Tuesday, June 14, 2011

In Greek Port, Storm Brews Over Chinese-Run Labor

Greek dockworkers unions say there have been two accidents in one year on the Chinese-run pier at Piraeus involving straddle carriers like these, seen in December 2010. The unions say a lack of specialty training is likely to blame. The Chinese company Cosco doesn't allow unions or collective bargaining among its 500-plus Greek workers.
Nikos Pilos/Bloomberg via Getty Images Greek dockworkers unions say there have been two accidents in one year on the Chinese-run pier at Piraeus involving straddle carriers like these, seen in December 2010. The unions say a lack of specialty training is likely to blame. The Chinese company Cosco doesn't allow unions or collective bargaining among its 500-plus Greek workers.
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June 8, 2011
This month, NPR is examining the many ways China is expanding its reach in the world — through investments, infrastructure, military power and more.
China has capitalized on the financial crisis to expand its influence in Europe, promising to buy Greek, Spanish and Portuguese bonds. But its most important infrastructure deal in Europe has been its investment in the Greek port of Piraeus.

Through such deals, Chinese influence is changing more than just the financial landscape in Greece — with ramifications for the rest of Europe.
Standing at the container terminal of the port of Piraeus, John Makrydimitris points toward his feet. "There is Greece," he says. Then he gestures toward a metal fence just yards away. "And there is China," he says with a laugh.
For dockworkers like Makrydimitris, the other side of that fence certainly seems like another country.
Piraeus is Greece's largest port, just six miles from Athens. Last June, the Chinese shipping company China Ocean Shipping Co., or Cosco, took full control of its container terminals, leasing it for 35 years for almost $5 billion. Experts believe it's probably China's largest investment in Europe to date.
For China, the pier is a strategic gateway to bring Chinese goods into Europe and beyond.
"It's very important for the Chinese to enter through Piraeus to the eastern European and Black Sea markets, which are really booming right now," says Makrydimitris, as he gestures once more over the Chinese boundary line.
Straddle carriers — 40-foot-tall mobile cranes that look a bit like sci-fi mechanical spiders — line up to transport the enormous container boxes, which workers lash in place with iron rods.
For these workers, labor conditions on the Chinese side of the line are very different from those on the Greek side.
Employees of China's state-run Cosco company work at the port in Greece on Sept. 13, 2010. The company is accused by Greek unionists and by employees of importing Chinese labor practices.
Enlarge Nikolas Leontopoulos Employees of China's state-run Cosco company work at the port in Greece on Sept. 13, 2010. The company is accused by Greek unionists and by employees of importing Chinese labor practices.
Labor Conditions On The Docks
Cosco doesn't allow unions or collective bargaining among its 500-plus Greek workers. The unions report that Cosco workers are largely unskilled and working on a temporary basis, with no benefits. Despite persistent rumors about their labor conditions, until now no Cosco workers have spoken out to the media.
But a former Cosco worker, who had just been sacked, spoke to NPR about work conditions on the Chinese-run pier, on the condition that his name not be used. The worker says he regularly worked eight hours a day with no meal breaks and no toilet breaks.
"I think their actions are breaking the law," the worker said. "The rights are to have something to eat around 12 o'clock [and] to have our breaks, and not work like a dog straight [through] from morning till afternoon."
He says workers were told by supervisors to urinate into the sea, rather than taking toilet breaks. Those operating straddle carriers had to take cups up into their cabins to urinate into, and he says they were not given breaks, either, despite the clear dangers of operating at such a height for so long.
The worker says he was paid 600 euros a month — about 50 euros each shift — around half the salary at the neighboring Greek-operated pier, with no extra money for working night shifts or weekends. There was no set schedule; he was kept on 24-hour call for nine months.
His wife says the experience changed his personality. "In the end, it was like a nervous breakdown," she says, gazing at him with concern. "All day he was just waiting to see whether they would call. He didn't know if he had time to eat or to sleep. Sometimes they would ring in the night to tell him to go to work. It was like torture."
'A Complete Mess'
NPR has gained access to official Greek documents that back up this account. Last August, in response to a parliamentary question, the local department of labor inspection for Piraeus said it had discovered one Cosco worker's schedule had changed 14 times in one month. During two visits last year — in August and October — the labor inspection department noted four separate labor violations at Cosco's Piraeus pier.
In August, the agency fined Cosco 3,000 euros after discovering dockworkers working on their rest days. In October, it found the same again, as well as discovering an untrained worker operating a lifting vehicle and a worker with no employment papers.
The unions say there have been two accidents in one year involving straddle carriers, which they ascribe to a lack of proper training. The former Cosco worker described the situation as chaotic.
Cosco took full control of the port of Piraeus, close to Athens, last June. This approximately $5 billion agreement is probably China's largest deal in Europe.
Enlarge Nikolas Leontopoulos Cosco took full control of the port of Piraeus, close to Athens, last June. This approximately $5 billion agreement is probably China's largest deal in Europe.
"There is no organization — it's a complete mess," he says. "There's no training for specialized jobs. This is what happens in a third-world country."
His contract, signed by a subcontractor, not by Cosco itself, says no money will be paid for overtime, unless there was a prior written agreement with the company. He says he accepted these conditions because there was no other work available. But when he demanded his overtime pay, he was fired.
Cosco has turned down repeated requests for an interview, both in Greece and in Beijing. The Chinese Foreign Ministry and the Commerce Ministry also declined to be interviewed for this story.
But speaking to a public forum, Cosco's flamboyant chairman, Wei Jiafu, has insisted that delivering benefits to his workers and easing unemployment are his top priorities in Greece. He also boasted about the fact that none of his Greek workers had ever been on strike.
"By going global, we are also transferring our culture to the rest of the world," he told a gathering at the World Economic Forum in the Chinese city of Tianjin in September 2010.
'Importing The Chinese Labor Model'?
But that is exactly what the dockworker unions in Piraeus had feared. In this port city, there had been some support among ordinary people for Cosco taking over the container terminal, in the hope that it would create new employment. But there was implacable opposition from the dockworkers union, which has not erased the anti-Chinese graffiti on the wall of the carpark beneath their headquarters.
Graffiti at the smaller Greek pier at Piraeus says "Chinese go home." Greece's dockworkers unions were opposed to the Chinese involvement at Piraeus, although among the general public, the mood was more positive.
Enlarge Louisa Lim/NPR Graffiti at the smaller Greek pier at Piraeus says "Chinese go home." Greece's dockworkers unions were opposed to the Chinese involvement at Piraeus, although among the general public, the mood was more positive.
They argue that Cosco has changed the rules of the game, with ramifications rippling throughout the sector and beyond.
"What we do believe is that Cosco is importing the Chinese labor model to Greece," says Nick Georgiou, president of the dockworkers union. "The result is that companies not run by the Chinese are being influenced by what the Chinese are doing in lowering the labor costs and reducing workers' rights."
Labor conditions aside, he has deep concerns about Cosco's behavior, which he describes as approximating blackmail.
"What we see is that the Piraeus Port Authority is stopped from functioning properly because of obstacles that Cosco puts in its way," he says. He's referring to the fact that Cosco is preventing the port authority from signing an exclusive deal with another major shipping company, MSC, until next June — a move that is effectively limiting competition.
Georgiou also believes Cosco is dangling the promise of future investment in a logistics hub in Thriasio as a negotiating tool to gain extra concessions in Piraeus. The Chinese company has recently announced it is delaying completion of a new third pier by five years to 2020, citing the financial crisis. Cosco is also demanding exemption from certain fees charged by the Piraeus Port Authority, saving it as much as $4 million a year, according to shipping sources.
A Threat To Greece's 'Rule Of Law'?
Yiorgos Anomeritis, the chairman of the Piraeus Port Authority, negotiates with Cosco. Speaking recently, he expressed sympathy for Cosco's desire to delay work on the pier to give it "time to recover" from the financial crisis. When asked how Greece is benefiting from the deal, his answer boils down to one thing: money.
"The port authority is being paid for the pier that it has ceded to Cosco," he says. "That by itself is some kind of gain for Piraeus."
But Cosco's critics see things very differently.
"We spoke in Parliament about our fears that labor rights would worsen," says Piraeus representative Theodore Dritsas of the left-wing Syriza party. "But what has happened is beyond our imagination." He's been following the labor issues closely after complaints from within his constituency.
Greek Minister of State Haris Pamboukis has called the Cosco deal "a model." He denies knowledge of any labor violations and says "the only kind of law applicable is Greek law."
Enlarge Louisa Lim/NPR Greek Minister of State Haris Pamboukis has called the Cosco deal "a model." He denies knowledge of any labor violations and says "the only kind of law applicable is Greek law."
"The main problem is that Greece is no longer a sovereign state in economic terms," he says.
Greek politicians are facing a race against time to solve the country's debt crisis. In its most recent plan, Greece has put $70 billion of its assets up for sale, including its entire holdings in the ports of Piraeus and Thessaloniki, another port in which Chinese companies had expressed an interest in the past. This could offer another opportunity for Cosco to consolidate its investment in Piraeus, at a cut price that could be as low as $500 million.
Before this announcement was made, Minister of State Haris Pamboukis told NPR that the Greek cooperation with Cosco was a "model" to be followed. He denied all knowledge of any labor violations, shrugging this off as "rumors" by competitors.
"The only kind of law applicable is Greek law, and we're not going to import any kind of practices — Chinese, Martian or elsewhere — who are not conforming to our legislation," he says. "We are in a country for rule of law, and that's it."
"Piraeus is not a colony," Pamboukis says confidently. But these words may be too late. According to the Cosco worker's account — and the Greek government's own investigations — Cosco has already violated labor regulations in its shipping concession.
The way China undercuts competitors has been called the "China price," and with Cosco's arrival, the China price has now hit Europe's docks, threatening no less than Europe's rule of law.

U.S. Hurtles Toward System Failure

The combination of $trillion bond fraud, dependence on inflating home equity for economic development, oversized cars, oil dependence, constant market intervention, insolvent banks, insolvent homes, outsourced industry, endless war, budget deadlock amidst runaway deficits, raided US gold treasury, mammoth future benefit obligations, and handing over the keys at USDept Treasury to Goldman Sachs has left the United States to fend off systemic failure. The creeping price inflation that stems from USFed hyper monetary inflation and total ignorance on basics of capitalism like business formation have left the US vulnerable to disorder and chaos. The chaos in fact grows with the passage of time and the ruin of money, against a background of a cruel middle class squeeze. With one citizen in seven on food stamps and over 22% of the population jobless, the sunset of the American Empire is well along. The banker oligarchs are gradually killing the nation, its democracy, and its wealth engines during a sustained strangulation process.

Comments by economists continue to center on consumer spending and desired job growth, without any mention of business investment and reduced regulatory impediments. The nation has no clue among leaders to engineer a recovery. Tragically, it is not possible unless the housing market rebounds convincingly, and unless the big US banks are liquidated. The negative momentum is so grotesque. It is like a man sliding backwards on a steep icy street with no objects nearby to grab. The remarkable fact in my view is that so many trained economists and market mavens are shocked that the USEconomy is entering another recession. They must have considered Clunker Car program, New Homebuyer Tax Credit initiative, and the General Motors bailout all to be genius concepts. They seem poorly trained in capitalism, and well trained in asset inflation management laced with public indoctrination. To the sound money crowd, the degradation was obvious. The landscape is taking on the same look at mid-2008 when all hell broke loose on the financial and economic fronts. It should not be so surprising, since nothing has been fixed.

Innovation remains prevalent among technology and telecommunication firms. Too bad so much of the product output is done by US subsidiaries in Asia. The USGovt leadership thought a green revolution would make for a solid initiative until it realized that most of the purchases would come from Asia. The high speed rail projects almost all involve Chinese equipment. The US is so badly on a slippery slope, that a simple debt default might be the best of outcomes to hope for, given the nasty added ramifications that could come from chaos. The main location for innovation within the USEconomy seems to be in financial fraud and military weapons. Former USFed Chairman Volcker once accused the financial industry of having only one productive innovation in three decades, the automatic teller machine (ATM), a scurrilous accusation indeed.

The American people, having been exposed to a powerful cost surge, futile compromises to address the USGovt budget deficits, profound mortgage fraud, a series of fixes without solution that are disguised elite banker redemptions, tremendous waste of over $2.5 trillion in various policy initiatives, exemption from Wall Street prosecution, chronic housing market decline, and phony economic statistics, are awakening to the reality of a systemic failure USEconomy, punctuated by a USTreasury Bond default. The preliminary signal is full isolation by the USFed as sole buyer of USTreasurys at USGovt debt auctions. They are currently buying about 80% of USGovt debt at official auctions. Many dopey analysts have put forth the notion, even within the gold community, that a debt default is impossible given the control of the global reserve currency to cover the debt. This is shallow thinking in my view. Once the USFed and its monetary engines are exposed on the world stage to rely upon hyper monetary inflation to sustain the broken USGovt financial contraption where fraud and war and insolvency are the three passengers without a driver, the USDollar will be punished, avoided, and become the object of even more profound revolt. The leaders can swim only if they push others in the pool underwater. Most debt default starts with a nasty run on the currency.

The underwater nation suffers from massive insolvency in the banking sector. Three bad jokes are played upon the US public. 1) They are told that the banks hold large Excess Reserve accounts at the USFed, earning interest income. Lie! The funds are Loan Loss Reserves moved from the banks to the USFed, where the central bank is hiding its own insolvency. The banks will need those funds to cover losses. The USFed by loose calculations is between $1.4 trillion and $1.8 trillion in the red, mainly from purchasing overpriced mortgage assets, some of whose leveraged items are totally worthless. The housing market is not coming back. The USFed itself is starging at the abyss, and might resign its commission. 2) The big US banks claim also that they have tightened their lending standards. Lie! They are insolvent and therefore must reduce their lending on a grand scale. The big US banks are in possession of far less capital than they claim, thanks to the FASB accounting rule change put into effect in April 2009. Their plight worsens. They cannot dump REO bank owned homes on a depressed market. The big US banks are trapped in an extreme and worsening condition, insolvent to the tune of $3 trillion. The FDIC pretends to have funds to support over $7 trillion in banking deposits, but their insurance fund has long been depleted. The MyBudget360 outfit does great work in analysis of the housing market and mortgage finance. See their chart below on bank balance sheet over-statement. 3) Lastly, US corporations we are told own huge cash balances. Lie! Their foreign subsidiaries command the cash, and it will not be put to work on US soil, even with handsome benefits to repatriate the funds. Business prospects look horrible in the United States, the land of fraud, insolvency, and war.

The underwater nation at the domicile level is tragic. Fully 28.4% of homeowners suffer from negative equity. They owe more on their home loans than the value of their homes. Some call it being underwater, others upside down. A second mortgage misery has taken root. Almost 40% of homeowners who took out second mortgages are underwater on their loans, more than twice the rate of owners who did not draw funds in such loans. Also 38% of borrowers who took home equity loans are underwater. By contrast, 18% of borrowers who do not have these loans are underwater. This data is according to CoreLogic. According to Federal Reserve Board data, homeowners took out a total of $2.69 trillion from their homes at the height of the housing boom between 2004 and 2006. A grand dependence was fostered, turned into a nightmare. That tally includes cash-out refinancings. Such sources of funds have vanished altogether. In fact, the trend has reversed, as homeowners are putting more money into their home equity in attempts to relieve their insolvent condition. The risks extend beyond the borrowers to banks, in a parade of insolvency and ruin for homeowners and big banks.

THE USGOVT IS DESPERATE FOR FUNDS. The unspoken message regarding the increase to 3% in US bank reserves requirements is that the USFed and USDept Treasury are seeking additional buyers of USTBonds when they attempt to draw QE2 to a close. This week, a controversial bank rule from Basel 3 was put into effect. US banks must put up more in reserves. They central bank has decided to eat their own banks. A banker civil war is at risk of being triggered. Stick with more basic desperation. The USGovt is making progress in raiding federal pension funds, so far snatching $79 billion. Some calling it accounting sleight of hand, but others call it confiscation much like the replacement of gold at the USTreasury with paper IOU certificates. It is worth the effort to quantify the USTreasury plunder of official retirement accounts, after the Social Security Trust Fund has been gutted. The USGovt debt limit must be raised, but compromise cannot be achieved. So the government raids public pensions with the same impunity that Wall Street commits bond fraud and deals with counterfeit. We are still looking for over $1 trillion in undelivered USTBonds, the infamous failure to deliver. The Wall Street firms found a clever method to feed their own liquidity by selling USTBonds they did not own. Of course, the regulators have a GSax pedigree. The Civil Service Retirement & Disability Fund (CSRDF), according to Stone Mountain, has been raided for $22 billion in recent weeks, with funds replaced by government IOUs. The funds have suffered a sizeable disinvestment, to be sure, to keep America strong.

The balance of securities held by the Thrift Savings Fund, aka the G-Fund, also according to Stone Mountain, has been raided for $57 billion in recent weeks, with funds replaced by government IOUs. The funds have suffered a sizeable disinvestment, to be sure, to keep America strong.

The retirement funds have seen a raid of nearly $80 billion in the past 3 weeks just to make space for further funding of bloated government, defense spending, and healthcare benefits. Under Treasury Secy Geithner, the USGovt has begun a Debt Issuance Suspension Period (DISP) for about 2-1/2 months, ending on August 2nd. The USCongress argues over small potatoes like $38 billion in spending. They argue over keeping certain spending intact, and keeping the war off limits to discussion entirely. They argue over imposing tax increases. They do not bother to pursue cuts to mindless programs of no value, like those suggested by Senator Coburn of Oklahoma. The nation of citizens is also prone to raids of pension funds, basic 401k pension fund loan grabs. Investors tap their inner bankers, even if with heavy tax penalties. In 2010, one in seven workers borrowed from a 401k plan, according to the consulting group AON Hewitt. Today, almost 30% of 401k savers have a loan outstanding against such funds, the highest in recent history.

So as Rome burns, the legislators fiddle and the generals wage war for private gain. The situation is best put into perspective by David Stockman, former Budget Director in the Reagan Admin. He said, "The real problem is the de-facto policy of both parties is default. When the Republicans say no tax increases, they are saying we want the US government to default. Because there is not enough political will in this country to solve the problem even halfway on spending cuts. When the Democrats say you cannot touch Social Security, when you have Obama sponsoring a war budget for defense that is even bigger than Bush, then I say the policy of the White House is default as well."

But the true insanity and unfixable nature are brought into proper perspective by John Williams, who heralds from the noble Shadow Government Statistics clan. He said, "[The USGovt deficit] cannot be covered by taxes. The government could take 100% of everyone's income, corporate profits, and it would still be in deficit. [Conversely] they could also cut every penny in government spending except for Medicare and Social Security, and they would be in deficit." The message by Williams is that the national government finances are not even remotely fixable, even with total income confiscation, even with almost full government shutdown!! GOLD & SILVER PRICES SHOULD ZOOM ON A BILLBOARD MESSAGE BY STOCKMAN AND WILLIAMS ALONE. My forecast made in September 2008 stands, that the USGovt debt default will occur in two to three years time. Time is up, and the threat of debt default looms large.

The following paragraph should be read twice:

One should constantly remember that no solution to the financial crisis has been installed, nothing fixed, no big banks liquidated, no end to monetary inflation, no end to outsized USGovt deficits, no change of Goldman Sachs running the USGovt finance ministry, no discharge of big bank home inventory, no end to secretive subterranean support of stocks and bonds, no revival of the housing market, no return of US industry from Asia, no prosecution of Wall Street for multi-$trillion bond fraud, no end to money laundering of narco funds to Wall Street banks, no interruption to the endless costly wars, no end to the propaganda obediently pumped out by the US press & media networks. Nothing has changed except that some commodities are lower in price, including the queen Silver.

The steady stream of debt downgrades around the world curiously overlooks perhaps the worst offender of all, the United States. Refer to its  horrendous PIIGS-like key ratios with much higher volume of debt. It seems good sport to nail Greece or Spain with a debt downgrade, when the US wrestles with a debt limit and chronic $1.5 trillion annual deficits, even costly endless wars. So Moodys is telling the USCongress that they better raise the debt ceiling or else. Or else what? Nothing!! The German debt rating agency Feri had the stones to downgrade the USGovt debt from AAA to AA. It is a significant slap in the face. They pointed to the fact that for the third consecutive year, the USGovt deficit is over 10% relative to gross domestic product (GDP). Its CEO Tobias Schmidt said, "The US government has fought the effects of the financial market crisis primarily by an increase in government debt. We do not see that here is sufficient alternative measures. Our rating system shows a deterioration, so the downgrading of the credit ratings of US is warranted. Deficits of such magnitude are not a sustainable fiscal policy. We would reconsider the rating when the US government creates a long-term sustainable budget."

The debt rating agencies are bound by extreme political pressure, and probably secretive pressures also, maybe even outright bribery or violent threats. The agencies can shoot at the scouts like Bank of America, Citigroup, and Wells Fargo, but few if any alarm bells are actually going off. The champion of all insider trading, of investing in opposition to clients, of front running USGovt policy, of deceptive collusion with foreign governments on currency swaps to hide debt, the venerable Goldman Sachs might be in some trouble. The Goldman Sachs credit default swap could serve as a predictor for USGovt debt default. It has begun to rise and cause concern.

It is almost funny, if not tragic, that despite deferred criminal prosecution on mortgage bond fraud, despite being banned in Europe for misrepresentation and collusion to conceal sovereign debt, Goldman Sachs still has total control of the USDept Treasury. If only the people were more aware that GSax under Robert Rubin leased, sold, and leveraged a few $trillion in profit from the gold bullion that used to reside in Fort Knox. A reliable source has a friend who manages a security group in Fort Knox, which is used today to store nerve gas, nothing more, certainly no gold. The Jackass fully expects a USGovt debt default will come in the form of a forced debt forgiveness, during a grand global conference, with a hidden military threat looming. Events in Libya are extremely telling on the threat of war and wealth confiscation. A total of $95 billion in frozen (later stolen) Qaddafi wealth is a strong banker motive to conduct a good war in Libya. In all, $32 billion in Libyan funds were frozen in major US banks, and 45 billion Euros were frozen in major European banks.

Two events occurred within 24 hours of big significance. 1) The USFed Chairman Bernanke spoke after the financial markets closed. He cited numerous singular events to blame for the rising price inflation that has plagued the USEconomy in recent months. He accepts no responsibility from the historically unprecedented release of the hyper monetary inflation spigot to cover the USGovt debts and purchase USTreasury Bonds that the world no longer wants. The USFed is currently purchasing between 75% and 80% of all USTreasury auction bonds, notes, and bills. They use a nifty quick turnaround with the obligated Primary Bond Dealers. What used to distributed to bond funds like PIMCO and pension funds across the US land are no more. The dedicated Primary Bond Dealers have resorted to shoving all the USTreasury product back to the USFed inside one month in anything but routine FOMC operations, usually in two weeks time. The US financial press reports hardly a peep. In the last few months, every time Bernanke spoke, to discuss the weak prospects of the USEconomy, the high commodity price phenomenon, the putrid banking situation, the droopy housing market, the falling USDollar, and the ongoing activity of Quantitative Easing, the USDollar fell and the Gold price rose. Nothing has changed in that respect. Waiting until 5pm to speak only caused the response to occur in the next morning.

2) The OPEC nations met at their usual pow-wow in Vienna Austria, but they accomplished nothing. They split 6 in favor and 6 against on a crude oil production increase. The dirty little secret is that the Saudis no longer have ANY spare capacity. The world always counts on the Saudis to compensate for lost output like what has been felt from Libyan disruption. The crude oil price jumped $2 quickly on Wednesday morning. My view is that the OPEC nations no longer harbor any sympathy for Western nations, have no interest in relieving their cost problems from rising energy prices. They see their own food prices rising fast, when they are more vulnerable to food prices as a people. They observe the unrest in Egypt, the war in Libya, and can see the flight of gold from those countries, while assets are confiscated in Western banks. The OPEC nations see more opportunity to gather in greater petro income at a time of great strain for their own economies and banking systems.

A geopolitical impact is on the horizon. The Saudis cannot increase output. The Petro-Dollar defacto standard is built on Saudi oil, whose volume is far less than believed. They have a dead elephant oilfield in Ghawar, details in the private reports. The Bernanke speech that cited numerous exogenous factors, plus the OPEC stalemate, seems to provide the Gold & Silver price the lit fuse for rising. The Petro-Dollar requires USMilitary protection of the Saudi royal billionaires. They are busy cutting deals for Persian Gulf security from China and Russia. It requires control of oil supply by the Saudis. It requires a US$-based purchase & sale of crude. All three requirements are slowly vanishing. The Petro-Dollar is dying a slow death. With its disappearance will come the Third World to the United States.

Paul Craig Roberts served in Reagan Treasury Dept, and also worked as editor at the Wall Street Journal. He knows about what he speaks. He described the horrendous economic situation for the USEconomy. He puts blame on Wall Street and US Corporate executives who use Asian labor in outsourcing, rendering the US nation of workers poor. Even astute analysts like Roberts all avoid the 1970 Vietnam War effect and 1973 OPEC Embargo effect that produced big deficits and serious price inflation in the US, forced the break of the Bretton Woods gold standard, and lifted the entire wage scale to where it became uncompetitive and vulnerable to globalization. Roberts discussed the secondary inflation effect, a common Jackass theme. The bankers and political leaders do not wish to see wages rise, since it would complete the systemic price inflation effect. Instead, they watch the rising cost structure, led by food & gasoline most visibly, and attempt to obstruct wage gains. My analysis has pointed out that the leaders in preventing wage gains are advocating and promoting lost income, personal ruin, and deep poverty of the middle class. Roberts instead calls it the Graveyard Effect from a desire to install lower US labor rates in order to compete with the BRIC nations, the emerging market nations. He went so far as to accuse our leaders of trying to promote debt slavery managed within a growing police state.

Ultimately, the wretched condition of the USEconomy, the US banks, the US households, and the USGovt guarantees continuation of Quantitative Easing. The USFed and USDept Treasury are actively pursuing a Scorched Earth program to send the financial markets downward, even as the laundry list of horrendous USEconomic statistics reads endlessly. Details on the degradation of the USEconomy can be found in the June Hat Trick Letter report. The next round might be renamed Global QE. Watch the Japanese Yen, whose exchange rate is back over 125 in a sudden upward thrust, fully forecasted by the Jackass in April. They are selling USTBond assets to raise cash for reconstruction and to cover trade deficits. If another G-7 Meeting is hastily convened, they will coordinate USTBond purchases again. Call it Global QE, a far more powerful Quantitative Easing initiative with greater commodity price impact on a global scale. Expect it.

v  Basically, QE2 was a failure, so it will be repeated.
v  The QE2 provided demand for USTreasury auctions, when most foreign creditors went on a buyer's strike. So QE will be repeated.
v  The housing market has resumed its downward path, with frightening declines to the bank balance sheets. So QE will be repeated.
v  The big US banks remain insolvent, loaded down by a mountain of one million REO homes in inventory. Buyers of mortgage bonds have disappeared. So QE will be repeated.
v  The USGovt deficit picture is a full blown nightmare. Rather than see market mechanisms kick into gear, with higher interest rates imposed, the leaders will continue on the hyper monetary inflation path. So QE will be repeated.
v  Talk of the risk trade counter to the USDollar ending is nonsense. Weimar has met Wall Street, the syndicate handlers of the USGovt and US security agencies. The Printing Pre$$ with US nameplate cannot be stopped. So QE will be repeated.
v  The Gold & Silver prices will move up hard, as soon as the light bulb goes on that QE3 is imminent without interruption. One must be a total moron not to anticipate its immediate installation. To decide not to continue QE would force failures upon major US banks.
v  The USFed is all bluff with no good cards in their poker hand. They will wait for stocks to be a little cheaper and both sides of the USCongress to beg for QE3.

Inflation is all the US banking leadership knows. Left with poor or limited policy options, they will inflate more. Struggling with national insolvency, they will inflate more. Unable to load on vast stimulus packages, they will simply rely upon basic run-of-the-mill inflation. The USFed Chairman should be called the Secretary of Inflation, in a perfect world. Inflation is all they know. They will inflate until the USEconomy is a burned crisp and the US banking system is a charred ruin. The USDollar is halfway complete with a death spiral. GOLD & SILVER PRICES WILL RESPOND WITH A MOONSHOT. The FOREX market is not the domain of fools.

The big FX currency traders realize the USDollar is in a terminal decline. The big FX currency traders realize the USGovt and USFed are locked in a corner with no good policy alternatives. The rebound from May has ended. It relieved the oversold condition, and not much else. Crude oil is back over $100 per barrel. Gold is back pecking away at the $1550 level. Silver is set to challenge the $40 level again. Nothing has changed except the illusion of a tighter USFed policy, which is slowly fading away in a reality backdrop. Recall their nonsense propaganda in early 2010, about an Exit Strategy from the 0% corner. Instead, as the Jackass correctly forecasted, they went deeper with a QE card. Then amidst denials, another correct Jackass forecast, they went deeper with a QE2 card. They will go to a QE3 card next, since they are far more desperate with even more ruinous fundamentals than a year ago. It could go into a pre-emptive Global QE, thus relieving the USFed as the lone perpetrator, my forecast. The USDollar knows it. The investor community is awakening to it. The USEconomic statistics echo the QE sirens calling the corporate ships at sea to their deaths on the rocky shores. Gold & Silver will rise in the second half of the year. This time the Second Half Recovery will feature precious metals on an absolute tear!!


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Jim Willie CB, editor of the “HAT TRICK LETTER”

Use the above link to subscribe to the paid research reports, which include coverage of critically important factors at work during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.

From subscribers and readers:
At least 30 recently on correct forecasts regarding the bailout parade, numerous nationalization deals such as for Fannie Mae and the grand Mortgage Rescue.

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Walk away from your mortgage? Time to get 'ruthless'

NEW YORK (CNNMoney) -- Should you keep paying your mortgage on a home that's dwindling in value?
No way, say an increasing number of underwater homeowners who are voluntarily choosing to "walk away" from their home loans, a practice known as "strategic default."
Jon Maddux, CEO of YouWalkAway.com, reports 10% more clients this year to his company, which advises people how best to handle the walk away process.
Charles Gallagher, a real estate attorney in St. Petersburg, Fla., has also seen an uptick.
And a recent survey by home finance company Fannie Mae found that while only about 27% of homeowners would even consider walking away, that's up from 15% last year.
In an early 2010 report, Morgan Stanley (MS, Fortune 500) researchers said nearly 200,000 defaults in the prior year were voluntary, or roughly 12% of the total. The bank expects to issue updated estimates in coming weeks.

10 dirt cheap housing markets

The profile of a typical strategic defaulter is not what you'd expect, said Peter Ticktin, a Florida-based attorney, whose firm is handling 3,000 foreclosure cases.
"Because they borrowed money and stopped paying their loans, you would think they're deadbeats -- but it's not like that," Ticktin said.
In fact, most are good credit risks with high FICO scores, according to Andrew Jennings, chief analytics officer at Fair Isaac (FICO), the company behind FICO.
Take Jeff Horton, an IT manager in Orlando, Fla.
He stopped making mortgage payments on two homes in October 2009, a condo purchased for $140,000 in 2005, and a house he bought two years later for $265,000. He had occupied the condo until he bought the house, and then rented it out.
"I would have kept up the payments, but the condo was appraised for $54,000 and the house, $135,000," said Horton.
To keep paying off the homes didn't add up. He could rent a nice three-bedroom home in town for about $1,000 a month, less than half what he was paying for his mortgages, even after rental income.
For him and other homeowners, that makes up for the credit-score hit and the fact that you won't be able to get a mortgage for several years.
Before he stopped paying, his credit score was an excellent 750. It dipped as low as 520, but is up to 600 again.
"Strategic default can be a financially sophisticated thing to do," said Mark Fleming, chief economist for CoreLogic, the financial analytics company. "And it makes sense that more financially savvy people do it. They may treat their mortgages like they would their investment portfolios -- in a financially ruthless manner."

Home price 'double-dip'

Sometimes, borrowers have to acquire that ruthlessness.
Helen Sheridan purchased a townhouse condo in 2006 at the height of the boom in San Diego. She paid $630,000 for a place worth $450,000 today.
When the economy tanked, she lost about 30% of her income as a certified public accountant and her mortgage payments, while still doable, became burdensome. With a teenage daughter and son, she was facing college costs.
She had to overcome some conventional thinking about the sanctity of debt repayment to make what she realizes is the correct financial choice.
"I still feel guilty," Sheridan said. "I break out in tears, but I have a family to support."
One factor that pushed her over the edge was that the house needs maintenance and repair.
"People are more educated about the process," said Maddux of YouWalkAway. "They're making more calculated, less emotional, decisions and are less fearful and less concerned about the stigma."
Sheridan is getting help from YouWalkAway and her house will be auctioned off on June 13.
University of Arizona law professor Brent White thinks the past few years of banking scandals have reinforced the view that it's not unethical to walk away.
"There's a sense that the banks don't follow the 'rules,' but somehow the little guy is supposed to -- more and more people are saying 'enough is enough' and walking away," said White, who is also the author of "Underwater Home: What Should You Do If You Owe More on Your Home than It's Worth?"
Some homeowners, however, can't get past the stigma.
Gallagher represents a Florida couple, a dentist and a financial consultant who is well known in the area. They bought a house for $1.4 million during the boom, and considered walking away when it was appraised recently at close to $400,000.
"Ultimately, the couple did not default," said Gallagher. "Given her public profile, she was worried about the backlash. She remains making payments on a deeply underwater mortgage." To top of page


I think charts tell a story that allows you to disregard  the lies being spewed by those in power. Below are four charts that tell the truth about our current predicament. The first is from http://www.mybudget360.com/. The austerity and debt reduction storyline being sold by the MSM is a crock. The total amount of mortgage debt outstanding peaked at $14.6 trillion in 2008. The total amount of consumer debt (credit cards, auto loans, student, boats) outstanding peaked at $2.6 trillion in 2008. Today, mortgage debt outstanding stands at $13.8 trillion, while consumer debt stands at $2.4 trillion. Therefore, total consumer debt has declined by $1 trillion in the last three years. The MSM and talking heads use this data to declare that consumers have been paying down debt. This is a complete and utter falsehood. The banks have written off more than $1 trillion, which the American taxpayer has unwittingly reimbursed them for. Consumers have not deleveraged. They have taken on more debt since 2008. GMAC (Ally Bank) is handing out 0% down 0% interest loans like candy again.

Never has a chart shown why the country is such a mess, with no easy way out. It was the early 1980′s and the Boomers were between 23 years old and 40 years old. Seventy six million Boomers were in the work force. Was it the chicken or the egg? The financial industry peddled debt as the solution to all problems. But, it was up to the Boomers to take on the debt or live within their means. Boomers chose to live for today and worry about tomorrow at some later date. There is no doubt what they did. The chart tells the story. Boomers can moan and blame and point the finger at others, but they took on the debt in order to live at a higher standard than their income would allow. This is why 60% of retirees have less than $50,000 in savings today. This is why 67% of all workers in the US have less than $50,000 in savings. A full 46% of all workers have less than $10,000 in savings.
In order for this economy to become balanced again would require consumer debt to be reduced by $3 to $4 trillion and the savings rate to double from 5% to 10%. This will never happen voluntarily. Americans are still delusional. They are actually increasing their debt as credit card debt sits at $790 billion, student loan debt at $1 trillion, auto loans at $600 billion, and mortgage debt at $13.8 trillion. The debt will not decline until an economic Depression wipes out banks and consumers alike. America will go down with a bang, not a whimper.
Household net worth peaked at $65.8 trillion in Q2 2007. Net worth fell to $49.4 trillion in Q1 2009 (a loss of over $16 trillion), and net worth was at $58.1 trillion in Q1 2011 (up $8.7 trillion from the trough). So, household net worth is still down by $7.7 trillion from its 2007 peak. The really bad news is that the real estate portion of household net worth dropped from $22.7 trillion in 2007 to $16.1 trillion today, a $6.6 trillion loss. Real estate continues to fall.
You can clearly see who benefitted from the monetary and fiscal stimulus implemented by Bernanke, Geithner, and Obama. If household net worth is up $8.7 trillion from the trough in early 2009, but real estate has continued to fall. This means that the entire increase in net worth came from stock market gains. As you may or may not know, the top 10% wealthiest people in the US own 81% of all the stocks in the country. The other 90% own virtually no stocks, so they have been left with depreciating houses and inflating bills for energy and food. The top 10% are about to take another multi-trillion dollar hit in the next six months as QE2 ends and the stock market implodes. This will knock the country back into deep recession.

The most amazing chart of all time is the one below showing home equity since 1952. In a normal non-delusional world, people pay down the principal on their mortgage month after month, resulting in their equity in the house methodically rising. National home prices doubled between 2000 and 2005. One might ask, how in the hell could home equity drop from 60% to 58% between 2000 and 2005 when home prices went up 100%? Equity should have risen to 75%. Well the delusional Boomers struck again. The banks made it as easy as hitting the ATM to get equity out of your house and the Boomers jumped in with both feet, as usual. Americans withdrew $2.8 trillion of fake equity from their homes between 2003 and 2007. They lived the lifestyles of the rich and famous. BMWs, Mercedes, cement ponds (pools), new kitchens, Jacuzzis, home theaters, exotic vacations, hookers, facelifts, size DDs, and putting a little more in the church basket abounded.
This astounding level of stupidity and hubris left millions of Americans vulnerable when the bubble popped all over their faces. Millions have lost their homes. Almost 11 million more are underwater on their mortgage. There is years of pain to go. Household equity is now at an all-time low of 38.1%. What makes this number even more amazing is that 33% of all homes are owned outright with no mortgage. This means that the 50 million houses with a mortgage have far less than 38.1% equity. The people who sucked hundreds of thousands out of their houses to live the good life deserve to get it good and hard.

The last and most humorous graph shows how home price gains are fleeting, while the debt stays wrapped like an anchor around your neck. The greatest bubble in history was clear to Robert Shiller, John Mauldin and many other people with their eyes open. Ben Bernanke was not one of those people. He thought we had a solid housing market in 2005. Real estate values fell from 170% of GDP to 110% of GDP today, headed down to 90% or lower by 2015. The mortgage debt behind this real estate has declined by $634 billion, from 75% of GDP to 65% of GDP. Most of this was due to default, not payment.

It should be clear to anyone that we have a bit of a debt problem. The government solutions jammed down our throats since 2008 have added $7 trillion of debt to the national balance sheet. The only thing keeping this house of cards from collapsing immediately has been the extremely low interest rates put in place by the Federal Reserve. The end of QE2 potentially could result in interest rates rising. If interest rates were to rise 2%, this country’s economic system would implode. Time is not on our side. The debt cannot be repaid. The debt cannot be serviced. The debt has destroyed this country. Years from now when historians ponder what caused the great American Empire to collapse, the answer on the exam will be:


Mainstream Media Signals Economy Getting Bad

Greg Hunter
USA Watchdog

It seems the mainstream media (MSM) is waking up from its long sleep.  The dream world of “green shoots” and “recovery” is fading into staggering unemployment and plunging home prices.  Most of us in the real word have known for some time that there is no recovery.  People are not optimistic no matter how many times they are told things are getting better, and a recent poll by the Daily Beast and Newsweek proves it.  The story said, “. . . reality is beginning to break down Americans’ normally optimistic attitude. Three-quarters of our respondents think the country is on the wrong track. A majority say the anxiety wrought by this recession has caused relationship problems and sleep deficiency. Two-thirds even report being angry at God.” (Click here for the complete poll results and story.)

How can the MSM be so wrong for so long?  I think talking bad about the economy is perceived as bad for ad sales by top management in the MSM.  It is only when things get so obvious that they finally report some real truth or risk looking even more irrelevant than they already are.   In a Jack Cafferty segment on CNN last week, the question was asked, “Will Our Economy Trigger Violence In U.S.?” There is no way this kind of segment sees the light of day without people in the organization accepting the idea that things are officially bad.  That means the happy talk and wishful thinking that the economy is turning around is pretty much dead, at least for a while.  Check out the Cafferty segment in the video below:

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Revolution In America – Protests Scheduled June, 14th – Operation Empire State Rebellion Engaged

Hacker Group Anonymous Brings Peaceful Revolution To America: Will Engage In Civil Disobedience Until Bernanke Steps Down

Tyler Durden's picture
Submitted by Tyler Durden on 03/12/2011 22:30 -0400
The world’s most (in)famous hacker group – Anonymous – known for effectively shutting down their hacking nemesis security firm (with clients such as Morgan Stanley and, unfortunately for them, Bank of America)- HBGary, advocating the cause of Wikileaks, and the threat made by one of its members that evidence of fraud by Bank of America will be released on Monday, has just launched communication #1 in its Operation “Empire State Rebellion.” The goal - engage in “a relentless campaign of non-violent, peaceful, civil disobedience” until Ben Bernanke steps down and the “Primary Dealers within the Federal Reserve banking system be broken up and held accountable for rigging markets and destroying the global economy effective immediately.
The Anonymous manifesto:
  • We are a decentralized non-violent resistance movement, which seeks to restore the rule of law and fight back against the organized criminal class.
  • One-tenth of one percent of the population has consolidated wealth in unprecedented fashion and launched an all-out economic war against 99.9% of the population.
  • We are not affiliated with either wing of the two-party oligarchy. We seek an end to the corrupted two-party system by ending the campaign finance and lobbying racket.
  • Above all, we aim to break up the global banking cartel centered at the Federal Reserve, International Monetary Fund, Bank of International Settlement and World Bank.
  • We demand that the primary dealers within the Federal Reserve banking system be broken up and held accountable for rigging markets and destroying the global economy, effective immediately.
  • As a first sign of good faith we demand Ben Bernanke step down as Federal Reserve chairman.
  • Until our demands are met and a rule of law is restored, we will engage in a relentless campaign of non-violent, peaceful, civil disobedience.
  • In our next communication we will announce Operation Empire State Rebellion.
Glorious Chairman Ben – our free advice to you: change your e-mail password stat…
That video was released. Here it is.

A99 Operation Empire State Rebellion – Communication #1

Get back at me points us to communication #2 in which protests have been schedule for June 14th.
In this new video release, “as a first step,” Anonymous has called for public protests beginning on June 14th, continuing “until Federal Reserve Chairman Ben Bernanke steps down.” To make their case, they have presented a list of recent scandalous Federal Reserve actions.
Important Links
As presented in the video: http://opesr.com & #OpESR:http://twitter.com/#!/search?q=%23OpESR
Google map of actions: http://bit.ly/kajMWv
A99 AmpedStatus Social Network Group:http://ampedstatus.org/network/groups/a99/
June 14th Economic Rebellion Update — This Is What Decentralized Resistance Looks Like:
Acts of Resistance: What Are You Going To Do On June 14th to Rebel Against Economic Tyranny?

Business Insider


Anonymous has set its sights on Ben Bernanke.
The most well-known hacker group, Anonymous, uploaded a video message to youtube yesterday calling for Fed Reserve Chairman Ben Bernanke to resign, among other things. It’s embedded below.
The video begins with Bernanke saying he is 100% confident of his ability to control the income disparity in the U.S. — the largest of any industrialized country in the world — on 60 Minutes.
Then it says:
“Democrats have failed us, Republicans have failed us… It is time for us to stand up for ourselves… We must fight back against the organized criminal class… We must launch “operation Empire State rebellion. The operation will commence on June 14th…Operation Empire State Rebellion Engaged.”
Anonymous first called for Bernanke to resign on March 12.
The group’s latest Youtube video has this description: In this new video release, “as a first step,” Anonymous has called for public protests beginning on June 14th, continuing “until Federal Reserve Chairman Ben Bernanke steps down.” To make their case, they have presented a list of recent scandalous Federal Reserve actions.
The group also provided a Google Map guide to a series of protests, aimed to “* End the campaign finance and lobbying racket* Break up the Fed & Too Big to Fail banks* Enforce RICO laws against organized criminal class* Order Ben Bernanke to step down.”
Details of Flag Day rebellion are described on the Google Map site as such:
This Flag Day, Tuesday June 14th, we will launch a non-violent social movement with this list of demands:
* End the campaign finance and lobbying racket
*Break up the Fed & Too Big to Fail banks
* Enforce RICO laws against organized criminal class
* Order Ben Bernanke to step down
The Banks – #BofA #Citibank #Chase #WF #Ally
Tweet: See FLAG DAY http://bit.ly/mdtXF3 #OpESR
Click on the $ on the map for rally info: #NYC #DC #Chicago #SF #STL #OKC #Flint #WI #Monterey
Here is more information about the Flag Day protest >
The movement has also been referred to as, “CTRL+ALT_BERNANKE.”
The Business Insider article also points out that the IMF was hacked on the same day anonymous posted the latest video.
The video was published the same day that the “major IMF hacker breach” was reported by the New York Times. Anonymous previously warned that it would attack the IMF on June 1st. However the IMF says the hack took place before the IMF chief, DSK, was arrested for attempted rape on May 15. Someone familiar with the matter says that a foreign government was behind the attack.
And Amped Status Gives us a run down of various reactions to the call to protests.

June 14th Economic Rebellion Update – This Is What Decentralized Resistance Looks Like

“There’s something happening here…
Hey, what’s that sound?
Everybody look what’s going down…”
- Buffalo Springfield
Acts of Resistance: What Are You Going To Do On June 14th to Rebel Against Economic Tyranny?Exciting times over here, to say the least! The June 14th Flag Day Rebellion against economic tyranny is growing much stronger and more rapidly than anticipated. As a small part of a decentralized movement, it’s hard to measure the overall impact, but my email inbox is exploding with support and interest. This movement is definitely succeeding in uniting people from all over the political spectrum. Hardcore progressives and libertarians have found common cause. Liberals who are sick of “spineless Democrats.” Conservatives who have had enough of “crony-capitalist and imperial Republicans.” Apolitical people who are sick and tired of living paycheck to paycheck, struggling to get by. The foreclosed upon. The unemployed. People desperately surviving off of food stamps. And especially people who have been impoverished by medical bills. I’ve heard from so many people with horror stories from financial ruin as a result of health problems who are “ready to fight back.” The anger throughout the population is much more intense than even I thought it was.
People who spent their career working on Wall Street are “done sitting idle while the market is rigged in favor of a handful of politically connected global banks and firms.” The people who are taking it upon themselves to take action and spread the word come from all walks of life. Emails have come in from people in the military, veterans, police, firefighters, real estate brokers, lawyers, doctors, nurses, construction workers, accountants, Wal-Mart workers, union members, union haters – they’re all coming together on this. Teachers and students have been strong supporters. College students and recent graduates are feeling completely trapped in debt. Their awareness of their limited opportunities and lack of financial security moving forward is very evident. And, of course, the activists and hacktivists are coming out in force.
For those not up to date, this is what everyone is uniting and rallying around:
This Flag Day, Tuesday June 14th, we will launch a non-violent movement with this list of demands:
* End the campaign finance and lobbying racket
* Break up the Fed & Too Big to Fail banks
* Enforce RICO laws against organized criminal class
* Order Ben Bernanke to step down
Here is the call to action we contributed to the cause, which has been reposted on at least 50 sites now:
Acts of Resistance: What Are You Going To Do On June 14th to Rebel Against Economic Tyranny?
This is a Google map showing some of the public protest locations: http://maps.google.com (Note the first action listed.)
Here’s a brief roundup of what people are saying about the protests, notice the diversity of viewpoints these people represent. I will have a more detailed and focused post featuring many other contributions to this movement within the next few days. This is just the tip of the iceberg.
Comedian Lee Camp just released this video to AmpedStatus in support of actions. Lee will be moving his money out of a big bank on Tuesday.
Fight the Banks On June 14th [Warning Explicit Language]

The well-respected Washington’s Blog does an excellent job summing up the call to action:
The Big Banks Have Sold Us Out. Democrats And Republicans Have Sold Us Out. No One Is Defending Our Interests. Our Future Is Going Up In Flames. It’s Time For Us To Stand Up And Defend Ourselves
“… Even though most politicians are totally corrupt, if many millions of Americans poured into the streets… a critical mass would be reached, and the politicians would start changing things in a hurry. As [liberal] PhD economist Dean Baker points out:
‘The elites hate to acknowledge it, but when large numbers of ordinary people are moved to action, it changes the narrow political world where the elites call the shots. A big turnout … can make a real difference.’
Similarly, no matter how completely sold-out to the Wall Street giants D.C. politicians are, they would start paying attention to their real employers – the American people – if we make enough noise. If 3 million Americans all peacefully surrounded the White House and Capitol Hill, holding signs saying ‘We’re Not Leaving Until the Too Big to Fails which Caused the Economic Crisis are Reined In’, things would change pretty fast.
3 million might sound like a lot of people. But many millions of people read popular alternative financial and economic news sites. You are probably one of millions of people who will read this essay (by the time it is published by some of the larger sites).
In other words, it’s not even a question of convincing other people to go. We – those who read alternative financial websites – could do it ourselves.
If millions of us don’t go protest… it’s because we are choosing not to sacrifice a tiny bit in order to change things. The bad guys are only winning because we – the American people – aren’t making enough noise.
Not Now . . .
It is human nature to try to put things off until tomorrow. Tomorrow, when things are easier, we’ll do it… It is easy to despair that it is already too late. Should we whine and give up hope?
Well, about a month before the American Revolutionary War, Patrick Henry said: ‘They tell us, sir, that we are weak; unable to cope with so formidable an adversary. But when shall we be stronger? Will it be the next week, or the next year?’
If not now, when? Like Patrick Henry asked, when will we be stronger? When will the robber barons be weaker?
If we’re going to save America through non-violent protests, now is the time.
Similarly, conservative financial writer Karl Denninger writes today: ‘You – America – You – can fix this tomorrow. Put 500,000 people around The Treasury and The Fed and refuse to leave until Geithner and Bernanke both resign and depart and the FDIC goes through all four of the largest banks, marks their ‘stuff’ to market, and resolves all that are insolvent. Lay peaceful siege, MLK-style.’
How can both liberals and conservatives be calling for the same thing – massive protests against the banking elites and their water-carriers in D.C.?
Because that’s what all Americans want.
While the elites have tried to divide and conquer America into a false left-versus-right dichotomy, all Americans want the rule of law to be enforced.
All Americans want the big boys to be held accountable to the same laws that we have to follow.
All Americans want there to be a level playing field so that the little guy has a chance to compete fairly.
For liberals, remember Martin Luther King Jr. and Gandhi. For conservatives, this is what Jesus would do: kick the moneychangers out of the temple.
You know it … now act.
We can save America in a week if we follow the call…”
Wall Streeter Mike Krieger stands up in support of June 14th Protests, via Zero Hedge:
“Recent years have proven that things work much better at the local level and we need to start aggressively moving power and sovereignty back to the states and our local communities…. June 14th Protests: I ask people to support this in some way. Whether that means going to a protest, attending a city council meeting, buying silver, or reading the Constitution, the point is please do SOMETHING to exercise your individual sovereignty and resistance to economic and political slavery.”
The Sons of Liberty are in support of the June 14th Actions Against Economic Tyranny:
Leaderless Resistance | Don’t Tread On Me
“With Leaderless Resistance there is no need to actually know your brothers in arms. Through the common cause or rallying cry, we can do much more individually. So this Flag Day, June 14th, I encourage everyone to participate in Operation Empire State Rebellion. I support their efforts because they embrace this spirit of non violent, non compliant, leaderless resistance. More importantly, they are hacking at the root of power, the banking system that enslaves humanity with war and debt. You can do something small or you can do something much more. I have compiled a bunch of examples of non violent leaderless resistance.”
Even the famed Economic Hitman John Perkins wrote us in support of this effort.
As I said, this is a diverse decentralized movement and this is just the tip of the iceberg. Much more to come!
There will be a major announcement within the next few days.
Spread the word, the American Summer of Resistance Is Upon Us…
The following videos were posted as well.
Here’s our call to action also set to music featuring the one and only Max Keiser:

see also: http://J14.FSS34.COM
Then there is the Anonymous laced music video featuring the…

Operation Empire State Rebellion Anthem