Thursday, May 9, 2013

PAUL B. FARRELL: New ‘Game of Thrones’ battlefield is right here – Greed of 7 Shadow Kingdoms destroying America

By Paul B. Farrell, MarketWatch

Yes, George R.R. Martin’s epic fantasy “Game of Thrones” on HBO has brilliantly captured today’s America, our world being ripped apart by endless civil wars between greed-driven ruling-capitalist families to gain control of the “Iron Throne of the Seven Kingdoms.”
The mythical “Game of Thrones” captures today’s raging battles between capitalism and democracy, the plutocratic kingdoms of the Super Rich, their war chests of billions, high-tech arsenals and their ruthless armies of mercenary lobbyists battling to control billions of citizens, trillions in wealth and priceless natural resources.
Look closely: “Game of Thrones” is America’s alternative history, with Washington as ground zero for the world’s 147 nations in a time warp with the magical continents of Westeros and Essos, where the battles between the Shadow Kingdoms of Capitalism rage on, for our civilization, our planet, all fighting for the Iron Throne.
Today you can feel these two “Games” converging — the metaphoric epic fantasies of Martin’s “Thrones” and the dysfunctional reality of America’s “cryptocracy,” a government where politicians are mere fronts, pawns, puppets for the ruling Shadow Kingdoms that are building a critical flashpoint from the nuclear core of Forbes World 1,000 Billionaires, including Wall Street’s bank CEOs, private equity, hedge fund managers, their armies of high-paid lobbyists and all other special interests getting richer playing a very brutal “Game of Thrones” in Washington.
Yes, these brutal wars are fought daily for new storehouses of wealth in federal budget decisions, industry regulations, interest-rate adjustments, tax loopholes and waivers, stimulus grants, loan rebates — all with an over-powering impact on America’s GDP, $15 trillion economy and $3.5 trillion budget … and on your job, your career, your future.
Here are some examples of the Capitalist Shadow Kingdoms in action:

Capitalist battlefield for the Iron Throne of the Shadow Kingdoms

America’s Shadow Kingdoms have unlimited war chests to hire mercenary armies of lobbyists to fight their battles against the 535 elected members of Congress, the Federal Reserve System and the White House command center with its 23 Cabinet officers and more than 5,000 appointed presidential staffers. Lobbyists are at work everywhere influencing, manipulating, controlling, dominating these Washington political pawns.
Shadow armies vastly outnumber their political opponents. There are more than 13,000 registered, and a total of 42,000 de facto, lobbyists, and an estimated 261,000 in the “influence-lobbying complex” throughout America. No contest here. Not only do the capitalists mercenaries outnumber Washington pawns by 10 to 1 to 25 to 1, the compensation of lobbyists is usually several times the government workers’ pay, often in the millions, and many are former elected politicians and staffers who come with years of experience as well as huge war chests and the backing of powerful special interests.

1. Wall Street Shadow Banking Kingdom

In Mother Jones shortly after the 2008 bank bailout, Kevin Drum wrote the “Wall Street lobbyists don’t just have influence in Washington. They own it lock, stock, and barrel … Congress, the president and the Fed were persuaded to let all this happen in the first place.” Illinois Democrat Sen. Dick Durbin punctuated the point: “Even after nearly destroying the world banks are still the most powerful lobby on Capitol Hill … frankly own the place.”
When bank lobbyists killed Glass-Steagall and deregulated derivatives in 1999: “Wall Street was officially turned into a casino. Banks could literally bet on anything.” Banks lobbied through the ‘80s and ‘90s, spent $209 million in 1998 alone, “got what they wanted,” and “were free to gamble customers’ funds in any way they wanted.” New York banks became “the world’s biggest hedge funds.”
Politicians turned into puppets: The Center for Responsive Politics says Sen. Charles Schumer got $1.7 million in donations from “Big Finance” back then, Sen. Harry Reid $1 million, Sen. Christopher Dodd, $745,000.
Drum calls lobbying “the world’s second-oldest profession.” In the voting booth it’s one-man-one-vote. In Washington’s “Game of Thrones” money buys votes. Big spenders? See OpenSecrets.org. In the 2011-2012 election cycle: Defense lobby, $27 million. Farm lobby, $90 million. Health care was the No. 2 at $260 million. The finance lobby was at the top with $656 million, over 10 times the $60 million two decades ago.

2. Health-care Industry’s Shadow Kingdom

When Obamacare was debated, the Center for Public Integrity wrote: “Lobbyists Swarm Capitol to Influence Health Reform … more than 1,750 companies and organizations hired about 4,525 lobbyists — eight for each member of Congress — to influence health-reform bills,” that included everyone in the industry, “health-care interests and advocacy groups to giant corporations, small businesses, American Indian tribes, religious groups, and universities.”

The Health-care Kingdom lobby has been merciless its war for the Iron Throne, attacking with a relentless barrage of drones: “Among industries, 207 hospitals lined up to lobby, followed by 105 insurance companies and 85 manufacturing companies. Trade, advocacy, and professional organizations trumped them all with 745 registered groups that lobbied on health-reform bills.”
Lobbying is fought on a costly battlefield and this Shadow Kingdom has the war chest for big wars.

3. Federal Reserve Bank’s Shadow Kingdom

Fed Chairman Ben Bernanke is perhaps the biggest lobbyist among all the new “Lobbyists for Capitalism,” ruling his Shadow Kingdom and its enormous power over printing fiat trillions, competing with both Congress and the White House for money, power, regulations, laws.
Huffington Post’s Ryan Grim wrote a great piece on the Fed’s incestuous hiring policies, the expanding monetary bubble and looming problems ahead: “How the Federal Reserve Bought the Economics Profession:” Bernanke and the Fed “through its extensive network of consultants, visiting scholars, alumni and staff economists, so thoroughly dominates the field of economics that real criticism of the central bank has become a career liability for members of the profession … This dominance helps explain how, even after the Fed failed to foresee the greatest economic collapse since the Great Depression, the central bank has largely escaped criticism from academic economists,” and why they’re almost certain to miss the next one.

4. Pentagon War Machine Shadow Kingdom

The Defense Department’s war machine controls 48% of the federal budget, roughly 42% of the military budgets of all world nations combined. The Pentagon is a self-perpetuating Capitalist Kingdom armed with a huge lobbying machine that is virtually guaranteed a huge chunk of our tax dollars.
A few years ago BusinessWeek columnist Ben Elgin wrote: “It’s a Bird, It’s a Plane, It’s Pork! … Boeing’s C-17 cargo aircraft cost $250 million apiece. The Pentagon says it has plenty.” But politicians only see jobs, votes, not waste.
No wonder it’s virtually impossible for a president to kill a project that provides jobs in 43 states, especially in a struggling slow-growth economy. Here the Pentagon War Machine lobbyists were in a bizarre conspiracy with politicians, labor unions, and government contractors in those 43 states. And with more than four times as many private federal contractors (over seven million) than related government workers (maybe a million and a half) we just keep wasting tax dollars.
The latest boondoggle, lobbyists pushing to keep making Bradley Tanks the Pentagon doesn’t need or want.

5. Chamber of Commerce Shadow Kingdom

Los Angeles Times columnist Tom Hamburger reported that the U.S. Chamber of Commerce’s mercenary lobbyists are “building a large-scale grass-roots political operation that has begun to rival those of the major political parties, funded by record-setting amounts of money raised from corporations and wealthy individuals,” rapidly signing some 6 million. A new “Friends of the U.S. Chamber, has been used to generate more than a million letters and e-mails to members of Congress,” initially to kill Obamacare.
“What makes this initiative possible is a swelling tide of money. The chamber spent more than $144 million on lobbying and grass-roots organizing … a 60% increase over 2008, and well beyond the spending of individual labor unions or the Democratic or Republican national committees.” And the Chamber Kingdom is expected to just keep expanding it’s power.

6. Energy’s Anti-Environment, Anti-Science Shadow Kingdom

Writing in Yes Magazine, James Hoggan, co-author of “Climate Cover-up: The Crusade to Deny Global Warming,” asked: “Who’s Polluting the Climate Conversation? Money, Think tanks, and the Scientists-for-Hire Behind the Doubt and Denial.” The “loudest voices … dirty energy industries, with their paid experts and think tanks, who are promoting a view of science that serves their economic interests, regardless of what is actually true.”
Earlier this year Rolling Stone’s Jeff Goodell wrote: “As the World Burns: How Big Oil and Big Coal mounted one of the most aggressive lobbying campaigns in history to block progress on global warming … 2,800 lobbyists fighting climate-change legislation, vs 138 for alternative energy. The conservative Heritage Foundation, “long a purveyor of junk science favored by the energy industry,” got $500,000 from Exxon-Mobil and $3 million from Koch oil refineries.

7. New Shadow Kingdom of Black Swans and Dragons

So who among the mercenary warriors in Washington is the righteous Seventh Kingdom battling for the Iron Throne of the Seven Kingdoms? Agribusiness? Local Governments? High-Tech? Telecom? Maybe an unpredictable Black Swan will end these brutal wars empowering Capitalism at the expense of Democracy? Or maybe some new Kingdom will not only end the internecine wars of the Seven but reclaim the Iron Throne of Democracy?
Discover the truth by returning to Martin’s epic, there you will see the future in the return to power of Daenerys, the last survivor of Targaryen, the “Mother of Dragons” in the “Game of Thrones” … as she buys the “Unsullied,” an elite army of slave warriors set free … as she goes to war to reclaim her family’s lost throne … as she battles with the six Shadow Kingdoms.
Join Daenerys, go and speculate, with her you may also see the coming collapse of capitalism … but will you?
Paul B. Farrell is a MarketWatch columnist based in San Luis Obispo, Calif. Follow him on Twitter @MKTWFarrell.

You Don’t Need Us to Tell You Gas Prices are Back on the Rise”

How the media works … (not new, but funny)

Bank deposits of over €100,000 may be at risk

Proposals under Irish presidency to deal with European bank collapses likely to ‘bail-in’ large depositors

Workers remove signs from a branch of Laiki Bank in Nicosia.  Photograph: Andreas Manolis/Reuters Workers remove signs from a branch of Laiki Bank in Nicosia. Photograph: Andreas Manolis/Reuters


 Deposits of over €100,000 are likely to be hit in the event of future European bank collapses, according to a proposal put forward by the Irish presidency of the European Council ahead of a key meeting of finance ministers next week.
Discussions on the controversial bank resolution regime, which is likely to see savers with deposits over €100,000 “bailed in” as part of future bank wind-downs, are due to intensify this week in Brussels, ahead of Tuesday’s meeting, which will be chaired by Minister for Finance, Michael Noonan.
“We will try to get some guidance from Ministers about the possible design of the bailout tool,” one EU official said yesterday. 

Under a compromise text proposed by the Irish presidency, uninsured deposits of over €100,000 would be bailed in in the event that a bank is resolved, but depositors would rank higher than other creditors in the event of a wind-down.
In this scenario – known as “deposit preference” – depositors would rank at the very end of the process, with other creditors first absorbing losses.
However, some member states have not ruled out the possibility that insured deposits, i.e. deposits under €100,000, would be forced to bear losses in the event of a bank collapse even though these deposits would be likely to be protected by the deposit guarantee scheme.
However, the explicit exclusion of insured deposits from future “bail-ins” could in fact be included in the final text, according to some sources, with some MEPs in particular keen to include such a provision.
Significant differences still remain between states on the issue, with some countries calling for greater flexibility as regards the application of the new rules on a national basis, including the possibility that individual countries could be permitted to exempt large depositors from losses if a bank fails.
The introduction of an EU-wide bank resolution process, which would govern how banks are wound down, is a key strand of the EU’s plan for a pan-European banking union, which was endorsed by EU leaders at last June’s summit.
However, the chaotic Cyprus bailout instilled the issue with greater urgency, with EU lawmakers now keen to provide clarity around bank collapses.

Moving the burden
This year Jeroen Dijsselbloem, head of the group of 17 euro zone finance ministers, said that losses on bondholders and depositors could form part of future bank bailouts as euro zone officials seek to move the burden of bailouts away from taxpayers – as was the case in the Irish bailout – and on to private investors.
The European Commission argues that this switch from so-called “bailouts” to “bail-ins” would result in an allocation of losses that would not be worse than the losses that shareholders and creditors would have suffered in regular insolvency proceedings that apply to other private companies.
While the inclusion of large savers in future bank bailouts is now widely accepted, significant differences still remain between member states.
While the new rules governing bank resolution were first intended to come into place in 2018, since the Cypriot bailout there have been calls from senior EU figures such as European Central Bank president Mario Draghi and EU economics affairs commissioner Olli Rehn to introduce the new regime as early as 2015.
The Irish presidency of the European Council is hoping to reach a common position by the end of next month.

German Euro-Skeptic Party Gaining Ground

"Alternative für Deutschland" is turning into a force to be reckoned withZoom
REUTERS
"Alternative für Deutschland" is turning into a force to be reckoned with


The anti-euro party "Alternative for Germany" (AfD) was officially founded just a few weeks ago, but it has clearly struck a nerve: It already numbers 10,476 members, SPIEGEL has learned -- some 2,800 of which have switched allegiance from Germany's established parties.
ANZEIGE
As elections loom later this year, Alternative for Germany is making waves with an agenda that includes dissolving the euro currency zone and returning powers from Brussels to EU member-states. Although a survey released on Tuesday showed the party's support is currently barely nudging 4 percent, its rapidly swelling ranks could end up significantly altering the country's political landscape. The numbers are so far not particularly threatening to the country's largest parties. Just over 1,000 of AfD's freshly minted members previously belonged to Chancellor Angela Merkel's Christian Democrats, while Germany's largest opposition party, the Social Democrats, have seen 558 members defect.
But the threat to smaller parties, particularly the CDU's junior coalition partner, the pro-business Free Democratic Party, is more acute. The FDP has lost 587 members lured by the AfD's slogan: "Straight talk instead of S€datives".
In the state of Hessen, home to Germany's financial capital, Frankfurt, the FDP has even lost a seat in the regional parliament. Just this week, Jochen Paulus switched parties from the FDP to Alternative for Germany, thereby becoming its first representative.
The FDP is particularly sensitive to the dangers posed by the AfD given its own struggles in attracting voters in recent months. And should it not manage to cross the 5 percent threshold it needs to enter the federal parliament, the Bundestag, Merkel could be left without a coalition partner in September.
It is obviously a concern for the business-friendly FDP. At its party congress in Nuremberg last weekend, party leader and Economics Minister Philipp Rösler seized the opportunity to warn that the AfD's euro-skepticism would lead Germany into "economic ruin."
Bloodletting
Meanwhile, the CDU's Bavarian sister party, the Christian Social Union (CSU) has seen 220 supporters migrate to the AfD; the Green Party has lost 106 members and the Pirate Party 142.
"There has definitely been some bloodletting among the established parties," observes AfD co-founder Bernd Lucke, a professor of economics at Hamburg University and himself a former member of the CDU. That's the good news. He's less pleased about the fact that 86 percent of the fledgling party's members are male.
They are indeed a clearly defined group. According to Kay Gottschalk, who recently co-founded the party's Hamburg chapter, they are first and foremost pragmatists. "I come across a lot of people in the AfD who have their feet firmly on the ground," he told the daily Süddeutsche Zeitung on Tuesday. "They are people who prove themselves every single day. They don't have time -- like the Greens -- to debate issues over tea all night long."
Alternative for Germany is also a party with an obvious geographic bias. With 1,946 new members in North Rhine Westphalia, Germany's most populous state is fast becoming an AfD bastion and looks all set to be the first state to clear the 2,000 member hurdle that will allow it to put up candidates for the parliamentary elections in September.
The party is almost as popular in Germany's two most prosperous states, Bavaria, where it counts 1,541 members, and Baden-Württemberg, where it has 1,368 members. In contrast, the party is generating least interest in the poorer eastern states and Berlin, where it has attracted just 531 supporters.
But much could still happen between now and September. According to the Allensbach Institute for opinion and market research, Alternative for Germany has voter potential of 17 percent.

Stocks Are the Most Overbought in Four Years

by Phoenix Capital Research

Stocks are now beyond overbought. The market ramped on Tuesday (the 17th straight Tuesday rally by the way) because traders are now playing for Tuesday rallies.

The financial media is looking for any and all reasons to justify the move, but the fact is that the market had rallied for 16 straight Tuesdays before… so why not a 17th time?

Behind this backdrop things only worsen. The divergence between stocks and the economy is growing rapidly. Stocks are now over 4% above their 50-DMAs. Anytime stocks have been this far above their 50-DMAs in the last four years we’ve seen a correction:



The overbought nature of the market is even more obvious when you compare the S&P 500 to its 200-DMA:



It is clear now we are in something of a blow off top. How long it will last is anyone’s guess, but investors are far too bullish given the fundamentals. The long, “risk on” trade is so lopsided it’s not even funny.

Maybe this time is different… maybe stocks will only go straight up forever. Maybe this bubble, unlike the last two, will not burst.

Or maybe it’s time to start prepping for the next stock collapse.

For more market commentary and insights visit us at www.gainspainscapital.com

Best Regards,
Graham Summers

Stocks Are the Most Overbought in Four Years

by Phoenix Capital Research

Stocks are now beyond overbought. The market ramped on Tuesday (the 17th straight Tuesday rally by the way) because traders are now playing for Tuesday rallies.

The financial media is looking for any and all reasons to justify the move, but the fact is that the market had rallied for 16 straight Tuesdays before… so why not a 17th time?

Behind this backdrop things only worsen. The divergence between stocks and the economy is growing rapidly. Stocks are now over 4% above their 50-DMAs. Anytime stocks have been this far above their 50-DMAs in the last four years we’ve seen a correction:



The overbought nature of the market is even more obvious when you compare the S&P 500 to its 200-DMA:



It is clear now we are in something of a blow off top. How long it will last is anyone’s guess, but investors are far too bullish given the fundamentals. The long, “risk on” trade is so lopsided it’s not even funny.

Maybe this time is different… maybe stocks will only go straight up forever. Maybe this bubble, unlike the last two, will not burst.

Or maybe it’s time to start prepping for the next stock collapse.

For more market commentary and insights visit us at www.gainspainscapital.com

Best Regards,
Graham Summers

Anwar vows more rallies to challenge BN mandate

By Emily Ding
PETALING JAYA, May 9 — Datuk Seri Anwar Ibrahim has pledged more rallies across the country for a “national consensus” to question the legitimacy of the re-elected Barisan Nasional (BN) government over allegations of electoral fraud, starting with Penang this weekend.
He told over 60,000 people at a rally in Stadium MBPJ here last night that their attendance would send a message to BN that its lacklustre election victory was not due to a “Chinese tsunami” as Prime Minister Datuk Seri Najib Razak had said, but a “Malaysian tsunami” of all races.
“I want to show Najib this is not a Chinese battle, this is not a Malay battle. We will go to every corner of this country to show we have the support of Malaysians,” Anwar said in a rousing speech.
Observers said the multiracial crowd that packed like sardines into the stadium — usually with a capacity of 25,000 — reflected his claim. The roads outside the stadium were a giant parking lot for kilometres as more tried to cram into the stadium.
A mixed group of young people who had just met held up placards reading “Cina Kawan Saya” and “Melayu Kawan Aku” while they took a photograph together.
Khamis Ahmad Kamil, a 67-year-old ex-soldier, told The Malaysian Insider: “What was Najib talking about? There are so many races here. Everyone is here sitting and standing for one thing — clean elections.”
Anwar told the crowd: “There are people who ask me to retreat, but I want to tell you, Pakatan Rakyat (PR) won! Because PR won, I will never retreat!”
The Permatang Pauh MP and electoral reform group Bersih have announced that they are withholding their recognition of BN’s win in the general election until the allegations of vote-rigging are fully verified and investigated.
Related story: Vote-rigging helped BN win Putrajaya, Kit Siang tells rally
During the campaign and polling period, BN had been accused of vote-buying with cash handouts, conspiring with the Election Commission (EC) to use “indelible ink” that proved to be easily washed off to allow double voting, and flying planeloads of foreigners from east Malaysia to vote in crucial constituencies in the peninsula.
Riding on the popular vote, Anwar pointed out that despite BN’s cheating tactics, 51.4 per cent of Malaysians and about 55 per cent of Perak folk supported PR though this did not translate into an opposition win at the federal level or in the northern state.
With only 48.6 per cent of the popular vote, BN managed to keep its mandate to rule the country due to a history of gerrymandering and delineation of constituencies skewed in favour of BN.
He said that as a consequence, the results of some 30 federal seats are in doubt, bringing into question the standing of the BN government that was formed with just 133 seats, 21 seats more than the 112 required to win by a simple majority.
“It does not matter if you crown yourself, Najib knows there is the problem of legitimacy,” he said, to rip-roaring hoots from the crowd.
Despite the sombre dress code of black to connote the “death” of democracy, colourful party flags and umbrellas brightened up the dark sea as Anwar led the crowd in unison chants of “Reformasi!” and “Ubah!”
The swelling crowd was alive with energy and a sense that an injustice had been done, as Anwar added a new battle cry to his already-formidable ammunition: “Suara rakyat, suara keramat!”
“I see all these people here, and I am surprised how Pakatan can lose with all this support. How is it that BN can win? They must have made a mistake. I want a recount, or a re-election,” ex-soldier Khamis also said.
Anwar urged the crowd not to be afraid through the coming weeks, saying: “We are on the side of a just, peaceful struggle against a corrupt and arrogant Umno/BN.”
He has 21 days to file a court petition for a review of the results and if the existence of electoral fraud is proven, a High Court judge will declare the election result invalid and call for a re-election.


A 21-year-old Malay student told The Malaysian Insider that attending the rally had made him feel united in a common cause with his fellow Malaysians and that he was optimistic about what might happen in the next few weeks.
“I think this rally has given Malaysia new hope. I think something could change. There could be a re-election and the results could change,” he said.
Kumaravignesh Jagatheesan, a 23-year-old student, also said he wants a re-election because he wants Anwar to be the new prime minister as a man of “calibre” who stands for democracy.
When asked how he would feel if re-election did not pan out, he joked: “I’ll change country!”
The rally was a peaceful one and no police presence was seen or felt.
In a show of unity and neighbourly civic-mindedness, rally-goers helped each other navigate some of the logistical difficulties.
When the stadium was filled to the brim and there was no longer any way in on street level, groups of Malaysians helped each other scale the stadium walls with only a rope, buffered by support on both sides.
When the rally concluded and the crowd had to pick their way out in the dark, Malaysians stood guard at every gaping drain in the ground, shining their torches into it to prevent others from falling in.
Several also acted as citizen traffic police in an attempt to control and ease the jam in the area, which saw many rally-goers park several kilometres away from the stadium and walk the distance.
The rally was attended by several personalities including Anwar’s eldest daughter and Lembah Pantai MP Nurul Izzah Anwar, DAP leader and Gelang Patah MP Lim Kit Siang, and Bandar Tun Razak MP and former Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim.
Related story: Thousands pack Kelana Jaya stadium for Pakatan rally