Paul Craig Roberts: Will Strauss-Kahn Be The Next President Of France?

by TheAlexJonesChannel on Jul 5, 2011

The Obama Birth Certificate Forgery Trial Announcement

by ATLAHWorldwide on Jul 5, 2011

The Trust & Verify Committee under the leadership of Dr. James David Manning will put Obama on trial for presenting false documents.

Webster Tarpley reports on the Libyan War from Tripoli

Veteran historian Webster Tarpley reports first hand on the US/NATO war on Libya....listen here (select the 2nd July podcast)

Gold & Silver rise on EU debt concerns

Gold & Silver rose significantly overnight in London & NY trade on the back of Moody's downgrade of Portuguese debt and their continuing concerns about Greek debt restructuring.

Prices for the two monetary metals have retraced all of their losses of recent weeks, with gold confidently back above US$1,500/oz and silver back in the shorts killing zone of US$35+/oz.

Graph from goldprice.org

Graph from silverprice.org

Moody's Gives Banks Greek Debt Warning

From WSJ.com:

LONDON—Banks rolling over some of their Greek debt into new instruments may have to take impairment charges, Moody's Investors Service said Tuesday, in another setback for efforts to involve private bondholders in a new international bailout.

Rival rating firm Standard & Poor's Corp. on Monday rocked plans to involve the private sector in giving Greece more time to work out its fiscal problems by saying a proposal being promoted by French banks would likely put the country in "selective default."

Moody's still hasn't explicitly said the plan would result in a default. Tuesday it said it's "not a party to ongoing discussions on the Greek debt rollover," and that "any rating implications will be assessed through our published methodologies and definitions," only after authorities complete a plan.

The ratings firms' reaction to the French proposal is being regarded as a crucial element in whether it will proceed or not, because euro-zone and European Central Bank officials have repeatedly said they want a deal that doesn't result in Greece's getting a default rating. It could also affect the ECB's willingness to accept Greek bonds as collateral, which has been vital in keeping the Greek banking sector functioning during the crisis......read on

Moody's downgrades Portugal on fear of 2nd bailout

LISBON, Portugal (AP) — Ratings agency Moody's downgraded Portugal's government debt on Tuesday, citing growing risks the country will require a second rescue package because it cannot meet its debt reduction targets.

Moody's Investors Service cut its rating by one notch to Baa2 from Baa1 and said in a report that it was increasingly unlikely that Portugal would be able to borrow money on capital markets in 2013, as planned.

As a result, it said the country would probably require more financial aid — on top of the euro78 billion ($113 billion) bailout it received earlier this year — with private banks taking some losses.

The Portuguese government said in response that it is fully committed to meeting debt reduction targets and economic reforms tied to the bailout.

Portugal has been shut out of bond markets for long-term loans since April, when its government collapsed, heightening investors' concerns about its financial future.

Moody's said the European Union's insistence on involving private sector holders of Greek debt in a second bailout for the country indicates the same would happen for Portugal.

The agency's report is a blow to Portugal as it tries to distance itself from Greece, which has had to redouble painful austerity measures because it did not meet debt reduction targets.

Moody's said Portugal faces huge challenges in reducing spending and tax evasion, achieving economic growth and supporting the banking system and did not exclude another rating cut.

"A further downgrade could be triggered by a significant slippage in the execution of the government's fiscal consolidation program, a further downward revision of the country's economic growth prospects or an increased risk that further support requires private sector participation," Moody's said in its report.

In Lisbon, Portugal's new center-right coalition government said the downgrade showed the country faced an "adverse environment" in its debt-cutting efforts and that only by sticking to its promises to severely cut costs would it reverse its financial decline.......read on

Keiser Report: Robbed and Securitised

by RussiaToday on Jul 5, 2011

This week Max Keiser and co-host, Stacy Herbert, report on 'no buyers' at the firesale of Greek national income producing assets and on Ben Bernanke as the Taliban of finance. In the second half of the show, Max talks to economist Yanis Varoufakis about the bailout and austerity packages for Greece.

Smoke & Mirrors

By Aubie Baltin CFA, CTA, CFP, PhD.

"The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence. If 'Thou shalt not covet' and 'Thou shalt not steal' were not commandments of Heaven, they must be made inviolable precepts in every society before it can be civilized or made free." -- John Adams, A Defense of the American Constitutions, 1787

We are quickly catching up to that infamous "can" that keeps getting kicked down the road when it comes to the QE'S. Whether or not the Fed was successful in creating any growth or stimulating any amount of pent-up demand is debatable, but what it has been successful in, is provoking a great deal of speculative activity, pushing both the Bond and Stock markets up to widely overbought ranges. However, there was never any realistic prospect of creating a beneficial "wealth effect" for the economy as a whole; since none of the $800 billion QE1 or the $600 billion QE2 found its way to Main Street. The historical evidence is clear: The public only increases spending and their debt levels if the perceived increases are of "permanent income" -- not the one shot welfare type gifts. Wealth is driven by the creation of long-term cash flows through permanent jobs and productive investment, not by boosting the valuation of existing paper assets by the FED lowering interest rates, encouraging speculation. There was no reason for people to take much of a permanent signal from fluctuations in a stock market that has lost more than half of its value twice in a decade (and is likely to lose a good chunk of its value again, in the near future; if history is any guide).

IS ANOTHER CRISIS ON THE HORIZON?

If the economy starts to falter, as it seems to now be doing, the great expectations for another QE have become less likely, given the mood of today's Congress; hence the necessity for the government to create another crisis in a hurry. But the reality of seeing QE3 any time soon is far from assured.

Back in the 1930's it was the Keynesian argument that each $1 of government infusion would create $3 to $4 of new private Investment. However, there is overwhelming evidence that the reverse is true. Throughout the 1930's and WW2's massive government spending, it was not until 1947 that we got the 1st dollar of new private investment. We now know that it takes $2.5 to $3 of government spending to generate only $1 of new investment. TARP (QE1) and QE2 did NOT work - unless you call bidding up paper assets working -- which will make the Fed's political opponents object all the more strenuously to approving a new QE3.

"If QE1 and 2 were both dumb and costly, why would any sane person demand more of the same?"

The Fed is running out of ammunition and more importantly credibility. What we are seeing is the gradual abandonment of the Keynesian theory of "print money to save-the-economy" strategy, that never had a lot of logic behind it and has been proven to be wrong time and again (even some in high liberal academic circles have since come to the conclusion that the Keynesian "Create Demand Strategy" never worked).

In propping up both the stock and bond markets (by driving down interest rates to unsustainable low levels) the FED has only succeeded in making the average American's life worse (through a hike in the cost of real goods and services, especially food and energy prices). Does anyone really believe that the CPI is only 1.5%?

As a life long diabetic I know that, both the stock markets and the economy's sugar highs are due for the natural crash that always follows "Sugar Highs".

The risks are now extreme; not only because of psychological and sentiment risk, but the environment of the past few years has been one of massive government and Wall Street propaganda generated euphoria. Any return of fear and uncertainty, in conjunction with the US's weakened overall financial condition now being highlighted in the media all around the world, could bring about the Depression that I have been warning about: Unless there is a complete about face away from Socialism back to our Constitutional Capitalism.

It is too late?

Probably, unless a new dynamic leader emerges who understands Free Market Capitalism and is swept into power with clear, filibuster proof, majorities in both houses of Congress; a perquisite to implementing the sweeping changes that would be required to turn around the direction that the US has been going in ever since 1929. This is not a Democrat vs. Republican tirade: Both parties have been equally guilty. Even Nixon in 1971 stated that "We are all Keynesians Now" as he destroyed the last vestiges of the Gold Standard. The result Prices have been exploding and the US Dollar has been depreciating ever since.

In a solidly trending bull market, an investor can make any number of risk management mistakes and still pull through ok. In a climate like this one however, the same litany of once-forgiving mistakes can spell disaster although risk management is always important but at times like we are now in, it is a matter of life and death (in financial terms at least). Now is not the time to go it alone.

Lately the word, "crisis" can feel like an overused term. But the simple fact is that crisis is everywhere: There is a financial crisis in almost every economy around the world, a crisis in leadership and a crisis of faith in our government. War and terrorism is spreading across the entire Middle East and North Africa, and and.

HOW NOW DOW

Grave macroeconomic policy mistakes have been made by the Central Planners (government) and we are all going to pay the price. A massive decline is coming, shortly or starting later in 2011, or perhaps delayed into early 2012 if Bernanke can manage to get a large enough QE3. But the QE tactics are disastrous for our economy in the long run. They are doing nothing for households, small businesses or small banks, which are the backbone of our historically strong capitalist economy. Fifty three percent of all people either are receiving government assistance in America or are employed by the government. This is Socialism folks, not Capitalism and that is the problem. Socialist policies are coupled with an obsession to pump up a few large, mega banks and Wall Street to the tune of trillions of fiat dollars that do not find their way to Main Street but go directly to paying billions in bonuses, some of which is returned as political contributions.

In my constant search for reliable information, I was having lunch (my treat) with a real estate developer friend of mine and he related some startling facts. He told me of several successful housing construction companies, who like him, were large enough to have employed hundreds of people, maybe thousands if all aspects of construction industry are considered. On average, they used to build 200 - 500 homes a year, but are now down to less than 50 and are having trouble selling those 50, so they are buying the homes themselves and renting them out to try and keep their few remaining key employees and recoup some of their costs. That's a 90% drop in new home building, a far greater number than the lying government statistics that we are getting fed by the mainstream media and Wall Street.

Furthermore, he and these developers if they improve their land, with roads, water, and sewers, with the intent of selling lots and then building on those lots, since you can't build if you do not have the land and infrastructure - they get penalized for those improved lots by being reassessed for property tax purposes. In other words, he cannot move forward because the increased cost of property taxes makes his speculation on finding a buyer cost prohibitive. You can't rent improved building lots out, and in this ragged economy there are few buyers interested in building, so there is no cash flow possibility in land development.

During that same lunch, I also discovered that several high up individuals who work for the Federal Banking Regulators have chosen to take early retirement. They did so just to get away from the terrible environment they have been working in due to all the 1000's of idiotic new regulations being passed by an ignorant U.S. Congress who have no understanding whatsoever of the true causes of the meltdown. Congress simply threw in1000's of pages of senseless new regulations, of course never examining themselves as to their culpability in creating the problems in the first place. These laws are so bad that the regulators are getting out before they get blamed for the coming disaster.

The down payment and repayment cash flow requirements, as well as other increased underwriting requirements, make it almost impossible to get or give a loan. Small town bankers, the backbone to America's community economic growth, are scared and intimidated by senseless Congressional Laws that are virtually shutting down our economy. You won't hear this in the media, nevertheless it is happening. This is just one of the many reasons why I have been calling for history's biggest BEAR TRAP preceding a multi-century crash starting in the not too distant future.

It has been the large, too big to fail bankers, Wall Street corporations and politicians who think that they are above the law that are responsible for the dire situation our country is now in. So Congress has decided to throw new laws and regulations at anyone and everyone to cover up their own misguided, greedy mistakes. Then, in order to both cover it up and assure their own re-election, the Central Planners have the audacity to give trillions of dollars to those same firms in QE1 and QE2 while providing nothing but scraps for households, small businesses or the 5000 small community banks.

The DOW has been down for six weeks in a row. Apparently most money managers feel that the end of QE2 is going to kill the market/economy. So they are selling and asking questions later. BUT, this week is options expiration and in my opinion, we can expect a 200-300 point intraday Dow rally going into the expiration. IF IT DOES NOT HAPPEN, THEN CONSIDER HOW WEAK THE MARKET REALLY IS.

Like it or not, the slowing down of the economy will translate into reduced earnings, regardless of the majority of analysts glowing up beat earnings projections: Which according to Kudlow is the mother's milk of rising stock markets.

LINKEDIN was probably the one and only IPO to have doubled in price on its 1st day since 2007 and has probably signaled the end of what everybody has been calling a Bull Market. At the Last peak in 2007 117 IPO doubled in price on their 1st day.

WATCH OUT FOR THE BULL TRAP; that it does not trap you.

GOLD

Gold/Silver stock investors are panicky!!! BUT, should they be???? Parabolas by definition must sell off sharply, but from which point. Silver first reached the beginning of a parabolic move at $30 or $35 - should you have sold out then? In hindsight you should have sold out at $49, but hindsight also has told us that timers are never the big winners (witness 2006 and 2008). Then like now, not knowing the exact highs or lows, In my missive "Sell In May & Go Away" I also recommended selling 3 or 6 month call options against your long Gold and Silver positions. All those who have listened are laughing all the way to the bank. Now may be the time to be looking to buy back any of your short options that are in danger of being exercised and/or take profits on your long Puts on Silver and/or Gold.

The only ones who make money by consistently trading are the brokers.

Should you panic and dump now: Only if you have a financial death wish. Now is the time to make your buy list and accumulate your favorite stocks into any further individual weakness. That is what I am doing now and will send out my list to subscribers with the July 1st letter. Remember, we are only 2/3 through the Golden Bull Market with the most explosive 1/3 (5th Elliott Wave) still to come. Stay with Aubie!

ELLIOTT WAVE

It never ceases to amaze me how everyone who can say 3 waves up interspersed by 2 waves down call themselves Elliot wave experts and then promptly apply other technical analysis to their EW readings to make them say what they want. They don't realize that Elliott Wave must stand by itself since it is the only system that is NOT a trend following Technical forecasting system.

Just look at the weekly $HUI $GOLD Charts. Gold stocks are more oversold than at any time during the last 24 months. Either Gold collapses or the stocks rally and are now giving you the best buying opportunity since 2008. How many times do I have to remind you that Gold is a market unto itself and is not correlated to any other market; except for short periods of time.

Similar to 2008, we see that the Gold stocks are falling against Gold, yet Gold is quietly strengthening against Oil, Industrial Metals and the S&P 500. The real price of Gold began to strengthen across the board in September 2008 and it was only a month later that the sector bottomed.

Gold and Gold stocks are starting to move in the right direction. As the economy stalls and the equity market peaks, more money will move out of risk assets and into Gold and then the Gold shares. We are already seeing the start as Gold is firming in relative terms. There may be a bit more weakness in the Gold stocks, but ultimately this summer should post a major low and the Gold stocks will be in a fantastic position heading into 2012.

According to the 'real' Fed Funds Rate from data supplied by the Federal Reserve, it shows 'real rates' to be negative (-3%), and heading lower. According to the Gibson Paradox, whenever 'real rates' are negative, Gold is accumulated by those who are interested in wealth preservation. It should be noted that the data supplied by the Federal Reserve is 'massaged' to suit their own best possible outcomes. If we were to use data supplied by John Williams of Shadowstats.com the 'real rate' would be negative -8%. This means that anyone with money in the bank at 1% is losing 7% while paying income tax on the 1%!

SILVER: Shadowstats.com uses a formula that was used by the government up to 1980 and his calculation shows Silver would need to be priced at nearly $400 to match the purchasing power of $50 in 1980.

The mismanagement of economies by Keynesians, guarantees that the monetary inflation that is now above 10% per year will continue to provide the liquidity for Gold and Silver prices to continue to rise.

Harry Truman once said, "I never give them hell. I just tell the truth and they think its hell."

"I always tell the truth and only the ones who refuse to listen think its hell" Aubie

How Bankers Own the Earth And Then Some...

image: Bank of England

By Chris Duane:

"Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take away from them the power to create money and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money." -Josiah Stamp

It is just another fancy academic phrase to mask the true horror of what is happening to Greece. (And what will soon happen here.) This is like how "quantitative easing”is another name for forgery. You know, the act of counterfeiting a currency that was once punishable by death. Financial austerity is simply, more for the bankers and less for everyone else. Portfolios of the Elite must perform over all other human need. These bailouts come at a heavy price for the states that succumb to this financial rape. Real state assets and lands are sold at fire sale prices for to pay for debts created out of thin air. Real people’s lives will be destroyed to pay for debts created out of thin air. This of course is the true harvest time for the criminal bankers and their political enablers make it happen, by selling out their fellow citizens.

Many think that the bankers make money by lending money, but the real objective is the control they gain when when they confiscate Real assets with money that they never had

In our debt based monetary system, our money IS debt. When debt is created, money is created. When debt is paid off, money is destroyed. If you have ever wondered how everyone is in debt, look no further than this. Bankers gain power every time a debt is created, because it is their asset. Bankers don’t necessarily do this to make money, after all they freely give away all the money you want. What the bankers really want is control. Control over governments, businesses, states, towns, and ultimately you. They want everyone on a treadmill to work and produce real assets and labor so that their portfolio performs. The trick of this game is that there is no way out. We are on a treadmill that is going faster and faster because of one simple fact that is missing from everyone’s mind. Money/debt needs to be created every year in excess of the debt AND interest that was accrued the year before. In our debt based monetary system, our money is debt. Every dollar that comes into existence has a dollar of debt attached to it but NOT the money to pay for the interest attached on to it. This is the big trick, if only the principle is ever created, the only way for society to pay the interest due is to take more debt the next year.

This game works well for many years as people are young enough and deluded enough to run faster and faster

Eventually, like the Boomers are finding out now, the system keeps growing more hungry for new debt and the people can no longer keep up. This leads to the end of consumerism, which slows corporate and business growth and need for debt. This leaves the spender of last resort, the government, to keep juicing the system. If the people will not spend the money, the state will. And the bankers LOVE state debt, because they can use the power of the state to enforce debt payments and seize once untouchable state assets. This has been the game all along for the bankers. Sure, they enjoyed their billions in bonuses and houses on the Hamptons, but now it is time to truly become masters of the universe.

During the collapse of the Soviet Union, a few Oligarchs seized more than half of ALL of the wealth in the former super power

They bought companies the size of Exxon Mobil for a few hundred million dollars. They bought huge tracts of land for nothing, to harvest incredible lumber and minerals. They bought media conglomerates and entire auto and aero industries for pennies on the dollar. The collapse of the Soviet Empire due to its inability to service the debts. This brought about the most amazing transfer of wealth the world has ever seen. Seeming overnight, former cab drivers and teachers became billionaires. Now before you think that these guys were self made men, they were not. They were front men for the Rothschilds and were given hard money and their own banks to go forth and buy assets for pennies on the dollars when there was no money. This is the same thing Greece is going through right now. Greece’s best lands and assets are being sold right now to Elitists for nothing. The Elite will then turn around and raise rates to the consumers and reap huge returns on investment. Again, all with money created out of thin air. What a sick system we have!

So here is how the bankers own the earth and then some

We already understand that debt is money and there is not enough money in existence to pay for the principle AND interest. (If all the debt in the world was paid off there would literally be NO money in the world. And we would still owe more for the interest due.) The key for the banker is that they get everyone in debt so that the can obtain title to all assets. Real assets assert real control, which is the ultimate end of the game. So how does one go about owning the earth and then some? The plan is quite simple, provided you have the right tools in place like fractional reserve banking, usury, and privately owned central banks.

• First, like a drug dealer, get the society you wish to control hooked on your drug debt. Make it really easy with credit cards and easy terms. This then warps society into a buy now pay later mentality. Soon they will no longer even think about real assets or real savings, then they are hooked.
• The real assets once owned outright by the people, become attached with debt and then the bankers own them.
• Once you have enough of the assets you seek to take, suddenly tighten the lending requirements and crash the bubble you just produced.
• Then use the government to guarantee the loans with public money. (Socialism for the rich, capitalism for the rest like in 2008.)
• The next step is to squeeze the market to produce the maximum amount of defaults, so that you can now foreclose and take real possession of the assets. (Have you heard about the millions of houses in shadow inventory the banks are hiding? Do you know how many people have yet to be foreclosed upon? At the end of this list you will know why they have not cleared this market.)
• Use public funds to cover your private losses. (TARP, TALF…)
• Keep the pressure up until the government defaults and then you can use your capital to buy up state assets during the hyper inflationary collapse.
• Once all assets are under control, reestablish a new monetary paradigm using the sale of the assets you now have, as the collateral.
• The new debt will be issued in a new currency creating another paradigm for the bankers to collapse later.

This is the future of the our world

Short of a revolution, there is no stopping this on a national level. I encourage you to join the Sons of Liberty Academy to understand the big picture. It will help you to become mentally, financially, physically, emotionally and even spiritually prepared for this mathematically inevitable collapse. If you are looking for the best way to quickly prepare financially for this collapse, read the Silver Bullet and the Silver Shield.

dont-tread-on.me

Webster Tarpley on the Alex Jones Show

Webster Tarpley on the Alex Jones show reporting from Tripoli, Libya.......listen here