Today’s Keiser Report ~ “this week Max Keiser and co-host Stacy Herbert discuss the message from Sirte, “Today Libya, Tomorrow Wall Street”, and fecal alchemy and its two-tiered justice system. In the second half of the show, Max Keiser interviews Stephen Leeb, author of Red Alert: How China’s Growing Prosperity Threatens the American.”
KR on FB: http://www.facebook.com/KeiserReport
July 29, 2011
By Paul Craig Roberts
With the world concerned about US financial credibility and the poor outlook for the US economy, now is not the time for the Republicans to grandstand on the public debt. The debt ceiling needed to be quietly raised. Instead, the Republicans started a fire and then threw gasoline on it, creating an inferno that could burn up the US social safety net or the US Treasury’s credit rating and the US dollar’s role as reserve currency or what remains of the separation of powers.
Consequently, world financial markets, currency markets, commodity markets, central banks, and mutual fund money market and bond funds are on pins and needles.
This level of irresponsibility is seldom seen even from American politicians. [Read more…]
Buy this film and distribute it widely…remember, it take’s $$$ to produce these films and any donation would be welcomed…visit http://www.theamericandreamfilm.com
h/t YouTube Channel NotforSale2NWO ~ Awesome channel for those who want to step outside the disinformation matrix and are seeking reliable alt news channels.
UPDATES are provided below about this ongoing farce or kabuki theater both the D and R and TP’s are playing out in DC as though they are actors in this drama and we are the viewers.
This man Carney is a master at avoiding questions. Talk about yakking in circles. It’s enough to make any sane person’s head spin.
By showing such blatant obfuscation he shows his hand – the White House doesn’t have a budget plan! They apparently have numbers on pieces of paper that were never handed out to the White House press corp nor to anyone else for all that matters. What kind of charade are these punks playing here?
Watch this clown. He’s getting paid a ton of dough by you, the taxpayer, telling you not a damned thing!
Here is what Zerohedge is saying about this clip – [Read more…]
This week Max and Stacey cover the pharmaceutical industries pill pushing agenda targeting any who have the slightest hint of an emotional disorder. This includes our children who seem to be their number one target. Max also talks to Adrian Salbuchi about the similarities between the financial attack on Greece and what happened to Argentina in 2001/2002.
KR on FB: www.facebook.com/keiserreport
UPDATE: U.S.’s Aaa Debt Rating Placed on Review for Possible Downgrade by Moody’s and see this Moody’s Puts US AAA Rating On Downgrade Review
KR on FB: www.facebook.com/KeiserReport
Editor’s Note – The following three columns and interviews are stunning and stand alone as voices from the left speaking their truth about Obama and his administration. Each speaks volumes starting with Obama’s personal betrayal of Dr. Cornel West and what light he now see’s Obama in; next the administrations chilling any negative coverage whatsoever of Obama and its affect on long time critic of all things political, Ted Rall, who has effectively been blacklisted by leftie news; and, finally what is becoming a weekly date w/Dr. Steve Pieczenik & Alex Jones who covers an array of national and geo political issues all related back to the Obama administration and its unwillingness to issue arrest warrants for the banksters – America’s greatest national security threat. The common thread that ties all three of these pieces together is the ever growing mantra – Country BEFORE Party! Enjoy.
By Chris Hedges
The moral philosopher Cornel West, if Barack Obama’s ascent to power was a morality play, would be the voice of conscience. Rahm Emanuel, a cynical product of the Chicago political machine, would be Satan. Emanuel in the first scene of the play would dangle power, privilege, fame and money before Obama. West would warn Obama that the quality of a life is defined by its moral commitment, that his legacy will be determined by his willingness to defy the cruel assault by the corporate state and the financial elite against the poor and working men and women, and that justice must never be sacrificed on the altar of power.
Perhaps there was never much of a struggle in Obama’s heart. Perhaps West only provided a moral veneer. Perhaps the dark heart of Emanuel was always the dark heart of Obama. Only Obama knows. But we know how the play ends. West is banished like honest Kent in “King Lear.” Emanuel and immoral mediocrities from Lawrence Summers to Timothy Geithner to Robert Gates—think of Goneril and Regan in the Shakespearean tragedy—take power. We lose. And Obama becomes an obedient servant of the corporate elite in exchange for the hollow trappings of authority. [Read more…]
httpv://www.youtube.com/watch?v=r_07y1LB3UE
You go, girl!
It is way past time we American’s hold not only the government BUT the corporatocracy accountable for the ongoing assault on our precious natural resources, our psyche and our pocketbooks. Remind me when exactly our republic turned into a democracy which is now a full blown fascist form of rule. Next step – oligarchy. Look it up. Learn for yourself like many of us have bothered to do and then tell me this is the structure you want to raise your families in. I’ll be waiting.
Cherri, we will be joining in on the Road to Washington.
Follow Cherri on her journey by clicking HERE
CR Hails Major Victory for Accountability
This is a monumental decision that will enable a Spanish judge to continue a case on the “authorized and systematic plan of torture and ill treatment” by U.S. officials at Guantanamo. Geoffrey Miller, the former commanding officer at Guantánamo, has already been implicated, and the case will surely move up the chain of command. Since the U.S. government has not only failed to investigate the illegal actions of its own officials and, according to diplomatic cables released by WikiLeaks, also sought to interfere in the Spanish judicial process and stop the case from proceeding, this will be the first real investigation of the U.S. torture program. This is a victory for accountability and a blow against impunity. The Center for Constitutional Rights applauds the Spanish courts for not bowing to political pressure and for undertaking what may be the most important investigation in decades. [Read more…]
httpv://www.youtube.com/watch?v=5XdKm3xUz9E&feature=mfu_in_order&list=UL
Part 2
httpv://www.youtube.com/watch?v=SDavC2UFeE0&feature=mfu_in_order&list=UL
Part 3
httpv://www.youtube.com/watch?v=Dj018ma6quY&feature=mfu_in_order&list=UL
UPDATE X1 – From Bob Chapman’s weekly International Forecaster
Public debt has become a problem worldwide. What is becoming more and more evident is that it is unsustainable and simply unpayable. It could be compared to a giant Ponzi scheme. We see no meaningful debt reductions thus, government will have to raise taxes, which will further suppress the economy, or people and companies will be forced to buy such bonds, or perhaps pension and retirement funds will be seized to continue the game for a while longer.
The whole concept of government debt in the US, whether it’s federal, state, municipal, corporate or personal stands on very shaky ground. Debt is serviced with revenues and income and when both are falling it is difficult to service. We have begun to enter a period of slowly rising interest rates. In the US the Fed has managed interest rates to be as low as possible to both aid in a recovery and to keep the financial edifice from collapsing. Over the past six months the bench mark 10-year Treasury note yield has risen from a yield of 2.20% to 2.74% and presently stands at about 3.60%. That 1.4% rise in rates has been offset by GDP growth of 3%. The problem is that such GDP growth has been maintained by growth in debt. The two sources of debt are the Fed and government. The Fed has been buying the government debt by creating money out of thin air. That is called monetization and it causes inflation. The government demand comes from revenues that have fallen and continue to fall, and as a result government issues more debt. The lenders, the bond buyers, sell dilution in the value of debt and in the dollar and as a result demand a higher yield. At this stage you can see how important QE1 and 2 and fiscal stimulus have been over the past 2-1/2 years. Had they not been implemented the economic and financial system would have collapsed. The next question to be asked is will we have to have quantitative easing and stimulus indefinitely? The answer is yes, but unfortunately if that path is followed lenders will demand ever-higher interest rates and the dollar will continue to fall in value versus gold and silver and other currencies. We estimate GDP growth to be 2% to 2-1/4% in 2010, down from 3%, all of which were aided by quantitative easing, the creation of money and credit and fiscal stimulus the result of debt. Without these props there would have been little or no growth, and fairly quickly the economy would have faltered. That would have brought about a classical purge accompanied by a deflationary depression. There will soon come a time the creation of money and credit and fiscal stimulus will no longer work and the system will finally fail. That is inevitable. That will begin to happen when interest rates are rising faster than growth rates. Once that condition exists there is no further hope of servicing debt or creating more debt, because there will be no natural buyers and inflation will be raging if not hyperinflation. The US is not the only country staring into this abyss; most countries around the world have the same problem.
As you probably have already figured out such fiscal and monetary policies of many countries cannot continue. The issuance of new debt has to be curtailed, as well as the growth of future liabilities. On its present course the US is headed toward a deficit in excess of 100% of GDP in just 1-1/2 years.
These countries have experienced and most still do, profligate government spending, little fiscal restraint and outright criminal behavior. Such action in time cause markets to put pressure on governments to mend their ways. That is where the higher yields come into play and as we pointed out we are already witnessing that. In 1 to 1-1/2 years the cost of carrying debt will begin to reduce GDP, because government debt demands will crowd out private investment. Except for AAA corporations we have already seen that over the past two years, as lenders retain cash and generally refuse to lend to medium and small companies and individuals as well.
A product of these conditions is a perpetuation of unemployment, which we believe is 22.6% presently, for years into the future. In addition, we have had 20 years of free trade, globalization, offshoring and outsourcing that has lost America 8.5 million good paying jobs and the loss of 42,400 businesses. We have extended unemployment, but every month millions fall off leaving them on their own and food stamps. These transfer payments make up 20% of household income, which is also unsustainable. Our guess is that the current extended benefits will be extended further in spite of a projected $1.6 trillion deficit. Political types prefer an extension to revolution, but the cost is more debt, a falling dollar and rising gold and silver prices. In addition, an end to extended benefits will sap consumption that must be maintained at 70% of GDP in order to keep the economy from failure. Do not forget the US is not the only country with debt problems. In the same league are Greece, Ireland, Portugal, Belgium, Spain, Italy, England and above all Japan, which is more than 200% and growing exponentially. None of these countries are capable of growing out of their debt problems and thus, eventually we see a multilateral default of debt, which will probably entail a 2/3’s write off of debt. A jubilee of sorts.
If stabilization and growth have to be based on continued creation of money and credit and monetization then the system has to eventually collapse. It is no more a solution than extended unemployment benefits, federal government spending and hiring and food stamps. It throws the problems into the future at a terrible cost. In spite of this largess unemployment won’t improve and the monetary and fiscal effect on the economy will lesson. We call it the law of diminishing returns. Last year we saw 3% growth, or so we are officially told, and this year we believe it will be about 1% less at 2% to 2-1/4%. The effectiveness of the policy is losing momentum and strength. The next question is will a $1.7 trillion QE3 with $850 billion in additional fiscal spending be able to maintain 1% growth. Our answer is we do not think so. This fading monetary and fiscal policy will be accompanied by ever falling government revenues, unless ever more debt is created. Are you getting the feeling that governments are running around in circles with no solution in sight? If you are you are correct. The only answer is to purge the system and the sooner the better. The longer the problems are extended and individuals will be faced with unemployment and under employment and that means borrowing and the use of credit cannot be extended and that means the economy cannot grow. Even if spending cuts and higher taxes were implemented the economic and financial affects would not be felt for 6 months to a year. Government has waited too long.
Projections for the future are very difficult if for no other reason than we do not know where interest rates will be. We assume they will be higher, but how much higher? We just do not know. We can tell you that in 1980 official inflation was 14-3/8% and the long bond yield was over 20%. Will that be repeated, we do not know, but we can say we could see something close to that. If we have hyperinflation we could see 30% inflation. Who knows – we won’t know until we approach getting there. Are we going to look like the German Weimar Republic of the early 1920s or today’s Zimbabwe? We don’t know but it is certainly possible and near the edge of probability.
What really gets our attention is that elitists that control all this really believe they can retain control. If they cannot they figure they will just have another major war, like they always have had. They know what we now. They know deficits are going to further rise precipitously, unless there are major policy changes, spending cuts and higher taxes. Even if the proper steps were taken we are probably looking at 30 or more years of depression. Debt cannot be kept within bounds, just look at what is going on today. The elitists have no intention of radically changing their ways. There will be more of the same until the system ceases to function.
We have written about rising interest rates in the whole spectrum of government and corporate bonds. The average has been 100% to 150%. Official rates have been raised in Brazil, India and China. In the US, bond buyers have already been pricing in yield increases, which they feel are necessary to offset inflation losses. Unfortunately for buyers they have not gotten nearly enough yield to compensate and are losing money on return and currency depreciation versus other currencies, but particularly versus gold and silver. In order to offset real losses, real yields will have to rise and they will. The first stop for the US 10-year note should be a move upward from 3.60% to 4% to 4.25%. That should happen this year. The next move in 2012 should be to 5% to 5.60% and the second move from 5.60% to about 7%. Mind you these are very conservative estimates. Any recovery in housing will be impossible with prices falling another 15% to 20%. Anyone with an ARM will be a dead duck. That means about a 60% plus failure rate. Bumping along the bottom could take 8 to 30 years and as we mentioned before government could end up with most of the housing eventually causing a process of nationalization.
These higher rates, which are inevitable, will raise havoc on the Federal budget and its debt service. Average maturities are 4.5 years – a very foolish move that began some 15 years ago. This means even if taxes are raised and the budget deficit cut, they will only serve as a damper on costs, which would lead to dollar depreciation and default. Worse yet, who will want to buy bonds and in particular US dollar denominated bonds as gold and silver are soaring and profits are falling along with the stock market? The Fed is buying and monetizing at least 80% of treasuries now. That means they will have to buy them all, including some from nations such as China, Japan and Middle Eastern owners. Long-term bond holders will be looking at 30% losses and the stock market 50% plus losses. The monetization process at this point will produce inflation from 14% to 40%, which could well be accompanied by hyperinflation. That hyperinflation could come quickly once inflation passes 14-3/8%, which it officially hit in 1980. At that time 30-year T-bond rates were more than 20%. We do not know exactly what the numbers will be, but we do know they will be terrible. Some time along the way the US will be forced to default and then China will own a goodly part of the US. We also believe that a major world war will be in progress. Again as a diversion from the massive economic and financial problems plus revolutions worldwide, which could short circuit having another world war. We do not know how these events will roll out, but we do know they are probable.
Higher interest rates will cause major problems for banks, private equity funds and hedge funds. The cost of borrowing and using leverage will be prohibitive. Many banks and funds will go under. Defaults will abound and cash flow to bond holders will diminish making outflows greater than inflows. This process of losses will in part mirror what we saw in the early 1930s, not only in reduced value but also in the doubling of gold prices and the increase in gold and silver shares of more than 500%. This also will be accompanied by a complete collapse in living standards.
At this stage we depart from the crowd of economists. We think these conditions will persist for some time. Wall Street and banking will still exist but in an abbreviated form. The stars of Wall Street will be gold and silver shares free to trade freely without government manipulation. Tariffs on goods and services will be erected and money will start to flow to redevelop industry. Savings rates will rise and capital formation will take place. The illegal aliens will be forced to return to their homes and people will start to get on with their lives. The world will go on having been taught a good lesson.
httpv://www.youtube.com/watch?v=dVLGHCNZMAA
(Note: replaced original vid w/Rolling Stone Editor and replaced w/Michael Hastings, the author of the article)
Rolling Stone -Another Runaway General: Army Deploys Psy-Ops on US Senators
by Michael Hastings
The U.S. Army illegally ordered a team of soldiers specializing in “psychological operations” to manipulate visiting American senators into providing more troops and funding for the war, Rolling Stone has learned – and when an officer tried to stop the operation, he was railroaded by military investigators.
The Runaway General: The Rolling Stone Profile of Stanley McChrystal That Changed History
The orders came from the command of Lt. Gen. William Caldwell, a three-star general in charge of training Afghan troops – the linchpin of U.S. strategy in the war. Over a four-month period last year, a military cell devoted to what is known as “information operations” at Camp Eggers in Kabul was repeatedly pressured to target visiting senators and other VIPs who met with Caldwell. When the unit resisted the order, arguing that it violated U.S. laws prohibiting the use of propaganda against American citizens, it was subjected to a campaign of retaliation.
“My job in psy-ops is to play with people’s heads, to get the enemy to behave the way we want them to behave,” says Lt. Colonel Michael Holmes, the leader of the IO unit, who received an official reprimand after bucking orders. “I’m prohibited from doing that to our own people. When you ask me to try to use these skills on senators and congressman, you’re crossing a line.”
Read full story HERE
You just know the Chinese are shaking their heads saying to themselves – What the ????
httpv://www.youtube.com/watch?v=A9mUR3b_IQw
Rolling Stone – “Why isn’t Wall Street in Jail?”
by Matt Taibbi
Over drinks at a bar on a dreary, snowy night in Washington this past month, a former Senate investigator laughed as he polished off his beer.
“Everything’s fucked up, and nobody goes to jail,” he said. “That’s your whole story right there. Hell, you don’t even have to write the rest of it. Just write that.”
I put down my notebook. “Just that?”
“That’s right,” he said, signaling to the waitress for the check. “Everything’s fucked up, and nobody goes to jail. You can end the piece right there.”
Nobody goes to jail. This is the mantra of the financial-crisis era, one that saw virtually every major bank and financial company on Wall Street embroiled in obscene criminal scandals that impoverished millions and collectively destroyed hundreds of billions, in fact, trillions of dollars of the world’s wealth — and nobody went to jail. Nobody, that is, except Bernie Madoff, a flamboyant and pathological celebrity con artist, whose victims happened to be other rich and famous people.
This article appears in the March 3, 2011 issue of Rolling Stone. The issue is available now on newsstands and will appear in the online archive February 18.
Read the full story HERE
We love this guy! A no mincing of the words with this fella, tells ya like it is and with passionate flare.
httpv://www.youtube.com/watch?v=j_UHv0uZDTU
httpv://www.youtube.com/watch?v=ewF2A9F52fY
Click to watch video at Dutchsinse’s YouTube site. Lots of links available to help you learn more.
New Madrid – Gas – Yellowstone and The Gulf of Mexico Pt 1 of 2
httpv://www.youtube.com/watch?v=w8H5o6AnwW0
Read the latest report of mysterious deaths of animals and birds, this time Peculiar Geese Deaths Baffle Wildlife Officials
Posted by Tyler Durden
A week ago, when we reported on a move by the Dutch central bank that ordered a pension fund to forcibly reduce its gold holdings, we speculated that “this latest gold confiscation equivalent event is most certainly coming to a banana republic near you.” And while we got the Banana republic right, the event that we are about to describe is not necessarily identical. It is much worse. A bill proposed in the State of Washington (House Bill 1716), by representatives Asay, Hurst, Klippert, Pearson, and Miloscia, whose alleged purpose is to regulate secondhand gold dealers, seeks to capture “the name, date of birth, sex, height, weight, race, and address and telephone number of the person with whom the transaction is made” or said otherwise, of every purchaser of gold in the state of Washington. Furthermore, if passed, Bill 1716 will record “a complete description of the property pledged, bought, or consigned, including the brand name, serial number, model number or name, any initials or engraving, size, pattern, and color or stone or stones” and of course price. [Read more…]
This story is unbelievable! How can this happen and why? The Defense Dept obviously “didn’t take it seriously” says Sen. Grassley.
httpv://www.youtube.com/watch?v=gNUd9I2Io3o
Visit Democracy Now!
httpv://www.youtube.com/watch?v=6AU033_ISUQ
TEA PARTY CRASHES: THE MOST UNPATRIOTIC ACT
By Susan Lindauer, 9/11 Whistleblower indicted on the Patriot Act
I confess that since November I’ve been holding my breath, watching the clock for how long Tea Party newcomers could hold out against the entrenched Republican elite on Capitol Hill. Collapse was inevitable, however I admit to feeling bitterly surprised at how rapidly they have thrown in the towel.
For the record, most of the Tea Party quit their principles of liberty on February 14, 2011—20 days into the new Congress—when Tea Party leaders abruptly abandoned their opposition to the Patriot Act and voted to extend intrusive domestic surveillance, wire tapping and warrantless searches of American citizens. In so doing, they exposed the fraud of their soaring campaign promises to defend the liberty of ordinary Americans, and fight government intrusions on freedom. All those wide eyed speeches that flowed with such thrilling devotions, all of it proved to be self-aggrandizing lies. [Read more…]