Posts Tagged ‘Gold’

Matthew Boesler
Business Insider
June 20, 2012

Societe Generale is “enthusiastic on gold” — so much so that in their latest cross-asset strategy report, they call “buy gold ahead of QE3″ their number one strategy, saying it’s “the perfect asset to benefit” from additional loose monetary policy.

In the report, SocGen discusses the historical relationship between the price of gold and the U.S. monetary base. The SocGen team writes that “if gold catches up with the increase in the monetary base since 1920 (as it did in the early 80s), its price would rise to USD 8500/Oz,” adding that just “to close the gap with the monetary base increase since July 2007, gold would have to rise to $1,900/oz, assuming full transmission from the monetary base increase to the gold price.”

Read full article


Doug Casey
Casey Research
March 25, 2012

In an interview with Louis James, the inimitable Doug Casey throws cold water on those celebrating the economic recovery.

[Skype rings: It’s Doug Casey, calling from Cafayate, Argentina. He sounds tired, but pleased with himself.]

Doug: Lobo, get out your mower; it’s time to cut down some green shoots again, and debunk a bit of the so-called recovery.

Louis: Ah. I have to say, Doug, the so-called recovery is looking more than “so-called” to a lot of smart folks. Even our own Terry Coxon says the recovery is real, albeit weak.

Doug: Terry’s probably looking at it by the numbers, some of which are reported to be improving. But let’s come back to the numbers later and start with fundamentals. The first order of business, as usual, is a definition: a depression is a period of time in which the average standard of living declines significantly. I believe that’s what we’re seeing now, whatever the numbers produced by the politicians may seem to tell us.

Read more
Monday, March 26, 2012

Alex talks with pastor and author Lindsey Williams about the timeline on the financial crash, what currency is a safe bet, and why Obama may not be re-elected due to his involvement in Keystone Pipeline.


The Daily Bell
Wednesday, December 7, 2011

The United States is probably the only nation that does not have national police. In the 1960s and 1970s, the Law Enforcement Assistance Administration (LEAA) was created to achieve this goal. A counter move by concerned citizens was the “support your local police and keep them independent” movement. Older citizens may recall seeing bumper stickers and other advertising to that effect.

The LEAA was abolished in 1982. Today, a new movement is afoot to nationalize our local police by stealth. In the [2009] campaign,Barack Obama advocated “a civilian police to match the size and power of our armed forces.” More recently, Obama advocated enlarging the U.S. Marshal’s Service into a “stability police.” He is being assisted by the Southern Poverty Law Center. The group has convinced many local police and sheriff’s officials that conservatives are the enemy. – CJOnline

Dominant Social Theme: What the US needs is more law and order.

Free-Market Analysis: We have been commenting on the growing wave of “law and order” in the United States. And this letter to the editor, excerpted above, is surely another sign of it. There is so much ruin in the country (and the West) now that the powers-that-be are likely growing increasingly worried about civilian unrest.

They are, in our view, actively encouraging such unrest (so as to be able to shape it) but also, at the same time, they are suppressing unrest and seek to create further law enforcement bodies and quasi-military groups to ensure that civil unrest does not spread unchecked. One such group – in the US, anyway – would be a national police force.

This is only part of a larger authoritarian drive, however. The Anglosphere power elite that apparently wants to run the world (formally) is using the current economic chaos to prepare fundamental, Draconian “reforms” to the way US business and investing works.

US President Barack Obama’s persona and policies are surely tailored to this larger meme. Authoritarianism can be developed in numerous ways. We have, for instance, covered the new Pecora Hearings that we believe are being generated even now.

These hearings are not yet in evidence but we are sure they will be. In fact, secret efforts in Congress to set up such hearings have been reported by at least one alternative news website that then removed the article. But it seems obvious to us that these hearings are going to take place at some point.

The Pecora Hearings themselves took place in the 1930s. At that time, President Franklin Delano Roosevelt used them to blame the Crash of ’29 and the Depression on Wall Street. It was a classic case of misdirection, in our view – blame Wall Street for what the central bankers did and Fedgov covered up.

In reality, the Depression was likely caused by the New York Fed over-printing dollars – a policy that created first the Roaring ’20s and then the Depressed ’30s. FDR first shut down banks and then confiscated gold to ensure that US citizens wouldn’t find out there was not enough gold to redeem their over-printed dollars.

Now, in our view, the power elite is replaying this tactic. In order to create world government, it helps if governance in general is strengthened. This is taking place around the world even now via austerity measures and a campaign through the West to “punish corruption.”

The same patterns that made the 1930s such a tragic decade are being repeated as the 21st century faces its second decade. When government has too much power, things can go wrong very quickly. And then the temptation is to point fingers at the private sector to find a scapegoat. Here’s some more from the letter about setting up a national police force:

In 2008, the Missouri Highway Patrol was alerted that people who supported Ron Paul, Bob Barr, the Constitution Party, Libertarian Party, Second Amendment Advocates or the John Birch Society, or who were devout Christians, were potential terrorists … One of the most constitutional forms of local police is the constable system …. Support your local police. Keep them independent and working for the citizens.

Enlarging law enforcement may make it more “efficient” but certainly not better. The larger the amount of monopoly power a law enforcement agency has, the more damage it can do. Canada is experiencing this even now with its own national force, the Royal Canadian Mounted Police.

According to the Globe and Mail, the RCMP’s new boss, Bob Paulson, has his hands full. He’s got a sex controversy to deal with, first of all. “[It was] rekindled last week when a high-profile female British Columbia Mountie said she spent years being treated as a potential sexual plaything by some supervisors.”

Then there’s another grievance against the RCMP for “insults and threats” that was just affirmed by the organization’s independent review body some three years after charges were filed. The grievance is part of a larger “systemic failure to deal appropriately with harassment within the force,” according to Federal Public Safety Minister Vic Toews.

Meanwhile, a 2006 commission of inquiry said, “information the RCMP passed to the United States was likely responsible for Maher Arar being shipped to Syria, where the Canadian man was tortured into making false terrorism confessions.” And then there is the case of the confused Polish visitor who was tasered by Mounties at the Vancouver airport. That led to another inquiry.

In the US, Homeland Security’s TSA, a nationalized security force, is constantly embroiled in controversy over its tactics and the rationality behind some of its strategies. Most recently (and once again), the agency has been accused of strip-searching elderly people. The agency also faces considerable public protest over the scanners that it has installed, which may provide people with fairly high doses of radiation.

US President George W. Bush tried to set up a national police force and now the Obama administration apparently is making common cause with the Southern Poverty Law Center that has created an ideological template that can tie numerous civilian police forces into one larger entity.

Conclusion: Fortunately, these efforts are being resisted publicly and aggressively, as the Internet is continually making people aware of these authoritarian efforts. Obama has not yet been able to set up a formal national policing body. Maybe he will run out of time.


Bob Chapman
International Forecaster
Thursday, September 29, 2011

The takedown of gold and silver markets over the past two weeks signified a new milestone in corruption, brazenness, arrogance and it reveals the level of evil control behind our government. This past week, in just one week, saw gold fall almost $200 and silver about $10.00. We have been involved in gold and silver for 53 years and the only event that comes close to this was October 19, 1987, when we witnessed the Bank of England sell down gold $100.00 under the orders of the Fed and the US Treasury, which borrowed the gold from the IMF.

That was illegal, but that means little to the Illuminists who do as they please. Today thanks to Ronald Reagan we have the “President’s Working Group on Financial Markets,” which has legitimatized corruption to conform to the Keynesian model of corporatist fascism. After the close on Friday we were informed, that the CME, which controls the Comex, had raised margin requirements on gold by 21%, silver 16% and in copper by 18%. In retrospect it is obvious that many banking insiders and traders knew early in the week that this momentous psychological warfare was going to be unleashed on these markets. Your government definitely rigged these markets. Today in America and many other places as well, crime pays. What has been done to investors over this past week is not only a crime, but also a disgrace to all Americans.

Let us now look at the flipside. All is not lost, because there is a limit to the damage that can be done. The paper attack on gold was concentrated and accomplished by using futures, options and derivatives. Thus far there is no evidence of any major sales of gold or silver. This in the past has generated very short terms of suppression. The fundamentals have not changed one bit and if anything they are stronger than ever. The world is in the midst of financial collapse. It could take a few months to fall or several years. We do not have a presence behind the scenes, but we do know history and we know what these criminals are up too and what the end game is and that is world government. We have to back into time sequence. That has thus far been enough to help us to make excellent calls. The call this time is we are approaching another bottom. A bottom that probably won’t be seen again. Major buyers of gold and silver have to be waiting with open arms for such a great opportunity to purchase both metals at bargain basement prices. There are sovereigns who are loaded with US dollars, who have been waiting for just such an opportunity to sell them into a strong dollar market to purchase inexpensive gold and silver. Today’s market is totally different than the gold and silver markets of just two years ago. Big players are big buyers. Prior to that the opposite was true as sovereigns were sellers year after year, and both were transferred from weak to stronger hands. The monetary and fiscal situations in Europe, the UK and US are in a shambles. The privately owned Federal Reserve, the Bank of England and the European central bank have all lost credibility. Just look at the reception “Operation Twist” received – bonds rose and the stock market was hit by a typhoon. The Fed has lost its credibility in the investment arena worldwide, because of forced compromise to existing problems. The fed simply didn’t have the guts to implement a QE 3. If the Fed is not quickly forthcoming with a new plan the Dow could fall thousands of points. The damage to gold and silver is already in the history books and the turn back up is already taking place. No matter what the powers that be do they cannot for any period of time control gold and silver prices. There are too many buyers who want to dump fiat currencies. Under the circumstances the Twist was the wrong choice at the wrong time. Financial professionals worldwide believe it is a joke. They see the lack of proper action, the activation for events for more damaging then those of 2008 and if something doesn’t happen this week markets and economies are doomed. The elitists knew this and that is why they attacked gold, silver and commodities. This was so investors would think it was a general overall retreat not a reflection of Fed incompetence. Their fall had nothing to do with reality and everything to do with smoke and mirrors. This should not surprise anyone. It has been used over and over again by the gold and silver suppression cartel.

In reaction to Mr. Bernanke’s folly stock markets worldwide fell about 5% in just two days, which was a considerable feat, piling on to previous losses. Friday would have been a loser as well, but for the PPT being assisted by short covering. This poor choice of assistance has slammed the market and it has set the stage for a monster rally in gold and silver and commodities as well. The idea of pegging interest rates on Treasury debt is foolhardy in the current environment. Subsidizing rates leads to imbalance and losses. This and zero interest rate loans to banks, and massive monetization are going to eventually raise havoc with the economy, not to mention climbing inflation. It should also be noted that all these actions encourage more leveraged speculation. The elitist should learn that all their machinations won’t work especially these attacking gold silver and commodities. We might add that attacking every world currency won’t work either. The elitists in brokerage and banking are making a killing in this slaughter, but on the other hand it gives us cheap prices to buy into.

This latest fiasco gives us two major problems. The other naturally being Europe and Greece. Duress isn’t the word for it. Global systemic risk lurks around every corner. In Europe the ESRB has called upon governments to prepare capital injections for banks, which were close to failure, or failed stress tests. The taxpayer is to be the lender of last resort. At this juncture those who do not recognize all of these machinations as a Ponzi scheme just do not get it. As we saw in QE 1 all the effort was put into saving the financial sector, and in Europe presently we are seeing the same thing happen. At the moment at least, and we do not expect any quick recoveries, Europe is weaker and in more serious trouble than the UK and US. The problems of Europe, the US and UK have now as well spread contagiously into Asia, its financial system and into their economies as exports fall. Europe is one step away from losing control. The question is how long will it take? We do not know, but we will have a better idea after September 29th. Then we will have to reassess Europe’s public and banking debt and bad debt problems. If you remember we predicted this crisis occurring a year ago. Well, here it is. What Brits and Americans fail to understand is that the worst is ahead for them as well.

Make no mistake Europe is facing another liquidity crisis worse than the Lehman crisis. This crisis is being exacerbated by massive markets manipulation by major US and UK banks and brokerage houses. They will do just about anything to gain an edge. You saw this last week in European, UK and US markets including commodities, gold and silver. These criminal opportunists are going to play this game to the bitter end, because they will not accept a purge of the system.

In the past spring we could see problems arising at banks and in the corporate world. Now we see those conditions manifesting themselves. These were the institutions that paid no heed to prudent lending and now are paying for it dearly. US money market funds and other institutions have pulled 2/3’s of their short-term investments out of EU banks, particularly in France. In addition European corporations are withdrawing funds from French banks and lodging the deposits at the ECB. It is not surprising to us that the Rothschilds had to come to the aid of Soc Gen three weeks ago.

The US has its share of shaky banks. We all should be aware of the condition of BofA and the Bank of NY. They are not the only US banks in trouble in the too-big-to fail category. There are a score of them that the media conveniently fails to report on. Many of these banks are finally being sued for fraud. Most of their officers should have been charged criminally long ago. The mortgage securitizations they were involved in were in some of the worst financial scams in history. Even worse yet, were the rating companies that courts have let totally off the hook. The complicity and criminality jumps right out into your face. As you can see in American society some are more equal than others.

Even German banks have not escaped the lack of capital, obviously having lots of bad assets on their books. They could need an infusion of some $200 billion. This is fairly widespread. They all made similar errors. We have always thought there was more to Germany’s bank problems than met the eye. We still believe there was a secret deal between these banks and the Fed. Why else would it have taken on 60% of American banks’ toxic waste? It is of interest as well that the IMF says European banks could be short capital of $270 billion.

The European crisis is still escalating and Ben Bernanke has chosen the wrong vehicle, operation Twist, for recovery. Mr. Bernanke and the Fed had best have a plan B for this week. For the moment the stock market decline has been arrested by the PPT, but for how long? At the same time this same group expends billions of dollars pushing gold and silver lower? These events go forward as the IMF says the world economy is in trouble. We see the fed’s efforts as having a slow effect that will perhaps relieve the 3.8 million house inventory they and lenders are carrying, but it is a losing battle even at 30-year fixed mortgage rates of 3%. The 4-year foreclosure projection is for an inventory of 8 to 11.5 million foreclosed homes as the building industry adds 550,000 new homes annually. We ask what can they be thinking? The Fed has taken the wrong road for its prime vehicle. It doesn’t mean they have to abandon operation twist, but they have to have something that will act quickly to move the economy into growth. It is quite evident at the same time that they will have to purchase $850 billion to $1 trillion in Treasuries as well, plus loan more than $1 trillion to European banks and perhaps governments. The downside on the 10-year note could be at 1%. Who would buy such paper with 11.4% inflation? No one of sane mind would make such an investment. They had best do something quickly. It should not be buying mortgage bonds and collateralized mortgage debt. That only shores bank balance sheets. The Fed needs banking to prudently lend out the $2 trillion they are sitting on if small and medium sized business will borrow it and create jobs. The Fed and government have only two choices, inflate or purge the system. They had the same choice in 1990, 2000 and three years ago. We have seen 20 years of lying, manipulation and incompetence and the American public is sick of it. There is no question that lack of confidence is hurting recovery and that could change if Mr. Bernanke was replaced. Reflection of that lack of confidence is the abrupt lack of insider buying of company shares. It could be the Fed, Treasury and the “President’s Working Group on Financial Markets” have lost control. If it were not for the terrible problems in Europe the dollar would be much lower versus other currencies, gold and silver. The economy needs inflation and it is up to the Fed to supply it. If chairman Bernanke cannot supply that he will soon be leaving his post.

Part of what happens as a result of Thursday’s Bundestag vote will dictate how the ECB handles its problems pertaining to policymaking, its circumvention of rules and the holding of an enormous amount of securities and banks that are weak along with insolvent governments. In addition, they have to find a way to sell these securities. Their only hope is if Germany agrees to participate on Thursday.

In the meantime in case the Bundestag refuses behind the scenes a grand plan is being put together involving massive bank recapitalization, which would give the EFSF more power. This in part would be done by the ECB via leverage and a loss-sharing arrangement to avoid having to further submit to national congresses for approval, effectively relieving them of their sovereignty. The German people do not want this, but the CDU is pushing it in exchange for its support against intervention and a partial Greek default, which the CDU rejected two years ago. Many want the ECB leveraged, but within the legal framework of the EU Treaty and the bailout fund it cannot be leveraged. Just involving the central bank violates the EU Treaty. This past weekend the IMF meeting in Washington produced nothing. The effort to raise $3 trillion would trigger credit downgrades for all participants.

The ECB recently purchased some $55 billion of Italian and Spanish bonds in the open market, which was in breach of rules. We might ask whom will they sell them too?

There is no question bankers and central bankers are trapped and there is no way for them to painlessly extricate themselves. These are the experts that have been responsible for imprudent lending and they demand they be bailed out.

In the US the Fed has to resort to QE 3 and if they do not the system will collapse. They have to assist in creating jobs. There can be no recovery without job creation. The only way to recovery is lavish federal spending, not budget cuts, otherwise the great purge begins; already the hour is late.

What has to be indelibly printed in everyone’s minds is the self-interest of banks and bankers. Problems are not dealt with expeditiously because it is all about self-interest and survival. Jobs, the recovery and the economy are secondary. The continuation of the EU and the euro zone has to be saved at all costs by any means to bring about world government. The move toward a super-state has to be done quietly and with stealth, without the people realizing what is being done to them – eventual enslavement. Politicians who have ceased to represent their constituencies are expediting the road to serfdom. That is reflected by 70% of legislation coming from bureaucrats in Brussels. In the US it is done via payoffs.

The crisis is again in control and whether Europe can put its house in order remains to be seen.

Last week the Dow fell 6.4%, S&P 6.5%, Nasdaq fell 4.3% and the Russell 2000 8.7%, as Ben Bernanke performed his most recent magic. Banks only fell 9.5%; and broker dealers 8.8%. Cyclicals fell 11.1%, transports sank 9.6%; consumers 5.1%; utilities 1.4%; high tech 5.8%; simi’s 5.8%; Internets 6.4% and biotechs 4.1%. Gold fell $155.00, the HUI gold index fell 11.7% and the USDX rose 2.5% to 78.50.

Two-year T-bills rose 5 bps to 0.21%; 10-year T-notes 22 bps to 1.83% and the 10-year German bund fell 12 bps to a record low of 1.745%.

The Freddie Mac 30-year fixed rate mortgage was unchanged at 4.09%. The 15’s were off 1 bps TO 3.29%, one-year ARM’S rose 1 bps to 2.82% and the 3-year fixed rate jumbos fell 4 bps to 4.76%.

Fed credit fell $4.3 billion to $2.849 trillion. The yoy increases is 24.2%. Fed foreign holdings of Treasury, Agency debt fell $7.1 billion to $3.468 trillion. Custody holdings for foreign central banks are up $118 billion ytd and $255 billion yoy or up 7.9%.

M2, narrow, money supply fell $7.5 billion to $9.584 trillion, it is up 11.9% ytd and 10.3% yoy.

Total money market funds fell $11.8 billion to $2.621 trillion.

Commercial paper outstanding fell $13.4 billion to $1.030 trillion. That is a 10-week decline of $207 billion.


Venezuelan leader to withdraw $11B in gold reserves to protect against “disturbances” in financial system

Paul Joseph Watson
Thursday, August 18, 2011


Despite a report from the World Gold Council showing that demand for the precious metal has subsided, gold soared to a new record high today on the back of another stock market plunge and an announcement from Venezuelan President Hugo Chavez that the country’s gold mining industry would be nationalized.

Gold touched a new record high of around $1827 dollars an ounce as the Dow Jones plunged by 500 points in early trading.

Gold soared to new heights even in the face of a World Gold Council report that said demand was down 37% year on year.

However, the report noted that there was “increasing acceptance of higher price levels” globally, which explained a modest 3% fall in recycling gold on the supply side.

Although today’s new high for gold is obviously being driven by a flight to safety as the stock market crumbles, Hugo Chavez’s announcement last night that he was to nationalize the country’s gold mining industry undoubtedly has had an impact on today’s trading.

Chavez likened the people that control the gold industry to “the mafia,” stating, “We can’t keep allowing them to take it away,” as he made public plans to withdraw $11B in gold reserves from U.S. and European banks, including 99 tonnes held with the Bank of England and other reserves held by J.P. Morgan Chase, Barclays, HSBC and Standard Chartered, France’s BNP Paribas and Canada’s Bank of Nova Scotia.

Of the country’s 365.8 tonnes of gold, 211 tonnes is believed to be held abroad.

“At the time of these disturbances, it’s preferable to recover our assets, in this case the gold, and have it here in the vaults,” Venezuelan Central Bank president Nelson Merentes said, adding that it would be re-invested in more stable economies like China, Russia and Brazil.

Venezuelan Foreign Minister Nicolas Maduro said the move was part of a plan to create a “new international monetary system” as an alternative to the crisis-hit dollar reserve structure that currently governs the financial world.

Chavez’ decision to pull gold reserves out of the United States and Europe is only going to increase concerns about lack of mine supply, which is already set to fall by around 5.1 per cent this year. This will ensure gold sails through the $2000 barrier sooner rather than later.

As the George Washington Blog notes, “Nationalizing Venezuela’s gold means less gold available in the free market, and the scramble for physical gold to make good on Venezuela’s recall demand could challenge the 100-to-1 leverage levels of paper gold derivatives to physical gold.”


The Economic Collapse
July 15, 2011

Financial Hell

For decades, the U.S. government has had a AAA rating.  On the scales used by the big three credit rating agencies, that is the highest credit rating that a government can get.  Moody’s scale actually uses lettering that is a little different from the other two big agencies (“Aaa” instead of  “AAA”), but you get the point. Right now, the U.S. government is closer than ever to losing its AAA rating.  The threat of a rating downgrade is going to continue to grow regardless of how the political theater that we are watching unfold in Washington D.C. plays out.   The truth is that the federal government has accumulated a debt that is so vast that it will never be paid back.  In fact, we are rapidly approaching the point when this debt will no longer be serviceable.  If the credit rating of the U.S. government is not slashed right now, it will be soon enough.  In fact, the truth is that the U.S. government is such a financial mess that it should have been done long ago.  But whenever the United States does lose its AAA rating, we could potentially see financial hell unleashed because it will also mean that there will almost certainly be a wave of credit rating downgrades from coast to coast.

As I have written about previously, government debt becomes more painfulthe higher that interest rates go.  When the big credit agencies downgrade the credit rating of a government, that is a signal to investors that they should ask for higher interest rates on debt issued by that government.

This does not always play out in practice (just look at Japan), but nations such as Greece, Portugal and Ireland sure are going through financial hell right now as they deal with reduced credit ratings and soaring interest rates.

Right now, the U.S. government is able to borrow gigantic quantities of money at ridiculously low interest rates. This is the primary reason why the debt disaster predicted by so many in the past has not arrived yet.

If the credit rating of the U.S. government is downgraded, it could finally get investors all over the world to realize that the game is over and that they should be demanding much higher returns on debt issued by the U.S. government.  The truth, as U.S. Representative Ron Paul put it recently, is that the U.S. government is already “insolvent” and at some point we are all going to have to face reality….

“Ultimately, the fundamentals show this country is bankrupt.”

So whether or not it happens right now, the truth is that at some point the credit rating of the U.S. government is going to go down and interest rates are going to go up.

Unfortunately, it appears that this might happen sooner rather than later.

Earlier this week, Moody’s Investors Service publicly announced that it would be reviewing our Aaa bond rating for a possible downgrade.

On Thursday, S&P actually went so far as to announce that there is a “50 percent chance” that it will downgrade the credit rating of the U.S. government within the next three months.

S&P has been warning of trouble for some time now.  Back on April 18th, Standard & Poor’s altered its outlook on U.S. government debt from “stable” to “negative” and warned that a downgrade was likely at some point soon if nothing changed.

If the credit rating of the U.S. government gets slashed and if that results in higher interest costs on the national debt, that is going to make it much harder to balance the budget.

The U.S. government will take in somewhere around 2.2 or 2.3 trillion dollars this year.  It will spend somewhere in the neighborhood of 3.5 or 3.6 trillion dollars this year.

Included in that spending is about 400 billion dollars that goes for interest onthe national debt.

As I explained in a previous article, if our interest costs double or triple it is going to make it basically impossible to balance the budget under our current system.

If interest rates on U.S. government debt were to rise to moderate levels, we could soon be easily paying a trillion dollars a year just in interest on the national debt.

If interest rates on U.S. government debt were to rise to the levels that Greece, Portugal and Ireland are now facing, it would be beyond catastrophic.

But a reduced credit rating and higher interest rates would not just hurt the finances of the U.S. government.

Any financial institution that is linked to the U.S. government in any way would also probably be downgraded.

This fact was noted in the announcement put out by Moody’s this week….

In conjunction with this action, Moody’s has placed on review for possible downgrade the Aaa ratings of financial institutions directly linked to the government: Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Federal Farm Credit Banks.

We have also placed on review for possible downgrade securities either guaranteed by, backed by collateral securities issued by, or otherwise directly linked to the government or the affected financial institutions.

Just think of the financial carnage that would cause.

Also, check out what one Bloomberg article had to say about the potential cascading effects of a credit rating downgrade for the U.S. government….

At least 7,000 top-rated municipal credits would have their ratings cut if the U.S. government loses its Aaa grade, Moody’s Investors Service said.

An “automatic” downgrade affecting $130 billion in municipal debt directly linked to the U.S. would occur if the federal level is reduced, Moody’s said yesterday in a report. Additionally, top-rated securities with no direct links to the national government will be reviewed for similar action.

But the nightmare would not end there.  The truth is that the credit ratings of large numbers of state and local governments from coast to coast would likely be reviewed and downgraded as well.  Right now, many state and local governments are scratching and clawing in a desperate attempt to survive financially, and a significant rise in interest costs would be enough to wipe many of them out.

The ripple effects of a U.S. government credit downgrade would be endless.

A lot of people argue that if the federal government ran a balanced budget from now on none of this would matter.

Unfortunately, that is not true.

At this point, a very high percentage of U.S. government debt is short-term debt.  That means that gigantic amounts of debt must be “rolled over” each year in addition to any new debt that we take on.  So even if interest rates rise significantly on just the existing debt that we have it is going to be a total nightmare.

And make no mistake, whether it happens now or later a collapse of U.S. government finances is coming.

David Murrin, the chief investment officer at Emergent Asset Management,recently told CNBC the following….

“It’s inevitable that the U.S. will default—it’s essentially an empire which is overextended and in decline—and that its financial system will go with it”

Right now it is being projected that the U.S. national debt will hit 344% of GDPby the year 2050 if we continue on our current course.  We are on a runaway train that is heading straight for a brick wall.

Europe is also a complete financial wreck.  The sovereign debt crisis over in the EU continues to grow worse by the day and there is no end in sight.

If the U.S. collapses, Europe is not strong enough to save it.  If Europe collapses, the U.S. is not strong enough to save it.

We really are entering an unprecedented time in world history.   We are on the verge of the first truly global financial disaster.

It is going to be interesting to see which major currency crashes and burns first.  Some think that it will be the euro.  Others think that it will be the dollar.

In any event, the reality is that the current global financial system is not sustainable.  The folks that are in charge can try to keep things together for as long as possible, but at some point the dominoes are going to start to fall and the house of cards is going to crash.

We have entered a time when there is going to be financial crisis after financial crisis.  Even if the EU and the U.S. government can somehow fix things for the moment, more problems are going to be just around the corner.

The world has become incredibly unstable and the entire globe is going to be shaken.  Most people cannot even conceive of the kind of financial hell that is coming our way as a nation.

Yes, it can be a bit sad to think about what is happening, but it is much better to be armed with the truth than to be totally clueless and totally unprepared.


Paul Joseph Watson
July 15, 2011

<object style=”height: 390px; width: 640px”><param name=”movie” value=”″><param name=”allowFullScreen” value=”true”><param name=”allowScriptAccess” value=”always”></object>

<object style=”height: 390px; width: 640px”><param name=”movie” value=”″><param name=”allowFullScreen” value=”true”><param name=”allowScriptAccess” value=”always”></object>

Endgame is approaching in Libya, with Gaddafi either set to step down or if he refuses, NATO will launch a final all out bombardment of Tripoli in a desperate bid to topple the Libyan leader.

This is all set to play out over the next 6-8 weeks.

Obama is walking away from this with his tail between his legs, with the battle over the debt ceiling, the imminent downgrading of America’s credit rating and the plunging economy have taken precedence and the White House having to virtually abandon this one along with NATO, who have been similarly hampered by the European debt crisis.

If Gaddafi can cut a deal, which is currently being mediated by the Russians, that allows his influence in the country to remain pervasive through his son, this will represent a de facto victory for him and a defeat for NATO forces, whose bluster about “humanitarian protection” has been completely exposed as a ruse for regime change.

However, if Gaddafi has a last minute change of heart and tries to retain his grip on power, perhaps resorting to a suicide mission to evade capture, NATO will launch a massive “coup de grace,” a plan which has been in place since the start of the month, with British, American and French troops ready to spearhead a full ground invasion.

The whole farce has largely been a failure for NATO and the White House because now it’s going to be a heck of a lot more difficult to control the post-Gaddafi transition.

Remember, this war was about capturing Libya as another launch pad for further empire building in the Middle East and north Africa, that’s why PNAC ordered Obama to do it, it was about securing the richest oil resources in the whole of Africa, it was about stealing 6 billion dollars in gold reserves, and it was about putting a halt to China’s efforts to virtually re-colonize Africa.

All of those objectives are going to be nigh on impossible to achieve with Gaddafi’s influence still pervasive in Libya.

RELATED: The Libyan War ends. Obama makes Moscow peace broker. NATO halts strikes

RELATED: Obama conditionally backs political solution to Libya conflict

RELATED: Libya: Col Gaddafi has ‘suicide plan’ to blow up Tripoli


The American Dream
June 20, 2011

As the mainstream media continues to be obsessed with Anthony Weiner and his bizarre adventures on Twitter, much more serious events are happening around the world that are getting very little attention.  In America today, if the mainstream media does not cover something it is almost as if it never happened. Right now, the worst nuclear disaster in human history continues to unfold in Japan , U.S. nuclear facilities are being threatened by flood waters, the U.S. military is bombing Yemen, gigantic cracks in the earth are appearing all over the globe and the largest wildfire in Arizona history is causing immense devastation.  But Anthony Weiner, Bristol Palin and Miss USA are what the mainstream media want to tell us about and most Americans are buying it.

CNN Newsroom

In times like these, it is more important than ever to think for ourselves.  The corporate-owned mainstream media is not interested in looking out for us.  Rather, they are going to tell us whatever fits with the agenda that their owners are pushing.

That is why more Americans than ever are turning to the alternative media.  Americans are hungry for the truth, and they know that the amount of truth that they get from the mainstream media continues to decline.

The following are 12 things that the mainstream media is being strangely quiet about right now….

#1 The crisis at the Fort Calhoun nuclear facility in Nebraska has received almost no attention in the national mainstream media.

Back on June 7th, there was a fire at Fort Calhoun.  The official story is that the fire was in an electrical switchgear room at the plant.  The facility lost power to a pump that cools the spent fuel pool for approximately 90 minutes.  According to the Omaha Public Power District, the fire was quickly extinguished and no radioactive material was released.

The following sequence of events is directly from the Omaha Public Power District website….

  • There was no such imminent danger with the Fort Calhoun Station spent-fuel pool.
  • Due to a fire in an electrical switchgear room at FCS on the morning of June 7, the plant temporarily lost power to a pump that cools the spent-fuel pool.
  • The fire-suppression system in that switchgear room operated as designed, extinguishing the fire quickly.
  • FCS plant operators switched the spent-fuel pool cooling system to an installed backup pump about 90 minutes after the loss of power.
  • During the interruption of cooling, temperature of the pool increased a few degrees, but the pool was never in danger of boiling.
  • Due to this situation, FCS declared an Alert at about 9:40 a.m. on June 7.
  • An alert is the second-least-serious of four emergency classifications established by the Nuclear Regulatory Commission.
  • At about 1:15 p.m. on June 7, FCS operators declared they had taken all appropriate measures to safely return to the previously declared Notification of Unusual Event emergency classification. (See first item above.)

But the crisis at Fort Calhoun is not over.  Right now, the nuclear facility at Fort Calhoun is essentially an island. It is surrounded by rising flood waters from the Missouri River.

Officials claim that there is no danger and that they are prepared for the river to rise another ten feet.

The Cooper Nuclear Station in Brownville, Nebraska is also being threatened by rising flood waters.  A “Notification of Unusual Event” was declared at Cooper Nuclear Station this morning at 4:02.  This notification was issued because the Missouri River’s water level reached 42.5 feet.

Right now the facility is operating normally and officials don’t expect a crisis.

But considering what has been going on at Fukushima, it would be nice if we could have gotten a lot more coverage of these events by the mainstream media.

#2 Most Americans are aware that the U.S. is involved in wars in Iraq, Afghanistan and Libya.  However, the truth is that the U.S. military is also regularly bombing Yemen and parts of Pakistan.  If you count the countries where the U.S. has special forces and/or covert operatives on the ground, the U.S. is probably “active” in more countries in the Middle East than it is not.  Now there are even persistent rumors that U.S. ground units are being prepared to go into Libya.  Are we watching the early stages of World War 3 unfold before our eyes in slow motion?

#3 The crisis at Fukushima continues to get worse.  Arnold Gundersen, a former nuclear industry senior vice president, recently made the following statement about the Fukushima disaster….

“Fukushima is the biggest industrial catastrophe in the history of mankind”

TEPCO has finally admitted that this disaster has released more radioactive material into the environment than Chernobyl did.  That makes Fukushima the worst nuclear disaster of all time, and it is far from over.

Massive amounts of water is being poured into the spent fuel pools in order to keep them cool.  This is creating “hundreds of thousands of tons of highly radioactive sea water” that has got to go somewhere.  Inevitably much of it will get into the ground and into the sea.

Arnold Gundersen says that the scope of this problem is almost unimaginable….

“TEPCO announced they had a melt through. A melt down is when the fuel collapses to the bottom of the reactor, and a melt through means it has melted through some layers. That blob is incredibly radioactive, and now you have water on top of it. The water picks up enormous amounts of radiation, so you add more water and you are generating hundreds of thousands of tons of highly radioactive water.”

The mainstream media is not paying as much attention to Fukushima these days, but that doesn’t mean that it is not a major league nightmare.

Elevated levels of radiation are being reported by Japanese bloggers all over eastern Japan.  There are reports of sick children all over the region.  One adviser to the government of Japan says that an area approximately 17 times the size of Manhattan is probably going to be uninhabitable.

Of course the mainstream media has been telling us all along that Fukushima is nothing to be too concerned about and that authorities in Japan have everything under control.

If the mainstream media is not going to tell us the truth, how are they going to continue to have credibility?

#4 Members of Congress continue to mention Christians as a threat to national security.  For example, during a recent Congressional hearing U.S. Representative Sheila Jackson Lee warned that “Christian militants” might try to “bring down the country” and that such groups need to be investigated.

#5 China’s eastern province of Zhejiang has experienced that worst flooding that it has seen in 55 years.  2 million people have already been forced to leave their homes.  China has already been having huge problems with their crops over the past few years and this is only going to make things worse.

#6 Thanks to the Dodd-Frank Act, over the counter trading of gold and silver is going to be illegal starting on July 15th.  Or at least that is what some companies apparently now believe.  The following is an excerpt from an email that recently sent out to their customers….

Important Account Notice Re: Metals Trading

We wanted to make you aware of some upcoming changes to’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011.

In conjunction with this new regulation, must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET.

We encourage you to wind down your trading activity in these products over the next month in anticipation of the new rule, as any open XAU or XAG positions that remain open prior to July 15, 2011 at approximately 5:00 pm ET will be automatically liquidated.

We sincerely regret any inconvenience complying with the new U.S. regulation may cause you. Should you have any questions, please feel free to contact our customer service team.

The Team at


Apparently, Section 742(a) of the Dodd-Frank Act prohibits anyone “from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis.”

So what impact is this going to have on the gold and silver markets?

Nobody is quite sure yet.

#7 All over the world, huge cracks are appearing for no discernible reason.  For example, a massive crack that is approximately 3 kilometers long recent appeared in southern Peru.  Also, a 500 foot long crack suddenly appeared recently in the state of Michigan.  When you also throw in all of the gigantic sinkholes that have been opening all over the world, it is easy to conclude that the planet is becoming very unstable.

#8 According to U.S. Forest Service officials, the largest wildfire in Arizona state history has now covered more than 500,000 acres.  But based on the coverage it is being given by the mainstream media you would think that it is a non-event.

#9 There are reports that North Korea has tested a “super EMP weapon” which would be capable of taking out most of the U.S. power grid in a single shot.  The North Koreans are apparently about to conduct another nuclear test and that has some Obama administration officials very concerned.

#10 All over the United States, “active shooter drills” are being conducted in our public schools.  Often, most of the students are not told that these drills are fake.  Instead, students often go through hours of terror as they think a hostage situation or a shooting spree is really taking place.

#11 NASA has just launched a “major” preparedness initiative for all NASA personnel.  The following is an excerpt about this plan from NASA’s own website….

A major initiative has been placed on Family/Personal Preparedness for all NASA personnel. The NASA Family/Personal Preparedness Program is designed to provide awareness, resources, and tools to the NASA Family (civil servants and contractors) to prepare for an emergency situation. The most important assets in the successful completion of NASA’s mission are our employees’ and their families. We are taking the steps to prepare our workforce, but it is your personal obligation to prepare yourself and your families for emergencies.

#12 Over the past week over 40 temporary “no fly zones” have been declared by the FAA.  This is very highly unusual.  Nobody seems to know exactly why this is happening.

So what do all of these things mean?

It would be nice if the mainstream media would examine some of these important issues more closely and do some honest reporting on them.

Perhaps you have an opinion on some of these issues.  Feel free to share what you think by leaving a comment below….



Mexico has quietly purchased nearly 100 tons of gold bullion, as central banks embark on their biggest bullion buying spree in 40 years.

Read Full Story