Tuesday, August 27, 2013

Margin Debt On The New York Stock Exchange (NYSE) Is At A Record High

: One basic rule of economics states that when the demand increases for an item and supply for that same item declines, its price usually increases. Let’s apply this to the gold This is a story of how the big banks pulled gold prices from under our feet, but why their plan for the stock market won’t pan out…
When gold bullion prices went into semi-crash mode in late spring of this year, some stories written by financial analysts suggest big banks colluding together to bring gold bullion prices crashing down. If you remember, The Goldman Sachs Group, Inc. (NYSE:GS) came out with a report saying gold bullion prices would go down…and magically, they did!
At about the same time Goldman Sachs gave a “sell” recommendation on gold bullion, JPMorgan Chase & Co. (NYSE:JPM) was selling gold bullion on the paper market. The plunge in gold bullion prices started in April—but JPMorgan was selling gold since the beginning of the year. From January to April, the big bank’s house account had a net short position of 14,749 100-ounce COMEX gold contracts—or about 1.47 million ounces of gold bullion. (Source: “Year to Date Delivery Notices,” CME Clearing, August 19, 2013.)

I’ll be the first to admit it: the gold bullion price takedown that started in April sure looks and smells fishy.
Once the sell-off in gold bullion began, no one cared about demand or supply (the reason why gold bullion prices increase or decline). The fundamentals were thrown out the window. Irrationality and emotions took over, and investors ran for the exit.
Gold bullion prices have started to climb back up. They are above $1,300 an ounce and marching towards the next big level at $1,400.
The gold “play” is over for the big banks; they’re onto something else—the stock market.
The wave of optimism towards the stock market continues to gain momentum. Big banks are telling us the stock market is going to go higher.
Some calling for higher stock prices say earnings are good, some say valuations are good, some say the economy is improving, and others say investors will move out of the bond market and into the stock market.
Goldman Sachs says the S&P 500 will increase eight percent in the next 12 months. Its target for the S&P 500 is 1,825. Its reason: economic growth will pick up its pace. (Source: Bloomberg, August 13, 2013.)
When I look at Goldman Sachs’ latest prediction, I have two questions: Will it and other big banks be right on the stock market like they were on gold?

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Volatility May Worsen as Data Steer Bets on Fed Move

Wall Street just went through its weakest three-week period since November, not to mention a panicky spell when the Nasdaq stock market ground to a halt. But that doesn't mean the pain is over.
This week is unlikely to bring much clarity to the primary issue facing markets: when and by how much will the U.S. Federal Reserve slow its accommodative monetary policy. Uncertainty, along with what is expected to be anemic trading heading into the U.S. Labor Day holiday on Sept. 2, could make for a volatile week.
"We're cautious about the next few weeks, so we're taking gains now," said Michael Mullaney, who helps oversee about $9.5 billion as chief investment officer at Fiduciary Trust Co in Boston. "It's not like we're on the precipice of recession, but there's not much for investors to get excited about and we're expecting volatility to pick up."
Traders had hoped that the Fed's meeting minutes issued on Wednesday would provide direction about whether the Fed would begin to reduce its $85 billion-a-month of bond-buying in September. Instead, the minutes painted a mixed picture, with some members advocating patience.
The mixed signals create a double-edged sword. While the stimulus has fueled the market's solid gains in 2013, for the Fed to continue its cheap money policy would signal the economy is too weak to advance without intervention. The CBOE Volatility index, a measure of investor anxiety, is up 16.7 percent over the past three weeks.
The Fed has said that the policy change depends on whether the economy meets growth targets, making markets even more sensitive than usual to financial data. This week will see a report every day.
July durable goods orders are due on Monday while the final reading for the Thomson Reuters/University of Michigan consumer sentiment index will come on Friday. Perhaps the most important will be Thursday's latest estimate of U.S. gross domestic product for the second quarter. The data is expected to show the economy grew a revised 2.2 percent annualized rate last quarter compared with a 1.7 percent reading last month.
While a weak report would be a bearish sign for the economy, some analysts speculated that a strong reading could have negative implications for the market.
"If GDP comes in above 2.5 percent, that could be problematic because it will suggest that the Fed could take a bigger bite out of stimulus than we are currently expecting," said Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville. "That would put the stock market in jeopardy."
The S&P 500 lost 2.7 percent over the past three weeks, taking the benchmark index below its 50-day moving average for several sessions. The index closed above the technical measure on Friday, but the light volume may be blurring the technical signal and the S&P may find a floor in its 100-day moving average, now at 1,635.81.
"That should serve as pretty decent support," said Douglas DePietro, managing director at Evercore Partners in New York, adding that markets would be range-bound between that level and the S&P's all-time high of 1,709.67, reached earlier this month.
"We'll see a lot of listless trading until the September Fed meeting," he said. "We're in a bit of an information void until then. There aren't a lot of catalysts to look forward to and most of Wall Street is on holiday."
For last week the Dow slid 0.5 percent, the S&P gained 0.5 percent and the Nasdaq added 1.5 percent.
Daily trading volume has been among the lightest of the year in recent sessions, as is typical at this point in the summer. Light volume can amplify market moves, resulting in dramatic intraday swings.
Low volume was dramatically exacerbated on Thursday after a technical issue shut down trading on all Nasdaq issues, equivalent to $5.9 trillion in market capitalization, for more than three hours.
Friday trading was smooth and the day's gains helped the S&P 500 and Nasdaq Composite end a two-week losing streak, but the Dow posted its third consecutive weekly decline.
A few notable companies will report earnings this week, including Tiffany & Co, Campbell Soup Co and Joy Global Inc.
Salesforce.com Inc is also due to report, and investors will scour the results to see if the maker of online sales software can justify its outsized valuation. The stock has a P/E ratio of 99.47, compared with the 15.57 ratio of its peers.
Warnings for third-quarter U.S. earnings are below second-quarter levels but are rising, Thomson Reuters data showed.
Negative outlooks are outpacing positives for the third quarter by 5.1 to 1, up from a little more than 4 to 1 a week ago. The negative-to-positive ratio for the second quarter was 6.3 to 1.
As a result, estimates for third-quarter earnings are down. Growth is estimated at 5.1 percent from a year ago, down from a July 1 estimate of 8.5 percent growth and close to second-quarter's growth of 4.8 percent, with results in from most companies.
© 2013 Thomson/Reuters. All rights reserved.

U.S. Trying to Push Back a Dollar Blowup


Economist Dr. Paul Craig Roberts says the U.S. is trying to gain global support for the U.S. dollar through trade deals. Not every country thinks the U.S. wi…
The post U.S. Trying to Push Back a Dollar Blowup appeared first on PaulCraigRoberts.org.

Treasury to max out borrowing again in October… All out of gimmicks…. U.S. stocks closed lower

Kerry speech to press about Syria Evidence of chemical weapons strike in Syria ‘undeniable’ YouTu

The U.S. will hit the $16.7 trillion debt ceiling in mid-October, Treasury Secretary Jacob J. Lew said in a letter urging Congress to raise the limit “as soon as possible.”
“Extraordinary measures are projected to be exhausted in the middle of October,” Lew said in the letter today to House Speaker John Boehner and other lawmakers.
“At that point, the United States will have reached the limit of its borrowing authority, and Treasury would be left to fund the government with only the cash we have on hand on any given day,” he said. He said the cash balance at that time is forecast to be about $50 billion.
The Treasury Department had earlier said it probably will be able to finance government operations by using special accounting measures until after Congress returns Sept. 9 from its recess. Lew said Aug. 22 a failure by Congress to raise the debt limit would “have disastrous effects for our nation” and could put at risk payments to Social Security recipients and veterans.
Boehner said last month the Republicans wouldn’t increase the debt ceiling “without real cuts in spending” that would achieve a further reduction in the deficit. Lew has said the Obama administration won’t negotiate on the debt limit.
The Bipartisan Policy Center, a nonprofit research group, has estimated that the U.S. will reach the point where it is unable to pay its bills sometime between mid-October and mid-November unless Congress increases the limit.
http://www.bloomberg.com/news/2013-08-26/lew-tells-congress-treasury-will-hit-debt-limit-in-mid-october.html

In a letter to congressional leaders, Lew said his department will soon run out of the accounting maneuvers it’s been using to stave off default.
“Congress should act as soon as possible to protect America’s good credit by extending normal borrowing authority well before any risk of default becomes imminent,” Lew said in his letter.
The deadline, sooner than what some other forecasters had estimated, comes amid concern that Congress has no plan for handling the needed increase in what promises to be a contentious debate between Republicans and Democrats.
The Obama administration has said it will not negotiate over raising the government’s borrowing limit.

Read more: http://www.politico.com/story/2013/08/debt-limit-mid-october-95920.html#ixzz2d6u0oiYx
NEW YORK (MarketWatch) — U.S. stocks closed lower in light volume Monday after Secretary of State John Kerry called Syria’s actions ‘inexcusable’ and a report said the U.S. would hit its debt limit in October.
Stocks had been modestly higher after a downbeat U.S. economic report did little to change the belief that the Federal Reserve would likely tighten monetary policy in September.
“The market is trying to build in ahead of time” the consensus view that the central bank would begin cutting back on its $85 billion in monthly bond purchases next month, and if not then, in December, Randy Frederick, managing director of active trading and derivatives at Charles Schwab, said of Wall Street’s pullback the past three weeks.
Stock indexes fell to session lows after Kerry told a nationally televised news conference that the United States would hold Syria’s government accountable for using chemical weapons. “By any standard it is inexcusable,” said Kerry of last week’s attack that the Syrian opposition said killed more than 1,300 people.
http://www.marketwatch.com/story/us-stocks-mildly-higher-after-durables-2013-08-26

US Economy Is On The Edge, Time Is Running Out To Start A New War


All indicators are pointing to an event occurring this fall. The gun bill, UN arms treaty are all pending in the senate sitting there waiting for something to happen, the FED and financial institutions are continually reminding the world that the BIS wants all central banks to taper come this fall to avoid massive bubbles they are creating and to avoid an economic collapse.
War is coming to cover up the economic collapse
1. The paid mercenary (syrian free army) are losing ground and Assad’s army has retaken the city of Homs and now moving onto Aleppo.
2. The US has been holding aerial drills with Israel
3. Israel has been conducting nighttime parachute drills
4. The fiscal year for providing the paid mercenaries with weapons ends Sept 30.
5. The US government has been strategically preparing for WWIII.  Biden says the US will remain in the Asia-Pacific region. They are creating an Arc around China by positioning military assets around the pacific. America’s most capable all-around air weapon, the F-35, will be deployed first in the Pacific once it achieves Initial Operating Capability (IOC), Carlisle said. Air Force F-35s probably will head to four bases: Misawa, Japan; Kadena, Japan; Osan Air Base, Korea; and Kunsan Air Base, Korea.
6. The US government is now providing Philippines with military assets in exchange for the use of the island to rotate US armed troops and equipment to secure the pacific region from threats.
7. Japan now has the authority to act against China if provoked.
8. Israel’s navy is now installing a new defense system on its missile boats, the Barak eight systems on its Saar 5 missile boats that would protect them from the feared Yakhont Russian anti-ship missile
9. The Russian have setup a base in Armenia and installed missiles that can reach Syria
10. Russia are quietly trying to renew their request to set up an air and naval base in Cyprus with the goal of being better able to deploy troops to Syria
11. We have seen countless drills, US and Japan, US and South Korea, US and Israel, Russia and China all countries flexing their muscles.
12. Japan just built the largest warship since world war II. They started building this ship in 2009 and now it is complete just in time and it just so happens that Japan a pacifist country (strongly and actively opposed to conflict and especially war)  needs a warship of this magnitude.
Part 1 Of The Economic Collapse This Fall


As we know the central bankers are in a tough spot, if they continue with the money printing the bubbles they are creating are going to eventually pop and the world will see an economic collapse like it has never seen before. If the central bankers ease off and start to taper the world will see an economic collapse, not as bad as all the bubbles popping at once but bad enough that people will want to blame someone for this collapse. The advantage that the central bankers see by tapering is that they think they have control over the collapse. Leading up to the first part of the collapse the US government has been working hard to remove the people’s rights and to put into place security to control the people during this period.
1. Rights of the people have been completely taken away
2. NSA spying on all Americans, tracking keeping tabs on everyone and placing them on lists to be dealt with during the collapse.
3. DHS in place to deal with the American people when the collapse occurs.
4. The US government has succesfully passed laws that take the rights away from the people. The NDAA, Patriot Act, Miranda Exception Rule, Declaring whistle-blowers as traitors etc. The Gun Bill and UN arms treaty that are pending in the senate waiting for the right event to have these passed will allow the government control over the one thing they are most scared of, an armed people.
5. The government needs to control the flow of information, they already control the mainstream media the internet is the prize. With the executive order taking control over all communications ans CISPA pending in the senate, which is waiting for an event to occur so it will be passed will give the government complete control over the internet and they will have the ability it down whenever they need to.
The FED along with the government will proceed with tapering in the fall, all indicators will show that the economy is improving, unemployment, GDP and inflation look good. The FED will announce that they will start to taper and before they have the ability to there will be some type of false flag event that will occur. It could be a cyber attack on the banks.  Using a cyber attack from another country will allow the banks to close, bail-ins to occur and the entire collapse can be blamed on another country such as Syria. The focus would be off of the US and the FED and the blame shifted away to another country. To remedy this situation the FED will now need to increase the amount of QE to two times the current amount. Now the FED will be monetizing the debt at a rate of a 170 billion a month.
During this time the US government will now have what it needs to wage war on Syria since they are the cause of the economic collapse of the US.  The banks would now need to freeze bank accounts and since bailouts are not allowed under the Resolving Globally Active, Systemically Important, Financial Institutions document.  Many of the banks have changed their TOS and they are not responsible for money that is lost due to cyber attacks and the officers and representatives can not be held responsible.
As the US prepares for war, the US economy and the world starts to degrade and goes into a depression spiral. War starts to breakout all over the world, Russia, China, Japan, North Korea and other nations get involved. WWIII has begun and it allowed the economic collapse to be covered up.

The Terrifying Future of The United States 


First Signs of Hyperinflation Have Arrived

US national debt can travel from the earth to the sun and back a stunning 83 times.
JS Kim
zerohedge.com

debtwb2 
original artwork above courtesy of @williambanzai7
The first signs of hyperinflation have arrived. As I will explain later in this article, it began last week with the meeting of POTUS Obama and his most supportive lobby, the banking industry. Just a few months into Obama’s first term as US President in early 2009, I penned an article, “8 Reasons Why the Obama Administration Will Not Solve this Crisis by the End of 2009.” Although the title of that article title sounds absurd today, idol worship was so high of Obama immediately following his election not only in the US but all across Europe, that media commentators across the world were implying, and sometimes matter-of-factly stating, that Obama would be well on his way to solving the global monetary crisis by the end of his first year as POTUS. In direct opposition to the media love affair with Obama, shortly after his election in 2008, I objectively studied Obama’s support of a massive bailout plan for banks in his first months of service and his freshly minted appointments of Timothy Geithner, William Daley, William Donaldson, Robert Rubin, Roger Ferguson and Paul Volcker to his economic advisory board and key cabinet positions. Based upon my findings, I concluded that beyond a shadow of a doubt, banking cronyism would expand, multiply, and go unprosecuted
under Obama’s watch.
The Obama administration has given a lot of lip service with zero follow-through to prosecution of criminal banking behavior, the most recent being AG Eric Holder’s following very empty promise: “Let me be very, very, very clear…if we find a bank or a financial institution that has done something wrong…those cases will be brought” (emphasis not only mine but Holder’s as well!) Unfortunately since that time, though numerous indisputable cases of banking criminal behavior have been uncovered and presented to Holder, Holder has shown no spine or willingness to enforce his prior promise. As a consequence of the refusal of the top attorney in the United States to enforce the rule of law and to prosecute industry-wide criminal banking activity, the first signs of hyperinflation have arrived.
The real national debt, despite having been falsely frozen at the falsely advertised figure of $16.699 trillion for more than 90 consecutive days for no other reason than it has reached the designated limit, clocks in at a whopping $220 trillion if you include all unfunded, off-balance liabilities such as Medicare and Social Security (Source: Economist Laurence Kotlikoff).
debtwb1
original artwork above courtesy of @williambanzai7
Furthermore, this figure of true national debt does not even feel obscene in relative terms once you consider that the Alan Greenspan/Robert Rubin/Bill Clinton administration let the global derivative market run unregulated in the name of multi-billion dollar short-term profits to bankers and irresponsibly explode into the unresolvable $1,200,000,000,000,000 to $1,500,000,000,000,000 market that exists today. Let it be known for the record that CFTC Chairman Brooksley Born urgently lobbied for strict regulations of the globa... and warned Summers and Greenspan that letting bankers exploit derivatives for profit at the expense of sound banking principles would create the very crisis we are suffering today. What was Born’s reward for such a prescient and wise prediction? A cussing out and screaming fest courtesy of Larry Summers (from Born’s own testimoney) and a forced resignation by Summers and Greenspan.  Yes, the same Larry Summers that President Obama has adamantly defended and is Obama’s first choice to supplant Ben Bernanke as the next chairman of the Rothschilds Private Bank (aka the Federal Reserve).
Neither the government lies about the the unchanging nature of the “official” national debt for over 90 consecutive days now nor the government lies about the true scope of the national debt is stunning. What is stunning, however, is just how gigantic is the US National Debt when you start putting the figure in relatable terms. No one really understands how incredibly large is a sum of $1 billion, let alone a trillion or a couple hundred trillion, so it helps to illustrate the absurdity of this unresolvable debt by painting this debt in a different light.  Let’s assume for argument’s sake that the estimate of $220 trillion of real US national debt is too aggressive (although Kotlikoff insists this figure is accurate) and counter estimates of $100 trillion are too conservative. Let’s split the difference and say the true US national debt is $160 trillion dollars. If one were to lay $1 bills side by side, a current US National Debt of $160 trillion would reach from the earth to the moon 239,000 miles away not 100 times, not 500 times, not 1000 times, not even 10,000 times, but 32,358 TIMES AND BACK. Our national debt would travel to the sun 93 million miles away AND BACK, not just once, not just twice, not 10 times, not even an unfathomable 50 times, but EIGHTY-THREE complete round trips! Explained a third way, if you were driving the fastest commercial car in the world (as concluded by Top Gear test drivers; make sure you check out the link here to the awe-inspiring Pagani Huayra test drive), the Pagani Huayra, continuously at its top speed of 372 kms/hour and never, for not even one-second, let up on this top speed and never stopped to change the tires, it would take you until the year 9643 (or more than 7,629 YEARS) before you would pass the last dollar bill of US national debt laid out side by side in 1$ bills.  Finally, if you were an alien capable of flying your UFO at the speed of light (670.6 MILLION miles per hour), you would not pass the last dollar of US debt until 23 hours, 1 minute, and 14 seconds later (if the entire debt were laid out side by side in $1 bills)! These FACTS should alert any reasonable logical man, woman and child that massive inflation is the fate of the USD in future years.
This simple fact should also alert you to why so many Asians have been buying gold like it is going out of style ever since the April 12, 2013 banker raid on the paper gold derivatives markets, and why I find it so amusing that some Western financial journalists still question whether or not the latest surge in gold and silver prices is just a “dead-cat” bounce. It is quite obvious that journalists that write about gold and silver tanking again have never sspent one minute inside any Asian country, especially during the last five months, where I have personally witnessed manic physical (NOT paper) gold buying in Singapore, Hong Kong, China and Thailand. While true, that the global fiat currency breakdown and real gold and silver money takeoff will be disorderly and very volatile, there is no question that we are still in the midst of a massive gold and silver bull run. And what happened on April 12? US President Barack Obama held a closed-door, off-limits meeting in the White House with the following 15 globalist bankers:
Lloyd Blankfein, Chairman and CEO Goldman Sachs
Jacques Brand, CEO Deutsche Bank
Michael Corbat, Chief Executive Officer Citigroup
Jamie Dimon, Chairman, CEO and President J.P. Morgan Chase
Sergio Ermotti, CEO UBS
James Gorman, Chairman and CEO Morgan Stanley
Gerald Hassell, Chairman and CEO Bank of New York Mellon Corporation
Jay Hooley, Chairman, President and CEO State Street Corporation
Abby Johnson, President, Fidelity Financial Services, Fidelity Investments
Steve Kandarian, Chairman of the Board, President and CEO Metlife
Brian Moynihan, President and CEO Bank of America/Merrill Lynch
John Strangfeld, CEO, Prudential
John Stumpf, Chairman, President and CEO Wells Fargo
Jim Weddle, Managing Partner, Edward Jones
Bob Benmosche, President and CEO American International Group
Just hours after this meeting, the bankers flooded the gold derivative markets with 400 tonnes of paper (non-existent physical) gold, and the infamous banker gold price raid of 2013 was on its way. Last week, on August 19, 2013, Obama met with the following banking industry regulators:
Securities and Exchange Commission’s Jo White
Commodity Futures Trading Commission’s Gary Gensler
Consumer Financial Protection Bureau’s Richard Cordray
Rothschilds Private Bank’s (U.S. Federal Reserve) Ben Bernanke
Office of the Comptroller of the Currency’s Thomas J. Curry
Federal Deposit Insurance Corporation’s Martin J. Gruenberg
Federal Housing Finance Agency’s Edward DeMarco
The National Credit Union Administration’s Debbie Matz
US Treasury Secretary Jack Lew
Immediately after this meeting was announced, fierce speculation that gold was about to get slammed yet again predominated internet gold forums.  We immediately countered that speculation on our twitter feed by suggesting that this meeting was NOT about slamming gold prices but about fowarding the agenda to seize assets from within the US global banking system, “Cyprus” style, to recapitalize failing US banks.
goldtwitterfeed
Sure enough, not only did gold and silver fail to get heavily slammed after this meeting as many people were worried about, but both have since risen considerably higher in the interim. Finally, a few days later, the Rothschilds Private Bank (known in some circles as the US Federal Reserve) announced that they were going to begin cutting back on QE measures by $15 billion next month, eventually ending QE measures all together by June 2014.  Besides my intense skepticism of this claim, and I would need proof that the Rothschilds Private Bank is actually cutting back QE without any concealed backdoor mechanisms to continue QE, there was one hugely notable development in the gold and silver markets. Normally anytime, Ben Bernanke whispered even a hint or suggestion of QE tapering, the gold and silver markets would crash on such an announcement. However, this time, the mass media reported not a peep about the massively significant decoupling of gold price behavior from QE tapering announcements, and the subsequent continued rise in gold price. For once, gold price behavior reacted intelligently to the insanity of Central Banking monetary policy and it ignored the propaganda of Central Bankers and continued to rise.  Why is this development so significant in my opinion? It is massively significant because it signals a further breakdown of confidence in the monetary system.  Every other instance that Chairman Bernanke even hinted about tapering QE, it gave the Federal Reserve and their puppet bullion banks an opportunity to suppress the price of gold that they successfully relished. This time around, I don’t believe that their propaganda was any less effective than all the prior times Bernanke falsely warned about QE tapering. So what has changed? People no longer care what Bernanke and other bankers say about QE because their confidence in fiat currencies, as illustrated by the largest single day drop of the Indian rupee last week, is starting to finally, and justifiably crack. And the first sign of a loss of confidence in fiat currencies and a vote for the solid valuation of gold (and silver) money is the first sign of potential hyperinflation ahead.

Watch the above video for illustrations of the US national debt round trip abilities to the sun and moon!
(Republishing rights:this article may be republished only if it is republished in its entirety with all links and the author attribution below intact. All violations of these republishing terms will be considered a copyright violation)
About the author: JS Kim is the founder and Managing Director of SmartKnowledgeU, a fiercely independent research & consulting firm with a focus on intelligent, dynamic investment strategies to avoid the wealth destruction of quantitative easing and Central Banks’ currency wars. Sign up for our free newsletter on our homepage to learn the best ways to buy gold and buy silver. Follow us on twitter @smartknowledgeu

Pentagon Prepping For ‘Large Scale Economic Breakdown’

Anthony Gucciardi
High level government documents reveal that the Pentagon is preparing in full force for ‘large scale economic meltdown’ and massive revolt via the US public — exactly what we are criticized for doing.
You see the Pentagon and agencies like the Department of Defense (DoD) are in full scale emergency readiness in their own words for ‘cataclysmic’ events that are believed to ultimately ignite riots in the face of chaos and economic collapse, and it’s all out in the open. And it’s one of the reasons that we’re seeing such a massive amount of spying on activists of all kinds, alternative news writers and personalities, and basically anyone preparing for themselves.
The US government is dedicated to logging such information into a major database in order to ‘prepare’ for the coming collapse that they are predicting in their own documents for all to see. Collapse predictions that have turned into ‘war games’ by the Pentagon, which in 2010 were orchestrated to prepare for what the Pentagon dubbed ‘large scale economic breakdown’ and the disappearance of essential services like food.
In this same ‘war games’ exercise dedicated to domestic response, exercises were ran in order to prepare for ‘domestic order amid civil unrest’.
MILITARY TO STOP ‘DOMESTIC RESISTANCE’
A thread that is seen throughout these tests is the concept that civil unrest will unfold and prompt military action against the public. One of the largest examples of this is the US Army’s Strategic Studies Institute paper that talks about about the ‘threat of domestic crises’ that are expected to lead to massive unrest throughout the nation. Spurring more paranoia into the notion that every citizen is a terrorist, the report starts talking about everything from economic collapse to a loss of functional political order brought upon by a ‘hostile group within the United States’ that could access weapons.
In such scenarios, the report discusses how the DoD would then be ‘forced by circumstances’ to come in and stop ‘purposeful domestic resistance or insurgency”:
“DoD might be forced by circumstances to put its broad resources at the disposal of civil authorities to contain and reverse violent threats to domestic tranquility. Under the most extreme circumstances, this might include use of military force against hostile groups inside the United States. Further, DoD would be, by necessity, an essential enabling hub for the continuity of political authority in a multi-state or nationwide civil conflict or disturbance.”
To go along with this, and the idea of the military coming in to stop domestic resistance in the midst of an economic collapse, the Pentagon has gone and created a force consisting of 20,000 troops whose sole purpose is to be available for civil unrest and catastrophes – all based on the 2005 Homeland Security program to prepare for ‘multiple, simultaneous mass casualty incidents‘. Yet again we see this link.
But don’t worry, changes have been made just one month ago to allow for the Pentagon to directly have absolute authority over domestic emergencies and ‘civil disturbance’ at large. As reported in a Long Island news publication and properly summarized by The Guardian as further preparation for some form of domestic meltdown:
“Federal military commanders have the authority, in extraordinary emergency circumstances where prior authorization by the President is impossible and duly constituted local authorities are unable to control the situation, to engage temporarily in activities that are necessary to quell large-scale, unexpected civil disturbances.”
What does this mean exactly, to engage in the activity necessary to quell large-scale civil disturbances? Well, for one it is the blank check ability to go ahead and stop major protests amid domestic turmoil. The kind of protests we’re seeing around the world, from Egypt to Brazil. The kind of protests where citizens have had enough.
And going by the Pentagon documents mixed with the DoD papers, it appears the military believes America may take to the streets amid an economic collapse or ‘domestic disturbance’ of large caliber. And you can be sure that virtually all citizens that question the government are the targets of military intervention, as we see in the DoD’s own Army Modernisation Strategy, detailing ‘anti-government and radical ideologies that potentially threaten government stability‘ as a major threat.
Yes, you read that right. The DoD is classifying ‘anti-government and radical ideologies’ as something that threatens government stability. When a major ‘domestic disturbance’ comes along that all of these documents are discussing, such as perhaps in the form of mass protests, it’s the ‘anti-government extremists’ they will be coming after.
This post originally appeared at Story Leak