars being taken out of that pile every single year.

So why haven't we totally run out of money yet?

Well, it is because we borrow those dollars back.  In order to maintain our false standard of living, our federal government, our state governments and our local governments have to go out and beg the rest of the world to lend us our dollars back.

Sadly, our government schools have "dumbed-down" the population so much that most of them don't even know what a "trade deficit" is anymore.

Meanwhile, our economic infrastructure is being gutted like a fish.

Look, I know that I go over this point over and over and over, but it is absolutely imperative that we all understand this.

The half a trillion dollars a year that leaves this country every year could have gone to support businesses and jobs inside the United States.

But instead it is going to support businesses and jobs on the other side of the world.

The consequences of this are absolutely devastating.

According to U.S. Representative Betty Sutton, an average of 23 manufacturing facilities a day closed down in the United States during 2010.  Overall, more than 56,000 manufacturing facilities in the United States have shut down since 2001.

Even many so-called "American companies" have been bought up by the rest of the world.  The following comes from a recent article posted on Economy In Crisis....

RCA is now a French company, Zenith is a Korean company. Frigidaire is a Swedish company. IBMs Personal Computer Divisionwith its 500 patentsis now a Chinese company. Westinghouse Nuclear Energys major shareholder is Toshibaa Japanese Company. Lucent Technologies, a former research division of AT&T, along with all the patents acquired from the beginning of the phone system, is now a French company. In 2008, Brazilian-Belgian brewing company InBev purchased the iconic American brewer Anheuser-Busch, makers of Budweiser. With the sale of these manufacturing companies, the future profit and technologies all belong to foreign entities.

We once had the greatest economic machine in the history of the world.

Now it is being dismantled and bought up by foreigners.

When America's economic infrastructure declines, that means that there are less jobs available for all of us.

As I wrote about the other day, the employment situation in this country is not getting better and we have never even come close to recovering from the recession that started back in 2008.

During 2008 and 2009, the U.S. economy lost millions of jobs.  Since the beginning of 2010, the percentage of the U.S. population that has had a job has remained very stable....

http://albertpeia.com/Employment-Population-Ratio1-440x264.png

Normally, when a recession ends the percentage of Americans that have a job bounces back pretty dramatically.

So considering the fact that the employment situation has never recovered from the last financial crisis, what is going to happen when the next financial crisis hits?

And most of the jobs that have been "created" during this so-called "recovery" have been low income jobs.  In fact, if you look closely at the employment numbers that were released last Friday, you will find that the vast majority of the "new jobs" were part-time jobs.

But you cannot pay a mortgage and support a family on a part-time job.

Sadly, the truth is that median household income in America has been steadily dropping over the past several years.  Tens of millions of American families are deeply struggling and more Americans than ever are falling into poverty.

Back in the year 2000, about one out of every nine Americans was living in poverty.  Today, about one out of every seven Americans is living in poverty.

All of this is causing a great deal of anxiety in America today.  Large numbers of Americans know that something has fundamentally changed, even if they don't understand the specifics.  That is one reason why sites such as this one have become so popular.  People want some answers.

And once people get some answers about what is really happening, they tend to want to prepare for the hard times that are coming.

In a few days, a new series on National Geographic entitled "Doomsday Preppers" premieres.  The mainstream media is starting to take notice of the growing "prepper" movement in America today.  It is estimated that there are at least 2 million "preppers" in the United States at this point.  Of course people are "prepping" for a whole host of reasons, but the number one concern among most groups of preppers is the economy.

As the economy crumbles, more Americans than ever have decided that it is not a good thing to be 100% dependent on the system.

Back in 2008 and 2009, millions of Americans suddenly lost their jobs.  Because they did not have any finances stored up, large numbers of them also lost their homes.  Many went from being solidly middle class to being out on the street in a matter of months.

That doesn't have to happen to you.  Instead of blowing your money on frivolous things, do what you can to set something aside for the difficult times that are on the horizon.

A lot of those "in the know" are quietly making their own preparations.  For example, legendary film director James Cameron (Avatar, Titanic and Terminator) has purchased more than 2600 acres of farmland in New Zealand and he is getting out of the U.S. for good apparently.

Unfortunately, most of us do not have the resources for something like that.  But what most of us can do is we can change our priorities and start focusing on the things that will help us survive the hard times that are coming…’

 

 

 

http://www.albertpeia.com/todayspage.htm  
http://albertpeia.com/fbimartinezcongallard.htm  

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

 

 

Congressional earmarks sometimes used to fund projects near lawmakers' properties EXCLUSIVE | Thirty-three members of Congress have steered more than $300 million in earmarks and other spending provisions to dozens of public projects that are next to or within about two miles of the lawmakers own property, according to a Washington Post investigation. Earmarks alive and well, probe finds A study of defense bill identifies 115 proposals as earmarks, including 20 by GOP freshmen who campaigned against the pet projects.

 (Washington Post) [ Such things do wonders for property values; even the most ill-chosen properties. Lesson: If you dont know a damn thing about much of anything, ie., finance, real estate, business, etc., run for and be part of congress to make being stupid not matter. I think a more telling example of self-dealing are those steady raises and increased benefits packages that congress continued to vote for themselves despite what we all now know to be jobs so poorly done that the nation is now hopelessly and insumountably broke in every way that could possibky be imagined. House panel weighs insider-trading bill House committee members debated whether they should pass an insider-trading measure targeted at themselves.  (Washington Post) [ Yeah … that’s a tough call …   Bachmann received federally backed loanWeeks before Michele Bachmann called for dismantling federally subsidized loan programs, she and her husband signed for a $417,000 mortgage. (Washington Post) [ In my MBA thesis (MBA Finance, 1977, NYU GBA), among my conclusions was that ‘timing was everything in stock market investing’. Yes, indeed, you must time the market to be successful, though such position was squarely opposed to a panoply of ‘mechanized mindless approaches’ (ultimately that latter being a rationale to separate you from your money, regardless. In fact, today more than ever, buy and hold’s a sure loser even without the crashes when measured against a ‘real price deflator’ that takes into account the real rate of inflation. Well, in her defense she could always argue that the legislated ban on congressional insider trading hadn’t been passed yet … just kidding! Actually, we all know that just applied to stocks anywho. And, until the congress says those things that are illegal for everyone else are illegal for congress, such illegal activity is not really illegal; for them only, that is. No one’s above the law? Not so in pervasively corrupt, defacto bankrupt america where a clearly illegal act is not illegal for them unless they themselves say it’s to be prospectively considered illegal for them. Ethics? Silly boys and girls, as in , ‘don’t be silly!’. Congressional earmarks sometimes used to fund projects near lawmakers' properties EXCLUSIVE | Thirty-three members of Congress have steered more than $300 million in earmarks and other spending provisions to dozens of public projects that are next to or within about two miles of the lawmakers own property, according to a Washington Post investigation. Earmarks alive and well, probe finds A study of defense bill identifies 115 proposals as earmarks, including 20 by GOP freshmen who campaigned against the pet projects.

 (Washington Post) [ Such things do wonders for property values; even the most ill-chosen properties. Lesson: If you dont know a damn thing about much of anything, ie., finance, real estate, business, etc., run for and be part of congress to make being stupid not matter. I think a more telling example of self-dealing are those steady raises and increased benefits packages that congress continued to vote for themselves despite what we all now know to be jobs so poorly done that the nation is now hopelessly and insumountably broke in every way that could possibly be imagined.

 

 

Guest Post: Counterfeit Money, Counterfeit PolicyCounterfeiting is illegal because it is the false creation of value. The counterfeiter takes low-value paper and turns it into high-value money, which is fundamentally a claim on the real productive value of the economy that issues the currency and recognizes it as a proxy means of exchanging that productive value. Counterfeiting is illegal because the counterfeiter creates no additional value--he creates only the proxy for value. Creating real value--adding meaningful goods or services to the economy--is tedious, hard work. How much easier to simply transform near-worthless paper into a claim on actual goods and services.  If this is illegal, then would somebody please arrest the Board of the Federal Reserve for counterfeiting? The Fed has blatantly printed money without creating any real value to back up their added claims on productive value. Hence they are counterfeiting, pure and simple. A government based on rule of law would arrest these fraudsters and cons at the earliest possible convenience.

 

The Markets Since Their 2000 Highs: We're Not Bouncing Back  http://www.bullfax.com/?q=node-markets-their-2000-highs-were-not-bouncing-back  ... [ Actually the picture is even worse if the real inflation rate used. Wall street is total fraud and b***s***! Keep in mind, in addition to loss of principal, the flux / worry takes its toll on health as well as productivity. ] 02/02/2012 By Doug Short:   The January Effect in 2012 was quite strong, and the U.S. markets have continued the rally that began last October. But let's take a step back and review the performance of the major US indexes in the 21st century through the end of January 2012. Here is an update in response to a standing request from David England, a professor who has developed a popular college level stock market classes at John A. Logan College in Carterville, Illinois. David is also the founder of thetraderseye.com. In his upcoming presentations, he wants to disprove the standard message of Wall Street, "Don't worry! The market will always come back." I furnished David with some charts, and I shared them with regular visitors to my Advisor Perspectives pages. Specifically, David had asked for real (inflation-adjusted) charts of the S&P 500, Dow 30, and Nasdaq Composite. So I created two overlays one with Complete Story »   [ The following are important charts from Doug Short:

http://albertpeia.com/3real1.png

http://albertpeia.com/3real2.png

 

http://albertpeia.com/3real3.png

 

http://albertpeia.com/3real4.png

 

 

 

 

 

I Can’t Take It Anymore! When Will The Government Quit Putting Out Fraudulent Employment Statistics?  http://theeconomiccollapseblog.com  http://albertpeia.com/governmentfraudulentemploymentstats.htm 

 

 

 

 

 

The Financial Crisis Of 2008 Was Just A Warm Up Act For The Economic Horror Show That Is Coming  http://theeconomiccollapseblog.com http://albertpeia.com/2008crisisjustwarmupforcomingcollapse.htm

 

 

 

The Posts View The Senate didnt do enough to stop insider trading Editorial Board Theres still too much ambiguity on rules covering lawmakers. (Washington Post) [ So much for nobody being above the law! I quite agree that absolutely no ambiguity; indeed, no ‘wiggle room’ whatsoever should be countenanced in this ‘legislation’. Actually, an outright ban would be a more ‘cut and dry’ approach and desirable. Objections? Don’t run for office if you don’t like the rule. After all, Washington politics has strayed a long way from being a ‘public service sacrifice’ to rather an extravagantly accoutered, very costly to the public, but lucrative end in itself; and worse, regardless of results (the fiefdoms seem to be self-perpetuating). Yet, it still comes down to the meaningfulness of the laws, particularly relative to arbitrary enforcement; and, for those who believe the ‘courts’ will apply those laws as written and intended, I’m constrained to say from direct experience: ‘You don’t get out much!’ http://albertpeia.com/fbimartinezcongallard.htm     http://albertpeia.com/stansberrycorruptiondeclineofamerica.htm  http://albertpeia/americangovernmentdrugtrafficking.htm     http://albertpeia/americascorruptiondrugtrade.htm  

 

 

The Post’s View Drawdown in Afghanistan Why should troops die this year if U.S. is leaving next year? (Washington Post) [ Indeed! But the larger question is why should they have died in Afghanistan at all? Well, the answer’s simple, even beyond the military industrial complex / war profiteer thing. It’s not a question of the heroes in; but rather, it’s all about the heroin. Yes, heroin! That icky, sticky highly addictive and devestating drug that the most sordid of organized crime ilk here and abroad find so appealing and lucrative. And, it’s ‘high time’ for this very newspaper (among all others and media) to step up and say what everyone with a computer and internet connection with a desire to know already knows; viz., the u.s. government is in the illegal drug business (including heroin, cocaine, etc.) in a very big way. Back when I brought a RICO action involving drug money laundering (see infra) I never in my wildest dreams could have thought that reality to be so, yet indeed it is so.

 

Drug war hypocrisy: drug trafficking’s big money benefits Big Brother and corrupt banksters  PF Louis | The hypocrisy of the war on drugs is centers on the amount of drug trafficking that benefits the CIA and international banking system. Natural News February 1, 2012  [  http://albertpeia.com/americangovernmentdrugtrafficking.htm     http://albertpeia.com/americascorruptiondrugtrade.htm  http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm    http://albertpeia.com/fbimartinezcongallard.htm  
http://albertpeia.com/stansberrycorruptiondeclineofamerica.htm ]  ‘The hypocrisy of the war on drugs is outrageous when compared to the amount of drug trafficking that benefits the CIA and international banking system. The son of a convicted notorious mobster, John Gotti Jr, when asked in court if the family still dealt drugs cracked, “No, we can’t compete with the government.”

Today in Afghanistan, American troops have been seen guarding poppy fields used to make heroin. Those fields were all but wiped out by 2001 when the Taliban destroyed them and forbade that agricultural pursuit. Now theyre flourishing again after the American occupation.

This doesnt make sense despite all the mainstream reports that American troops are protecting the poppy farmers from the bad guys. Internet sites such as Prison Planet, Info Wars, The Political Coffeehouse and others report otherwise. They connect the CIA and US military to restarting the poppy fields in Afghanistan in 2002, increasing poppy growth by over 650 percent. Whos telling it like it is?

One way the CIA keeps their drug trafficking hidden from public view

The CIAs secret operations to influence journalism started in the 1950s by infiltrating the media and bribing journalists to be operatives and assets for the CIA. By 1976, then CIA director William Colby reportedly bragged that the CIA owned the press. Supposedly, this too secret to name operation was coined Operation Mockingbird by Deborah Davis in her book Katherine the Great.

Operation Mockingbird worked well against prize winning journalist Gary Webb when his newspaper, the San Jose Mercury News, ran his in depth series on CIA drug trafficking that flooded the USA to help finance the CIA backed Nicaraguan Contras during the 1980s.

Journalists all over the USA jumped on the series, claiming Webbs journalism was shoddy. The newspaper had to recant and fire him, and Gary Webb was black listed from mainstream journalism completely.

 

Webb retaliated by having his book Dark Alliance published and making the NY Times best seller list, forcing some of his critics to privately eat crow after the fact.

Despite the CIAs control of the press, a few Mexico and Central America cocaine busts of plane cargoes and discoveries of large cocaine stashes on crashed planes with CIA hired pilots flying them for front companies did hit the mainstream news, albeit briefly.

Remember the movie Air America? It was based on an actual CIA owned front company transporting tons of heroin from Southeast Asias Golden Triangle poppy fields during and after the Vietnam conflicts. Now Afghanistan and the Golden Crescent are the featured opium/heroin conduit sources.

Government and big business using drug traffic profits is nothing new

When the U.S. government made deals with the Cosa Nostra mafia to help police ports and harbors during WW II, they breathed life into the heroin trade. Eventually, Marseilles, France was set up by the Corsican mafia to become the French Connection for heroin traffic.

But opium trade history goes back further, to colonial times and early America. Thats when American shipping magnates used their fast Clipper Ships to compete with Englands monarch sanctioned dope running East India Company for transporting opium to China.

A few key players created family fortunes from the China opium trade that exist today within some northeast Americas old money families.

Among the familiar family names, according to Wikipedia (source below) is Forbes. Another source mentions Astor, a prominently wealthy philanthropic family around New York today (Wiki source below). In those days, trafficking dope was a legitimate business endeavor, immoral but not illegal.

Now it is illegal as well. Ironically, this allows the biggest illicit drug providers to financially benefit the CIA and international banking.’

 

Sources for this article include:

http://whatreallyhappened.com/RANCHO/POLITICS/MOCK/mockingbird.php

http://en.wikipedia.org/wiki/Forbes_family

http://en.wikipedia.org/wiki/John_Jacob_Astor

http://thepoliticalcoffeehouse.com/2011/12/01/us-military-opium-afghanistan/

http://www.minormusings.com/Drugs/Mask.html

 

 

See also:

Big Banks, Gov’ts Collude in Drug War Hypocrisy

Much Of Afghan Drug Money Going To ‘Our Friends’

Steady Stream of Drug Money Departs Afghanistan, U.S. Officials Flummoxed

Afghan CIA Drug Kingpin Shot Dead by Own Bodyguard

Afghanistan drug trade hits $4 billion a year

Occupiers involved in drug trade: Afghan minister

US and NATO protecting Afghan drug trade

B.C. RCMP seize 60,000 poppy plants in record haul

NATO rejects Russian call for Afghan poppy spraying

War on drugs is a hoax: US admits to guarding, assisting lucrative Afghan opium trade

UN: Afghan opium production up by 61% under NATO’s watch

DOJ: Drug Cartel’s Influence Extends Well Beyond Border Well Into the U.S.

 

AP source: Donald Trump intends to endorse Newt Gingrich's presidential bid Donald Trump intends to endorse Gingrichs GOP presidential bid, according to a source close to... (Washington Post) [ Yes, the unreality reality mobster and new york don (trump) and ‘the newt man’ hear some etherial sounds from beyond from ‘the lizard man’ aka the great Jimmy Morrison of The Doors fame in an instructive refrain:

Touch the newt man don
Be thou not afraid
Though his champagne’s now lemonade
Don’t forget the promise that you made
Though it looks like now you have been played
A deck of jokers now betrayed

To the full moon base as been said
Insanity’s what both you pled
As others’ life blood you have bled
Time for lun_a_tics_ like _you for  the harnessed bed…

 

TOUCH ME by THE DOORS
                                                    (Album "The Soft Parade")
 
{ I played this song along the album according to some other versions I was
able to find and it didn't sound well. So, I tried to write my own version
of this song - here is the result. http://www.rockmagic.net/guitar-tabs/the_doors/touch_me.crd }
 
INTRO:
 
               4 times: Am Am Am G Am Am G Am Bm
               2 times: Am7 Am7 Am7 G7 Am7 Am7 G7 Am7 Bm7
               1 times: Am7 -stop-
 
 
VERSE:
 
               Come on, come on, c'mon, c'mon now
               G
               Touch me babe,
               Bm                 C                   Cm
               Can't you see that I am not afraid.
                             A#                        Dm
               What was that promise that you made?                  
                             D#                        F#
               Why won't you tell me what she said?
                             C#
               What was that promise that she made?
 
 
CHORUS:
 
                   F#        Fm
               Now I'm gonna love you
                        F#     G#        C#
               till the heaven stops the rain.
               F#        Fm
               I'm gonna love  you
                        F#    G#            F#
               till the stars fall from the sky
                           C#
               for you and I.

 

 

In South, Gingrich vows to rise again The most topsy-turvy among up-then-down-again candidates says he could revive once more. (Washington Post) [ Rise again indeed! Like a phoenix from the ashes! You just can’t keep a good sleaze / con down (look at wobama). Not to worry newty; you got the endorsement of that new york don (trump), which also means you can be his celebrity apprentice. And, from beyond in South LA (‘LA Woman’ – The Doors) we hear the sweet sound of ‘the lizard man’, Jimmy’s spirit joining the thongs, I mean the throngs in unison, feverishly calling out in support of ‘the newt man’:

 

“ Mr. Mojo Risin', Mr. Mojo Risin'
Mr. Mojo Risin', Mr. Mojo Risin'
Got to keep on risin'
Mr. Mojo Risin', Mr. Mojo Risin'
Mojo Risin', gotta Mojo Risin'
Mr. Mojo Risin', gotta keep on risin'
Risin', risin'
Gone risin', risin'
I'm gone risin', risin'
I gotta risin', risin'
Well, risin', risin'
I gotta, wooo, yeah, risin'
Woah, ohh yeah “

 

Yes newt man … sounds like a plan!

Doors L.A. Woman Lyrics

Well, I just got into town about an hour ago
Took a look around, see which way the wind blow
Where the little girls in their Hollywood bungalows

Are you a lucky little lady in The City of Light
Or just another lost angel...City of Night
City of Night, City of Night, City of Night, woo, c'mon

L.A. Woman, L.A. Woman
L.A. Woman Sunday afternoon
L.A. Woman Sunday afternoon
L.A. Woman Sunday afternoon
Drive thru your suburbs
Into your blues, into your blues, yeah
Into your blue-blue Blues
Into your blues, ohh, yeah

I see your hair is burnin'Hills are filled with fire
If they say I never loved you
You know they are a liar
Drivin' down your freeways
Midnite alleys roamCops in cars, the topless bars
Never saw a woman...
So alone, so alone
So alone, so alone
[ Lyrics from: http://www.lyricsfreak.com/d/doors/la+woman_20506553.html ]
Motel Money Murder Madness
Let's change the mood from glad to sadness

Mr. Mojo Risin', Mr. Mojo Risin'
Mr. Mojo Risin', Mr. Mojo Risin'
Got to keep on risin'
Mr. Mojo Risin', Mr. Mojo Risin'
Mojo Risin', gotta Mojo Risin'
Mr. Mojo Risin', gotta keep on risin'
Risin', risin'
Gone risin', risin'
I'm gone risin', risin'
I gotta risin', risin'
Well, risin', risin'
I gotta, wooo, yeah, risin'
Woah, ohh yeah

Well, I just got into town about an hour ago
Took a look around, see which way the wind blow
Where the little girls in their Hollywood bungalows

Are you a lucky little lady in The City of Light
Or just another lost angel...City of Night
City of Night, City of Night, City of Night, woah, c'mon

L.A. Woman, L.A. Woman
L.A. Woman, your my woman
Little L.A. Woman, Little L.A. Woman
L.A. L.A. Woman Woman
L.A. Woman c'mon

 

 

 

 

The end for Gingrich? Hes going down in his own style. (Washington Post) [ Wow! Say it isn’t so; that is, ‘Jimbo’, as in the ghost of the great Jim Morrison of ‘Doors’ fame who as ‘the lizard man’ reminds ‘the newt man’ that, There are things known and there are things unknown, and in between are the doors (of perception. Aldous Huxley); and, then he breaks out in the famed refrain,

 

This is the end

Slimy Newt Man

The end you dumb rear end

 

Your door you whore,

The full moon’s allure

Colony no more!

Doors The End Lyrics Sung by Jim Morrisson (first verse and then full song – with guitar chords)
Songwriters: JACKSON, TONY / ROBERTS, BEN / D'ARCY, AARON

This is the end
Beautiful friend
This is the end
My only friend, the end…’

THE END 
 
D                     C                D
This is the end, beautiful friend.
                          C              D
This is the end, my only friend, the end
      C       G              D
of our elaborate plans, the end
      C                          D
of everything that stands, the end,
       C      G       D
no safety or surprise, the end.