Thursday, May 31, 2012

"The End Game: 2012 And 2013 Will Usher In The End" - The Scariest Presentation Ever?

If Raoul Pal was some doomsday spouting windbag, writing in all caps, arbitrarily pasting together disparate charts to create 200 page slideshows, it would be easy to ignore him. He isn't. The founder of Global Macro Investor "previously co-managed the GLG Global Macro Fund in London for GLG Partners, one of the largest hedge fund groups in the world. Raoul came to GLG from Goldman Sachs where he co-managed the hedge fund sales business in Equities and Equity Derivatives in Europe... Raoul Pal retired from managing client money in 2004 at the age of 36 and now lives on the Valencian coast of Spain, from where he writes." It is his writing we are concerned about, and specifically his latest presentation, which is, for lack of a better word, the most disturbing and scary forecast of the future of the world we have ever seen....
And we see a lot of those.

Turk – This Coming Disaster Will Be Worse Than Lehman 2008

from KingWorldNews:
With continued volatility in major markets, as well as gold and silver, today King World News interviewed James Turk out of Europe. Turk told KWN, “The money coming out of the stock market is not only going into German and US government paper; it is also going into gold and silver…” Here is what Turk had to say about the accelerating global crisis: “The global financial situation is really starting to spin out of control, Eric. It won’t be long now before the Federal Reserve, ECB, Bank of Japan and Bank of England start more QE in an attempt to keep global stock markets from imploding and causing another Lehman Brothers collapse.
Rob Arnott continues @

SBSS 34. Everything Burns

from TruthNeverTold :

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Rob Arnott – Lost Confidence & Stocks to Plunge 20% to 30%
from KingWorldNews:
With continued volatility in global markets, today King World News interviewed five time Graham & Dodd Award Winner, Rob Arnott, who oversees more than $100 billion as the Founder & Chairman of Research Affiliates. When asked if the global economy and financial system is at risk of a collapse, Arnott responded, “There is certainly a danger of it accelerating into a nastier situation. What we need to do is find some resolution of the problem. The problem is spending money we don’t have. The consequence of spending money we don’t have is runaway indebtedness, which sews the seeds for a Greek style default.”
Rob Arnott continues @

Eric Sprott: The Real Banking Crisis, Part II

Here we go again. Back in July 2011 we wrote an article entitled "The Real Banking Crisis" where we discussed the increasing instability of the Eurozone banks suffering from depositor bank runs. Since that time (and two LTRO infusions and numerous bailouts later), Eurozone banks, as represented by the Euro Stoxx Banks Index, have fallen more than 50% from their July 2011 levels and are now in the midst of yet another breakdown led by the abysmal situation currently unfolding in Greece and Spain.... Although the last eight months have not played out the way we would have expected for gold, they have played out the way we envisioned for the banks. The question now is how long this can go on for, and how long gold can remain under pressure in a banking crisis that has the potential to spread beyond Greece and Spain? So much now rests on the policy responses fashioned by the US Fed and ECB, and just as much also rests on what's left of European citizens' confidence in their local banking institutions. Neither of these things can be precisely measured or predicted, but we continue to firmly believe that depositors in Greece and Spain will choose gold over drachmas or pesetas if they have the foresight and are given the freedom to act accordingly. The number one reason we have always believed gold should be owned, and why we believe it will go higher, is people's growing distrust of the banking system - and we are now there. We will wait and see how the summer develops, and keep our attention firmly focused of the second phase of the bank run now spreading across southern Europe.

China PMI Plunges Most In 28 Months, Reverts To HSBC's Reality

Color us not stunned at all. China's Manufacturing PMI finally reverted to the reality that HSBC's Manufacturing PMI has been arguing for and fell for the first time in six months. The drop is the largest since February 2010. While still above 50 (though the lowest level of expansion in five months), or 50.4 technically, down from 53.4, and missing expectations of 52.0, it seems another engine of global growth just sputtered finally - as the real impact of a European depression and fiscally challenged US hit home.

Be Afraid Europe, Be Very Afraid - Tim Geithner Is Now "Helping" You

If there was one piece of news that could force an all out panic in a market already on the edge, it is that outgoing (as in finally departing) US Treasury Secretary, Tim Geithner, was getting involved in the European Crisis. Sadly, this is precisely what happened.
Sorry, Europe, you are now doomed.

Myths and Realities of Returning to a Gold Standard

Short of the complete destruction of a fiat currency, there is nothing that can demonstrate beyond doubt the shallowness of the promise to protect purchasing power that is being made on any day. There is no bright line separating performance from talk. With a gold standard, deception is much more difficult. Creating too much money will lead to redemptions that drain away the official gold stockpile. Everyone can see the inventory shrinking. If it shrinks to zero, then the managers of the system have failed, period. There is no ambiguity about it, and the politicians in charge at the time have little room for denial. The formal adoption of a gold standard holds no magic. It's just another promise. But it is a promise that carries an assured potential for egg-on-face political embarrassment if it is broken, and the only way for the people in charge to avoid that embarrassment is to refrain from recklessly expanding the supply of cash. That's why a gold standard protects the value of a currency, and that is why the politicians don't want it.

USDX Pushing Higher as Money Flows into Treasuries

Trader Dan at Trader Dan's Market Views - 6 hours ago
The following chart I put together is interesting in the sense that it reveals exactly what is pushing the US Dollar Index Higher. Normally, all things considered, the country which possesses the most solid fundamentals in terms of monetary policy, economic growth rate, fiscal policy and above all, YIELD or INTEREST PAID on its government debt, tends to have the strongest currency. At least that is the way it formerly was. These are broad principles and while there are always deviations, if two countries were pretty evenly matched in terms of the first three factors, the nation whi... more » 

Terrible Chicago PMI number/10 yr uSA treasury falls to 1.57%/Challenge reports huge layoffs/High amounts of gold standing for delivery in June

Good evening Ladies and Gentlemen: Gold closed down$1.60 to $1563.70.  Silver was down 22 cents to $27.74. Gold was heading northbound and then at 9:50 am :  BANG!!  Our bankers showed up and down went gold and silver.  Gold recovered somewhat and in the end it was only down by $1.60.  Silver fared worse as it was down 22 cents. Today the Chicago's PMI index fell badly and this

Simon Johnson: Jamie Dimon and the Failure of the Nation



Belligerent Bears Batter BNI's 'Buffett-Black-Swan' Bet

Was it just a week ago that we suggested buying Burlington Northern CDS (credit protection) as the cheapest Black-Swan bet against Buffett and Bernanke's ebullience? The answer is yes. And from the start of May the cost of protection has doubled from around 15bps to just over 30bps - quite a surge as it seems more than a few funds thought this a worthwhile trade to tuck in the back pocket at a minimal carry cost. At 32bps mid (31/34), it remains cheap still from a carry perspective and while we are approaching the initial profit target, the reason for buying this low cost, long vol trade is the huge convexity upside should things go a little more pear-shaped for the Octogenarian-of-Omaha - or more specifically for the US equities in general. We do note that if this keeps pushing past our other profit-targets then some should be covered since counterparty risk will rapidly become an issue (unless the Fed officially becomes a CCP).

FRIGHTENING: Fukushima, Washington Hides ‘Black Swan’ of Economic Collapse

As the sovereign debt crisis in Europe dominates media coverage of both financial and main street news, Washington’s deliberate cover up of a far more serious threat to the global economy stemming from the continuing crisis at Japan’s Fukushima nuclear power plant (beginning on Mar. 11, 2011) is now seeping out more rapidly from sources outside the captured and complicit mainstream news outlets.
“You can’t stop the truth from leaking out about Fukushima, and [President] Obama actually came out with a statement at the start of this disaster and said that their nuclear experts did not feel that harmful levels of radiation would reach our shores,” Nuked Radio host Christina Consolo told TruNews.
Due to increasing reports of nuclear contamination found in pollen across the U.S. West Coast, babies with elevated becquerel levels of nearly 10 times normal (presumably from mother’s milk), and a statistically unusual number of children with flu-like symptoms who won’t respond to conventional medical protocol, the truth about Fukushima could easily break out into a national panic significant enough to trigger an economic collapse of the U.S. economy and dollar, according to Consolo.
Read More @



100K To Attend Ron Paul Festival in Tampa!

from Matlarson10:



Not so fast! Romney has NOT won the Republican nomination yet!

Republican Party winning the battle but losing the war?
from RestoreConstitution8:


Sneering MSNBC Anchor: “I’m Way Too Lazy” To Research the Bilderberg Group

Is it any wonder global elite confab enjoys no media scrutiny?
by Steve Watson, Infowars:
MSNBC Teleprompter reader Lawrence O’Donnell has admitted he is “way too lazy” to look into the activities of the elite Bilderberg Group meeting in secret this weekend in Chantilly, Virginia. See the video here.
O’Donnell was asked about Bilderberg by We Are Change reporter Luke Rudkowski, who attempted to break through what can only be described as a wall of ignorance and cognitive dissonance to enlighten The Last Word host.
The as always mild mannered and polite Rudkowski attempted to explain to O’Donnell that Bilderberg is an annual meeting of most influential people on the planet.
“No its not” O’Donnell shot back, before adding “I have no idea what it is – so its not.”
When Rudkowski attempted to explain that last year’s meeting was held in Switzerland, O’Donnell said “That’s a lie. People are lying to you.”
When Rudkowski said he actually went to the location of the meeting to report on it, O’Donnell said “No you didn’t. You didn’t see a single media person go…”
Read More @

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Be Afaird Europe, Be Very Afraid - Tim Geithner Is Now "Helping" You

If there was one piece of news that could force an all out panic in a market already on the edge, it is that outgoing (as in finally departing) US Treasury Secretary, Tim Geithner, was getting involved in the European Crisis. Sadly, this is precisely what happened.
Sorry, Europe, you are now doomed...

Warning: Ignore Bill Gross’ Hard Money Prediction At Your Own Risk

Today’s investment outlook entry at PIMCO is a great read. Bill Gross, perhaps as much as anyone in the world, has benefited by the incredible performance of fixed income (relative to equities) over the past 30 years. So when he questions the future efficacy of investment in sovereign fixed income–and even mentions the term “hard money”–we listen [see alsoThe Ten Commandments of Commodity Investing].To be sure, fiat-based fixed income securities have been “the” investment of the past generation. Many believe this megatrend has run its course, but it hasn’t reversed itself yet on a large scale. The strategy of investing the majority of a portfolio in fiat-based fixed income products will of course keep working–until it stops working!
Read More @

Biderman: "Everyone Is Now A Seller Of US Stocks"

Focusing on his supply-demand perspective of what drives stock prices and the heavy volume of corporate selling combined with mutual fund outflows that we have been so vociferous about, Charles Biderman of TrimTabs provides color on why, just like in 2010 and 2011, markets sold off in May. Whether you believe it is explicitly the angst-inspiring European malaise, Facebook's flop, or US macro deterioration and a pending fiscal cliff - the real driver is more shares chasing less cash as he puts it and reflexively the news exaggerates it or stalls it. Stock prices are likely to keep dropping, no matter what, until the Fed announces the next stimulus/easing (as we all know) but unfortunately this will have no impact on the real economy (though stocks will pop). Biderman berates the Fed for its constant insistence that this time is different and as far as the election 'our policies will bring about sustainable recovery and jobs' promises we will hear from both candidates, he succinctly summarizes thus: "What Bullshit! Where we are now as a world is: it's ok for government to lie for their own benefit".

Uncle Sam Admits Monitoring You For These 377 Words

One of breakout standup routines from the late, great George Carlin was his 1972 monologue “Seven Words You Can Never Say on Television.” In the presence of polite company, I shall not repeat them… but rest assured, the routine is still hilarious to this day. I wish I could say the same about the Department of Homeland Security… I wish I could say this is all a big joke… that the government’s “377 words you can never use online” is just some stupid comedy routine. But it’s not. And you just can’t make this stuff. After vigorous resistance, the Department of Homeland Security was finally forced into releasing it’s 2011 Analyst’s Desktop Binder. It’s a manual of sorts, teaching all the storm troopers who monitor our Internet activity all day which key words to look for.

Busting The "Core" European Myth

Everyone knows that Europe is divided into the Periphery (aka the PIIGS), and the Core (aka the countries that are supposed to be safe). What everyone also knows, is that the core, naively represented by Germany and France, supposedly has homogeneous distribution of economic growth and prospects. That all changed last year, when France moved from being a AAA-rated country, to a fallen superduper angel following the Moody's downgrade to AA+. Yet nowhere is the glaring divergence between these two formerly comparable economies than in the two articles cited below, both from the same publication, and both from today.

Market Fails To Zucker In Gullible Traders With End Of Day Stop Hunt

Well, they sold in May but did they go away? If today is any guide, they did as the swings across asset classes intraday were very reminiscent of 'death rattles' with trading scenarios becoming more and more binary and more and more extreme. Into the US macro data this morning risk assets in general were behaving in a synchronized manner. As the dismal data hit, it got wild with gold and stocks gapping down and Treasury yields crashing lower (10Y 1.53 handle!) only to be saved around the European close by chatter of IMF aid for Spain (funded by the selling of unicorn tears) at which stocks erupted (and while bonds, the USD, and Gold also reacted - they were far more muted). The afternoon was quiet until stocks had a mind of their own and went on a stop-hunt up to yesterday's late day highs (and that magical 1315 level) - pulling well away from any other asset-class reality - only to fail dismally, ending with an abrupt tumble back to sanity (just slightly in the red for the day) grabbing VWAP into the close. The signals were everywhere that risk was not 'on' no matter how hard stocks tried with high-yield credit (most notably the ETFs) surging and purging ending with a terrible dive (after popping up to VWAP after our earlier note) on heavy volume.

Facebook & the Bubble Mentality

So Facebook keeps falling, and is now floating around the $27 mark.  We’re a third of the way down to my IPO valuation of FB as worth roughly $2-4 a share (or 5-10 times earnings), although I wouldn’t be surprised for the market to stabilise at a higher price (at least until the next earnings figures come out and reveal — shock horror — that Facebook is terrible at making money). The really stunning thing is that even after all these falls, FB is still trading at 86 times earnings. What the hell did Morgan Stanley think they were doing valuing an IPO without any viable profit model at over 100 times earnings? The answer is that this was an exit strategy. This IPO was about the people who got in early passing on a stick of dynamite to a greater fool which incidentally is precisely the same bubble mentality business model as bond investors who are currently buying negative-real-yielding treasuries at 1.6% hoping to pass them onto a greater fool at 0.5% (good luck with that).

What Does High Yield Credit Know That Stocks Don't?

While stocks, gold, and the dollar are generally in sync, Treasuries appear modestly more bearish now (for stocks) but it is the high-yield bond ETFs that is making a few people nervous as they plunge on heavy volume (and well below their intrinsic value). Obviously no-one really knows what i going on at JPM, but fort some more color we note that IG9 10Y is trading wider once again offered at 169bps - so one wonders if the liquidity in HYG is allowing some unwinds (or more hedges to be laid out). Certainly stocks remain ignorant of it for now - though month-end may be impacting both.


Monthly Gold Charts for May 2012

Trader Dan at Trader Dan's Market Views - 2 hours ago
I do want to note that since we are facing a very similar set of deflationary factors at the current time as we did back in 2008 when the credit crisis first erupted, that time frame is an analogous year and for that reason provides at least some sort of frame of reference for a guide to price action. Using MONTHLY CLOSING PRICES only, gold fell from a peak of $975 down to a low of $715 or a drop of 26.5% from it best monthly closing price BEFORE THE FED made clear that a round of Quantitative Easing would commence. You will recall that the purchases consisted mainly of Mortga... more » 

Goldman Slashes Treasury Yield Forecasts

If it appears like it was only yesterday that Goldman was advising clients to short the 10 Year Treasury, it is because it was... give or take a few months: From January: "Since the end of last August, we have argued that 10-yr US Treasury yields would not be able to sustain levels much below 2% in this cycle. Yields have traded in a tight range around an average 2% since September, including so far into 2012. We are now of the view that a break to the upside, to 2.25-2.50%, is likely and recommend going tactically short. Using Mar-12 futures contracts, which closed on Friday at 130-08, we would aim for a target of 126-00 and stops on a close above 132-00." We added the following: "As a reminder, don't do what Goldman says, do what it does, especially when one looks the firm's Top 6 trades for 2012, of which 5 are losing money, and 2 have been stopped out less than a month into the year." Sure enough, as we tabulated last night, those who had listened to this call, and also gone long stocks as Goldman urged on March 21, have lost nearly 30% in about 2 months. Those who listened to us and did the opposite, well, didn't. Which is why the just released note from the very same Garzarelli who 4 months ago was so gung ho on shorting bonds, just cut his bond yield forecast for the entire world, US Treasurys included: "We now see 10-year US Treasuries ending this year at 2.00% (from 2.50% previously, and 30bp above current forwards), rising to 2.50% (previously 3.25%, and 60bp above the forwards) by December 2013. The corresponding numbers for German Bunds are 1.75% and 2.25%." In other words, it is now that Doug Kass should have made his short bonds call: not when he did it, a month ago and got his face bathsalted right off. For those asking - yes: Goldman is now selling bonds to clients.

Santelli On Capital Flight And Bond Contagion

While it will be no surprise to any ZH reader (with our attention to Swiss 2Y rates) the world is undergoing a massive capital flight to safety. Rick Santelli gave this topic his special treatment today, pointing out that "capital is detouring - to avoid risk", and outlining just how big a 'crash' lower in yields we have seen among many of the supposedly safest sovereigns as money floods to safe-havens (including UK, US, Japan, Germany, and Holland). What is most important is that Rick outlines why we should care - when all around are yawning on about how cheap 'dividend' stocks must be given low interest rates - since it changes the nature of capital (the life-blood of our markets) from risk-taking to absolute safety-seeking - as he points out that "it isn't necessarily about our own economy's numbers, it isn't even about who we export to; it's the fact that if capital continues to get somewhat impaired, you'll have more data points as investors not only rethink about their capital but everybody rethinks everything in the capital structure that makes business go round."

Buy the Euro?

by Andrew Hoffman,
As I write Wednesday at 12:05 PM EST, gold has rocketed from a $20/oz loss to a $5/oz gain while the “DOW JONES PROPAGANDA AVERAGE” remains at its lows, the fifth such occasion this year that “Cartel Rule #1” will be broken if this relationship holds through the NYSE close – i.e. “thou shalt not let PMs rise when the Dow plunges.”  Moreover, the Euro is in FREEFALL as genuine fear of what I have SCREAMED OF FROM THE RAFTERS FOR MONTHS appears highly likely – that is, the upcoming fragmentation – and possibly complete dissolution – of the ill-fated, 13-year-old Euro currency.
Given all the recent speculation of the Euro’s fate – short- and long-term – as well as Jim Sinclair’s baffling insistence that the “dollar index” will fall from its present level of 82.9 to the low 50s, I thought I’d “re-pen” what I have been writing for the past decade – i.e., the dollar index is meaningless.  Today, I’m going to highlight a piece I wrote on this topic a year ago, which you can read in its entirety below.  Remember, it was written just after the “SUNDAY NIGHT PAPER SILVER MASSACRE,” and just before the commencement of Global Meltdown II, the U.S. debt ceiling debacle, and ultimately, ALL-TIME HIGH gold prices…
Read more @

WeAreChange Proves Tony Blair Lied To Parliament About Bilderberg

The incredible moment of revelation starts at 1:15.
Q: Conflict of interest?
A: Yeah. ahhh…
from WeAreChange:

In The News Today

Jim Sinclair’s Commentary

Face it, everything that is required in Euroland will be provided.
Anything required that is not immediately available there will be provided by the Fed via swaps.
QE to Infinity is as sure as death and taxes

IMF looking at Spain bailout: report By William Spain
CHICAGO (MarketWatch) — The European division of the International Monetary Fund is looking at possible plans for a rescue loan to Spain if that country can’t find the cash to bail out its third-largest bank by assets, the Wall Street Journal reported Thursday, citing unnamed sources. Spain is reportedly short 10 billion euros needed to save Bankia S.A.ES:BKIA +0.19% ; the total tab will run to 19 billion euros, but Spain’s bank bailout fund has 9 billion euros left, the newspaper noted. A bailout would essentially nationalize the bank, which got caught short as s result of a crash in the real-estate market and general economic downturn.

Jim Sinclair’s Commentary

Well now there are two of us that love gold and look for higher prices now.

Einhorn Trashes Buffett And Cash, But Loves Gold 5/31/2012 @ 2:18PM
Hedge fund manager David Einhorn, well known for his persuasive belittling of companies he has shorted–a recent successful target was Green Mountain Coffee Roasters (GMCR)– has slyly taken on a sturdier target in his May 29 letter to holders in his Greenlight Capital funds: Warren Buffett.
Buffett, you’ll recall, devoted ten paragraphs of his latest letter to Berkshire Hathaway (BRK.A) shareholders to mocking Gold Bugs. It’s a tour de force by the Old Man, and we highly recommend reading the passage.
In it, Buffett figuratively stacks up all the world’s gold and compares it to assets he views as more productive:
“Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At $1,750 per ounce–gold’s price as I write this–its value would be $9.6 trillion. Call this cube pile A.”
“Let’s now create a pile B costing an equal amount. For that, we could buy all U.S. cropland (400 million acres with output of about $200 billion annually), plus 16 Exxon Mobils (the world’s most profitable company, one earning more than $40 billion annually). After these purchases, we would have about $1 trillion left over for walking-around money (no sense feeling strapped after this buying binge). Can you imagine an investor with $9.6 trillion selecting pile A over pile B?”

Jim Sinclair’s Commentary

Of course as QE prepares to go to infinity here and there.

Euro Leaders May Need to Ease Deficit Plans, IMF’s Shafik Says By Scott Hamilton – May 31, 2012 9:30 AM GMT-0300
European authorities should consider relaxing fiscal consolidation targets for some euro-area countries as they may exacerbate economic slumps and undermine public support, International Monetary Fund Deputy Managing Director Nemat Shafik said.
“Fiscal adjustment plans for this year are broadly appropriate in Europe,” Shafik said in prepared remarks for a speech at the Brussels Economic Forum in the Belgium capital today. “In a few euro-area countries, however, the nominal fiscal targets for 2013 agreed before the current slowdown in growth may prove too pro-cyclical and may need to be adjusted or at least expressed in structural terms.”
Shafik also said the European Central Bank could loosen policy further to keep inflation from slipping too far below its goal of just under 2 percent. Data today showed euro-area price growth eased more than economists forecast in May to 2.4 percent. As well as pushing back deficit deadlines for some euro members, leaders should also look at increasing financial integration to ease market pressures, she said.
“Greater fiscal integration would contribute to lowering sovereign yields and would likely improve the ability of countries to access markets to finance their debt,” Shafik said. “Such steps would involve providing banking support from a common resource pool independent from national sources, sooner rather than later.”
While a common backstop would entail “some fiscal risk- sharing,” Shafik said restoring stability will require “additional pooling of sovereignty.”

Jim Sinclair’s Commentary

This situation is moving towards a conclusion fast.

Money flies out of Spain, regions pressured By Sonya Dowsett and Sarah White
MADRID | Thu May 31, 2012 10:49am EDT

(Reuters) – Spaniards alarmed by the dire state of their banks are squirreling money abroad at the fastest rate since records began, figures showed on Thursday, and the credit ratings of eight regions were cut.
Spain is the next country in the firing line of the euro zone’s debt crisis, with spendthrift regions and shaky banks threatening to blow a hole in state finances and pushing funding costs towards levels that signal the need for a bailout.
The European Commission gave new help on Wednesday, offering direct aid from a euro zone rescue fund to recapitalize Spanish banks and more time for Madrid to reduce its budget deficit.
That helped lower the risk premium investors demand to hold Spanish 10-year debt rather than the German benchmark on Thursday, but it remained close to the euro-era record, at 520 basis points.
Bank of Spain data showed a net 66.2 billion euros ($82.0 billion) was sent abroad last month, the most since records began in 1990. The figure compares to a 5.4 billion net entry of funds during the same month one year ago.

Jim Sinclair’s Commentary

The sign carried by the sage that the end is near is wrong. The end is here now!

Wells Fargo Seizes Stockton, California City Hall Thursday, May 31, 2012
The Stockton City Council announced Wednesday that they will look at bankruptcy contingency plans after Wells Fargo seized the new city hall building.
The city paid $35 million to buy the 8-story building, but was not able to move in because of its money problems, and recently stopped making debt payments all together. This is the fourth building that was repossessed by Wells Fargo; the bank seized three city parking garages for the same reason.
Just wait to financial problems start to put a squeeze on state governments. California and Illinois are high up on the list. They might be able to scrape by for another year or two, but that’s it.

Jim Sinclair’s Commentary

Gold is being monetized everywhere. This is monetization even though it will be denied to be so by MSM.

Rupee rescue: Is RBI now gearing up for gold bonds? Updated at Mon, May 14, 2012 at 12:31
Saikat Das

Speculation in the currency market is that the Reserve Bank of India (RBI) may issue government gold bonds to attract dollar inflows and stabilize the rupee which is in danger of slipping to a record low.
Earlier in the day, the RBI tightened rules for exporters, asking them to convert 50% of their dollar holdings into rupee and to access the forex market only after using up their existing balance.
"There is strong talk that RBI may issue sovereign gold bonds with interest rate in the range of 7-8%," a market participant with a private sector bank told on condition of anonymity.
"Gold bonds would be issued to both resident and non-resident Indians against deposit of gold. Source (of gold) will not be questioned. Simple tax could be levied at the rate of 15%. Tenure is likely to be 10 years. Gold collected will be pledged with foreign lenders and funds will be availed at 3 to 4%. The proceeds are likely to be used in infrastructure sector."
This news could not be confirmed, although a few currency dealers are endorsing the concept. A senior RBI official told that gold bonds is one of the options.

Jim Sinclair’s Commentary

This is not dollar positive. The mirror image dollar rally is limited in time.

Japan and China to start direct currency trading on Friday Business May. 29, 2012 – 02:35PM JST
Japan and China will start direct currency trading this week, Tokyo said Tuesday, the first time Beijing has let a major unit other than the dollar swap with the Yuan.
The move, which will scrap the greenback as an intermediary unit, comes as China introduces measures as part of a long-term goal of internationalizing its currency to rival the dollar.
The two-way trade will also be allowed to move in a wider range than the narrow band at which the dollar and Yuan change hands, Dow Jones Newswires and the Nikkei business daily reported.
China will set a daily rate based on dealer quotes with trade allowed to move within a 3% band above or below that rate, the reports said, compared with a 1% band fixed to Yuan-dollar trading.
The Chinese central bank earlier Tuesday introduced a rate of 7.9480 Yuan for every 100 yen, Dow Jones said.



Jim’s Mailbox


Truth be known, it has already collapsed.
The day they flushed Lehman the system was finished. The MSM via MOPE is trying to hide a train wreck just as they have hidden the nuclear accident of the century in Japan.

Announced U.S. Job Cuts Jump 67% From Year Ago, Challenger Says CIGA Eric

The public is beginning to realize what Insights readers already know, the labor market is weak and the economy is slowing. The slow uptick in the announced layoffs since 2010 illustrates this point (chart).
Chart: Challenger, Gray, and Christmas Announced Layoffs (ALO) And YOY Change

Headline:  Announced U.S. Job Cuts Jump 67% From Year Ago, Challenger Says
Job cuts announced in the U.S. jumped in May by the most in eight months, led by computer companies. Planned firings surged 67 percent from May 2011 to 61,887, according to figures released today by Chicago-based Challenger, Gray & Christmas Inc. It marked the fourth year-over-year increase so far in 2012. Employers have announced 245,540 reductions since Jan. 1, 20 percent more than a year earlier, the report said. Hewlett- Packard Co. (HPQ) (HPQ) accounted for almost half the announcements this month, making the computer industry the top job-cutter of the year. Firings may also occur in the food industry as Hostess Brands Inc. restructures following its filing for bankruptcy protection, the report said. “While consumers and businesses are spending more on technology, the spending appears to favor a handful of companies,” John A. Challenger, chief executive officer of Challenger, Gray & Christmas, said in a statement. “Those that are struggling to keep up with the rapidly changing trends and consumer tastes are shuffling workers to new projects or laying them off, altogether.”

Hi Jim,
As you have said over and over since early 2002, the derivatives will be the global financial system’s downfall. Seeing all of this is unreal. All paper will go POOF!

Dear Ian,
Absolutely correct.

I just left a meeting where a money manager that has $62 billion in one fund is calling for par on the US dollar to the Euro.
Given our fiscal outlook, does that seem probable considering the rush to the false safe haven dollar?
Thank You,

Dear CIGA Ted,
That is the MSM-MOPE party line simply regurgitated.
I doubt it. I believe you will see the euro back in the 1.40 -1.60 range after all the dust settles. If you read JSMineset you already know so why bother me?
I make up my mind and stay with my conclusion unless a fundamental event changes it.
This is JSMineSET, not JSMine-wander and change opinions daily.
Trading is an entirely different thing.


One way or another we are close to the end of this chapter of the Euro Crisis.
CIGA Christopher

Central Bank Chief Says Euro Needs Changes to Stay Viable By JACK EWING
Published: May 31, 2012 Comment

FRANKFURT — Mario Draghi, president of the European Central Bank, warned Thursday that the structure of the euro zone had become “unsustainable” and criticized political leaders he said have been slow to respond to the sovereign debt crisis.
“The configuration we had for 10 years, which was considered sustainable, has been shown now to be unsustainable unless further steps are undertaken,” Mr. Draghi told a committee of the European Parliament in Brussels.
In what may have been his bluntest criticism of political leaders since taking office in November, Mr. Draghi said that half-measures and delays by political leaders have made the euro zone crisis worse. He said they need to decide what kind of euro zone they want.
“The next step is for our leaders to clarify what is the vision for a certain number of years from now,” he said. “The sooner this has been specified, the better. Dispel this fog.”
Mr. Draghi, appearing before the Economic and Monetary Affairs Committee of the European Parliament, also delivered a bit of good news. He said that the E.C.B. has resumed normal lending to Greece’s four largest banks after they received fresh capital, easing fears of bank failures in the country that is at the center of the euro zone crisis.

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Santelli On Capital Flight And Bond Contagion

While it will be no surprise to any ZH reader (with our attention to Swiss 2Y rates) the world is undergoing a massive capital flight to safety. Rick Santelli gave this topic his special treatment today, pointing out that "capital is detouring - to avoid risk", and outlining just how big a 'crash' lower in yields we have seen among many of the supposedly safest sovereigns as money floods to safe-havens (including UK, US, Japan, Germany, and Holland). What is most important is that Rick outlines why we should care - when all around are yawning on about how cheap 'dividend' stocks must be given low interest rates - since it changes the nature of capital (the life-blood of our markets) from risk-taking to absolute safety-seeking - as he points out that "it isn't necessarily about our own economy's numbers, it isn't even about who we export to; it's the fact that if capital continues to get somewhat impaired, you'll have more data points as investors not only rethink about their capital but everybody rethinks everything in the capital structure that makes business go round."

Bank For International Settlements Making Gold Money: Gold 4 Cash Advertise Central Banks

from Silver Vigilante:
What makes the current situation in gold and silver so transparent is the narrative behind the markets. While the price propaganda in the markets tells potential buyers to stay away, The Basel Committee for Bank Supervision, part of the Bank for International Settlements, considers making gold a Tier 1 capital asset for commercial banks up from a Tier 3 asset.
The BCBS is a financial roundtable for a host of nation’s, who through this committee meet and devise world banking policies. From the BIS website:
The Committee’s members come from Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States.
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IMF Begins Spain's Schrodinger Bail Out

Update: as expected, "IMF Says Spain Discussions Internal, No Talks With Spain"

Wondering what prompted the most recent "month end mark up" ramp in stocks? Look no further than the IMF, which one month after failing miserably to procure a much needed targeted amount of European bailout funds as part of Lagarde's whirlwind panhandling tour, hopes that markets are truly made up of idiots who have no idea how to use google and look up events that happened 4 weeks ago. So here it is: the Spanish bail out courtesy of the IMF. Well, not really. Because according to other headlines the IMF claims no plans are being drafted for a bailout. Why? Simple - if the IMF admits it is even considering a bailout, it will launch a bank run that will make the Bankia one seem like child's play, as the cat will truly be out of the bag. So instead it has no choice, but to wink wink at markets telling them even though it has been locked out from additional funding by the US, UK, Canada and even China, it still has access to funding from... Spain.

The Four Greek Election Scenarios

With any possible majority likely to be quite weak, and about two weeks to go, the outcome of this second election remains highly uncertain. While we're happy to leave the ever-changing chances of all the possible government combinations to the Greek political commentators (or media pollsters asking 1000 people), we think that the chances of a pro-bailout majority in parliament – at least for a short while – are slightly less than even at best. Morgan Stanley recently opined on the four possibilities with all centered on Syriza's actions.

Money flies out of Spain, regions pressured

Eric De Groot at Eric De Groot - 2 hours ago
While contagion continues to spread throughout the periphery of Greece, Spain, Portugal, and lesser degree Italy and Japan, it remains largely contained as capital flees towards the safety of the center. This dynamic won't hold for long. The center's growing inability service its existing debts will eventually force capital from the public to private sector. When that happens, likely... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds



Student Debt Bubble Delinquencies Surge

By now, the bubble in student loans is becoming more widely understood. The absolute level continues to rise significantly and growth is accelerating with 8% YoY growth just reported, via the WSJ. Of course the reasons are anathema but attending college on the back of hope of a better-paying job when everyone else is also attending college in that hope (thanks to endless student-loan funding from your helpful government) seems to be self-defeating as the supply of supposedly better-qualified workers into a stagnant economy will do nothing but reduce higher-end wages further? Of course this is over-simplified but as the rest of the country delevers, pays down credit cards, or BKs, those that remain jobless heading to college for a way out are now struggling also - as is clear from WaPo this last weekend where dropout rates are increasingly dramatically. What is more worrisome is that while every other class of debt, according to the New York Fed's data, is seeing delinquency rates dropping, Student Loans 90+ days delinquent surged in Q1 to 8.7% - near its peak crisis highs and remains above peak mortgage delinquency rates.

The Economic Bloodstain From Spain's Pain Will Cause European Tears To Rain
Reggie Middleton
05/31/2012 - 11:21
Just in case there's somebody left who still believes so, Spain is not going to make it. In addition, Spain will crack the EU and bring the art of true fundamental analysis back into the fold.  ...



SBSS 33. Systemic Risk and Mining Stocks

from TruthNeverTold :

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Norcini – This May Accelerate Into Full-Blown Panic & Collapse

from KingWorldNews:
With global stock markets recently under tremendous selling pressure, today King World News interviewed highly acclaimed trader Dan Norcini. Norcini correctly predicted the current downturn in global markets back on May 11th and today he issued a further warning. But first, here is what Norcini had to say about the recent action in the markets: “There was a sea of red on the global stock markets today. We had a pretty good hit in the Asian and European markets. This was followed by downside action in the S&P and Dow, along with the Nasdaq.
John Embry continues @

United States is Going Down Slow, Debt Problem is Global

By UnpuncturedCycle, The Market Oracle:

The greatest discovery of my generation is that a human being can alter his life by altering his attitudes of mind. William James(1842 – 1910)
If you believe everything you read in the newspaper it appears that the U.S. housing market is finally rising from a long slumber. Yet real estate Web site Zillow reports that homeowners are still under water. Nearly 16 million homeowners owed more on their mortgages than their home was worth in the first quarter, or nearly one-third of U.S. homeowners with mortgages. That’s a $1.2 trillion hole in the collective home equity of American households. Despite the temptation to just walk away and mail back the keys, nine of 10 underwater borrowers are making their mortgage and home loan payments on time. Only 10 percent are more than 90 days delinquent. Still, “negative equity” will continue to weigh on the housing market – and the broader economy – because it sidelines so many potential homebuyers.
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The Monster Has Awakened

The most significant event of yesterday was not the Spanish banking system unlocking the door to the horror chamber and clicking the melt-down button that it found on the wall but what happened at the European Union. Brussels turned, and looking Berlin squarely in the eye, it used impolite words and gestures and essentially said: "Stick it." Brussels has now called for Eurobonds, has called for the ESM to fund the European banks and it a sign of their new felt independence, has thrown all of this squarely in the face of Germany, the Netherlands, Finland et al who are providing the money. The game has changed. It will no longer be push and shove and muddle through but convictions and ideology that are in stark opposition so that surprises and inflamed statements will become the order of the day and not the exception. If it is to be either Germany for the Germans or Germany for the citizens of Athens, make no mistake in your thinking; Berlin will prevail regardless of the outlying costs to either the nation or to the future of the Union that theoretically governs Europe.

I Want To Work At The Goldman Sachs

Three years of anti-Goldman bashing and exposing the company's legal and illegal dirty laundry have clearly had an impact on society:
The Borg zombification shall continue until everyone wants to work solely at "The Goldman Sachs"

What if the gold megabulls are right?

by Lawrence Williams,

The economic conditions that would precipitate the massive jump in the gold price that many of the megabulls are predicting could be horrendous, but perhaps the politicians can carry on muddling through and keep up perception that all is well..
There is a strong element, even among the respected gold bulls, which is not looking for, say, gold at $2,000 an ounce (more of a mainstream view supported by many banks) but continually preaches a much greater price for gold some as high even as $10,000 an ounce plus – and sooner rather than later.
Far be it from us to deride this position, although deep down we think it could be a step too far – primarily because the factors that could drive gold to this kind of level in the short term are almost too horrific to contemplate – but what if they are right? After all, it was only a few short years ago that $1,000 gold was considered totally unrealistic by the mainstream and here we are now with gold more than 50% higher than that level – and this in a downturn for precious metals.
$10,000 gold short term can only come about through total currency collapse – a possible scenario which must give the politicians of this world nightmares, not least because we are so awfully close to such a situation occurring.
Read More @

Nobody Likes Austerity, But You Have To Face The Facts

Admin at Jim Rogers Blog - 1 hour ago
Nobody likes austerity and I don't like austerity either. But sometimes you have to face facts. - *in Moneynews * *Jim Rogers is an author, financial commentator and successful international investor. He has been frequently featured in Time, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times and is a regular guest on Bloomberg and CNBC.* 

Investors Must Own Gold, But Sentiment Is Negative

Admin at Marc Faber Blog - 3 hours ago
Investors must own some gold but as I have maintained for the last six months or so, we are still in a correction period and maybe gold breaks down below the low that we reach on the december 29th, 2011, which was 1522 USD/ounce. That's a possibility. Related stocks and ETF`s: SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Goldcorp (GG), Barrick Gold (ABX) *Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.* 

Announced U.S. Job Cuts Jump 67% From Year Ago, Challenger Says

Eric De Groot at Eric De Groot - 4 hours ago
The public is beginning to realize what Insights readers already know, the labor market is weak and the economy is slowing. The slow uptick in the announced layoffs since 2010 illustrates this point (chart). Chart: Challenger, Gray, and Christmas Announced Layoffs (ALO) And YOY Change Headline: Announced U.S. Job Cuts Jump 67% From Year Ago, Challenger Says Job cuts... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

Equities Underperform As Credit Roundtrips Ending Miserable May For Europe

It seemed the 'but but but we're oversold' argument was holding up in early trading in Europe as EURUSD, sovereign bonds, corporate and financial credit, and stocks rallied out of the gate. It didn't take long however for the technicals from CDS-Cash traders to wear off and Spain and Italy sovereign debt started to leak back wider. This accelerated pushing everything off the edge as European stocks and financials & investment grade credit fell to recent lows. Interestingly high-yield credit (XOVER) remains an outperformer. By the close, credit markets were pretty much unchanged from last night's close having given back all the knee-jerk improvements on the day but equities remained lower - with a late day surge saving them from total chaos. EURUSD gave back all of its early gains to end the European day lower once again - though off its lows - even as Germany 2Y trades with 0.2bps of negative and Swiss 2Y rates plunge below -25bps. For the month, EMEA stocks were a disaster - Italy and Spain down 12 and 13% and the broad Euro-Stoxx -8.3% (-8.7% YTD).

Income Disparity Solution: Restore The Minimum Wage To 1969 Levels

There is much hand-wringing about the vast income disparity in the U.S. between the top 5% and the bottom 25%, and precious little offered as a solution. Once again we are told the problem is "complex" and thus by inference, insoluble. Actually, it's easily addressed with one simple act: restore the minimum wage to its 1969 level, and adjust it for the inflation that has been officially under-reported. If you go to the Bureau of Labor Statistics Inflation Calculator and plug in $1.60 (the minimum wage in 1969 when I started working summers in high school) and select the year 1969, you find that in 2012 dollars the minimum wage should be $10 per hour if it were to match the rate considered "reasonable" 43 years ago, when the nation was significantly less wealthy and much less productive. The current Federal minimum wage is $7.25, though states can raise it at their discretion. State rates runs from $7.25 to $8.25, with Washington state the one outlier at $9.04/hour. In 40 years of unparalleled wealth and income creation, the U.S. minimum wage has declined by roughly a third in real terms. "Official" measures of inflation have been gamed and massaged for decades to artificially lower the rate, for a variety of reasons: to mask the destructiveness to purchasing power of Federal Reserve policy, to lower the annual cost-of-living increases to Social Security recipients, and to generally make inept politicians look more competent than reality would allow.

A Day In The Life Of A Swiss National Bank Trader

It's blood in the streets out there: nobody wants Euros because nobody knows if Greece will be in the EMU on Monday... Or Spain for that matter, which is now fresh out of towels. You just happen to have the position of an FX trader at the SNB and everyone wants your money. What do you do? What do you do?

Bonds Now Beating Stocks Year-to-Date

Presented with little comment - except to note the increasingly tight relationship between the price of the long bond and the USD as we see 30Y Treasuries up 4.40% YTD vs ES +3.7% YTD

Spanish CDS Over 600bps Sends S&P Under 1300

There is little doubt what the world's pivot security is for now - Spanish sovereign debt. 5Y Spanish CDS just broke above 600bps for the first time ever and S&P 500 e-mini futures reacted by breaking below 1300. Lots of moving parts in Europe's sovereign markets - Spanish bonds were modestly bid today even as CDS was gapping wider - but if one steps back and looks at the basis (the spread between bonds and CDS) this makes sense as it had reached almost 100bps offering basis traders the opportunity to buy bonds and buy protection. We suspect few are outright shorting Spanish bonds here now and the marginal offer is a long-seller but with basis traders still active, do not focus entirely on bonds as evidence of anything until the basis contracts.

IMF Blinks?

Headline crossing the tape:
Did Syriza, and the Greeks, just win the great blinking war of 2012? If so, Spain may have lost it:
Perhaps Spain needs to ramp up its defection stance a little more to pull a Greece next time...


Market Shocked By Recessionary PMI Print, Gold Pummeled, Apple Slides, FaceBerging Continues

Down. ES is testing 1300. Gold pushing back down to $1550 (and the rest of the commodity complex plunging with WTI at $86.60), credit gapping wider, Treasury yields plunging to new records (10Y <1.57%!! and 30Y -20bps this week). FB -2.8%, AAPL -1.2% (down $12 from opening highs), MS -1.3%. JPY below its 200DMA

G. Edward Griffin on Ron Paul’s ‘Restore America’ Plan

Killer Drones Are Coming to U.S. Skies: Medea Benjamin


The U.S. Dollar To Lose 90% Of Its Value


Bill Still: Gold As the ONE WORLD CURRENCY


The Three Trends Which Rule The Precious Metals Market, Part II

by Jeff Nielson, Bullion Bulls Canada:
In Part I, readers were presented with a list of the three trends which overwhelm all other factors and fundamentals in the gold and silver markets. The first and most dominant trend – the grossly excessive printing of (worthless) paper currencies – was explained to readers in detail.
Through elementary logic, we established that no rational investor would choose to hold these worthless paper currencies, rather than opt for humanity’s 5,000-year old safe havens: gold and silver. Specifically, with all our governments explicitly engaged in the monetary policy known as “competitive devaluation”, only an idiot would hold an asset where the producers of that asset are trying to drive its value to zero as rapidly as possible.
Read More @

Low Supply No Clear Sign for Housing Recovery

by Pater Tenebrarum, Financial Sense:
Housing Inventory
The year 2007 changed real estate forever. For the first time in modern history, not only have real estate prices since then declined, but it is a prolonged decline and one of substantial magnitude.
When we buy a car, we are trained to expect that the car will decline in value the second it is driven off the lot. When we buy a house, we are trained to expect that the value of the house will appreciate in the future – it is merely held to be a question of by how much and how soon. The entire real estate market was structured based on this belief, from mortgage financing to household financial planning.
Now that real estate price appreciation is no longer guaranteed, economists and housing analysts who continue to rely on what are probably obsolete indicators may be misled.
Read More @ Financial

Gold Rises $40 As Markets Fall Sharply – Safe Haven “Tipping Point”?

from GoldCore:
Gold rose 0.38% or $6.00 in New York yesterday and closed at $1,564.80/oz. However the 0.38% gain does not convey the positive price action. This saw gold fall initially in unison with risk assets such as equities and commodities – including oil.
Yesterday may have been a form of ‘tipping point’ for gold whereby it again starts to display its safe haven status as it did soon after the initial price falls at the time of the Lehman financial crisis. The trading fundamentals look increasingly sound. The COT data is very bullish from a contrarian perspective with the net long position extremely low. Also, the large commercial traders are aggressively covering their gold and silver shorts which is always a good indication that the precious metals are close to bottoms.
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The Triumph of Modern Schooling & Academia

by Jorge Gato, Dollar Vigilante:
Many argue that modern schooling has failed to achieve its goals. On the contrary, it has been extremely triumphant. From students who can’t read or add two and two to the brainwashed Marxist internationalists, it is has been a resounding success.
One can compare academia today to the Federal Reserve. The Fed’s mythological purpose had been to fix the economy and provide the everyman with the illusory “American Dream”. However, its real purpose was to consolidate power and allow a global plutocracy to take over the nation and ultimately, the world.
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When the Pain From Spain Moves Across the Plain

By Greg Canavan,

Here we go again…
Markets are under heavy selling pressure…the fear is back. And once again Europe is the flashpoint. Spain’s economy is on the brink of a bailout, set to join Greece, Portugal, and Ireland in the pauper’s club.
But the Spanish economy is in a different league to the others. Greece and Portugal’s government finances had grown out of control and needed reining in. Ireland’s government was travelling ok until it decided to bailout the banking sector following the property boom and bust there. The assumption of those debts crippled it and shut off access to external funding.
Spanish Government Debt
Spanish government debt is not too bad…in a relative sense. Its debt-to-GDP ratio is around 80%. But its banking system is busted…insolvent. Unlike Ireland, it won’t be able to mortgage its taxpayers’ future wealth to recapitalise the banks. Don’t worry – it’s not through want of trying. The Spanish government would love to bailout the banks. But the ‘markets’ won’t let it.
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The Inexplicable American Consumer Hits A Wall

from Testosterone
The strongest and toughest creature out there, and maybe the smartest one, that no one has been able to subdue yet, the inexplicable American consumer has hit a wall. And it showed up in a prosaic but ugly 8-K filing by Visa.
Credit cards are a true anomaly in these crazy times of ours. The yield on 10-year treasury notes swooned to a new record low of 1.61%. Interest rates on savings accounts and most CDs are so close to zero that you can’t see the difference on your statements once you round to the nearest dollar. 30-year mortgages come with rates of under 4%. And yet, credit card interest rates are where they’ve always been: high. In many cases well into the double digits.
Consumers have struggled with them. Before the Great Recession, when credit was unlimited and easy, consumers charged the cost of improving their lifestyle to the future to make up for the long decline in real wages—that haven’t kept up with inflation since the wage peak of 2000. Read…. “Confiscate, Secretly and Unobserved.”
…Then it all ended.
Read More @

Bilderberg 2012: Secretive summit kicks-off in Virginia

from RTAmerica:

For a little over 50 years, an elite organization has met all around the world in total secrecy with nearly zero press coverage. On Thursday, the annual Bilderberg Conference will take place in Chantilly, Virginia where the world’s leaders are believed to make decisions that could possibly have an effect on the world. Abby Martin looks closer at Bilderberg’s global policies for a new world order as RT readies to cover this year’s event later this week.

Color Commentary: Greenspan

by Fred Sheehan ,
Encounters with a young Alan Greenspan have floated around the Internet lately. Why do they matter? Most importantly, because what is being said is how Greenspan was known in the 1960s. Before quoting Michael Hudson and Pierre Rinfret, a comment on why this matters today:
The following is rechoreographed from a talk by Frederick J. Sheehan to the Committee for Monetary Research and Education dinner at the Union League Club in New York, on May 17, 2012:
“It is timely to talk about the consequences of Alan Greenspan tonight.
Not so much the man as the degradation in our halls of leadership. At the
top, he was, first – welcomed, then – venerated. He personifies many characteristics
that befoul the United States today: cutting corners, shirking responsibility,
deflecting blame, outwitting the legal system – in general, our lack of discipline,
our lack of will.
“The unwillingness of leaders to address our perilous conditions – today
– runs part-and-parcel with sanctifying an errand boy who deflected attention
from America’s social and economic corrosion. Greenspan wormed his way to
the top – but then, so did our current political, academic, and celebrity
leaders who have done so well for themselves specifically because
first – Greenspan, and now – Ben S. Bernanke, have furloughed leaders from
Read More @

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