We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson

LulzSec Takes Down Cia.gov

Nope. This is not an Onion headline. Go ahead. Try it out. http://www.cia.gov

Internet kill switch on in T minus 5...4...3... as full blown retaliation against all (cyber)enemies foreign and domestic hits new highs. And since no crisis can go to waste, next up is the the appointment of the propaganda Internet Tzar.

Harvey Organ, Wednesday, June 15, 2011

Problems in Greece Intensifies/Gold and silver withstand another attack

Harvey Organ's - The Daily Gold and Silver Report

Good evening Ladies and Gentlemen: Gold closed today up $1.80 to $1525.60 after being hit by the banking cartel twice during the day. Gold refused to buckle under the weight of massive non backed banker pap...

Guest Post: Why The Wheels Are Falling Off China's Boom

Submitted by Tyler Durden on 06/15/2011 17:09 -0400

Despite their many differences, the economies of China and the U.S. share a number of key traits: both are corrupt, rigged, crony-Capitalist, rely on phony statistics and propaganda and operate with two sets of rules: one for the Elites, and another for the masses. Given these similarities, it's no wonder that the wheels are falling off both economies. There are some key differences, of course, which will make the crashing of China's boom all the harder. China's leadership likes to do things in a big way, and so its campaign of "extend and pretend" over the past three years has been unprecedented. This isn't just the consequence of a Command Economy overseen by a Central State; the "extend and pretend" boom was fueled by stupendous borrowing by local governments and private enterprise as well. This flood of money has severely distorted China's economy, yet the imbalances are now normalized. When a system become this precarious and imbalanced, it can best be modeled by stick/slip destabilization: blaming the last grain of sand that destabilizes the entire pile for the collapse is to ignore the real cause: the entire system is unstable. Here are a few factors which are widely misunderstood or discounted by the mainstream financial media.

The Greek Bankruptcy Case Study Is Now A Cartoon

Submitted by Tyler Durden on 06/15/2011 18:53 -0400

With the Greek crisis approaching surreal proportions, now that everything from this point on is a carbon copy of events from May 2010 onward, and the only question is whether Europe will succeed in kicking the can down the road for another year (not with the 2 Year at 28% it won't and the 30 Year priced at 40 cents on the dollar) all one can do at this point is laugh at the daily dose of denial at the Keynesian-cum-monetarist experiment. Alas, one also has to be dead serious about this stuff because it just may usher the eventual implosion of capitalism once again, since many (us among them), believe that the downstream effects from the bankruptcy of Greece, and thus the ECB, and thus Europe, will make Lehman seem like a walk in the park (and the only reason Greece hasn't blown up yet, of course, is that Greece does not have a profitable fixed income trading desk that Goldman would love to gets its tentacles around). So in reporting on today's events we combine the hysterical with the somber. First, we present the latest NMA cartoon summarizing the Greek fiasco in only a way that NMA can. We also share the latest Greek summary piece from SocGen (which itself will be downgraded substantially when Greece folds). It should serve sufficiently well to defuse any left over levity: "This looks like a last ditch effort from Papandreou to save the situation as his Parliamentary majority is eroded, and the opposition threatens to renege on the conditions adhered to when the IMF Stand-By Arrangement was originally signed back in May 2010. Meeting these programme requirements is a binding condition for a continuation of the EU/IMF quarterly disbursements, which are necessary to plug Greece’s funding gap. Greece’s situation, and the euro area’s sovereign crisis, have reached a new level of uncertainty."

Market Volume Explodes To Third Highest Since Flash As FNSR Implodes For Second Time In A Row

Submitted by Tyler Durden on 06/15/2011 16:41 -0400

Stock volume, hiding for so long, finally made an appearance. The all dominating ES, which determines the stock price for virtually every other security in the stock market, surged to 3.7 million shares, the 3rd highest in 2011, with only the post-Fukushima nuclear explosion panic from March, when the Nikkei briefly went bidless, higher, and also the third highest since the Flash Crash days of last May. As reported earilier, now that all support lines have been breached, the next bounce can be expected at around 1,244 or the 200 DMA. Should that be taken out and it will be to make way for Operation Twist 2, we will promptly see the 1,150s once again. After that, we are straight down to Jackson Hole levels.

In The News Today

June 15, 2011, at 2:26 pm
by Jim Sinclair

Dear CIGAs,
Myth #2 is the most important. Believe me, even the near and dear believe that the Federal Reserve will cease QE and go restrictive. That is pure nonsense.
Do some homework and read the December 9th, 2000 presentation by Ben Bernanke on Japan’s zero lock cost of money and his advice to them.
This is exactly what he will do in June of 2011. Gold will take out $1650.

Japanese Monetary Policy: A Case of Self-Induced Paralysis?* Ben S. Bernanke
Princeton University
December 1999
* For presentation at the ASSA meetings, Boston MA, January 9, 2000. I wish to thank Refet Gurkaynak for expert research assistance.
The Japanese economy continues in a deep recession. The short-range IMF forecast is that, as of the last quarter of 1999, Japanese real GDP will be 4.6% below its potential. This number is itself a mild improvement over a year earlier, when the IMF estimated Japanese GDP at 5.6% below potential. A case can be made, however, that these figures significantly underestimate the output losses created by the protracted slump. From the beginning of the 1980s through 1991Q4, a period during which Japanese real economic growth had already declined markedly from the heady days of the 1960s and 1970s, real GDP in Japan grew by nearly 3.8% per year. In contrast, from 1991Q4 through 1999Q4 the rate of growth of real GDP was less than 0.9% per year. If growth during the 1991-1999 period had been even 2.5% per year, Japanese real GDP in 1999 would have been 13.6% higher than the value actually attained.
Some perspective is in order. Although, as we will see, there are some analogies between the policy mistakes made by Japanese officials in recent years and the mistakes made by policymakers around the world during the 1930s, Japan’s current economic situation is not.
A major source of the difference in my calculation and the IMF calculation is that the IMF bases its potential output estimate on the actual current value of the capital stock. Relatively low investment rates throughout the 1990s have resulted in a lower Japanese capital stock than would have been the case if growth and investment had followed more normal patterns. I thank Paula DeMasi of the IMF for providing their data.
More…

Jim Sinclair’s Commentary

The average guy can go to hell. The Fat Cats not only can not pose a dime, but must always make profits even on the back of 99.9% of American citizens.

Fed Gave Banks Crisis Gains on $80 Billion Secretive Loans as Low as 0.01%
Credit Suisse Group AG (CS), Goldman Sachs Group Inc. (GS) and Royal Bank of Scotland Group Plc (RBS) each borrowed at least $30 billion in 2008 from a Federal Reserve emergency lending program whose details weren’t revealed to shareholders, members of Congress or the public.
The $80 billion initiative, called single-tranche open- market operations, or ST OMO, made 28-day loans from March through December 2008, a period in which confidence in global credit markets collapsed after the Sept. 15 bankruptcy of Lehman Brothers Holdings Inc.
Units of 20 banks were required to bid at auctions for the cash. They paid interest rates as low as 0.01 percent that December, when the Fed’s main lending facility charged 0.5 percent.
“This was a pure subsidy,” said Robert A. Eisenbeis, former head of research at the Federal Reserve Bank of Atlanta and now chief monetary economist at Sarasota, Florida-based Cumberland Advisors Inc. “The Fed hasn’t been forthcoming with disclosures overall. Why should this be any different?”
The Federal Reserve Bank of New York, which oversaw ST OMO, posted aggregate data about the program on its website after each auction, said Jeffrey V. Smith, a New York Fed spokesman. By increasing the availability of short-term financing when private lenders were under pressure, “this program helped alleviate strains in financial markets and support the flow of credit to U.S. households and businesses,” he said.
More…

Jim Sinclair’s Commentary

Here is the latest from John Williams’ www.shadowstats.com

- Economy Falters as Inflation Surges
- May’s Annual Consumer Inflation: 3.6% (CPI-U), 4.1% (CPI-W), 11.2% (SGS)
- Real Retail Sales Contracted in Both April and May
- Stalled Industrial Production Continued
http://www.shadowstats.com