Wednesday, April 23, 2014

Italy's biggest banks sign loan deal with US firm

Italy's two biggest banks, Intesa Sanpaolo and UniCredit, have signed a deal with US private equity firm KKR and restructuring adviser Alvarez & Marsal to create a vehicle for restructured loans, a statement said on Tuesday.
An agreement to "jointly develop and implement an innovative solution" has been signed and talks on the details of the new partnership are ongoing, the four said in a joint statement.
The aim is to "optimize the performance and maximize the value of a selected corporate loan portfolio under restructuring through proactive management and additional funding at the asset level," it said.
Source and full story: The Local (Italy)/AFP, 22 April 2014

British expats flee from crisis-hit Spain

The number of British living in Spain fell by over a fifth in 2013 as the exodus of Spain's foreign residents brought the country's total population down for the second year in a row, data released on Tuesday shows.
The number of UK citizens officially registered as living in crisis-hit Spain dropped nearly 90,000, or 22.8 percent in 2013, the preliminary figures from Spain's national statistics institute (INE) show.
The total number of Brits on Spain's town hall registers was 385,179 on January 1st 2013, but that population had plummeted to 297,229 a year later.
And while the actual number of UK citizens who make Spain their home could be much higher — the British Embassy in Madrid predicts as many as 800,000 Brits could live in Spain for all or part of the year — the new INE figures reflect a clear trend: foreigners are saying goodbye to Spain.
In fact the number of foreigners resident in Spain fell by 545,980 or nearly ten percent to hit 5,000,028 in 2013.
Source and full story: The Local (Spain), 22 April 2014

Enough Already: The G-20 and the US Tell the Bank of Japan to End Quantitative Easing

Mike Whitney 
It looks like QE is going to end with a whimper instead of a bang.
The bigwigs in the G-20 have put the kibosh on Japan’s money printing extravaganza. While most analysts expect the Bank of Japan (BoJ) to announce more “easing” in the days ahead to counter weakening economic data and droopy stock prices; it’s not going to happen. Why? Because the big boys have told the BoJ to knock it the hell off, that’s why? Here’s the scoop from the Japan Times:
“Despite lingering market pressure on the Bank of Japan to take further easing steps, its Group of 20 counterparts might not welcome the central bank’s next move.
With concern mounting about how the BOJ’s unprecedented purchases of government bonds and risky assets will impact global markets, the G-20 finance chiefs might pressure the BOJ in the near future to clarify how it will phase out the deflation-busting measures…
Japan Bank for International Cooperation Gov. Hiroshi Watanabe said additional BOJ easing measures would not be supported by the United States, which is gradually reducing its own bond purchasing program.
“I’m not sure whether it is good for the United States and Japan to look in much different directions,” Watanabe, a former vice finance minister for international affairs, said in a meeting with reporters earlier this month. “I don’t think the United States will support” further BOJ easing.” (“Experts urge BOJ to draft exit strategy“, Japan Times)
Repeat: “additional BOJ easing measures would not be supported by the United States.”
In other words, ‘Stop what you are doing…NOW”.
Of course, the BoJ could resist and defend its independence, but how likely is that? That would suggest that the BoJ doesn’t get its marching orders from Washington, which it does, just like everyone else in the western banking cartel. So what’s probably going to happen is this: BoJ chief Haruhiko Kuroda will come up with a number of goofball excuses for winding down the policy to conceal the real power-dynamic behind the decision. But the truth is obvious, Washington has ordered the BoJ to stop printing, and dad-gum-it, Japan is going to fall in line…or else. That’s how things work in this-here empire.
But why the sudden turnaround, after all, Abenomics has been around for more than a year and none of the bigshots at the Fed or the G-20 ever spoke up against it. Everyone seemed to think that QE was the greatest thing since sliced bread. Now Watanabe and Co. want to slam on the brakes and return to more conventional policies. Why? Let’s take another look at the article in the Japan Times and see what they say:
“In light of the side effects of the radical program, which could also take a toll on the global economy, the BOJ must map out an exit strategy from what it calls “quantitative and qualitative monetary easing,” pundits said.
Some central banks have created a framework for avoiding the adverse impact of such policies, former BOJ Deputy Gov. Kazumasa Iwata said in a recent interview. “The BOJ also ought to set certain conditions and mechanisms toward the normalization of its current policy.” (Japan Times)
Hold on there, partner. What’s all this talk about “adverse impact” “radical program”, and QE “could take a toll on the global economy.” This is the first time any of the so called experts have whispered a word about adverse effects from QE. Up to now its all been rosy projections, green shoots, and silver linings. You mean there could be unintended consequences from printing up more than $10 trillion in funny money and shoving it into financial systems around the globe?? Is that what this is all about? Here’s more:
“If the current large-scale monetary easing policy were to be protracted or such policy strengthened by additional measures, the associated side effects would instead outweigh the positive effects, and this would undermine economic stability in the long run,” BOJ Policy Board member Takahide Kiuchi said last month…” (Japan Times)
So the toffs think QE is actually dangerous. Well why didn’t someone think of that five years ago when the Fed first launched this bonehead program? You mean, central banks have been flying by the seat of their pants with absolutely no freaking idea the impact their wacko policies could have on the global financial system? Doesn’t that seem a tad reckless to you, dear reader, or am I just overreacting? Here’s more:
“Some experts have expressed caution that the BOJ may draw international criticism if it takes additional credit easing measures that could have strong side effects without preparing an exit strategy…
On Tuesday, after the BOJ decided to leave its aggressive monetary easing policy in place, Kuroda said further easing was not on his mind. “We are not currently thinking about additional easing” because the economy is steadily on course to attain the 2 percent inflation target by spring 2015, he said.” (Japan Times)
Kuroda is the biggest loonybin on the planet. Take my word for it. The man deserves a place of honor next to Greenspan in the Pantheon of Crackpot Bankers. The man knows absolutely nothing about economics. Seriously. Under Kuroda, Japan’s GDP has shrunk to the size of an acorn, wages have dropped for 21 months straight, consumer confidence is in the toilet, 2 percent inflation is nowhere in sight, and Japan debt has ballooned to the size of a small galaxy. Still, they keep this loser at the helm because stock traders love his sorry ass. It’s pathetic. Only now, the Fed and Co. are planning to shut down Kuroda’s little counterfeiting operation leaving him with nothing to do except dodge brickbats from angry reporters. Good riddance.
Keep in mind that reducing asset purchases by the Fed (“tapering”) has already wreaked holy hell on the emerging markets which are still experiencing capital outflows and (potential) currency crises. And, the funny thing is, the Fed hasn’t even started trimming its $4 trillion asset pile yet, let alone raised rates! So, just imagine, for a minute, what’s going to happen when the BoJ stops printing at the same time the Fed starts to pare-down its balance sheet. That’s the nightmare scenario, because the supply of financial assets is going to skyrocket and send stock prices off a cliff. Did someone say “1929″?
Uh huh. As it happens, there have been a few experts who have spoken out against QE. The MSM has simply made damn-sure they don’t get the airtime they need to voice their skepticism. Take, for example, William White, the former chief economist of the Bank for International Settlements, which is considered the central bank of central banks. Here’s how White slammed QE in a recent interview:
“The honest truth is no one has ever seen anything like this. Not even during the Great Depression in the Thirties has monetary policy been this loose. And if you look at the details of what these central banks are doing, it’s all very experimental. They are making it up as they go along. I am very worried about any kind of policies that have that nature…
Today, the Fed still acts as if it was in crisis management. But we’re six years past that. They are essentially doing more than what they did right in the beginning. There is something fundamentally wrong with that. Plus, the Fed has moved to a completely different motivation. From the attempt to get the markets going again, they suddenly and explicitly started to inflate asset prices again. The aim is to make people feel richer, make them spend more, and have it all trickle down to get the economy going again. Frankly, I don’t think it works, and I think this is extremely dangerous…
The fundamental problem we are still facing is excessive debt. Not excessive public debt, mind you, but excessive debt in the private and public sectors. To resolve that, you need restructurings and write-offs. That’s government policy, not central bank policy. Central banks can’t rescue insolvent institutions. All around the western world, and I include Japan, governments have resolutely failed to see that they bear the responsibility to deal with the underlying problems. With the ultraloose monetary policy, governments have no incentive to act. But if we don’t deal with this now, we will be in worse shape than before…” (“Chief Economist Of Central Banks’ Central Bank: “It’s Extremely Dangerous… I See Speculative Bubbles Like In 2007“, zero hedge)
This is really brilliant analysis and it covers QE’s main flaws, so let’s summarize. White says:
1–QE is entirely “experimental” and that central banks are “making it up as they go along.”
Check.
2–There’s no longer any need for “crisis management”. (after 6 freaking years!) The Fed is merely “inflating asset prices”. (aka–Bubblemaking)
Check, again.
3–Most important: The essential problem has NOT been fixed. Government policy still supports the zombie banks and other financial institutions which have not been nationalized, not been restructured, and are still sucking the life out of the real economy. These lumbering mastodons need to be euthanized so their debt-pile can be eliminated, their books cleared, and the economy reset. QE has merely perpetuated the problem by providing the means by which these institutions can continue to roll over their debts at zero cost to themselves creating the illusion of solvency. The US is following the same path as Japan into deflation and severe economic stagnation.
Check, check, and more check.
That sums it up perfectly. The only thing he left out was that QE has been the biggest wealth shifting scam in history. The sooner they give this program the ax, the better.
MIKE WHITNEY lives in Washington state. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion (AK Press). Hopeless is also available in a Kindle edition. He can be reached at fergiewhitney@msn.com.

Florida City About To Make It Illegal For Homeless People To Have Possessions In Public


"Florida City About To Make It Illegal For Homeless People To Have Possessions In Public"

A homeless man in Miami is interviewed by a researcher.
A homeless man in Miami is interviewed by a researcher.
CREDIT: AP
A backpack. Spare clothes. A notebook. Some keepsake photos. Crackers.
Though they may not have a home in which to secure their stuff, homeless people still have possessions like everyone else.
Yet the city of Ft. Lauderdale, Florida is on the cusp of passing a new regulation that would make it illegal for anyone to store their personal things on public property. Specifically, it would empower police to confiscate any personal possessions stored on public property, provided they have given the homeless person 24-hours notice. If the homeless people wish to retrieve their items, they must pay the city “reasonable charges for storage and removal of the items,” though that fee is waived if the person is able to demonstrate he or she cannot afford to pay. The city may dispose of any possessions not retrieved within 30 days. One of the driving factors behind the measure, according to the legislation, is the city’s “interest in aesthetics.”
Last week, the City Commission gave unanimous preliminary approval to the measure, despite overwhelming opposition from local residents who testified.
One woman, Gazol Tajalli, told Commissioners that is “insanity that we are even here discussing whether an individual can put on the ground the few objects that they own.” Another citizen, Rev. Gail Tapscott of the Unitarian Universalist Church of Ft. Lauderdale, criticized some of the Commissioners for “demoniz[ing]” the homeless.
Maria Foscarinis, Executive Director of the National Law Center on Homelessness & Poverty, chastised Ft. Lauderdale’s approach. “Maintaining city streets is a legitimate concern, but simply punishing homeless people for leaving their possessions in public places is not an effective or humane way to address it,” she told ThinkProgress. “Instead, city and business leaders should work with advocates and homeless people to develop alternative short and long term solutions, such as public storage options for homeless people and affordable housing.”
According to the Sun Sentinel, “The commission’s actions were backed by business leaders who said they were looking for some controls on a situation that scares away customers and makes visitors uncomfortable.” The commission is also considering other initiatives targeting the homeless, including stiffer penalties for urinating or defecating in public, prohibitions on panhandling at intersections or sleeping in public, and restrictions on charity groups that hand out food to the homeless.
Ft. Lauderdale is not the only city to embrace new ordinances that criminalize people for being homeless. Scores of cities, including Columbia, Palo Alto, Miami, Raleigh, Tampa, Harrisburg, and others have enacted measures that render homeless people simply trying to survive as criminals. Other cities, like Davis, California, are taking a different approach: constructing public lockers where homeless people can safely store their possessions.

Sorry, Fed Inflationistas: Technology Is Deflationary

Technology, like Nature itself, has no emotional stake in what is creatively destroyed.
We all know the Federal Reserve is terrified of deflation, because they keep telling us that deflation is the equivalent of death and inflation is the equivalent of oxygen.What they fail to mention is that inflation is only oxygen for debtors barely able to service their debt and those who profits from debt, i.e. bankers and financiers.
For everyone earning a wage or salary, inflation is the equivalent of death by a thousand cuts and deflation is the elixir of life. When prices decline, our money goes further, i.e. our purchasing power increases.
Only bankers, governments and other parasites that live off the carrion of debt fear deflation and try to destroy the purchasing power of wages with everything in their power. The irony of all the parasites pushing inflation as the cure-all is the only real cure-all to our present stagnation and decline is the complete renunciation/write-off of unpayable debts, a systemic bankruptcy that rights the ship of state and the economy by writing off bad debt and blowing off phantom collateral, i.e. assets that are supporting debt whose valuations have been pushed to the moon by easy-money and low interest rates.
Let’s start our discussion of technology and deflation by asking one question: has there ever been a central authority that tried to stop the spread of technology and won?Not to my knowledge; new technologies that offer enormous benefits (think affordable eyeglasses) and astounding reductions in cost spread like wildfire, even when central banks and states are dead-set on suppressing their creative destruction of Status Quo vested interests.
Sorry to bring the bad news, Fed inflationistas, but technology is irrevocably deflationary. The exceptions are: regulations that require additional technology to benefit life safety, and entrenched interests that erect barriers to competition and new technology, for example, Big Pharma and the sickcare industry.
When state-protected cartels rule the roost, costs go up no matter how much new technology is introduced. State-protected monopolies (sickcare, higher education, etc.) can suppress disruptive technologies, at least for a while, until their bloated, high-cost, diminishing-return structure collapses under its own weight.
Obamacare is a Catastrophe That Cannot Be Fixed (December 6, 2013)The real unsubsidized cost of Obamacare for two healthy adults ($23,244 annually) exceeds the cost of rent or a mortgage for the vast majority of Americans. Please ponder this for a moment: buying healthcare insurance under Obamacare costs as much or more as buying a house.
The Orwellian Affordable Care Act will not last, because it is intrinsically unaffordable, wasteful and inefficient. Only those whose care is paid by others via subsidies think it affordable; on a systemic level, it is doomed to implode, and the sooner the better in terms of enabling technology to creatively destroy vested interests.
Technology is enormously deflationary on a number of fronts.
1. Perhaps most importantly, technology eliminates costly human labor. In the late 19th century, roughly 50% of the labor force worked on farms. Today, the number is 2% of the workforce.
At the turn of the 19th century, the largest category of employment was domestic help. The rise of electrical appliances and machines of convenience eliminated much of the need for domestic labor.
The next sector to undergo large-scale destruction of jobs was manufacturing. The process of replacing human labor with robots and software automation in factories is still underway.
Advances in software are now eliminating white-collar office jobs and retail employment. People like me (self-employed information workers) can now produce output and manage services that required three to five people a mere 25 years ago.
Although many believe new technologies create more jobs than they eliminate, there is precious little evidence of that today. Anyone who thinks biotech is going to create millions of new jobs needs to survey the job market for PhDs and those with Masters degrees in biotech fields–biochemistry, etc. The job market is tight, not expansive; these high-tech sectors can only absorb so many graduates, regardless of their level of training.
Just issuing diplomas does not create jobs for graduates.
As technology eliminates millions of jobs by replacing human labor, wages decline and the percentage of national income that goes to labor also declines. This means there is less money for consumption, pressuring prices of consumer goods. This is broadly deflationary.
Here is labor’s share of income:
The bedrock of employment, small business, has cratered:
The wholesale elimination of white-collar labor has barely started.
2. Technology consolidates rentier services via convergence. A few years ago everyone needed a landline telephone, a separate phone line for a modem, a television, a DVD player, a mobile phone, a stereo system and a laptop computer. Now all anyone under the age of 30 needs is a smart-phone and perhaps a cheap laptop or tablet.
The rentier skims being eliminated by convergence are significant. Now people can get rid of cable or satellite and watch most programming via the web.
3. Technology gets cheaper. The first sequencing of the human genome cost hundreds of millions of dollars. Now it’s down to a few hundred dollars per sequencing. An Android tablet with full functionality can be had for $40 wholesale in China.
As competition drives prices down, profits erode. This is why the ideal set-up for profits has always been monopoly. But technology has a way of disrupting monopolies.
4. Technology enables transparency and thus lower prices. Transparency is anathema to cartels, which is why the actual cost of healthcare is obscured by providers desperate to avoid competition. But the web is introducing transparency and that alone is disrupting and creatively destroying profits based on information asymmetry.
5. Technology improves efficiency and reduces consumption. Volkswagen’s 283-mile-per-gallon car is currently very costly, but how long will it take for those technologies to spread to the mainstream. How much less fuel will a 140-mile-per-gallon vehicle burn than a current generation car?
Reduced consumption means reduced sales and profits.
6. Profits go down as creative destruction takes down profitable rentier skims, cartels and bloated, inefficient industries. And what happens when profits decline for systemic reasons? Stock market valuations based on absurdly optimistic expectations of future profits implode along with profits.
And when the stock market finally reflects declining sales and profits, even the Fed won’t be able to prop it up.
Technology, like Nature itself, has no emotional stake in what is creatively destroyed.Technology had no attachment to lamplighters or buggy-whip manufacturers, and it has no attachment to the Fed, sickcare, higher education, manufacturing or the state itself, all of which are being remorselessly disrupted.
As Bob Dylan put it, he not busy being born is busy dying. That is equally true for enterprises, industries and institutions.

Chinese Banks And 100,000 ‘Outlets’ Selling Gold – Demand To Surge Another 25%

Today’s AM fix was USD 1,290.75, EUR 935.19 and GBP 767.34 per ounce.
April 17th’s AM fix was USD 1,299.25, EUR 937.48 and GBP 771.89 per ounce.
Gold fell $4.90 or 0.38% yesterday to $1,290.00/oz. Silver slipped $0.21 or 1.07% yesterday to $19.42/oz.
Gold in Euros, YTD 2014 – (Thomson Reuters)
Gold recovered from early losses on Tuesday as the dollar gave back some gains, but sentiment among investors continued to be lukewarm despite the uncertain backdrop.
Platinum and palladium have risen and recovered from falls yesterday with platinum trading at $1,411.30/oz and palladium at $784.60/oz..
Yesterday, gold declined to $1,281.40 the day before – its lowest since April 3.  The dollar index climbed to a fresh two-week high early on today but later slipped.

Gold in U.S. Dollars,1 Year – (Thomson Reuters)
Geopolitical tensions over Ukraine has yet to lift gold’s safe-haven appeal. An international agreement to avert wider conflict in Ukraine appears to be faltering which should support gold.
Pro-Moscow separatists show no sign of surrendering government buildings they have seized. U.S. and European officials say they will hold Russia responsible and will impose new economic sanctions if the separatists do not clear out of government buildings they have occupied across swathes of eastern Ukraine over the past two weeks.
Thus, the real risk of the toxic combination of economic, financial and currency wars loom large.
Chinese Banks And 100,000 Dealers Selling Gold -  Demand To Surge Another 25%
Bloomberg Television’s “On The Move Asia” had a fascinating interview with Albert Cheng, the World Gold Council’s Managing Director, Far East. He discussed China’s gold market and what’s driving the country’s demand with Rishaad Salamat.
Since 2003, we have pointed out how China’s liberalization of its gold market would have enormous ramifications for the global gold market in terms of a huge new source of demand and would ultimately lead to higher prices in the long term.
Bloomberg interviewed Goldcore nearly two years ago in May 2012, about the huge growth in demand in Asia and particularly China,  and we commented that this Chinese demand was a ‘paradigm shift’: “We could be witnessing a paradigm shift from China on bullion demand.”
We pointed out “that the gold market was liberalised in China in 2003 and prior to that gold ownership was banned in China by Chairman Mao.  The per capita consumption of 1.3 billion Chinese consumers, investors and central bank demand are very significant.” Please click here to listen to the interview on the paradigm shift that is Chinese gold demand.
Albert Cheng reaffirms the paradigm shift for the gold market that is Chinese gold demand. He points out two very important facts hitherto not known by market participants.  First, there are now over 100,000 gold bullion dealers selling coins and bars in China. Second, he says this suggests that the majority of banks are now offering gold bullion products over the counter.
The interview is very interesting and is well worth a look.
Albert Cheng: China became the number one [gold] consumption country last year and people are starting to ask, would this be sustained? The World Gold Council report] shows that in the next four years, [Chinese gold demand] is going to increase by another 25 per cent. And the reason for that is that more and more middle class is coming on stream and people have money to spend.
Rishaad Salamat: But that’s just the thing, more and more people are buying gold, but what’s caused that change? You can say people have got wealthier but we saw China overtaking India where there’s been a traditional demand for gold. That’s not something that is traditional in China, is it? So what’s driving things?
AC: I think that the key of this is investment demand. Six years ago you didn’t see any investment demand in China. China opened up the investment market through banks and now literally any Chinese person can walk into a bank and buy gold products. And you look at the number of outlets where people can buy investment gold, gold bars, gold coins – there are a hundred thousand of them in China. If I make a comparison with America — Starbucks, McDonald’s and Subway together have only fifty thousand outlets. In China there are more than a hundred thousand outlets where you can buy gold. So, the availability of gold in China, in every city, is the main driver behind gold.
AC: Wedding jewellery consumption accounts for 40 per cent of jewellery consumption in China; there is about 300 tons of gold sold in jewellery form.
AC: When people buy 24-carat gold jewellery, which has a markup of less than 10 per cent if it’s a popular item, 15 – 20 per cent if it’s a more designer item, that is the reason why Chinese people buying gold jewellery in China is equivalent to buying a piece of metal. At the end of the day, this is a way for them to keep their money, to keep their wealth. If they want to sell it, there is always a resale price for this kind of pure gold metal.
So why China has become number one in the world is because if [people] want to save money China, there is not much alternative for them — you either can buy property of you get into the stock market. But neither of those are very attractive at the moment to the Chinese investor. In the past few years we’ve seen more and more people buying gold jewellery as well as gold bars.
RS: You’ve got this forecast in that we’ve been talking about where there’s a 25% gain in gold demand from China over the next four years. What are the risks here to this to the downside?
AC: We all know that China is undergoing a big economic transition from an export-driven economy to a domestic consumption economy. This year is a transitional year. With these changes there will be a lot of major disruptions to the economic life of people here, and again, the shadow banking issue, which the government has addressed, will have an effect on liquidity and it also may impact gold in the short term. Long term, if China gets on to a domestic consumption economy, it will be good for gold jewellery consumption. More and more people will be encouraged to move from rural areas into cities, the urbanisation process will continue and people who are getting rich will get into consumption of gold jewellery or buying gold bars. So short term we will see some headwind but long term, medium term, we see the gold market continue to grow.
The interview can be watched here.

Reuters Analysis: Printing Money Is More Important Than Ever for Yellen

Yellen shows her hand ... Yellen said this week that she is more worried that a shock to the economy might lead to deflation — a debilitating spiral downward in prices and demand — than rampant inflation. Those who cling to old certainties about the economic notions that dominated policy between the 1980s and late 2008 find themselves today tilting at windmills such as the likelihood of a return to high inflation. – Reuters
Dominant Social Theme: Just print, baby.
Free-Market Analysis: This Reuters editorial presents the reality of Yellen's upcoming Fed regime. Peter Schiff and others – including The Daily Bell – were correct.
There is not going to be any radical tightening at the Fed.
Supposedly, Yellen was going to cease quantitative easing. But QE is simply a strategy and whether or not it continues does not necessarily have an effect on the larger money-printing environment.
This article tells us what is probably the truth about the Fed regime: People misinterpreted Yellen's initial remarks on the subject. Just because she is departing from Ben Bernanke's goal-based employment doesn't mean Yellen is departing from the idea of printing currency to create jobs.
The idea of keeping interest rates artificially low while finding ways to inject increased currency into the economy is a purely Keynesian approach to prosperity.
When recessions are shallow, additional amounts of currency in large doses can have an economic influence. But today's Great Recession is fairly impervious to this sort of stimulation.
That doesn't mean Yellen is stopping, however. The entire central banking paradigm is built around injecting funds into the economy.
It's a very simple procedure, but the mainstream media makes it sound complex.
When the economy is doing badly, money printing is on the agenda. When the economy is doing well, the wise men are apt to recommend additional money printing anyway, just to be safe.
Central banks are therefore always printing currency in excess of what the economy needs. And really it cannot be any other way. The modern debt-based system runs on adding significant amounts of paper into circulation.
Yellen was never going to do anything differently. Here's more from the Reuters article:
The difference between the Federal Reserve Board of Chairwoman Janet Yellen and that of her immediate predecessor Ben Bernanke is becoming clear. No more so than in their approach to the problem of joblessness. Bernanke made clear that in the post-2008 economy, his principal goal was the creation of jobs, not curbing inflation. He settled on a figure, 6.5 percent unemployment, as the threshold that would guide his actions.
... Before scampering off to sell their stocks, the traders would have done well to wait to read the full Fed statement that revealed there had been a secret session of the Fed board on March 4, a week before the full session.
The minutes of that meeting reveal the board's interest in "qualitative language" about jobs that focus "on a broader set of economic indicators" — that is, seeing the true unemployment picture beyond the bald percentages. As the minutes show, the board was concerned to avoid "uncertainty associated with defining and measuring the unemployment rate and the level of employment that would be most consistent with the Committee's maximum employment objective."
Reiterating that policy in a speech Wednesday, Yellen declared, "there is little question that the economy has remained far from maximum employment."
... The ... recovery has been long, slow and sluggish. It was perhaps no more dilatory than the snails'-pace recovery of the 1930s, the last time the world economy careered off a cliff.
... By far the most effective way of stimulating the economy and creating new jobs, as former Treasury Secretary Lawrence Summers told new graduates at Smith College recently, is for the federal and state governments to spend freely on infrastructure.
Money has never been cheaper; labor has never been cheaper; there is no risk of inflation; the new facilities, whether roads, schools, colleges, railways, power stations, airports or whatever, would help supply the economy with a well-trained workforce and a set of commonly used amenities that private enterprise desperately needs to spur growth.
Article after article in the mainstream press confirms the relative simplicity of central banking. It doesn't work, but more of the same may somehow provide a cure, nonetheless.

How can it work, in fact? When you print money, you distort economic growth. So this longish Reuters article/editorial ends up leaving us with what we already knew a while ago.
The result will inevitably be booms in various asset classes, especially the stock market and then high-end real estate. Finally, multinational progress.
All of the above is accomplished by force-feeding commercial banks. It is the top-end clients and corporations that benefit from this sort of exercise because there is no DEMAND for money from the general public.
Even five years later, there is no surety over what companies are solvent and what companies – and entrepreneurs – are bankrupt. The "recovery" within this context is surely a phony one.
But we can see from the Reuters article that nothing has changed. It's not complicated. Yellen will print more and supposedly – though this won't actually happen – government will "prime the pump."
What is interesting is that this article we are commenting on today and yesterday's lead article on central banks needing to "partner" with government and business is obviously setting the stage for some sort of effort based on more aggressive FDR-style stimulation.
It didn't work then and it won't work now. The globalists pushing these strategies along simply need a narrative of sufficient complexity. Central banking corrupts and hollows out economies. The power elite seeks as much centralization as possible.
If Yellen ceased to print currency, then those behind her would find someone else. The strategy is necessary to achieve further centralization of money and power. In the meantime, we will have to read articles and listen to analyses explaining what is inexplicable.
It is inexplicable because it doesn't work. It doesn't work because it is not supposed to work. It is truly a devious system. It will no doubt result in a further boom – a continued Wall Street Party, at least for a while. But not forever.

Bombshell Chinese Revelations: Chinese Banks And 100,000 ‘Outlets’ Selling Gold to Public!

In a MUST SEE interview with Bloomberg, Albert Cheng, the World Gold Council’s Managing Director, Far East dropped 2 bombshells regarding Chinese gold demand. 
First, Cheng revealed that nearly every Chinese Bank is now selling gold over the counter directly to the public, and Cheng also made the shocking revelation that over 100,000 gold dealers are now selling gold to the public in China.
To put this number in perspective, the number of US retail locations for McDonalds, Subway, and Starbucks COMBINED… are only 50,000!

From Goldcore:
Today’s AM fix was USD 1,290.75, EUR 935.19 and GBP 767.34 per ounce.
April 17th’s AM fix was USD 1,299.25, EUR 937.48 and GBP 771.89 per ounce.
Gold fell $4.90 or 0.38% yesterday to $1,290.00/oz. Silver slipped $0.21 or 1.07% yesterday to $19.42/oz.

Gold in Euros, YTD 2014 – (Thomson Reuters)
Gold recovered from early losses on Tuesday as the dollar gave back some gains, but sentiment among investors continued to be lukewarm despite the uncertain backdrop.
Platinum and palladium have risen and recovered from falls yesterday with platinum trading at $1,411.30/oz and palladium at $784.60/oz..
Yesterday, gold declined to $1,281.40 the day before – its lowest since April 3.  The dollar index climbed to a fresh two-week high early on today but later slipped.

Gold in U.S. Dollars,1 Year – (Thomson Reuters)

Geopolitical tensions over Ukraine have yet to lift gold’s safe-haven appeal. An international agreement to avert wider conflict in Ukraine appears to be faltering which should support gold.
Pro-Moscow separatists show no sign of surrendering government buildings they have seized. U.S. and European officials say they will hold Russia responsible and will impose new economic sanctions if the separatists do not clear out of government buildings they have occupied across swathes of eastern Ukraine over the past two weeks.
Thus, the real risk of the toxic combination of economic, financial and currency wars loom large.
Chinese Banks And 100,000 Dealers Selling Gold -  Demand To Surge Another 25%
Bloomberg Television’s “On The Move Asia” had a fascinating interview with Albert Cheng, the World Gold Council’s Managing Director, Far East. He discussed China’s gold market and what’s driving the country’s demand with Rishaad Salamat.
Since 2003, we have pointed out how China’s liberalization of its gold market would have enormous ramifications for the global gold market in terms of a huge new source of demand and would ultimately lead to higher prices in the long term.
Bloomberg interviewed Goldcore nearly two years ago in May 2012, about the huge growth in demand in Asia and particularly China,  and we commented that this Chinese demand was a ‘paradigm shift’: “We could be witnessing a paradigm shift from China on bullion demand.”
We pointed out “that the gold market was liberalised in China in 2003 and prior to that gold ownership was banned in China by Chairman Mao.  The per capita consumption of 1.3 billion Chinese consumers, investors and central bank demand are very significant.” Please click here to listen to the interview on the paradigm shift that is Chinese gold demand.
Albert Cheng reaffirms the paradigm shift for the gold market that is Chinese gold demand. He points out two very important facts hitherto not known by market participants.  First, there are now over 100,000 gold bullion dealers selling coins and bars in China. Second, he says this suggests that the majority of banks are now offering gold bullion products over the counter.
The interview is very interesting and is well worth a look.
Albert Cheng: China became the number one [gold] consumption country last year and people are starting to ask, would this be sustained? The World Gold Council report] shows that in the next four years, [Chinese gold demand] is going to increase by another 25 per cent. And the reason for that is that more and more middle class is coming on stream and people have money to spend.
Rishaad Salamat: But that’s just the thing, more and more people are buying gold, but what’s caused that change? You can say people have got wealthier but we saw China overtaking India where there’s been a traditional demand for gold. That’s not something that is traditional in China, is it? So what’s driving things?
AC: I think that the key of this is investment demand. Six years ago you didn’t see any investment demand in China. China opened up the investment market through banks and now literally any Chinese person can walk into a bank and buy gold products. And you look at the number of outlets where people can buy investment gold, gold bars, gold coins – there are a hundred thousand of them in China. If I make a comparison with America — Starbucks, McDonald’s and Subway together have only fifty thousand outlets. In China there are more than a hundred thousand outlets where you can buy gold. So, the availability of gold in China, in every city, is the main driver behind gold.
AC: Wedding jewellery consumption accounts for 40 per cent of jewellery consumption in China; there is about 300 tons of gold sold in jewellery form.
AC: When people buy 24-carat gold jewellery, which has a markup of less than 10 per cent if it’s a popular item, 15 – 20 per cent if it’s a more designer item, that is the reason why Chinese people buying gold jewellery in China is equivalent to buying a piece of metal. At the end of the day, this is a way for them to keep their money, to keep their wealth. If they want to sell it, there is always a resale price for this kind of pure gold metal.
So why China has become number one in the world is because if [people] want to save money China, there is not much alternative for them — you either can buy property of you get into the stock market. But neither of those are very attractive at the moment to the Chinese investor. In the past few years we’ve seen more and more people buying gold jewellery as well as gold bars.
RS: You’ve got this forecast in that we’ve been talking about where there’s a 25% gain in gold demand from China over the next four years. What are the risks here to this to the downside?
AC: We all know that China is undergoing a big economic transition from an export-driven economy to a domestic consumption economy. This year is a transitional year. With these changes there will be a lot of major disruptions to the economic life of people here, and again, the shadow banking issue, which the government has addressed, will have an effect on liquidity and it also may impact gold in the short term. Long term, if China gets on to a domestic consumption economy, it will be good for gold jewellery consumption. More and more people will be encouraged to move from rural areas into cities, the urbanisation process will continue and people who are getting rich will get into consumption of gold jewellery or buying gold bars. So short term we will see some headwind but long term, medium term, we see the gold market continue to grow.

Bankers got this commercial banned in Switzerland (too much truth presumably)


The Risks Are Massive: “Will Likely Lead to Famine and Civil Unrest”

Mac Slavo
RINF Alternative News

With China’s debt now bursting at the seams and the economic outlook in the United States signaling a major recession the governments and central banks of the world are very rapidly running out of options.
So much so that well respected Swiss asset manager Egon von Greyerz of Matterhorn Asset Management warns that they will have no choice but to ramp up monetary printing at an accelerated pace in 2014. Failure to do so will likely seize up the global flow of credit and lead to a massive financial collapse as liquidity gets sucked out of the system.
The problem, of course, is that policy makers have backed themselves into a corner and their only remaining option will likely lead to an even more disastrous outcome; one that will have a direct impact on your long-term financial well being and quality of life.
In the following interview with King World News von Greyerz highlights the irreversible problems faced by the economic system, risks to global stability, the likely course of action to be taken by governments, and the end result when they fail.
The world is exposed to danger to an extent that it hasn’t been for a long time.  So the possibility that something unpleasant or unwelcome will happen is substantial.

Paul Craig Roberts gives very interesting interviews on KWN.  According to Roberts, the risk of a world war is high.  He likens the current situation to the start of World War I.  Of course we hope that there will not be another world war, but the risks are there.

Another major risk is, of course, the economic situation.  Never have as many major countries been bankrupt.  The list of these countries is getting longer all the time.

Coming back to all the risks we are facing, personal savings will either be bailed in or destroyed by hyperinflation.  The same thing will happen to pensions and other investments. 
To have a job will be a privilege in a world of mass unemployment. 
We are already seeing this in many countries in Europe. And of course the real unemployment rate in the U.S. is 23 percent.
All this is likely to lead to famine and civil unrest in many countries. 
So the risks are massive and the real solutions are non-existent.
Of course I hope I am wrong in these forecasts, but people must be aware of these risks.
Full interview available at King World News
In short, one way or the other we are toast.
If they fail to print the scam is exposed for the Ponzi scheme that it is almost instantaneously as stock markets and commerce around the world crashes due to lack of stimulus.
If they print, the can gets kicked a bit further down the road for a while longer, but eventually buckles under the weight of government debt, rising interest rates and leverage.
The only remaining choice at that point will be asset forfeiture on a mass scale. Think Cyprus deposit confiscations on a scale of hundreds of millions of people. Either that or the currency printing hyperinflates away the debt.
In both cases the people will take to the streets. And, they’ll be holding Molotov cocktails and assault rifles, not protest signs.
It’s something the government has been preparing for in recent years and you should be too.
According to Egon von Greyerz the monetary problems will cause such a disconnect in the system that asset prices are likely to sky rocket relative to their currencies:
Gold must not be seen as a trading investment but as a long-term wealth-preservation asset.  People should just buy physical gold and hold it outside the banking system.  The gold price will be at multiples of the current price in a few years’ time.  That price could be 10 times today’s $1,300 level ($13,000), 20 times today’s level ($26,000), or even thousands of times higher in a likely hyperinflationary scenario.”
As an asset manager von Greyerz focuses on precious metals. But the fact is that any asset of necessity will see its value skyrocket.
The time to prepare for a general destabilization of our economic and financial systems is now. That means acquiring assets that will, at the very least, maintain their value when all else fails.
  • Dry commodities like rice, beans, grains and other foods that can last a lifetimeare assets that you will use and can hold in your physical possession without “counter party risk” should paper investments collapse.
  • Productive land where you can raise your own livestock and grow your own food may drop in price during a real estate crash, but its value to you personally could be extremely important.
  • The ability to produce energy by disconnecting from the grid as costs for propane and electricity necessarily rise is another excellent “investment” to consider.
  • Learning and perfecting new trade skills (or developing “products”) that can be used as barter when traditional methods of commerce collapse will also be essential. Look no further than the underground economy of Greece following their collapse for an idea of how important this “asset” will become.
  • Firearms and ammunition. If civil unrest takes hold and law enforcement is overwhelmed, it will be used by criminal elements as an opportunity. As time progresses, crime will undoubtedly rise. Be prepared to protect what’s yours. Moreover, when was the last time you saw a downward price trend in self defense related products?
  • And, of course, precious metals with which to trade when dollars are no longer trusted should be part of any diversified prepper portfolio. We recommend first starting out with various physical silver units and working your way up to gold if financially feasible.
Yes, the global financial, economic and political systems are under extreme stress and there is a distinct possibility that a collapse is inevitable at this point.
But that doesn’t mean we have to be victims.
Mac runs SHTF Plan. Reprinted with permission.

Oklahoma House Votes to Legalize Gold and Silver as Money

Activist Post

Late last week, a bill to legalize gold and silver as legal tender was passed through the Oklahoma state house. The vote was 74-12.

Senate Bill 862 (SB862), was introduced by Sen. Clark Jolley and Rep. Gary Banz, with cosponsorship from Sen. Natham Dahm. It reads, in part:

Gold and silver coins issued by the United States government are legal tender in the State of Oklahoma. No person may compel another person to tender or accept gold or silver coins that are issued by the United States government, except as agreed upon by contract.
The bill also provides a state-level tax exemption to Oklahoma residents exchanging their precious metals for another medium of exchange:
For taxable years beginning on or after January 1, 2015, there shall be exempt from Oklahoma taxable income, or in the case of an individual, the Oklahoma adjusted gross income, any amount of net capital gains, as defined in 26 U.S.C.A., Section 1222 of the Internal Revenue Code and included in the federal income tax return, which result from the sale or exchange of gold or silver for another form of legal tender.
Oklahoma is now slated to become the second state to recognize gold and silver as legal tender authorized for payments of debts and taxes. Earlier this year, the Arizona senate also passed a similar bill by a vote of 18-12. But that bill has stalled in the state house.



Currently all debts and taxes in Oklahoma and the rest of the United States are either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress, or with coins issued by the U.S. Treasury — very few of which have gold or silver in them.

The United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.” The Oklahoma legislation is an important step towards that constitutional requirement which has been ignored for a long time in every state of the country. Such a tactic would achieve the desired goal of abolishing the Federal Reserve system by attacking it from the bottom up – pulling the rug out from under it by working to make its functions irrelevant at the State and local level.

Passage of this legislation would introduce currency competition with Federal Reserve Notes. Professor William Greene explains further:

“Over time, as residents of the State use both Federal Reserve Notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve Notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve Notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the State’s treasury, an influx of banking business from outside of the State – as people in other States carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve Notes for any transactions.”

Once things get to that point, Federal Reserve notes would become largely unwanted and irrelevant for ordinary people. Nullifying the Fed on a state by state level is what will get us there.

Without a single act of Congress, the Federal Reserve system can be brought to its knees by passing such bills in states all over the country.

Although the bill passed through the senate by a 37-4 margin, it will have to clear the senate once again because the house amended the bill. Once it is given final approval, SB862 will head to Gov. Fallin’s desk for a signature.

ACTION ITEMS
For more information about how to get back to sound money and restore constitutional tender in your state, click HERE

Visit the TenthAmendmentCenter.com where this report first appeared.

The Class War's Front Line Should be Eliminating Billionaires From the Planet

The brutal class war shows up every day in our headlines. So does climate change. What do they have in common? Billionaires-- people who should not be allowed to exist. It is far too dangerous to allow any one person to have the power that billionaires wield. 

Today the top headlines focus on 

2-How government programs made it profitable for banks and hedge funds to invest hundreds of billions in creating a rental single home industry that could overtake private ownership: Main Street Meets Their Wall Street Landlords

and 
3- How heartless cities are brutalizing the homeless. Fort Lauderdale may now lead the Country In Heartlessness Towards The Homeless


War has been declared against you. Back in 2004 Bill Moyers told an audience in Washington DC, that "there's a class war, they started it and we're losing."
The thing about very big operations, like billionaires, is the make great targets and are not nimble. That's why Russia and the US lost in Afghanistan. We can beat billionaires. But we have to get  together to do it. 

Believe me, billionaires are even worse than you think they are worse than the Koch brothers. For example, there's Richard Mellon Scaife, an heir of the Mellon bank family. He funds the most obscene projects, like Marc Morano' s climate change denying Climate Depot, and many of the right wing's biggest think tanks. 

Scaife has been a general in the class war for decades, probably funding dozens of right wing operations to the tune of hundreds of millions of dollars. 

Dynasty money-- massive, billion dollar inheritances-- should be the most vulnerable flank that the ninetynine percent attack in the class war, a war that must aim to end the existence of billionaires. When I say end the existence of billionaires, I am talking about a conversion process-- converting billionaires to millionaires. 

The best way to get a start on converting billionaires to millionaires and erasing them from the planet is to fight hard for a "dynasty tax" that takes the billions from billionaires when they die and that does not allow the money to be passed on to their heirs. Mellon Scaife is an heir. If there was a dynasty tax in place, he would not have had the resources to fund the toxic projects he's funded. There are hundreds, maybe even over 1000 people like him in the US. I'm not calling for taking away all the money from wealthy families. But put a limit on it-- say $20 million. That's enough to live a comfortable life on. What kinds of libertarian fools would argue that there should be no limits on how much can be left to elite, privileged children who did not earn the money?

It is time that we raise these issues with every elected official. Make it a litmus test. Like the wandering slaves from Egypt who had to go through two generations in the desert, put an expiration date on the money and power of billionaires. That's a first step. We also need to make it illegal to become a billionaire-- and it can be done.

The Elite, the ‘Great Game’ and World War III

This article was originally published in June 2011
The control of the US, and of global politics, by the wealthiest families of the planet is exercised in a powerful, profound and clandestine manner. This control began in Europe and has a continuity that can be traced back to the time when the bankers discovered it was more profitable to give loans to governments than to needy individuals.
These banking families and their subservient beneficiaries have come to own most major businesses over the two centuries during which they have secretly and increasingly organised themselves as controllers of governments worldwide and as arbiters of war and peace.
Unless we understand this we will be unable to understand the real reasons for the two world wars and the impending Third World War, a war that is almost certain to begin as a consequence of the US attempt to seize and control Central Asia. The only way out is for the US to back off – something the people of the US and the world want, but the elite does not.
The US is a country controlled through the privately owned Federal Reserve, which in turn is controlled by the handful of banking families that established it by deception in the first place.
In his interesting book The Secret Team, Col. Fletcher Prouty, briefing officer of the US President from 1955-63, narrates a remarkable incident in which Winston Churchill made a most revealing utterance during World War II:
“On this particular night there had been a heavy raid on Rotterdam. He sat there, meditating, and then, as if to himself, he said, ‘Unrestricted submarine warfare, unrestricted air bombing – this is total war.’ He continued sitting there, gazing at a large map, and then said, ‘Time and the Ocean and some guiding star and High Cabal have made us what we are’.”
Prouty further states:
“This was a most memorable scene and a revelation of reality that is infrequent, at best. If for the great Winston Churchill, there is a ‘High Cabal’ that has made us what we are, our definition is complete. Who could know better than Churchill himself during the darkest days of World War II, that there exists, beyond doubt, an international High Cabal? This was true then. It is true today, especially in these times of the One World Order. This all-powerful group has remained superior because it had learned the value of anonymity.” This “High Cabal” is the “One World Cabal” of today, also called the elite by various writers.
The High Cabal and What They Control
The elite owns the media, banks, defence and oil industry. In his book Who’s Who of the Elite Robert Gaylon Ross Sr. states: “It is my opinion that they own the US military, NATO, the Secret Service, the CIA, the Supreme Court, and many of the lower courts. They appear to control, either directly or indirectly, most of the state, county, and local law enforcement agencies.”
The elite is intent on conquering the world through the use of the abilities of the people of the United States. It was as far back as 1774 that Amschel Mayer Rothschild stated at a gathering of the twelve richest men of Prussia in Frankfurt: “Wars should be directed so that the nations on both sides should be further in our debt.” He further enunciated at the same meeting: “Panics and financial depressions would ultimately result in World Government, a new order of one world government.”
The elite owns numerous “think tanks” that work for expanding, consolidating and perpetuating its hold on the globe. The Royal Institute of International Affairs (RIIA), the Council on Foreign Relations (CFR), the Bilderberg Group, the Trilateral Commission, and many other similar organisations are all funded by the elite and work for it. These think tanks publish journals, such as Foreign Affairs, in which these imperialist and anti-mankind ideas are edified as publications, and then, if need be, expanded in the form of books that are given wide publicity.
Zbigniew Brzezinski and Henry Kissinger et al, as well as the neo-con “thinkers,” owe their positions and good living standards to the largesse of the elite. This is an important point that must be kept in full view at all times. These thinkers and writers are on the payroll of the elite and work for them. In case someone has any doubts about such a statement, it might help to read the following quotes from Professor Peter Dale Scott’s comprehensively researched book The Road to 9/11 – Wealth, Empire, and the Future of America (University of California Press, 2007):
…Bundy’s Harvard protégé Kissinger was named to be national security adviser after having chaired an important “study group” at the Council on Foreign Relations. As a former assistant to Nelson Rockefeller, Kissinger had been paid by Rockefeller to write a book on limited warfare for the CFR. He had also campaigned hard in Rockefeller’s losing campaign for the Presidential nomination in 1968. Thus Rockefeller and the CFR might have been excluded from control of the Republican Party, but not from the Republican White House. (Page 22)
The following quote from page 38 of the book is also very revealing:
The Kissinger-Rockefeller relationship was complex and certainly intense. As investigative reporter Jim Hougan wrote: “Kissinger, married to a former Rockefeller aide, owner of a Georgetown mansion whose purchase was enabled only by Rockefeller gifts and loans, was always a protégé of his patron Nelson Rockefeller, even when he wasn’t directly employed by him.”
Professor Scott adds:
Nixon’s and Kissinger’s arrival in the White House in 1969 coincided with David Rockefeller’s becoming CEO of Chase Manhattan Bank. The Nixon-Kissinger foreign policy of detente was highly congruous with Rockefeller’s push to internationalise Chase Manhattan banking operations. Thus in 1973 Chase Manhattan became the first American bank to open an office in Moscow. A few months later, thanks to an invitation arranged by Kissinger, Rockefeller became the first US banker to talk with Chinese Communist leaders in Beijing.
How They Manipulate Public Opinion
In addition to these strategic “think tanks” the elite has set up a chain of research institutes devoted to manipulating public opinion in a manner the elite desires. As pointed out by John Coleman in his eye opening book The Tavistock Institute on Human RelationsShaping the Moral, Spiritual, Cultural, Political and Economic Decline of the United States of America, it was in 1913 that an institute was established at Wellington House, London for manipulation of public opinion. According to Coleman:
The modern science of mass manipulation was born at Wellington House London, the lusty infant being midwifed by Lord Northcliffe and Lord Rothmere. The British monarchy, Lord Rothschild, and the Rockefellers were responsible for funding the venture… the purpose of those at Wellington House was to effect a change in the opinions of British people who were adamantly opposed to war with Germany, a formidable task that was accomplished by “opinion making” through polling. The staff consisted of Arnold Toynbee, a future director of studies at the Royal Institute of International Affairs (RIIA), Lord Northcliffe, and the Americans, Walter Lippmann and Edward Bernays. Lord Northcliffe was related to the Rothschilds through marriage.
Bernays was a nephew of Sigmund Freud, a fact never mentioned, and developed the technique of “engineering consent.” When Sigmund Freud moved to Britain he also, secretly, became associated with this institute through the Tavistock Institute. According to Coleman, Bernays “pioneered the use of psychology and other social sciences to shape and form public opinion so that the public thought such manufactured opinions were their own.”
The Tavistock Institute has a 6 billion dollar fund and 400 subsidiary organisations are under its control along with 3,000 think tanks, mostly in the USA. The Stanford Research Institute, the Hoover Institute, the Aspen Institute of Colorado, and many others, devoted to manipulation of US as well as global public opinion, are Tavistock offshoots. This helps explain why the US public, by and large, is so mesmerised as to be unable to see things clearly and to react.
Bilderberg researcher Daniel Estulin quotes from Mary Scobey’s book To Nurture Humanness a statement attributed to Professor Raymond Houghton, that the CFR has been clear for a very long time that “absolute behaviour control is imminent… without mankind’s self realisation that a crisis is at hand.”
Also keep in mind that currently 80% of US electronic and print media is owned by only six large corporations. This development has taken place in the past two decades. These corporations are elite owned. It is almost impossible for anyone who is acquainted with what is going on at the global level to watch, even for a few minutes, the distortions, lies and fabrications, incessantly pouring out of this media, a propaganda and brainwashing organ of the elite.
Once your picture is clear it is also easy to notice the criminal silence of the media on crimes being perpetrated against humanity at the behest of the elite. How many people know that the cancer rates in Fallujah, Iraq are higher than those in Hiroshima and Nagasaki because of the use of depleted uranium, and maybe other secret nuclear devices, by US forces? Fallujah was punished for its heroic resistance against the American forces.
The Importance of Eurasia
Why is the US in Central Asia? In order to understand this, one has to look at the writings of the stooges of the elite – Brzezinski, Kissinger, Samuel P Huntington, and their likes. It is important to note that members of these elite paid think tanks publish books as part of a strategy to give respectability to subsequent illegal, immoral and predatory actions that are to be taken at the behest of the elite. The views are not necessarily their own – they are the views of the think tanks. These stooges formulate and pronounce policies and plans at the behest of their masters, through bodies like the Council on Foreign Relations, Bilderberg Group, etc.
In his infinitely arrogant book The Grand Chessboard, published in 1997, Brzezinski spelled out the philosophy behind the current US military eruption. He starts by quoting the well-known views of the British geographer Sir Halford J Mackinder (1861–1947), another worker for the elite. Mackinder was a member of the ‘Coefficients Dining Club’ established by members of the Fabian Society in 1902. The continuity of the policies of the elite is indicated by the fact Brzezinski starts from Mackinder’s thesis first propounded in 1904:
“Who rules East Europe commands the Heartland: Who rules the Heartland commands the World-Island: who commands the World-Island commands the world.”
Brzezinski argues that for the first time in human history a non-Eurasian power has become preeminent and it must hold sway over the Eurasian continent if it is to remain the preeminent global power: “For America the chief geopolitical prize is Eurasia… About 75 percent of the world’s people live in Eurasia… Eurasia accounts for about 60 percent of the world’s GNP and about three fourths of the world’s known energy resources.”
It is not just the geostrategic location of this region – it is also its wealth, “both in its enterprises and beneath its soil,” that holds such attraction for the elite whose greed for money, and lust for power, remain insatiable, as if there was a sickness afflicting it.
Brzezinski writes:
“But it is on the globe’s most important playing field – Eurasia – that a potential rival to America might at some point arise. This focusing on the key players and properly assessing the terrain has to be a point of departure for the formulation of American geostrategy for the long-term management of America’s Eurasian geopolitical interests.”
These lines were published in 1997. Millions of people have died in the past two decades and millions have been rendered homeless in this region but it remains a “playing” field for Brzezinski and his likes! In his book Brzezinski has drawn two very interesting maps – one of these has the caption The Global Zone of Percolating Violence (page 53) and the other (page 124) is captioned The Eurasian Balkans. The first of these encircles a region which includes the following countries: Sudan, Egypt, Saudi Arabia, Turkey, Syria, Iraq, Iran, all Central Asian states, Afghanistan, Pakistan and parts of Russia as well as India. The second one has two circles, an inner circle and a wider circle – the outer circle encloses the same countries as in the first map but the inner circle covers Iran, Afghanistan, eastern Turkey and the former Soviet Republics in Central Asia.
“This huge region, torn by volatile hatreds and surrounded by competing powerful neighbours, is likely to be a major battlefield…” writes Brzezinski.
He further writes:
“A possible challenge to American primacy from Islamic fundamentalism could be part of the problem of this unstable region.”
These lines were written at a time when this kind of fundamentalism was not a problem – subsequently the US manipulated things and chose to make it one by its provocative and deceptive tactics. According to its strategic thinkers, the US might face a serious challenge from a coalition of China, Russia and Iran and must do whatever it can to prevent such a coalition from forming.
For Brzezinski, “terrorism” – a Tavistock-type concept – is just a well planned and well thought out strategy, a lie and a deception, to provide cover for a military presence in the Central Eurasian region and elsewhere. It is being used to keep the US public in a state of fear, to keep Russia in a state of insecurity about further breakup (the US has trained and supported Chechen fighters, “terrorists,” throughout) and to justify presence of US troops in and around Central Asia.
The Concocted War on Terrorism
Terrorism provides justification for transforming the United States into a police state. According to the Washington Post of 20 & 21 December 2010, the US now has 4,058 anti-terrorism organisations! These are certainly not meant for those so-called terrorists who operate in Central Asia – the number far exceeds the number of so-called terrorists in the entire world. Unbridled domestic spying by US agencies is now a fact of life and the US public, as always, has accepted this because of the collusion of media and Tavistock type institutes owned by the elite.
The US historian Howard Zinn puts it very well: “The so-called war on terrorism is not only a war against innocent people in other countries, but also a war on the people of the United States: a war on our liberties, a war on our standard of living. The wealth of the country is being stolen from the people and handed over to the superrich. The lives of our young are being stolen. And the thieves are in the White House.” Actually the thieves control the White House and have been doing so for a very long time.
In his outstanding book Crossing the Rubicon, Michael Ruppert points out that much of the violence in the Central Asian region as well as in Pakistan, which has been encircled in two maps in Brzezinski’s book, was “initiated by the US proxies.” “Given that these maps were published a full four years before the first plane hit the World Trade Centre, they would fall in a category of evidence I learned about at LAPD [Los Angeles Police Department]. We called them ‘clues’.” This means that the eruption of US militarism after 9/11, and the event itself, were part of a pre-planned and coherent strategy of global domination in which the people of the US were also “conquered” through totalitarian legislation carried out in the wake of 9/11.
As Brzezinski puts it:
America is too democratic at home to be autocratic abroad. This limits the use of America’s power, especially its capacity for military intimidation. Never before has a popular democracy attained international supremacy. But the pursuit of power is not a goal that commands popular passion, except in conditions of a sudden threat or challenge to the public’s sense of domestic well-being… The economic self-denial (that is, defence spending) and the human sacrifice (casualties even among professional soldiers) required in the effort are uncongenial to democratic instincts. Democracy is inimical to imperial mobilisation.
Certainly post 9/11 legislation, the extraordinary expansion of agencies and surveillance of the US public is a cause of great satisfaction for the elite – the US can hardly be called a democracy now. As reported by the Washington Post, the National Security Agency intercepts over 1.7 billion emails, phone calls and other communications every day and stores them. No wonder Bush called 9/11 “a great opportunity” and Rumsfeld saw it analogous to World War II to “refashion the world.”
In order to achieve the objectives of the elite, the US destroyed Yugoslavia while Russia stood by mesmerised and impotent, carried out regime changes in Central Asia, set up military bases in East Europe and Central Asia, and staged highly provocative military exercises testing Russia’s and China’s will. It set up a military base in Kyrgyzstan that has a 500 mile or so border with China. When the Chinese protested recent naval exercises with South Korea were too close to Chinese territory, a US spokesman responded: “Those determinations are made by us, and us alone… Where we exercise, when we exercise, with whom and how, with what assets and so forth are determinations that are made by the United States Navy, by the Department of Defence, by the United States government.” As journalist Rick Rozoff notes: “There is no way such confrontational, arrogant and vulgar language was not understood at its proper value in Beijing.”
The US has acquired bases in Romania, Bulgaria, Poland, and the Czech Republic – and set up the largest military base ever built in the region, Camp Bondsteel, in Kosovo. According to a report in the Russian Kommersant newspaper on 3 March 2011, a four-phase plan for deployment of a US missile system in Europe is to be fully implemented by the end of 2020. The US is also busy setting up bilateral military ties in Russia’s backyard with Azerbaijan, Kazakhstan, Uzbekistan, Turkmenistan and is pursuing the goal of a “Greater Central Asia” from Afghanistan right up to the Middle East, a great corridor from where the oil, gas, and great mineral wealth of this region will flow to the coffers of the US elite, at bloody expense to the local people.
As remarked by the Indian career diplomat M.K. Bhadrakumar: “The time is not far off before they begin to sense that ‘the war on terror’ is providing a convenient rubric under which the US is incrementally securing for itself a permanent abode in the highlands of Hindu Kush, the Pamirs, Central Asian steppes and the Caucasus that form the strategic hub overlooking Russia, China, India and Iran.” The scene for a great war involving the great powers of the time – US, Russia and China – is now set, by design of the elite. It is just a matter of time.
Time and again the US elite has taken its good people into great wars through documented and proven deceptions – the sinking of the Lusitania during World War I, Pearl Harbour in World War II, and so on. The elite considers us “human garbage” – a term first used by the French in Indo-China. It is also generating a good deal of “human garbage” in the US. A World Bank report points out that in 2005, 28 million Americans were “insecure” – in 2007 the number had risen to 46 million! One in every five Americans is faced with the possibility of becoming “destitute” – 38 million people receive food coupons!
Michael Ruppert laments:
My country is dead. Its people have surrendered to tyranny and in so doing, they have become tyranny’s primary support group; its base; its defender. Every day they offer their endorsement of tyranny by banking in its banks and spending their borrowed money with the corporations that run it. The great Neocon strategy of George H.W. Bush has triumphed. Convince the America people that they can’t live without the ‘good things’, then sit back and watch as they endorse the progressively more outrageous crimes you commit as you throw them bones with ever less meat on them. All the while lock them into debt. Destroy the middle class, the only political base that need be feared. Make them accept, because of their shared guilt, ever-more repressive police state measures. Do whatever you want.
A global economic system erected on inhuman and predatory values, where a few possess more wealth than the billions of hungry put together, will end, but the end will be painful and bloody. It is a system in which the elite thrives on war and widespread human misery, on death and destruction by design. As Einstein said, “I do not know how the Third World War will be fought, but I can tell you what they will use in the Fourth – sticks and stones!”
Prof. Mujahid Kamran is Vice Chancellor, University of the Punjab, Lahore, Pakistan, and his book The Grand Deception – Corporate America and Perpetual War has just been published (April 2011) by Sang e Meel Publications, Lahore, Pakistan.

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