Jim Dean: Government Shut-Down and the Real Crimes Behind the Scenes — Wall Street Rules and Stealing the Gold

Jim W. Dean

Jim W. Dean

Government shutdown and Chinese gold

EXTRACT

Gordon Duff first reported in Veterans Today another financial scandal motive for the Repubs wanting to hold up Obama Care. New regulations were going into effect to stop the cross collateralization of insurance company reserves, who are all owned by banks, so they could be market traded. The sums involved were astronomical.

“The Obama Care issue is about ‘funds in management.’ The health insurance industry, through investment banks and hedge funds, accounts for 35% of the entire investment capital of the United States.

This sector has been totally unregulated with, not just individual policyholders but industries and government forced to subsidize a health care Ponzi scheme where in some cases fewer than 3% of policy premiums were paid back in benefits.”

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Oct 25

Marcus Aurelius: Reuel Marc-Gerecht on NSA High Cost – Low Return — Robert Steele Comments

Marcus Aurelius

Marcus Aurelius

The Costs And Benefits Of The NSA

The data-collection debate we need to have is not about civil liberties.

By Reuel Marc Gerecht

Weekly Standard, June 24, 2013

Should Americans fear the possible abuse of the intercept power of the National Security Agency at Fort Meade, Maryland? Absolutely. In the midst of the unfolding scandal at the IRS, we understand that bureaucracies are callous creatures, capable of manipulation. In addition to deliberate misuse, closed intelligence agencies can make mistakes in surveilling legitimate targets, causing mountains of trouble. Consider Muslim names. Because of their commonness and the lack of standardized transliteration, they can befuddle scholars, let alone intelligence analysts, who seldom have fluency in Islamic languages. Although one is hard pressed to think of a case since 9/11 in which mistaken identity, or a willful or unintentional leak of intercept intelligence, immiserated an American citizen, these things can happen. NSA civilian employees, soldiers, FBI agents, CIA case officers, prosecutors, and our elected officials are not always angels. Even though encryption is mathematically easier to accomplish than decryption, the potential for abuse of digital communication is always there—all the more since few Americans resort to encryption of their everyday emails.

But fearing the NSA, which has been a staple of Hollywood for decades, requires you to believe that hundreds, if not thousands, of American employees in the organization are in on a conspiracy. In the Edward Snowden-is-a-legitimate-NSA-whistleblower narrative, it also requires that very liberal senators and congressmen are complicit in propagating a civil-rights-chewing national surveillance system.

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Jun 16

Chuck Spinney: Austerity Economics is Fraud — Primer for Citizens

Chuck Spinney

Chuck Spinney

Austerity Economics

Why Snake Oil is the Drug of Choice for Ayn Rand Wannabees
Attached are two important papers, one by Stephanie Kelton and the other by Paul Krugman, arguing that it is time to consign austerity economics to the dustbin of history.  Both are variations on a theme and are spot on, IMO.
The fundamental problem tamping down the American recovery is excessive debt in the private sector, NOT the government sector.  Yet austerity economics ignores this reality and argues speciously for reductions in government spending.  The sequester has taken this nonsense to the level of policy lunacy by legislating an abdication of government’s primary responsibility –i.e., to make policy decisions, in to law.  As Krugman points out there is method to the austerity madness, however.
But madness it is.  The attached chart, which I have distributed before, uses Federal Reserve Data to place the real debt problem into a long term perspective.  Note the vertical scales are IDENTICAL!  Bear in mind, the chart is about 1.5 years out of date and it does not reflect the recent, pre-sequester reductions in Federal Debt discussed below.
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May 16

2012 Robert Steele: Reflections on the US Military — Redirection Essential — and a Prerequisite to Creating a 450-Ship Navy, a Long-Haul Air Force, and an Air-Liftable Army + Sanity RECAP

Robert David STEELE VivasClick on Image for Personal Page

Robert David STEELE Vivas
Click on Image for Personal Page

Telling the truth to those who have replaced intelligence with ideology and integrity with loyalty to something other than their Republic is most difficult and more often than not will get you fired, because those without integrity tend to be promoted in corrupt systems, and they see clearly the threat to their world-view — and their perks — of someone who persists in pointing out that the truth at any cost reduces all other costs.

Below is a complement to my earlier posting of 15 November 2012: 2012 Robert Steele: Addressing the Seven Sins of Foreign Policy — Why Defense, Not State, Is the Linch Pin for Global Engagement.

Reform can be job and revenue neutral from state to state and district to district — and is of course subject to Congressional oversight via the authorization and appropriations process.  Below are seven truths about the US military that I would like to see introduced into the hearings on the confirmation of the next Secretary of Defense, and ideally also tasked to the Congressional Research Service (CRS), where the senior specialist for each of the major services is capable of validating my views.

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Dec 24

Mini-Me: Why Are US and France Invading Mali?

Who? Mini-Me?

Huh?

US, France assemble coalition to confront Islamists in Mali

By CJ Radin

The Long War Journal, November 18, 2012

The Islamist takeover of two-thirds of Mali this year has spurred the West as well as concerned neighboring countries in Africa to find a way to restore Mali to its democratic path and drive out jihadist elements. Islamist groups in Mali currently include Ansar Dine, the Movement for Oneness and Jihad in West Africa (MUJAO), and al Qaeda in the Islamic Maghreb (AQIM), which is considered one of the most dangerous of al Qaeda’s affiliated groups.

Read full article

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Nov 19

Graphic: Automated Payment Transaction (APT) Tax

Click on Image to Enlarge

SHARE THIS WITH TINY URL  “APTNow”:  http://tinyurl.com/APTNow

Dummy Version:  Generates $4 trillion a year without borrowing and allowing the elimination of ALL other taxes beginning with personal income taxes.  Allows for the recapitalization of our labor pool, our domestic infrastructure, and our Department of Defense (450-ship Navy, long-haul Air Force, air-liftable Army, Marines back on the boats).

Formal Description and References Below the Line

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Nov 6

Mini-Me: REPLAY Future of the USA in 3 Parts

Who? Mini-Me?

Huh?

The future of the USA – 2012-2016: An insolvent and ungovernable United States (first part)

Thus, according to LEAP/E2020, the 2012 election year, which opens against the backdrop of economic and social depression, complete paralysis of the federal system (3), strong rejection of the traditional two-party system and a growing questioning of the relevance of the Constitution, inaugurates a crucial period in the history of the United States. Over the next four years, the country will be subjected to political, economic, financial and social upheaval such as it has not known since the end of the Civil War which, by an accident of history, started exactly 150 years ago in 1861. During this period, the US will be simultaneously insolvent and ungovernable, turning that which was the “flagship” of the world in recent decades into a “drunken boat”.

To make the complexity of the current process understandable, our team has chosen to organize its anticipations around three key areas:

1. US institutional deadlock and the break-up of the traditional two-party system
2. The unstoppable spiral of recession/depression/inflation
3. The breakdown of the US socio-political fabric

Read rest of analysis.

Below the line: the other two parts of the series.

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Oct 20

NIGHTWATCH: Financial Risk for the Few versus Life Risk for the Many

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Greece: The General Confederation of Employees of Greece and the civil servants’ union federation declared a 24-hour nationwide strike on Wednesday in protest against the finalization of the new package of austerity measures demanded by Greece’s creditors.

Tens of thousands of protesters demonstrated outside Greece’s parliament on 26 September against austerity measures. The strike included doctors, teachers, tax workers, ferry operators and air traffic controllers. The Greek government is looking for ways to cut 11.5 billion euros ($14.7 billion) from the country’s budget.

Comment: The economic hardships and austerity measures carry the risk of a breakdown in civil order. The key indicator of a spreading, unmanageable breakdown is the duration of protests. Thus far they have been short lived in Spain and Greece.

The international media has suggested the Eurozone crisis is now on a more stable trajectory. The protests suggest otherwise. European bankers and financial experts continue to fail to distinguish financial risks from real threats. There will be more outbreaks of civil disorder and more violent clashes.

Phi Beta Iota:  We now know that financial assets inflated seventeen times verus the five times normal inflation (under a corrupt Federal Reserve) for physical assets.  We now know that the financial mandarins and “control fraud” on the part of various governments has led to the internal looting of European Union and Americas commonwealths.  Spain will be the next to collapse because the Spanish government has resolutely refused to consider the Iceland example.  It is difficult to stop doing the wrong thing righter, we know this.  Prospects for the USA in 2013-2014 are terrible.  This is particularly troubling since there is nothing wrong with the USA that could not be fixed rapidly with the restoration of intelligence and integrity to governance.

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Sep 27

Paul Craig Roberts: Collapse at Hand – and ONE THING an Honest Government Could Do To Make It All Right

Paul Craig Roberts

Collapse At Hand

Ever since the beginning of the financial crisis and quantitative easing, the question has been before us: How can the Federal Reserve maintain zero interest rates for banks and negative real interest rates for savers and bond holders when the US government is adding $1.5 trillion to the national debt every year via its budget deficits? Not long ago the Fed announced that it was going to continue this policy for another 2 or 3 years. Indeed, the Fed is locked into the policy. Without the artificially low interest rates, the debt service on the national debt would be so large that it would raise questions about the US Treasury’s credit rating and the viability of the dollar, and the trillions of dollars in Interest Rate Swaps and other derivatives would come unglued.

In other words, financial deregulation leading to Wall Street’s gambles, the US government’s decision to bail out the banks and to keep them afloat, and the Federal Reserve’s zero interest rate policy have put the economic future of the US and its currency in an untenable and dangerous position. It will not be possible to continue to flood the bond markets with $1.5 trillion in new issues each year when the interest rate on the bonds is less than the rate of inflation. Everyone who purchases a Treasury bond is purchasing a depreciating asset. Moreover, the capital risk of investing in Treasuries is very high. The low interest rate means that the price paid for the bond is very high. A rise in interest rates, which must come sooner or later, will collapse the price of the bonds and inflict capital losses on bond holders, both domestic and foreign.

The question is: when is sooner or later? The purpose of this article is to examine that question.

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Jun 5

Eagle: 100 Million Americans Without Jobs

300 Million Talons...

100 Million Americans Without Jobs

by Gekko

The national unemployment rate gets lots of attention, and lately more attention has been paid to the workforce participation rate since more Americans have given up looking for a job, but we can also see that an astounding 100 million Americans don’t have jobs.

Specifically, these are people who are part of the civilian over-16 non-institutional population who are either unemployed or not part of the workforce. According to the April jobs report, the number of jobless American stood at 100.9 million.

That’s an all-time record and it’s an increase of 26.2 million over the last 12 years. It’s as if we absorbed the entire adult population of Canada and not a single person had a job.

The numbers are staggering. The jobs-to-population ratio peaked 12 years ago. If we were to have the same ratio today, we would need 15.3 million more jobs, or 23.7 million fewer people.

(Note: The chart above is the Civilian Over-16 Non-Institutional Population minus the seasonally adjusted Civilian Workforce.)

Source

Phi Beta Iota:  As a number, that is almost precisely half the eligible voters in the USA.

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May 24