Market Crash ... Depression ... Revolution ... Blood on the Streets

This is the sixth time since the South Sea Bubble burst in 1720 that huge amounts of wealth have been transferred from those who create it to the already

And it's all on record!

By Tom Dennen

The Great Reckoning, by James Dale Davidson and Lord Rees-Mogg, documents a nine-year gap between commodity peaks and market crashes over the last three hundred years.

Add forty-one years (the average number of years between the 9-year peak-and-crash cycles) and you have a boom-bust cycle twice every hundred years or once every other generation, meaning every second generation of western working and middle-class citizens has, for the last three hundred years, been good and truly and thoroughly plucked.

Today's 'Great Recession;' is just another plucking that started with the sub prime foreclosures, the first modern major transfer of wealth through the confiscation of 'cheap' properties.

The more 'expensive' properties, shopping malls and office blocks will be taken in the next bubble, the Commercial Real Estate (CRE) bubble).

Follow the trend:

• First Plucking: Commodity prices peaked in London in 1711. The ‘South Sea Bubble’ burst exactly nine years later in 1720.

A Depression followed.

• Second Plucking: Producer prices peaked in London in 1763. The London stock market crashed again in 1772 (nine years later).

A Depression followed.

• Third: Commodity prices peaked in London in 1816.The London stock market crashed in 1825 (nine years later).

Another Depression followed.

• Fourth: Wholesale prices peaked in New York in 1864. Worldwide assets crash began in May 1873 (nine years later).

Yet again, Depression followed.

• Fifth: Then followed our beloved Great Depression in the 30s, about which much has been said, from which, little learned.

Commodity prices peaked some fifty years later – the sixth time, this time, in Tokyo, 1980.

The Tokyo stock market crashed in 1989 (again, nine years later). The depression following that crash is now upon us and will seriously dig in by 2020, which is the reason for all those dire predictions: Gerald Celente knows, Nouriel Roubini knows. The trend is three hundred years old.

Look around you and do the math: I'm not a conspiracy theorist but I consider it FACT that once is an accident, twice is a coincidence, and three times is a Declaration of War.

Four times is the realization that the Declaration fell on the deaf ears of sleeping fools, five times is simple daylight rape and plunder of the same fools – the sixth time, this time, what I call Grand Theft, Planet ©, is perhaps and hopefully, the lesson finally learned, and do we now wake up?

All we have to do is throw them out of the Temple. For the last time. Forever.

Wall Street climbs after State Street earnings outlook

NEW YORK (Reuters) – Wall Street rose on Wednesday as a higher profit outlook from bank State Street Corp reinforced hopes of a better-than-expected earnings season and trumped fears of slower global economic growth.

Banks rallied after heavy losses in recent weeks, with the KBW bank index (.BKX) up 1.8 percent as State Street's forecast reinforced expectations that banks without exposure to trading would perform well in the coming earnings season.

"The earnings data provided by State Street is one of the key factors boosting the market today," said Nick Kalivas, an analyst at MF Global in Chicago. Kalivas said investors were starting to reposition for earnings season next week.

The Dow Jones industrial average (.DJI) gained 71.30 points, or 0.73 percent, to 9,814.92. The Standard & Poor's 500 Index (.SPX) gained 9.57 points, or 0.93 percent, to 1,037.63. The Nasdaq Composite Index (.IXIC) gained 20.91 points, or 1.00 percent, to 2,114.79.

State Street (STT.N), the world's second-largest custody bank, forecast its second-quarter operating earnings to beat analysts' expectations, which reinforced hopes of strong earnings from some financials and sent the bank's shares up 9.5 percent to $36.50.

The S&P 500 index has fallen around 15 percent since a recent peak on April 23 and is down 7.5 percent since the start of the year as fears about the economy have weighed on stocks. Selling has been heavy in recent weeks on signs of a slowdown in the U.S. recovery.

Bringing its S&P 500 index year-end target more into line with the market, UBS lowered its forecast to a level of 1,150 from 1,350 to reflect modestly weaker earnings growth and longer-term secular headwinds.

Family Dollar Stores Inc (FDO.N) on Wednesday posted higher quarterly profit as customers sought cheaper products in the face of high unemployment, but the discount chain forecast fourth-quarter earnings below expectations.

The shares fell 7.8 percent to $36.35 and were a drag on the retail sector.

BP Plc (BP.L)(BP.N) Chief Executive Tony Hayward met with officials from Abu Dhabi's investment authority as speculation mounted the sovereign fund would make a fresh investment. BP's New York-traded shares rose 3.2 percent to $32.95.

(Editing by Padraic Cassidy)

Linamar moves to shut U.K. plant with 200 workers, shift production elsewhere

TORONTO - Canadian auto parts maker Linamar Corp. is taking the first step towards shutting down its only British plant due to high labour costs.

Canada's second-biggest auto parts company said Wednesday it's beginning consultations with the Unite trade union on the planned closure of the plant in Wales, which employs 200 people.

"We felt that the cost levels in the facility were not competitive and we've worked closely with our people there over the last couple of years to try to create a competitive structure in the facility and we have been unable to do so," Linamar CEO Linda Hasenfratz said in an interview.

British law requires companies that intend to shut down a facility to consult with their workers and attempt to find alternatives to the closure.

"We are in good faith having discussions and consultations with our people around the contemplation of the plant closure," Hasenfratz said.

"If we collectively come to the decision that this is clearly the only alternative for us, then our discussions would shift to the actual closure and how our people would be handled in that situation."

If the plant closes, production of its electronic components would be moved to Germany and Mexico, but Hasenfratz emphasized this isn't an attempt to slash labour costs.

"It's because of the product expertise. The only plant that we make PTUs (power transfer units) at in North America is in Mexico. We're not taking it from some high-cost labour place to a low-cost labour place. That's got nothing to do with it," she said.

Consultations between companies and unions on such shutdown proposals in the U.K. are usually for a 90-day period.

Linamar bought the factory from U.S. auto parts maker Visteon in mid-2008 — the Canadian company's first foray into manufacturing in the United Kingdom.

At the time, Linamar said it planned to grow the business with new products such as camshafts, flywheels and connecting rods.

Originally built in 1960 for fridge manufacturer Prestcold, the plant was acquired by Ford in the mid-1960s before being transferred to Visteon, a major parts maker spun out from the No. 2 U.S. carmaker.

The Lassco plant (Linamar Automotive Systems Swansea Company) is located in Swansea, Wales.

Linamar makes components, modules and systems for the world's car manufacturers and power generation markets as well as Skyjack scissor-lift work platforms for industrial customers.

The southwestern Ontario company has close to 11,000 employees in 37 manufacturing plants and other operations in Canada, the U.S., Mexico, Germany, Hungary, the U.K., China, Korea and Japan.

Shares in Linamar (TSX:LNR) added 18 cents to $17.28 in afternoon trading on the Toronto Stock Exchange.

US fighting ATK over defective military equipment

NORTHERN UTAH -- It's one of Utah's most prominent companies, embroiled in a high-stakes court battle against the U.S. government over allegedly defective military equipment. If the government wins, a whistleblower could get tens of millions of dollars.

The case has been working its way through the courts for more than four years and appears to be a long way from resolution.

The federal court released some transcripts of routine pre-trial hearings Tuesday that give a glimpse into a fascinating case.

Utah whistleblower Kendall Dye is not standing on his own. Three years ago, the U.S. Department of Justice joined his lawsuit against ATK Launch Systems, seeking many millions in damages. If ATK loses, Dye's take-home pay could be 30 percent of that.

The controversy swirls around nighttime combat. ATK sold the military thousands of high-powered illumination flares -- big ones -- that dangle from a parachute and light up a square mile.

No accidents have been blamed on the flares, but in the lawsuit the federal government claims they have defective igniters that can be set off by a modest shock. The government claims ATK failed to test properly and provided misleading information to the military.

The worry is a flare could explode accidentally in transit, and sink a ship or bring down an airplane.

In transcripts of pre-trial hearings, a justice department lawyer mentioned drop tests evidently performed by a suspicious whistleblower.

"They have dropped two flares from five feet and 10 feet. They exploded and they failed," the transcripts read.

At another point in the transcript, the judge suggested bringing a flare into court during a future trial to show the jury.

"If you put one of these on the table and roll it off," the government lawyer said, "you have got a good chance of it going off."

An ATK lawyer said the company offered to fix 60,000 flares at its own expense.

"It is cheap, 97 bucks a flare to retrofit it," the lawyer said. "And the government is taking the position, for whatever reason, not to engage in that process."

He suggested the government might be leaving the flares unfixed so they can win a higher damage award.

ATK issued a statement Tuesday, saying the lawsuit is completely without merit. They say 40,000 flares have been used successfully without a single report of a malfunction.

KSL tried to reach whistleblower Kendall Dye Tuesday but was unable to locate him. Lawyers for the government didn't return calls.

If the case goes to trial, it will likely be at least a year from now.

Exclusive Interview with Haneen Zoubi – Part One

Hanan Chehata: Tell me a little about your political career; when did it begin and why the Balad Party?

Haneen Zoubi: I graduated in philosophy and media studies and have been interested in politics since I was very young. Gender issues were the first to draw my attention. I became a member of the Balad Party in 1997, one year after it was formally established. Balad was my first choice; it is, in my view, the only party to promote and address questions of equality and identity within the abnormal context of citizenship in Israel. Our party takes the issue of citizenship very seriously. We challenge and reject the existing notions of Zionist citizenship while promoting an alternative vision of democratic citizenship instead of ideological citizenship, which inevitably will discriminate against the Palestinian citizenry. The Balad Party calls for equal national rights and for the indigenous people – Arabs to promote this identity, and the duty of the state to guarantee these rights. This will not happen within the framework of a “Jewish state”, but within a state “for all of its citizens”, which Balad aspires to.

HC: You are the first Arab woman to be elected to the Knesset (Israel’s parliament). That is some achievement. What does that accomplishment mean to you?

HZ: I was elected in order to represent and fight for my party’s political and social vision. I believe in universal values; our national struggle is and must be based upon universal values of freedom, justice and equality. And we in Balad believe that freedom is the most precious human value and that it is a fundamental element of human dignity. So equality between women and men, the position of women in the society are indications not just of the development of the society but also of the dignity of society itself. There is no justification for a people to struggle for freedom, while oppressing the women. Freedom is a universal value and it should be pursued in the face of all kinds of oppression.
So my election is first of all a statement for the rights of women in full equality, and a woman’s full rights in her personal life; equally she has the full right to share the duty with men in leading society.

HC: Your case in some ways echoes that of Dr Azmi Bishara. Could you explain briefly why he now lives in exile, and his current status within your party and as an Israeli citizen?

HZ: After Israel’s defeat in the 2006 war against Lebanon, Dr Bishara was charged with treason. Israel used the occasion to suppress an Arab political leader and intellectual who had been leading a political party which challenged Zionism. Dr Bishara and we in Balad have denied consistently the accusations levelled against him. Israel was, however, determined to criminalize the political vision and policies which he advocates. We, of course, do not believe in the impartiality of the Israeli judicial system. We believe that Dr. Bishara was targeted because he challenged the status quo by demanding the loyalty of the state to the citizen, instead of the loyalty of the citizen to the state. Clearly, he represented a “model” that was perceived as a threat to certain vested interests.

HC: You are one of the MPs who travelled to Libya in April and have been attacked for your part in that visit. Can you tell us a little about why you went to Libya and the reaction you received on your return to Israel?

HZ: We consider ourselves to be part of the Arab nation; it was Israeli policies which for many years isolated us and tried to distort our Arab identity and culture, and to deny our Palestinian belonging. The invitation of Mu’ammar Al-Gaddafi in his capacity as incumbent head of the Arab summit was a message of formal recognition from the Arab states that we constitute an integral part of the Arab nation. This sort of engagement is very important for us, it raises our morale and our self confidence; moreover it can counteract Israel’s discriminatory and repressive policies which deny identity and historical memory. In a practical sense it can also help to promote cultural relations.

HC: What motivated you to take part in the Freedom Flotilla and attempt to break the siege of Gaza?

HZ: Taking part in the struggle for my people’s freedom and justice is not an optional issue under any circumstances. It is my duty and my right. It’s a human duty as well as a national one. No human being can accept the humiliation and the suffering of the Palestinians under siege and occupation. The Palestinian people have the right to resist and struggle in order to put an end to occupation.
During the war on Gaza, Israel destroyed and damaged the homes of 100,000 people. Since then they returned to their devastated homes without being able to rebuild them. Israel also destroyed 165 schools and 3,900 public buildings. Today, the average daily income is $2, unemployment stands at 60% and 85% of the population live below the poverty line. Occupation by itself cannot explain these facts; they must also be seen in the context of Israel’s policies of subjugation, humiliation and repression of the human will as a way of forcing the Palestinians to accept an unjust political settlement.

HC: Were you surprised by the violent response of the Israeli commando forces that left nine international civilians aboard the aid ship dead and many more injured?

HZ: Actually, yes. Although the Israeli policies of de-valuing Palestinian lives and rights is well known, and despite the fact that Israel has pursued policies which violate the human rights of the Palestinian people systematically in total disregard of international laws or human rights, I did not expect this excessive and unjustified recourse to violence.

The flotilla’s journey was well covered by the international media; there were representatives from over 40 countries, thus reflecting an international consensus. Besides, there was absolutely no excuse to resort to such brute force. We were 600 political activists who intended to break an illegal and inhumane blockade. But it was so clear from the first minute I saw the force approaching that the aim was not just to prevent the flotilla from reaching Gaza but also to deter any such initiative in the future.

Source: Middle East Monitor

Haneen Zoubi was Born in Nazareth, Zoabi studied philosophy and psychology at the University of Haifa, gaining a BA, before receiving an MA in communications from the Hebrew University of Jerusalem.^[3] She was the first Arab citizen of Israel to graduate from a media studies course there, and established the first media classes in Arab schools.^[1] She also worked as a math teacher, and later served as a schools inspector for the Ministry of Education.^[ Zoabi joined Balad party in 2001.^[3] In 2003, she co-founded the NGO I’lam – Media Center for Arab Palestinians in Israel (pronounced e’e'lam). Zoabi was its general director until she resigned shortly before the 2009 election in order to focus on her political career.She entered the Knesset after the party won three seats. She became the first female Arab MK to represent an Arab party

Dr. Hanan Chehata Press Officer at the Middle East Monitor (MEMO), London

Obama’s New Iran Sanctions: An Act of War

When the UN refused to agree to the severe sanctions that the U.S. wanted, Obama responded with typical Bush flair and went solo. The new U.S. sanctions against Iran — signed into law by Obama on July 1st — are an unmistakable act of war.

If fully enforced, Iran’s economy will be potentially destroyed. The New York Times outlines the central parts of the sanctions:

“The law signed by Mr. Obama imposes penalties on foreign entities that sell refined petroleum to Iran or assist Iran with its domestic refining capacity. It also requires that American and foreign businesses that seek contracts with the United States government certify that they do not engage in prohibited business with Iran.” (July 1, 2010).

Iran must import a large part of its refined oil from foreign corporations and nations, since it does not have the technology needed to refine all the fuel that it pumps from its soil. By cutting this refined oil off, the U.S. will be causing massive, irreparable damage to the Iranian economy — equaling an act of war.

In fact, war against Japan in WWII was sparked by very similar circumstances. Franklin Delano Roosevelt spearheaded a series of sanctions against Japan, which included the Export Control Act, giving the President the power to prohibit the export of a variety of materials to Japan, including oil. This gave Roosevelt the legal stance he needed to implement an oil embargo, an obvious act of war. Japan’s attack on Pearl Harbor simply brought the war out of the economic realm into the military sphere.

Iran is facing the exact same situation. Whereas the Obama Administration calmly portrays economic sanctions as “peaceful” solutions to political problems, they are anything but. The strategy here is to economically attack Iran until it responds militarily, giving the U.S. a fake moral high ground to “defend” itself, since the other side supposedly attacked first.

But the U.S. is provoking militarily too. According to the New York Times:

“The Obama administration is accelerating the deployment of new defenses against possible Iranian missile attacks in the Persian Gulf, placing special ships [war ships] off the Iranian coast and antimissile systems in at least four [surrounding] Arab countries, according to administration and military officials.” (January 30, 2010).

The same article mentions that U.S. General Petraeus admitted that, “… the United States was now keeping Aegis cruisers on patrol in the Persian Gulf [Iran’s border] at all times. Those cruisers are equipped with advanced radar and antimissile systems designed to intercept medium-range missiles.” Iran, as well as the whole world, knows full well that “antimissile systems” are perfectly capable of going on the offensive — their real purpose.

Iran is completely surrounded by countries occupied by the U.S. military, whether it be the mass occupation in Iraq and Afghanistan, or the U.S. puppet states that house U.S. military bases in Arab nations (not to mention Zionist Israel, a U.S. cohort in its war aims against Iran). Contrary to the statements of President Obama, Iran is already well contained militarily.

It remains to be seen how closely U.S. allies will follow the new oil sanctions; they will be under tremendous pressure to do so. The European Union has already signaled that it will follow Obama’s lead.

Ultimately, the march to war begun by Bush is picking up momentum under Obama. Congressional Democrats and Republicans gave the President their overwhelming support in passing these sanctions, proving that the two party system agrees to the necessity of more war.

Uniting the U.S. anti-war movement is crucial if current and future wars are to be stopped. A step in this direction will take place at the National Peace Conference, in Albany, New York, July 23-25.

Post Office to Announce Rate Increases as Losses Mount

The U.S. Postal Service will announce new mail rates on Tuesday in a bid to generate more revenue after posting a massive loss in the last fiscal year.

Rates for first-class and other types of mail will rise, the Associated Press reported. The increases are subject to review by the independent Postal Regulatory Commission.

The Postal Service, which receives no tax funds to cover operations, is legally limited to keep rate increases within the rate of inflation. The agency is allowed to seek higher increases in unusual circumstances only.

Considering that the Postal Service lost $3.8 billion last fiscal year, even as it cut 40,000 full-time positions, this may be such a circumstance.

"The projections going forward are not bright," Postmaster General John Potter said in March. But he added: "All is not lost. . . . We can right this ship."

See full article from DailyFinance: http://srph.it/d8BQo5