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	<title>Culture of Life News</title>
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		<title>Pentagon Mothership Sitting Duck Target For Double Dealing &#8216;Terrorists&#8217;</title>
		<link>http://emsnews.wordpress.com/2012/01/28/pentagon-mothership-sitting-duck-target-for-double-dealing-terrorists/</link>
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		<pubDate>Sat, 28 Jan 2012 01:49:24 +0000</pubDate>
		<dc:creator>emsnews</dc:creator>
				<category><![CDATA[.diplomacy]]></category>
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		<description><![CDATA[&#160; Pentagon wants commando “mothership” &#8211; The Washington Post: that is, an old ship that will sit there like the legendary sitting duck.  Yup!  Right in front of Iran!  And I do hope the crew first read about &#8216;The USS Liberty&#8217;: &#8230; <a href="http://emsnews.wordpress.com/2012/01/28/pentagon-mothership-sitting-duck-target-for-double-dealing-terrorists/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=emsnews.wordpress.com&amp;blog=5401603&amp;post=13917&amp;subd=emsnews&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>&nbsp;</p>
<p><a href="http://emsnews.files.wordpress.com/2012/01/screen-shot-2012-01-27-at-8-32-47-pm.png"><img class="alignleft size-full wp-image-13918" title="Screen shot 2012-01-27 at 8.32.47 PM" src="http://emsnews.files.wordpress.com/2012/01/screen-shot-2012-01-27-at-8-32-47-pm.png?w=500" alt=""   /></a><a href="http://www.washingtonpost.com/world/national-security/pentagon-wants-commando-mother-ship/2012/01/27/gIQA66rGWQ_story.html?wpisrc=al_national">Pentagon wants commando “mothership” &#8211; The Washington Post</a>: that is, an old ship that will sit there like the legendary sitting duck.  Yup!  Right in front of Iran!  And I do hope the crew first read about <a href="http://www.lewrockwell.com/orig/margolis12.html">&#8216;The USS Liberty&#8217;: America&#8217;s Most Shameful Secret</a> before going there since we all know who will sink the ship and strafe them in the water, don&#8217;t we?  They should all buy this book:  <a href="http://www.amazon.com/Israels-Holocaust-Servicemen-LIBERTY-Aftermath/dp/1450715540/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1307391596&amp;sr=1-1">Amazon.com: What I Saw That Day Israel&#8217;s June 8 1967 Holocaust of US Servicemen Aboard the USS LIBERTY and its Aftermath (9781450715546): Phillip Tourney: Books<span id="more-13917"></span></a></p>
<p>&nbsp;</p>
<p>The rush to war is painfully obvious.  We need dead sailors to justify &#8216;obliterating Israel&#8217;s enemies&#8217; and to prevent Mossad agents in the US from assassinating the First Family.  The Jewish newspaper owner who suggested Israel remove Obama and replace him with a Zionist puppet is still free.  Not in jail or at GITMO nor have any assassin rockets eliminated him for &#8216;preaching hate.&#8217;</p>
<p>&nbsp;</p>
<p>And then there is this news: <a href="http://www.washingtonpost.com/business/technology/twitter-faces-accusations-of-censorship-users-plan-saturday-boycott/2012/01/27/gIQAJ8dHWQ_story.html">Twitter faces accusations of censorship; users plan Saturday boycott &#8211; The Washington Post</a>.  Yes, Twitter is joining the other media/online operations in censoring people because of course, we use these systems to further our own interests and governments hate and fear this so they are putting on the screws on ALL systems, worldwide.</p>
<p>&nbsp;</p>
<p>The globalization of anti-government/international banking powers has scared the Bilderberg/Davos/IMF people.  They are downright frightened.  As they discuss &#8216;capitalism&#8217; at Davos this year, they are surrounded by snipers and military machines aimed at gunning down citizens and civilians if they dare ape the Egyptians.</p>
<p>&nbsp;</p>
<p><a href="http://online.wsj.com/article/SB10001424052970203363504577187410799100178.html">Twitter&#8217;s Censors Provoke Backlash &#8211; WSJ.com</a>: the vast ire of millions and millions and millions of users of these systems is now turned on Twitter.  Twitter has put their beak in it!  Expect a few feathers pulled from their tail!  Just like Google which pretends to be friendly, Twitter went for the money as Facebook is doing and voila: censorship, manipulation, stealing private information, spying, etc. all suddenly takes over completely.</p>
<p>&nbsp;</p>
<p>Twitter already admits that Germany and France won&#8217;t allow &#8216;Nazis&#8217; to talk!  Nazis!  But they not only allow violent and vile Zionist racist fascists to talk!  Indeed, most of our &#8216;mainstream media&#8217; is nearly nonstop Zionist racist fascist chatter!  Defining &#8216;racism&#8217; is very tricky when some religions (Hinduism and Judaism are very much guilty of this) are pure racism from top to bottom, from beginning to end.</p>
<p>&nbsp;</p>
<p><a href="http://www.finalcall.com/artman/publish/World_News_3/article_8545.shtml">Jamaica PM declares farewell to the British queen</a>: Ah, one of Queen Elizabeth&#8217;s pirate islands is going to leave the Crown?  HAHAHAHA.  The prime minister, Simpson-Miller decided to do this after<a href="http://www.noi.org/about_the_honorable_louis_farrakhan.shtml"> Louis Farrakhan</a>, the leader of the Nation of Islam visited her.  This gets funnier by the day.  And of course, the driving issue here is poverty and racism&#8230;next: Scotland leaves the Queen, too!  They really are debating this right now.  The Royal Bank of Scotland was a big push in this direction when it went bankrupt, while using offshore pirate coves.  Time to clean Westminster.</p>
<p>&nbsp;</p>
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		<title>Iran Will Cut Off All Oil To Europe Tomorrow</title>
		<link>http://emsnews.wordpress.com/2012/01/27/iran-will-cut-off-all-oil-to-europe-tomorrow-2/</link>
		<comments>http://emsnews.wordpress.com/2012/01/27/iran-will-cut-off-all-oil-to-europe-tomorrow-2/#comments</comments>
		<pubDate>Fri, 27 Jan 2012 23:10:24 +0000</pubDate>
		<dc:creator>emsnews</dc:creator>
				<category><![CDATA[.diplomacy]]></category>
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		<category><![CDATA[Clinton]]></category>
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		<description><![CDATA[There is this ancient Chinese curse: may your wishes be granted.  The US and Israel demanded that Europe threaten Iran with a full oil and bank seizure and closure unless Iran, like Iraq and Libya, disarms and lays down for &#8230; <a href="http://emsnews.wordpress.com/2012/01/27/iran-will-cut-off-all-oil-to-europe-tomorrow-2/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=emsnews.wordpress.com&amp;blog=5401603&amp;post=13906&amp;subd=emsnews&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>There is this ancient Chinese curse: may your wishes be granted.  The US and Israel demanded that Europe threaten Iran with a full oil and bank seizure and closure unless Iran, like Iraq and Libya, disarms and lays down for a NATO invasion and occupation.<span id="more-13906"></span></p>
<p>&nbsp;</p>
<p>Not being stupid, Iran said, &#8216;You don&#8217;t want our oil, eh?  Good.  No more oil!&#8217;  So here it is in German news:  <a href="http://www.spiegel.de/international/world/0,1518,811507,00.html">Revenge for EU Sanctions: Iran Set to Turn Off Oil Supply to Europe &#8211; SPIEGEL ONLINE</a>.  The Germans have been ordered to bail out the euro and save all of southern Europe.  Today, <a href="http://www.huffingtonpost.com/2012/01/27/fitch-downgrades-spain_n_1236984.html">Fitch Downgrades Spain, Belgium, Cyprus, Italy and Slovenia</a> all of whom import Iranian oil or are suffering from too-high world oil prices caused by US led NATO invasions since Bush illegally invaded Iraq on spurious, false charges.</p>
<p>&nbsp;</p>
<p>Japan imports Iranian oil, too.  And is being hammered to death after 3/11/11.  One might suggest Mother Nature loves magic numbers, by the way.  <a href="http://www.japantoday.com/category/politics/view/noda-struggles-to-conquer-japans-debt-mountain">Noda struggles to conquer Japan&#8217;s debt mountain </a>with the <a href="http://www.japantoday.com/category/politics/view/imf-says-japan-should-raise-consumption-tax-to-15">IMF says Japan should raise consumption tax to 15%</a> but even raising it to 10% has the hard-pressed Japanese screaming in pain.</p>
<p>&nbsp;</p>
<p><a href="http://www.nytimes.com/2012/01/27/world/middleeast/israelis-see-irans-threats-of-retaliation-as-bluff.html?hp#">Israelis See Iran’s Threats of Retaliation as Bluff w</a>as the Zionist headlines in the US as this dual citizen reporter, Bonner (only Jews get to report on their affairs, of course, and everyone else&#8217;s affairs!) talks with the top rulers of America, off the record, of course, and they are all convinced of two things: Iran wouldn&#8217;t do a thing to stop the US and Israel and a war would be very limited there.</p>
<p>&nbsp;</p>
<p>Of course, we get to pay for it all.  Iraq is literally blowing itself apart right next door and far from being a safe base, is very dangerous to the US.</p>
<blockquote><p>&nbsp;</p>
<p>“A war (with Iran) is no picnic,” Defense Minister Ehud Barak told Israel Radio in November. But if Israel feels itself forced into action, the retaliation would be bearable, he said. “There will not be 100,000 dead or 10,000 dead or 1,000 dead. The state of Israel will not be destroyed.”</p></blockquote>
<p>&nbsp;</p>
<p>No, a thousand Jews won&#8217;t die.  But 10,000 or 100,000 American citizens will die.  Nor will Israel suffer even slightly, financially.  The US public will be hammered and more social services will slip off the map and disappear along with many elderly and children dying one way or another.</p>
<p>&nbsp;</p>
<p>The ruler of America, Netanyahu, says the Iranians would greet us with flowers.  They would rise up and overthrow their more or less democratically elected government if the US bombs them.  This is beyond insane, it is how Hitler used to think and this man is Hitler.  A Nazi.</p>
<p>&nbsp;</p>
<p>Here is more delusional thinking from Jewish Zionists in Israel:</p>
<blockquote><p>&nbsp;</p>
<p>A paper soon to be published by the Institute for National Security Studies at Tel Aviv University, written by Amos Yadlin, former chief of military intelligence, and Yoel Guzansky, who headed the Iran desk at Israel’s National Security Council until 2009, argues that the Iranian threat to close the Strait of Hormuz is largely a bluff.</p>
<p>&nbsp;</p>
<p>The paper contends that, despite the risks of Iranian provocation, Iran would not be able to close the waterway for any length of time and that it would not be in Iran’s own interest to do so.</p></blockquote>
<p>&nbsp;</p>
<p>UPDATE:  At Davos, the hobnob spot for the super rich and the super powerful and a handful of EU toadies, <a href="http://www.guardian.co.uk/world/2012/jan/27/israel-tougher-iran-sanctions-barak-nuclear">Israel calls for tougher Iran sanctions </a></p>
<div></div>
<blockquote><p>In a session at the World Economic Forum in Davos, Barak said: &#8220;You can&#8217;t conceive of a stable world order when Iran has nuclear weapons.&#8221;</p>
<p>He added: &#8220;Iran is prepared to defy and deceive the whole world to turn themselves into a nuclear power. This will be the end of any conceivable anti-proliferation programme. Major powers in the region will feel compelled to turn nuclear.&#8221;</p>
<p>Saudi Arabia, Turkey and Egypt would respond to Iran arming itself with nuclear weapons with programmes of their own, Barak said.</p>
<p>Yukiya Amano, the director-general of the International Atomic Energy Agency, said he was sending a team to Iran on Saturday, <strong>adding he was convinced that Tehran was seeking to establish a nuclear weapons capability.</strong></p></blockquote>
<div></div>
<p>So, the IAEA new leader is &#8216;convinced&#8217; that Iran is getting nukes?  Based on what, exactly?  Oh, the &#8216;toady to the US/Israel heavily nuclear armed thugs&#8217; business.  Since Israel and the US and sling nukes all over the planet with impunity and no one controlling them, why can&#8217;t all nations do this???  Eh?  The IAEA was supposed to disarm the top nuclear powers, originally.  And the only one to use nukes on civilians is the US, not Iraq or Iran or Libya.</p>
<p>&nbsp;</p>
<p>There is a 100% chance Iran will close the narrow opening of the bag that is the Persian Gulf.  It is easy to do.  It is legal for them to do this if NATO basically declares war on Iran.  Iran has a huge case in its favor, showing clearly a pattern of dishonesty in US demands they disarm or not gain arms.  The US has steadfastly refused to disarm itself and menaces the entire planet with a huge nuclear arsenal, the biggest on earth and the greatest military arm on earth.</p>
<p>&nbsp;</p>
<p>Russia and China agree with disarming the US.  The other thing is, the King of Saudi Arabia that is scared of his own Shi&#8217;ite population and Iran, agrees!  He would like to either have nukes, too, or have ALL the Middle East disarm especially Israel.</p>
<p>&nbsp;</p>
<p>Everyone on earth who has half a brain knows that Israel has a huge nuclear arsenal.  They are the only nuclear armed nation on earth never investigated or examined by anyone.  It is kept secret.  This is the ONLY COUNTRY ON EARTH who did this.  North Korea bases their right to have nukes exactly for this reason: Israel gets away with this.</p>
<p>&nbsp;</p>
<p>All of us will pay for this stupid game.  We will see $200+ dollars a barrel gas in the near future and I wish I was walking for I would  be hoarding gasoline pronto!!!!  The EU and US economies will collapse, big time.  Hyperinflation will mean homes won&#8217;t be heated, cars won&#8217;t run and the global warming people should be hysterically happy about this. We will freeze to death next winter, hooray!</p>
<p>&nbsp;</p>
<p>I hear from everyone in my region, joy and happiness that thanks to the Pacific Ocean La Nina and the Atlantic Warm Cycle, we have a mild winter.  People here are scared to death of high fuel costs and hurting badly, already.  And we can thank Hillary Clinton for her tireless work, making us suffer as much as possible.  The media loves here because they are Zionists.  But we better figure out who is causing the price of fuel to shoot upwards so fast.</p>
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		<title>1975 Letter To President Ford Discussing The Gold Standard And World Trade</title>
		<link>http://emsnews.wordpress.com/2012/01/27/1975-letter-to-president-ford-discussing-the-gold-standard-and-world-trade/</link>
		<comments>http://emsnews.wordpress.com/2012/01/27/1975-letter-to-president-ford-discussing-the-gold-standard-and-world-trade/#comments</comments>
		<pubDate>Fri, 27 Jan 2012 16:02:52 +0000</pubDate>
		<dc:creator>emsnews</dc:creator>
				<category><![CDATA[.money matters]]></category>
		<category><![CDATA[Free Trade]]></category>
		<category><![CDATA[bankruptcy]]></category>
		<category><![CDATA[gold]]></category>
		<category><![CDATA[IMF]]></category>
		<category><![CDATA[inflation]]></category>
		<category><![CDATA[trade deficit]]></category>

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		<description><![CDATA[I got the data for today&#8217;s article from the researchers at their FOFOA before Google censored them.  I wrote to the people of FOFOA to ask them to give me their data trove so I can have an alternate location for it. &#8230; <a href="http://emsnews.wordpress.com/2012/01/27/1975-letter-to-president-ford-discussing-the-gold-standard-and-world-trade/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=emsnews.wordpress.com&amp;blog=5401603&amp;post=13886&amp;subd=emsnews&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>I got the data for today&#8217;s article from the researchers at their <a href="http://fofoa.blogspot.com/">FOFOA</a> before Google censored them.  I wrote to the people of FOFOA to ask them to give me their data trove so I can have an alternate location for it.  The letter here is from during President Ford&#8217;s administration.  Inflation that began during the Vietnam War/Cold War/Israel wars was really beginning to disturb people.<span id="more-13886"></span></p>
<p>&nbsp;</p>
<p>Lyndon Johnson devalued the currency by inserting larger and larger amounts of copper into &#8216;silver&#8217; coins.  Then, Nixon tried to impose wage/price controls which was so Soviet in nature, I nearly laughed to death at the time only I was working and my pay raise was nixed by the board that gave these to us.  Then, Nixon and Burns suddenly cut the US gold standard.</p>
<p>&nbsp;</p>
<p>Nixon then was impeached over the Watergate mess which is so quaint because Presidents now can act with near-imperial impunity these days and do far, far worse with no restrictions at all, even assassinating US citizens or imprisoning them forever with no due process.</p>
<p>&nbsp;</p>
<p>One thing about today is the bizarre sight of so many people talking dumb about &#8216;money&#8217;.  This is NEW, not old.  I have illustrated abundantly over the years that Victorian people discussed inflation, gold, silver and finances and above all, debt, in a quite vibrant and yes, intelligent way.  Today, it is all muddled and crazy and few people have any idea of how &#8216;money&#8217; operates.  We have people who want rampant inflation versus people who want infinite money creation which is&#8230;rampant inflation.</p>
<p>&nbsp;</p>
<p>At the same time, we have these people pursuing policies that are depression-inducing!  How bizarre is this?  Japan is very bizarre but it is simply trapped further down the infinity/zero tunnel of the floating fiat currency free trade regime that did NOT EXIST before 1980.  It did not exist.  This is a new system, a new world and it most certainly does not work.  At all.</p>
<p>&nbsp;</p>
<p>So, to prove my point that the world was totally different 40 years ago, we visit the <a href="http://www.google.com/url?sa=t&amp;rct=j&amp;q=dr.%20who.&amp;source=web&amp;cd=1&amp;ved=0CDUQFjAA&amp;url=http%3A%2F%2Fwww.bbc.co.uk%2Fdoctorwho%2F&amp;ei=nsAiT9_tCeTg0QHg5oXnCA&amp;usg=AFQjCNGvt1moPBDuQviEstyCyRsxnxG7Kg">Doctor Who&#8217;s </a> Tardis that still can limp around the internet (which is being shut down or tracked more and more by the rich Daleks who say, &#8216;Exterminate!&#8217; all the time).  Here is a letter from  Treasury Secretary Simon to G. Ford.  This is all about the French who were against Nixon&#8217;s cutting the US gold standard and who were pressing the US to return to the gold standard:   <a href="http://history.state.gov/historicaldocuments/frus1969-76v31/d98">Office of the Historian &#8211; Historical Documents &#8211; Foreign Relations of the United States 1969–1976 Volume XXXI Foreign Economic Policy, 1973–1976 &#8211; Document 98</a></p>
<p>&nbsp;</p>
<p>Here, they discuss the New World Order&#8217;s niftiest toy for creating false wealth via FOREX trading, the floating fiat currency system.  Note that they are groping in the dark, trying to figure out how to run this ridiculous and dangerous infinity device:</p>
<p>&nbsp;</p>
<blockquote><p>2. Exchange rates—<strong>This is perhaps the most implacable issue on which we are negotiating.</strong> It is directly related to bread and butter concerns, <strong>principally the relative competitiveness of nations&#8217; goods in international markets and their respective home markets and to the international role of the dollar</strong> and the advantages that the French are convinced go with its present role.</p>
<p>&nbsp;</p>
<p><strong>The French position is that the floats that in varying degrees characterize the world&#8217;s principal currencies are aberrations and that phased return to the par values called for under the IMF articles is essential.</strong> Presently all major countries are in violation of the basic undertakings in the IMF articles with respect to exchange practices.</p>
<p>&nbsp;</p>
<p>The French have been insistent that their ultimate objective—<strong>all must be part of a <span style="text-decoration:underline;">fixed</span> exchange rate system</strong>—must be spelled out implicitly in any language adopted as a substitute for the obsolete article presently in place. <strong>I am considering offering to end the interminable debate surrounding the wording of a new article by simply eliminating the obsolete provisions and not replacing them at this time.</strong></p></blockquote>
<p>&nbsp;</p>
<p>The French by far, preferred the gold standard.  No ifs, ands or buts.  The US stopped the gold standard mainly because the French were demanding gold from Fort Knox.  The Germans and Japanese didn&#8217;t do this because they lost WWII and simply went along with whatever schemes the US cooked up due to fears of Russia and China and other things.  They would both dearly love to have the French system continue because the gold standard made the dollar strong, enabling exports to the US but mostly keeping out US manufactured goods!</p>
<p>&nbsp;</p>
<p>Yes, KEEPING US OUT was hyper-important!  Not expanding exports so much as keeping the US out meant we couldn&#8217;t flood them with imports.  A strong dollar protected their native industries.  Note that the Secretary of the Treasury UNDERSTOOD THIS PERFECTLY WELL.  He knew the connection between currency values and trade and the scheme was to make the dollar more worthless and float it like a peso so it would lose value and thus, make more US exports!</p>
<p>&nbsp;</p>
<p>Also note the solution: to simply delete the provisions calling for a STABLE currency valuation system!  The fixed exchange system continued, by the way, until it was killed totally within 20 years.</p>
<p>&nbsp;</p>
<blockquote><p>Whether this will provide a satisfactory resolution to this issue is problematical. For tactical reasons, discussed later, and for longer run reasons, agreement will be difficult. <strong>The fundamental problem involves the desire of the French to improve their relative competitive position by obtaining from their standpoint, a more attractive exchange rate for the franc—a move that requires a fixed exchange rate system within which to operate.</strong> The French sorely miss the advantage that the structurally undervalued franc provided in the period starting in 1958 and ending with the float of major currencies including the dollar.</p></blockquote>
<p>&nbsp;</p>
<p>France solved this with the euro which they invented and talked a very reluctant Germany into embracing.  Now, the average German is furious about being tricked.  The US found our competitive position to be poor due to a strong dollar.  But feared inflation at home.  In the end, creating inflation and weakening the dollar was done anyways.  This is because the next President was a Democrat who fell for this.  We had a sharp taste of hyperinflation which the Fed killed by running very high interest rates which the US public hated.</p>
<p>&nbsp;</p>
<p>Now, we have hyperinflation, my last grocery bill was $150 and for things that used to cost less than $50 20 years ago.  Fuel costs are 10 times higher than in 1970.  This is core inflation and the Fed and Treasury fixed this by rigging the statistics to simply not count these things which was deliberate and maliciously done.</p>
<p>&nbsp;</p>
<blockquote><p><strong>They intellectualize their position by arguing—sometimes with effect, if not with accuracy, that a system of fixed exchange rates exerts discipline and is therefore not inflationary.</strong> Recently they have skillfully tapped the world&#8217;s craving for stability in a dangerous and swiftly changing environment by making a political argument for the &#8220;stability&#8221; of a fixed exchange rate system.</p>
<p>&nbsp;</p>
<p>This argument is spurious. Such a system is fixed in name only and lacks the elasticity to adapt without a series of foreign exchange crises to the changes in fundamental economic relationships that are at the source of the disturbing changes that we have all observed. <strong>In effect what tends to be fixed is the dollar, i.e., others have much more say about the value of the dollar under the fixed than under floating rates.</strong> The French in particular adjusted their exchange rate frequently in the post-war period against a fixed dollar to maintain a highly competitive trading position.</p></blockquote>
<p>&nbsp;</p>
<p>HAHAHA&#8230;the US didn&#8217;t want a fixed rate for dollars.  They wanted the dollar to lose value so US exporters could sell overseas.  Of course, this would boomerang at home by having inflation show up!  A tricky situation!  The US was worried about workers who could successfully strike for higher wages.  They figured correctly that making our sales foreign-trade dependent, unions would  be forced to give in and lower wages.  The line would be, &#8216;You can&#8217;t compete overseas!&#8217;  Which happens to be what they say all the time today, right?  Of course!</p>
<p>&nbsp;</p>
<p>The French were protecting their own markets and expanding sales.  They knew from  harsh history that failure to keep the peasants happy leads to heads literally rolling.  So they kept an eye on history and an eye on the US to see how dumb we could be.  Back then, our rulers were smarter than today but were unable to stop fighting many wars.  Ford extracted us from Vietnam by simply running away.  It was nasty but it worked.  We survived.  The corrupt Vietnamese government we were propping up fell.  But our nation survived&#8230;barely.</p>
<p>&nbsp;</p>
<p>But the era of endless oil wars was just beginning and the Cold War was still bankrupting us. But we did begin reducing the military spending back then and this saved us until we resumed endless warfare in ernest after Bush Sr&#8217;s Gulf War 1.  No longer using proxies, we resumed direct combat.  And the process of bankrupting America resumed only we didn&#8217;t have to pretend to want a strong currency, debasing it is ludicrously easy.  Just print money, borrow more and drop taxes!  Now, on to the gold part of the letter from 1975:</p>
<p>&nbsp;</p>
<blockquote><p>3. Gold—<strong>The Interim Committee has agreed that the official international price for gold should be abolished and that the monetary role of gold should be phased down.</strong> It is also agreed that the substantial amount of gold held by the IMF should not be immobilized forever. On this point there is agreement that <strong>some IMF gold should be put to use and that some constraints or conditions should be applied to official gold sales and purchases in the near future.</strong></p>
<p>&nbsp;</p>
<p>The French have either agreed to or appear ready to agree to the following:</p>
<p>&nbsp;</p>
<p>a. The German proposal that a part of the IMF&#8217;s $7 billion in gold (at the official price of $42 per ounce; the market price is $161) be restituted to members according to their quotas with part being sold in the private market and the proceeds used to establish a trust fund to help selected LDCs. Disposition of the rest of the IMF&#8217;s gold would await a later decision which would require an 85% majority.<br />
b. <strong>A global limit on official gold holdings under which no government would buy gold when the effect would be to increase total governmental holdings.</strong> The reserves held in the form of gold by some countries could increase without a change in the overall amount held by governments (including the IMF).</p>
<p>c.<strong> In addition the French are willing to agree that no government should trade in gold with the objective of trying to peg the price.</strong></p>
<p>d. The French agreed to re-enter the snake under amended rules which specifically prohibit the settlement of balances in gold. This involved some domestic political risk for the French government and is at variance with long established French theology on the subject.</p></blockquote>
<p>&nbsp;</p>
<p>World gold markets were controlled first by the UK and then by the US.  Once the US stopped the gold standard, it was a Wild Wild West time for gold.  Due to conspiracies by governments and international bankers at the IMF, the price of gold was manipulated by restricting sales.  So, the government of the US and UK would still hoard gold but not regulate the price!  So the price shot upwards as people rushed to buy gold to protect their wealth since savings and stocks lost value due to faster and faster inflation.</p>
<p>&nbsp;</p>
<p>People who bought gold before the market crashed lost a lot of wealth, by the way.  Gold markets are commodity markets today but back then it was a hybrid.  All the governments had to do was release gold hoards and the price would plummet.  People were still at the mercy of governments who could with their magic powers (hoarding or holding or releasing stuff) when it came to eliminating people&#8217;s savings in order to kill inflation!</p>
<p>&nbsp;</p>
<p>Just like the recent property bubble: people put money into property only to see it suddenly vanish.  Savings gone forever.  All in less than two years.  No way of extracting the money and putting it somewhere else.  And that place would vanish in a flash if one isn&#8217;t very, very careful.  In my granddaddy&#8217;s day, he was a full Victorian, he could hold gold coins and not worry&#8230;until the Great Depression when it was made illegal!  He warned me about this and gave me books to read to learn about the history of money so I would not be foolish.</p>
<p>&nbsp;</p>
<p>But NO ONE can fully escape collapses, not even and especially even the very rich.  History is crystal clear about this: when things fail, the rich become major targets for elimination or looting.  You can&#8217;t loot the poor, you can only enslave them.  But the rich can be looted if the slaves revolt and they do revolt regularly.  If the rich retain power despite being brutal, all they do is get the alternative scenario: outside invaders storm in and enslave the rich.</p>
<p>&nbsp;</p>
<blockquote><p>While the French have agreed to the above, points a–d, they and others are more or less united in their opposition to a situation in which gold could under no circumstances be used (other than in exceptional circumstances), a limit that in response to Arthur&#8217;s strong urgings we have sought to negotiate. <strong>Countries like Italy which have large gold holdings and which have recently encountered exceptional circumstances agree with the French. They and others feel that we have been unduly doctrinaire on this point.</strong></p>
<p>&nbsp;</p>
<p>Arthur feels that this is not the case. <strong>He fears that the known longing on the part of some European central bankers to reimpose a gold based system—a system in which the price of gold would be pegged to a currency or to a collection or basket of currencies—will be translated at some point into action.</strong></p>
<p>&nbsp;</p>
<p>If this occurred, he feels that we would be at a relative disadvantage because this would involve a less elastic and responsive exchange rate system, a diminution in the role of the dollar, and an increase in the relative importance of powers such<strong> as France that have large reserves held largely in the form of gold.</strong> He also ascribes an inflationary effect if gold were pegged at the present level, roughly four times the official level, and central banks with large gold holdings were able to &#8220;write up their reserves.&#8221; This in turn would lead to a large increase in stated reserves and Arthur and others believe a dangerous and inflationary rise in world liquidity.</p></blockquote>
<p>&nbsp;</p>
<p>Look at today&#8217;s news!  The EU is on the rocks due to exchange rates, inflation, free trade, depression of value of assets and so on.  Once upon a time, they held onto large gold reserves to protect themselves from imports, etc.  And to stop inflation!  I remember going to Germany and getting 4 DM to the dollar.  I was so happy!  By 1975, it was worth about 2 DM.  The Treasury guy was telling Ford that these gold hoards meant Italy (!!!!) and France would be the world&#8217;s creditor powers, not the US!</p>
<p>&nbsp;</p>
<p>Back then, when my parents were overseas screwing around the planet, doing CIA-type stuff, they suddenly discovered the dollar was no longer wanted by third world rulers or other top people.  They had to open a Swiss bank account to run gold coins through for these schemes.  The US desperately wanted everyone to be on the same financial sinking ship we were on!  They feared that France and Italy would encourage other countries to hold fast to the gold standard and this would reduce US ability to buy up foreign lands, resources or bribe officials (YES, that was a MAJOR consideration!).</p>
<p>&nbsp;</p>
<blockquote><p>I concede part of the last point that international liquidity as distinct from domestic liquidity has increased with the rise in the market price of gold.<strong> If the price of gold were pegged and reserves were written up accordingly, it would in large part be a recognition of the fact that gold currently is well above the official price of $42 per ounce.</strong> In substance, the increase in international liquidity which Arthur fears has happened.<strong></strong></p>
<p>&nbsp;</p>
<p><strong>I&#8217;m not entirely convinced that this is bad since there has been a need for additional international liquidity.</strong> Our inflation problem has its origins in our inability to curb the growth of domestic liquidity and further lapses in this area will set the stage for more inflation—international liquidity control will play a small role.</p>
<p>&nbsp;</p>
<p>I doubt the ability of central banks to peg the price of gold if fundamental forces are in the direction of lower prices. I fail to see why efforts to hold up the price of gold would be any more effective today than our efforts to hold down the price of gold at $35 per ounce was in the 1960s.</p>
<p>&nbsp;</p>
<p>If market forces are tending to push up the price of gold, central banks could on a frequent basis reset their pegs at excessively higher levels, but they can de facto restate their reserves at market prices right now, as France has done, ignoring the official price of $42 or any new official price.</p></blockquote>
<p>&nbsp;</p>
<p>Note that gold was still set by the US at $45 an ounce but in the US, some of us were melting coins to sell the metal overseas where we could get a lot of money since it was now selling at over $100 in say, India or Paris!  The Treasury was desperately trying to stop this coin melting business, by the way.  Instead of dealing directly with inflation via stopping our wild military spending.</p>
<p>&nbsp;</p>
<blockquote><p>I believe there are two fundamental forces at work that have a bearing on gold. <strong>In our inflationary time governments will part with gold reluctantly.</strong> Until prices are stabilized, gold stocks will come down grudgingly in small increments because governments and central bankers are not immune to the store of value aspect of gold, they too like to &#8220;hold a little gold.&#8221;</p>
<p>&nbsp;</p>
<p><strong>By the same token a gold based system, a system in which payment deficits are settled by sales of gold from one central bank to another central bank, is improbable because central banks will not wish to part with their gold preferring to settle in some other form—such as dollars or a basket of currencies.</strong></p>
<p>&nbsp;</p>
<p>If prices stabilize, the price of gold is likely to fall sharply—an event which I think governments and central banks would be unable to stop. This does not preclude a situation in which certain governments and central banks would not seek under the global limit and in the context of IMF sales to increase their holdings of gold. Such countries would have to accept the risk that gold purchased could depreciate sharply if gold in response to general price stabilization dropped in price. Moreover, the idea that an extraordinary hoard of gold will automatically result in an extraordinary amount of international power regardless of the relative size and efficiency of the hoarding country&#8217;s economy seems far fetched.</p>
<p>&nbsp;</p>
<p>Moreover, we are still holding the world&#8217;s largest gold stock and this can be a decisive factor in the market for a long time if we wish it to be.5</p></blockquote>
<p>&nbsp;</p>
<p>Well, the &#8216;basket of currencies&#8217; FOREX accounts were supposed to hold in order to run the brand-new floating fiat currency system the US demanded was a total failure.  Why?</p>
<p>&nbsp;</p>
<p>They hoarded US dollars there!  First, the Japanese did this and paved the road for everyone else, flooding the US with consumer goods while buying only commodities and little of that.  The US ran continuous, massive trade deficits with Japan ever since 1975.  And this isn&#8217;t a coincidence.  The US was worried about France but the real danger lie in the East for the Japanese had no gold and so had no desire for a gold-based monetary system.</p>
<p>&nbsp;</p>
<p>They wanted to print money and manipulate the value of the currency by making the yen weak.  They reluctantly strengthened it when the US negotiated for this very hard but this caused a huge value/debt bubble to form in Japan and they had a short hyper-valuation bubble with stocks and real estate values shooting to infinity and then crashing for generations.</p>
<p>&nbsp;</p>
<p>But their EXPORT markets flourished once the yen crashed.  The US gave up fighting off currency valuation schemes and simply let our nation be flooded by imports so all our industries except a few military ones, moved overseas for cheap labor and then imported goods once made here.  This killed wages for US workers are are increasingly poor so they will soon be third world again and the government, run by rich people for rich people, is perfectly fine with this.</p>
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<p style="font-size:13px;line-height:1.6em;text-align:left;margin:0 0 15px;padding:0;"><span style="font-weight:bold;"><span style="color:#0000ff;margin:0;padding:0;">BERLIN, NY 12022</span></span></p>
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		<title>Google Is Forcing People To Sign In More And More</title>
		<link>http://emsnews.wordpress.com/2012/01/27/google-is-forcing-people-to-sign-in-more-and-more/</link>
		<comments>http://emsnews.wordpress.com/2012/01/27/google-is-forcing-people-to-sign-in-more-and-more/#comments</comments>
		<pubDate>Fri, 27 Jan 2012 14:26:05 +0000</pubDate>
		<dc:creator>emsnews</dc:creator>
				<category><![CDATA[.money matters]]></category>

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		<description><![CDATA[Lately, I have noticed that Google is trying to force me to sign in.  For example, when I go to their news collection site, sometimes it demands I sign in, sometimes it works the old way.  Google now owns Blogspot, &#8230; <a href="http://emsnews.wordpress.com/2012/01/27/google-is-forcing-people-to-sign-in-more-and-more/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=emsnews.wordpress.com&amp;blog=5401603&amp;post=13887&amp;subd=emsnews&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Lately, I have noticed that Google is trying to force me to sign in.  For example, when I go to their news collection site, sometimes it demands I sign in, sometimes it works the old way.  Google now owns Blogspot, a service I left long ago due to ridiculous levels of censorship.  Today, I tried to access a page where a gold enthusiast has collected many links to government data and information only to find it behind a Google firewall requiring I sign in!<span id="more-13887"></span></p>
<p><span style="color:#ff0000;">UPDATE:</span> I just corresponded with the person whose blog was inaccessible and it turns out he wanted to make it inaccessible for now, not Google.  But the fact remains, more and more often I find Google wanting me to sign in to see various web sites.</p>
<p>&nbsp;</p>
<p>I emailed the person who runs <a href="http://fofoa.blogspot.com/">FOFOA</a> to warn him, this particular page is now behind a firewall requiring one identify oneself to read it. I just clicked on my bookmarked link to the data collection page run by FOFOA and it is now gone!  I get their main page but not the specific page I bookmarked!</p>
<p>&nbsp;</p>
<p>Now&#8230;we know that Facebook is actually being used to track citizens and mine information about them without consent and is being used more and more as a control device and today we learned that Twitter will allow governments to track and censor people&#8217;s comments to prevent repetition of the Arab Spring and Occupy Wall Street.</p>
<p>&nbsp;</p>
<p>Right on the heels of the internet&#8217;s many citizens successfully stopping SOFA from passing our corrupt Congress, the private owners of huge hunks of the web are stealthily imposing tracking methods and devices to keep us from really using the web for freedom purposes.  The mainstream media is all for this because they want to control people&#8217;s minds and hearts via propaganda and blackouts of real information.  One very early website was Into The Memory Hole which was where we parked stories that the media suddenly buried and denied ever happening, for example.</p>
<p>&nbsp;</p>
<p>I can&#8217;t find it online anymore so I assume it died off, alas.  It had a lot of information I stored there long ago!  I would track stories to see if they are buried.  One huge example was the USS Liberty information which we kept pushing into the mainstream media flow and it would then suddenly vanish again.</p>
<p>&nbsp;</p>
<p>Google used to be a useful tool for me.  Recently they totally changed things and I now regard them as a hostile entity.  For example, we used to get &#8216;cache&#8217; where we could see the history of a website.  That is gone without explanation.  They also removed &#8216;word search&#8217; which would highlight words in different colors so one could glance at a page and find the exact information one was looking for.</p>
<p>&nbsp;</p>
<p>This vanished, too!  I was stunned by that for it makes my work a lot more wearisome.  Why did they remove it?  I can&#8217;t fathom it except for the idea, it makes life harder and make information mining a LOT harder.  So only persistent people like myself can find things.  I am a speed reader and speed typist so I can do things very fast when not doped up on pain killers like this last three months!  But I much prefer to have tools that make things faster and easier.</p>
<p>&nbsp;</p>
<p>So I believe that Google trashed this search tool in order to make us miserable and life harder for people looking for very specific pieces of information.  Turning searches from ease of use to searching a hay rick for a needle serves the ruling elites and no one else.</p>
<p>&nbsp;</p>
<p>I believe that the rise in indignation and the successful ability to organize people with no controls by the media owners and politicians have scared them into making life online more hellish for users.  Google is owned by billionaires who want to keep their wealth.  So is Facebook.  And other entities online who hold us in their hands all want to be filthy rich, too and are out to undermine us collectively in order to get money from us and to control what we think and do.</p>
<p>&nbsp;</p>
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<p style="font-size:13px;line-height:1.6em;text-align:left;margin:0 0 15px;padding:0;"><span style="font-weight:bold;"><span style="color:#0000ff;margin:0;padding:0;"><span style="text-decoration:underline;">emeinel@fairpoint.net<br style="margin:0;padding:0;" /></span></span></span></p>
<p style="font-size:13px;line-height:1.6em;text-align:left;margin:0 0 15px;padding:0;"><span style="font-weight:bold;"><span style="color:#ff0000;margin:0;padding:0;">MAILING ADDRESS:</span></span></p>
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<p style="font-size:13px;line-height:1.6em;text-align:left;margin:0 0 15px;padding:0;"><span style="font-weight:bold;"><span style="color:#0000ff;margin:0;padding:0;">P.O. BOX 483</span></span></p>
<p style="font-size:13px;line-height:1.6em;text-align:left;margin:0 0 15px;padding:0;"><span style="font-weight:bold;"><span style="color:#0000ff;margin:0;padding:0;">BERLIN, NY 12022</span></span></p>
<p style="font-size:13px;line-height:1.6em;text-align:left;margin:0 0 15px;padding:0;"><span style="font-weight:bold;"><span style="color:#0000ff;margin:0;padding:0;">Make checks out to ‘Elaine Supkis’</span></span></p>
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		<title>UK Parliament Has Bill To Stop Queen Elizabeth&#8217;s Tax Haven Islands</title>
		<link>http://emsnews.wordpress.com/2012/01/26/uk-parliament-has-bill-to-stop-queen-elizabeths-tax-haven-islands/</link>
		<comments>http://emsnews.wordpress.com/2012/01/26/uk-parliament-has-bill-to-stop-queen-elizabeths-tax-haven-islands/#comments</comments>
		<pubDate>Thu, 26 Jan 2012 20:32:04 +0000</pubDate>
		<dc:creator>emsnews</dc:creator>
				<category><![CDATA[.money matters]]></category>
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		<description><![CDATA[A reader sent me this link:  MPs call for Cayman closure &#124; CNS Business.  About time!  Someone has to stop these pirate operations.  For years, I called for the US navy to invade these places since they are draining the &#8230; <a href="http://emsnews.wordpress.com/2012/01/26/uk-parliament-has-bill-to-stop-queen-elizabeths-tax-haven-islands/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=emsnews.wordpress.com&amp;blog=5401603&amp;post=13872&amp;subd=emsnews&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>A reader sent me this link:  <a href="http://cnsbusiness.com/content/mps-call-cayman-closure">MPs call for Cayman closure | CNS Business</a>.  About time!  Someone has to stop these pirate operations.  For years, I called for the US navy to invade these places since they are draining the Treasury and thus, endangering our nation, depriving it of needed tax revenues to fund the military.  Instead of invading places so oil can be sold by international offshore corporations, we should have our military pay for itself by going after those who are evading just taxation.<span id="more-13872"></span></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<blockquote><p>Led by the Labour member for Leyton and Wanstead and former Treasury Select Committee member, John Cryer, the motion calls on the UK government to introduce urgent legislation to help close tax havens and increase transparency “so that the very richest pay their fair share of tax”. In the wake of revelations about US presidential hopeful Mitt Romney&#8217;s finances, Cryer and his Commons colleagues say they are alarmed by his use of the Cayman Islands, a UK territory, to avoid paying tax.</p></blockquote>
<p>&nbsp;</p>
<p>The Cayman Islands are actually not a UK territory but a Queen Elizabeth II territory.  It is protected by the UK but doesn&#8217;t have to obey UK regulations&#8230;so far.  The City of London operates the same way, it is exo-territorial inside the biggest city of England.  The Queen also owns the entire shoreline of England and all its resources including wind energy!</p>
<p>&nbsp;</p>
<p>The loss of their offshore operations will freak out the many million and billionaires in the US and England who use these to evade taxes.  Romney never expected his own financial shenanigans to become a prime issue in the GOP primary.  Making people aware of how the rich cheat our government while taxing us all heavily and piling more debt on us, is a good thing!  About time!</p>
<p>&nbsp;</p>
<p>In NYC, the money machine is again faltering.  Undercapitalized and depending on ZIRP loans from the Federal Reserve, the biggest owners of the Derivatives Beast are cutting bonuses and jobs:  <a href="http://www.bloomberg.com/portfolio-impact/2012-01-25/financial-sector-job-cuts-announced-200-000.html">Financial-Sector Job Cuts Announced: 200,000 &#8211; Bloomberg</a>.  The entire mechanism for fiances has been totally warped out of shape by international free trade games played by the very rich.</p>
<p>&nbsp;</p>
<p>Free trade has caused the value of labor in the US to plummet.  Workers who once earned $25 an hour are now earning $12-17 an hour, an immense drop in income.  Households kept up, for a while, with inflation, via putting all family members to work.  Gingrich wants to finish this by putting children to work, too. A la Victorian days.</p>
<p>&nbsp;</p>
<p>Just as Romney sneered about enjoying firing people, so does his buddy, the <a href="http://www.huffingtonpost.com/2012/01/26/james-gorman-morgan-stanley-ceo_n_1232345.html">Morgan Stanley CEO Snapped  At Disgruntled Employees: &#8216;If You&#8217;re Really Unhappy, Just Leave&#8217;</a>.  Yup, the very rich just want us to all go away.  Now.  Don&#8217;t bother them.  The Global Warming people wanted huge taxes on CO2-producing energy to fix things really good and to return us to the days of ice and snow.  But with <a href="http://www.bloomberg.com/portfolio-impact/2012-01-12/oil-price-projection-200.html">Oil Price Projection: $200</a> they don&#8217;t need to tax us, we will all be unable to afford energy and this will bring back polar bears and putting grandpa on an ice floe to get rid of him.</p>
<p>&nbsp;</p>
<p>This $200 a barrel oil prediction is predicated on the idea we will cut out all Iranian oil from world markets and then voila: peace as the Iranians would then stupidly disarm and we can then quickly invade and steal the oil.  Of course, this game has not brought down world oil prices in the past!</p>
<p>&nbsp;</p>
<p>In our good buddy overseas, England, we see rising fear and despair so <a href="http://www.telegraph.co.uk/finance/financialcrisis/9037053/Sir-Mervyn-King-no-reason-to-despair-over-economy.html">Sir Mervyn King comes to the rescue: no reason to despair over economy &#8211; Telegraph</a></p>
<p>&nbsp;</p>
<blockquote><p>“There is no reason to despair,” he said. “All crises come to an end, and businesses will find ways to trade with each other and meet the needs of consumers.<br />
“Helped by the right policy actions, the UK and world economies can and will recover. And when they do so, they will be on a more sustainable footing than at any point in the past 15 years.” &#8230;After the three main party leaders gave speeches on the future of capitalism, Sir Mervyn urged politicians to “maintain support” for a market economy and an “open world trading system”.<br />
“They provided the basis for the great prosperity experienced since the Second World War,” he said.</p></blockquote>
<p>&nbsp;</p>
<p>Our good buddies in Japan have had a 20+ year depression.  The Long Depression 100 years ago lasted for over 20 years, too.  The open world trading system caused this global collapse but we are supposed to do it again, even more, and  longer.  So, Japan which had a huge trade surplus for 20 years&#8230;had a long depression at home that continues today and Japan is now running a trade deficit!  OOPS.  Didn&#8217;t work!  Mervyn the Merlin thinks that waving his magic wand we will find prosperity via global free trade and offshore profit havens.</p>
<p>&nbsp;</p>
<p>This is obviously not working.  It can&#8217;t work.  Globalization killed waged in England and the US and incidentally, Japan.  Its success rate is miserable.  It has made the top 1% extremely, amazingly rich.  But the trickle down is minute.  Or negative, for workers in first world nations.</p>
<p>&nbsp;</p>
<p>As the price of oil shoots to $200 a barrel thanks to the EU stupidly strangling Iran to please the owners of our government in Israel and Saudi Arabia, things are cooking that will really make our lives miserable:  <a href="http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html">The demise of the dollar </a></p>
<p>&nbsp;</p>
<blockquote><p>Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.</p>
<p>&nbsp;</p>
<p>The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.</p></blockquote>
<p>&nbsp;</p>
<p>This is all hearsay.  But calls for dumping the dollar have been rising more and more.  It is inevitable.  Especially since the Fed announced they would buy up more junk from the top bankers to fix the wrecked banking system and keep free trade treading water in a sea of red ink, for a while longer.</p>
<p>&nbsp;</p>
<p>And here is a poorly-researched article supposedly rebutting those of us who point out that Japan is dying, not thriving.  I used to directly argue with Krugman about Japan in the past and am amazed he finally embraces my own analysis about a decade late but better than never:  <a href="http://www.fingleton.net/a-reply-to-paul-krugman-2/">A Reply to Paul Krugman | Sandcastle Empire</a></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<blockquote><p>For me by far the most problematic statement in Krugman’s commentary is this: “Current account surpluses aren’t necessarily a sign of success.” An ivory tower economist can, I suppose, imagine circumstances in which rising surpluses might be considered a sign of weakness and deficits a sign of strength — but such circumstances are temporary blips and don’t apply to a Japanese trade policy that, except for a break in the early 1940s, has been consistently pursued for 140 years now. Krugman seems to forget that the soubriquet “Juggernaut Japan” was coined in the 1980s precisely because Japan was so successful in boosting its trade surpluses. (Reality note: Unlike some other commentators, Krugman to his credit does not cite last year’s decline in Japan’s surplus as evidence of a fundamental change. There are several things going on in the decline, of which the earthquake, the tsunami, the nuclear meltdown, the power shutdowns, and the Thai floods are only the most obvious. A key reason why Japan’s merchandise trade is lower than formerly is because of massive transfer pricing — a point that The Economist missed in a recent analysis.)</p>
<p>&nbsp;</p>
<p>&#8230;In incurring deficits, the United States has been going ever deeper into debt to other nations. In earning surpluses, Japan by contrast has been acquiring ever larger assets abroad, not least in the United States. This is ultimately a matter of national security: debtor nations increasingly must defer to creditor nations.</p></blockquote>
<p>&nbsp;</p>
<p>Yes, the US is a debtor nation from hell.  Japan has a huge trade surplus squirreled away in bank vaults to keep the US dollar more valuable than the yen.  Japan still produces stuff BUT THIS IS ENDING.  Japan still manufactures stuff BUT THIS IS ENDING.  The exodus of jobs, manufacturing and society from Japan is now a huge flood and it is getting rapidly worse and worse.</p>
<p>&nbsp;</p>
<p>And this editorial ignores recent statistical information such as the dire fact that Japan is now a net-importer, and now has red trade ink pouring into the Japanese sea of government debt and depressed asset markets inside Japan and on top of that, this red ink is radioactive, too!  And the government has gone insane:  <a href="http://ex-skf.blogspot.com/2012/01/city-assemblyman-in-tokyo-to-school.html">City Assemblyman in Tokyo to School Children: Don&#8217;t Be an Egoist, Eat Your School Lunch to Share the Pain of Tohoku | EX-SKF</a> .  &#8217;Shuddup, and eat your radioactive spinach!&#8217; snarls the politician.  Yikes.  Insane.</p>
<p>&nbsp;</p>
<p>And then there is this:  <a href="http://mdn.mainichi.jp/mdnnews/news/20120123p2g00m0dm121000c.html">Risk of big quake in Tokyo area within 4 years may be 70%: institute &#8211; The Mainichi Daily News</a>.  Yes, this will happen sooner than later and may happen at the same rough time frame the San Andreas between San Francisco and LA jumps 33 feet northwards in one second!  This would leave both the US and Japan in a state of financial collapse because neither can afford to rebuild except via immense amounts of government debt.</p>
<p>&nbsp;</p>
<p>And last of all, <a href="http://www.washingtonpost.com/world/national-security/philippines-may-allow-greater-us-presence-in-latest-reaction-to-chinas-rise/2012/01/24/gIQAhFIyQQ_story.html">Philippines may allow greater U.S. military presence in reaction to China’s rise</a>&#8230;yes, the military wants more bases.  And Hillary thinks this is a great idea.  More military obligations of protection equals power in her deranged mind.  We hope to ring China and Russia with hostile military bases and then intimidate both empires and teach them all a big, fat lesson while Japan, the US, the UK and EU all run up incredible amounts of debt and destroy the lives of workers at home.</p>
<p>&nbsp;</p>
<p>Sounds like Russia during the 1909-1917 era!  What a great example that sets.</p>
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		<title>Israel Gets Full 100% Funding From US Knesset Congress</title>
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		<pubDate>Thu, 26 Jan 2012 15:02:43 +0000</pubDate>
		<dc:creator>emsnews</dc:creator>
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		<description><![CDATA[Israel didn&#8217;t have to send out Mossad assassins to kill Obama this week because he gave them more billions in free money to spend.  Whew!  Safe for another year!  Meanwhile, at Davos, the billionaires are scared.  Surrounded by heavily armed &#8230; <a href="http://emsnews.wordpress.com/2012/01/26/israel-gets-full-100-funding-from-us-knesset-congress/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=emsnews.wordpress.com&amp;blog=5401603&amp;post=13867&amp;subd=emsnews&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Israel didn&#8217;t have to send out Mossad assassins to kill Obama this week because he gave them more billions in free money to spend.  Whew!  Safe for another year!  Meanwhile, at Davos, the billionaires are scared.  Surrounded by heavily armed military, they talk about how their system has failed and the Chinese are taking over.  Dummies, all.  As for prosperity being around a distant corner, <a href="http://news.xinhuanet.com/english/world/2012-01/25/c_131375914.htm">IMF cuts global growth forecasts</a> which doesn&#8217;t surprise me.  Credit bubbles are very hard to fix if they pop.  Very hard.<span id="more-13867"></span></p>
<p>&nbsp;</p>
<p>The Federal Reserve has decided to buy even more bad bonds from the top 5 derivative bankers so they can be &#8216;capitalized&#8217; (i.e.: pretend they have capital savings) and thus, lend more money.  To do this trick (i.e.: run banks with no savings) the <a href="http://www.usatoday.com/money/economy/fed/rates/story/2012-01-23/federal-reserve-forecasts/52786100/1">Fed: Rates will remain unchanged, no rate hikes likely till late &#8217;14</a>.  We are caught in the same ZIRP trap Japan is mired in.</p>
<p>&nbsp;</p>
<p>Of course, the credit bubble here was at least 5 years  long and I said years ago, the recovery from all bubbles is longer then the bubble itself by about double so it would take at least 10 years to recover from this one.  Note how the Fed keeps pushing the turn around date further and further into the future.  Back in 2008, they claimed it was a minor blip not the Hindenberg exploding.</p>
<p>&nbsp;</p>
<p>Meanwhile, as the US <a href="http://www.bellinghamherald.com/2012/01/25/2367356/army-to-cut-number-of-brigades.html">Army to cut number of brigades; but of course the assassin robot rocket program is expanded as JBLM&#8217;s Stryker likely not affected</a>, the US is going to cut combat brigades by 80,000 soldiers.  Each one of these gets paid money and has a job and so, of course, the US cannot afford this whereas robot assassins make money for the very rich who produce these noxious and utterly useless machines.  They are useless because all they do is rile up the Muslims into attacking here, there and everywhere and hatred of the West is spreading like the plague.</p>
<p>&nbsp;</p>
<p>You win wars by winning hearts and minds not mindless killing in the most cowardly way possible.  I stumbled across this site that is rather darkly amusing, run by the Afghan resistance:  <a href="http://shahamat-english.com/">Islamic Emirate of Afghanistan</a>.  Here is a sample of their headlines:  <a href="http://shahamat-english.com/index.php?option=com_content&amp;view=article&amp;id=14700:6-puppet-killed-and-wounded-as-convoy-hits-ied&amp;catid=1:news&amp;Itemid=2">6 puppet killed and wounded as convoy hits IED</a>, <a href="http://shahamat-english.com/index.php?option=com_content&amp;view=article&amp;id=14699:puppet-police-officer-shot-dead-in-lashkargah-city&amp;catid=1:news&amp;Itemid=2">Puppet police officer shot dead in Lashkargah city</a>, <a href="http://shahamat-english.com/index.php?option=com_content&amp;view=article&amp;id=14698:roadside-bomb-near-kandahar-airbase-hits-us-tank&amp;catid=1:news&amp;Itemid=2">Roadside bomb near Kandahar airbase hits US tank</a>, <a href="http://shahamat-english.com/index.php?option=com_content&amp;view=article&amp;id=14695:blast-in-paktia-kills-paktia-kills-4-us-led-invaders&amp;catid=1:news&amp;Itemid=2">Blast in Paktia kills Paktia kills 4 US-led invaders</a>, <a href="http://shahamat-english.com/index.php?option=com_content&amp;view=article&amp;id=14670:2-invaders-killed-and-wounded-as-mine-detonates-on-patrol&amp;catid=1:news&amp;Itemid=2">2 invaders killed and wounded as mine detonates on patrol</a>.</p>
<p>Then there is this article in the Taliban site I find rather grimly amusing or rather, they find grimly amusing: <a href="http://shahamat-english.com/index.php?option=com_content&amp;view=article&amp;id=14632:diapered-us-soldiers&amp;catid=3:articles&amp;Itemid=5">Diapered U.S. soldiers</a>.  It seems that the US is demanding NATO trucks carrying diapers for soldiers be released by the Pakistan military!  This minor detail is typically destructive:  the NATO troops are cowards too scared to take a piss outside of their vehicles for fear of the mighty Taliban warriors.  This dovetails with the stupid video of US soldiers pissing on dead Taliban warriors which makes our troops double cowards in the eyes of the people we want to violently subdue.</p>
<p>&nbsp;</p>
<p>You can&#8217;t intimidate the world&#8217;s most persistent warriors by pissing in you pants or pissing on them when they are finally killed in battle.  This is one of a million reasons why we lost the war taking over Afghanistan and our retreat will be quite ignoble.</p>
<p>&nbsp;</p>
<p>So, while the war in Afghanistan rages on with more soldiers dying in the last year than previous years, while the GOP screams we have no money for Americans suffering from tornadoes and hurricanes and floods, the <a href="http://news.antiwar.com/2012/01/24/us-to-grant-extension-of-3-8-billion-in-loan-guarantees-to-israel/">US to Grant Extension of $3.8 Billion in Loan Guarantees to israel &#8212; News from Antiwar.com</a></p>
<p>&nbsp;</p>
<blockquote><p>The Obama administration told Israeli officials this week that the U.S. plans to extend for three years $3.8 billion in loan guarantees to Israel&#8230;<strong>The recommendation, they promised, would receive wide support from both parties in Congress and would be approved without issue in the near future</strong>&#8230;“We consider the loan guarantees as preparation for a rainy day,” a senior Israeli Foreign Ministry official said. “<strong>This is a safety net for war, natural disaster and economic crisis,</strong> which allows Israel to maintain economic stability in unstable surroundings.”</p></blockquote>
<p>&nbsp;</p>
<p>In other words, our Congress Knesset is handing over money to the Jews (NOT Israeli Muslims or Christians!) as a safety net so they can be safe in war, NATURAL DISASTERS and ECONOMIC PROBLEMS.  Meanwhile, the GOP, for example, hates giving money for natural disasters or economic woes.  They scream that we don&#8217;t need a social safety net or protections from Mother Nature&#8217;s whims!  We should just pull our selves out of these things alone and unaided. But not Israeli Jews!  They get money from Congress, no strings attached and any amount they deem they need, whenever and without debate!</p>
<p>&nbsp;</p>
<p>This week, with no information from our own media, we learn that <a href="http://news.antiwar.com/2012/01/25/abbas-confirms-israel-peace-talks-over/">Abbas Confirms: Israel Peace Talks Over</a>.  Evidently, when Bush Sr. threatened to cut the free flood of US tax money to Israel in order to force them into peace talks before the Gulf War I, there was active discussion in Tel Aviv about having US stationed Mossad agents run an assassination (open door, using a Muslim as the killer) but this was squelched and the Prime Minister of Israel who did the negotiations as requested by the US was instead, assassinated by a Jewish terrorist.</p>
<p>&nbsp;</p>
<p>Today, for obvious survival reasons, Presidents quail when the leader of the Jews comes here and stalks around the White House barking orders.  Congress was bought off long ago and anyone who rocks the Zionist boat is capsized and defamed by the media (ever see Carter in the news anymore?).</p>
<p>&nbsp;</p>
<p>The Jews who run much of NYC from top to bottom have some pie on their face because this actually made the US news after Europe and Israel and all Muslim Africa and Middle East knew about it:  <a href="http://news.antiwar.com/2012/01/24/nypd-admits-using-anti-muslim-film-for-training-nearly-1500-officers/">NYPD Admits Using Anti-Muslim Film for Training Nearly 1,500 Officers</a>.  This dual citizen-made propaganda piece patterned off of Nazi propaganda films (though it did lack the comparison of Muslims to rats that the Nazis used) was run on continuous loop at the training academy.</p>
<p>&nbsp;</p>
<p>This is disgusting.  Imagine if a video showing all black people as criminals living in slums deserving beastly things happening to them with warnings that blacks intend to take over the White House&#8230;HAHAHA&#8230;actually, I can picture them doing this!</p>
<p>&nbsp;</p>
<p><a href="http://www.huffingtonpost.com/2012/01/24/three-occupy-members-arrested-gaim-boca_n_1227083.html">Three Occupy Members Arrested Blocking Boca Raton Bridge Outside GAIM Conference</a>ΩΩΩΩΩΩΩΩΩΩΩ</p>
<blockquote><p>Don Carter, 24, of Longwood, Ana Rodriguez, 30, and Kevin Young, 27, of Miami, were taken into custody and charged with resisting arrest without violence, obstructing a highway, and a municipal ordinance violation. The trio linked themselves together with &#8216;lockdown devices&#8217; scrawled with anti-greed slogans and lay down on the bridge, snarling traffic from roughly 5 p.m. to 6:30 p.m. before police were able to unlink and remove them.</p>
<p>The protest was &#8220;an attempt to disrupt the cocktail hour and to bring public attention to the list of &#8216;corporate criminals&#8217; gathered in Boca&#8221; at the 2012 GAIM conference, Occupy Palm Beach said in a statement. GAIM, held at the Waldorf Astoria-owned Boca Resort on Camino Real, bills itself as one of the most important conferences of the hedge fund industry, with &#8220;over 75 percent of attendees&#8230;at the managing director level and above&#8221; and &#8220;investors who have discretion over $215 billion and over $8 trillion under advisement&#8221; &#8212; in other words, a lot of people squarely in the one percent.</p></blockquote>
<p>&nbsp;</p>
<p>I think we should all thank Occupy Wall Street for shaking up everything.  They forced the election to be about the economy and unemployment.  But with the media blackout of Ron Paul, talk about stopping our wars has been nearly totally eliminated.  I took a screen shot of huge demonstrations in Egypt.  They are agitating for economic justice and a better economy.  The same thing is happening more and more in Libya and the US sent 12,000 troops there to hold the oil fields so the EU can exploit these for their own benefit while attacking Iran.</p>
<p><img class="alignnone size-full wp-image-13866" title="Screen shot 2012-01-25 at 4.39.40 PM" src="http://emsnews.files.wordpress.com/2012/01/screen-shot-2012-01-25-at-4-39-40-pm1.png?w=500" alt=""   /></p>
<p>Our diplomacy using mainly swords and guns is a total failure. As I predicted, <a href="http://news.xinhuanet.com/english/china/2012-01/25/c_131375868.htm">Japanese FM seeks closer diplomatic ties with China</a> due to raw economic necessity.  Japan still dreams of defying China in the military sphere but this is going to vanish pretty quickly when push comes to shove.  Meanwhile,  <a href="http://news.xinhuanet.com/english/business/2012-01/24/c_131375509.htm">Japan&#8217;s central bank cuts growth forecast for FY 2011, 2012</a>. More about that issue later!</p>
<p><a href="http://www.rawstory.com/rs/2012/01/25/davos-elite-confronts-crisis-of-western-capitalism/">Davos elite confronts crisis of Western capitalism | The Raw Story</a></p>
<p>&nbsp;</p>
<blockquote><p>“I think we have three to four years in the West to improve the economic model that we have, and if we don’t do that soon I think we’ve lost the game,” warned David Rubenstein, managing director of the Carlyle investment fund.</p>
<p>&nbsp;</p>
<p>The 62-year-old billionaire has done very well out of financial capitalism, the US firm paid him a $134 million annual bonus this month, but he warned that the West needs to get its deficits under control and return to growth.</p>
<p>&nbsp;</p>
<p>“If we don’t do that soon, when we are here in three to four years … the game will be over for the type of capitalism that many of us have lived through and thought was the best type of capitalism,” Rubenstein said.</p></blockquote>
<p>&nbsp;</p>
<p>So, this Jewish hedge fund creep thinks we are near the end?  Well, duh!  Thank you!  Great job, buddy!  Here is this rich creep keeping his wealth in offshore havens complaining about government spending while bribing Congress to hand over our money to Israel????  Yes, his &#8216;capitalist game&#8217; may be over but this is due to him, not us.  And he imagines people won&#8217;t eventually figure this out?  Maybe even the Tea Party will figure this out some fine day!</p>
<p>&nbsp;</p>
<blockquote><p>Just the title of the debates captures the tone, with the first posing the question: “Is 20th Century Capitalism Failing 21st Century Society?”</p>
<p>&nbsp;</p>
<p>The schedule includes “Fixing Capitalism”, “Has Globalisation Reached its Economic and Political Limits?” and “How Will the Eurozone Countries Emerge from the Eurozone Crisis?”.</p>
<p>&nbsp;</p>
<p>While US Treasury Secretary Timothy Geithner will ponder the challenges for the US economy, a sizeable contingent from emerging powers including India and South-east Asian nations will consider: ‘Is this truly the Asian century?’</p></blockquote>
<p>&nbsp;</p>
<p>Naturally, I am not invited. I would be as welcome as a cockroach.  Alas!  Even as they ponder their own doom, they think they can trick whole nations into biting the bullet while Israel gets fully funded so they won&#8217;t have any economic or military problems but hell&#8217;s bells, this was Japan&#8217;s deal with us, too!  We kept the Japanese Yamamoto ship of state afloat on a sea of red ink and US trade deficits and we protected them from China and Russia and in turn, they pollute the Pacific Ocean and buy virtually nothing of value from us!  Way to go!</p>
<p>&nbsp;</p>
<p>And Japan is dying!  And the US will die, too!  And the Davos people care only about protecting their own wealth and power, not protecting the citizens of the various states they exploit.  The &#8216;leaders&#8217; at Davos were imposed on people by the owners of the mass media propaganda outfits and the ancient regime ruling elites who survived the disasters they created called WWI and WWII.  And yet they plot WWIII, learning no lessons from the past.</p>
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		<title>GOP Says Romney Should Boast About Being Sickeningly Rich</title>
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		<pubDate>Wed, 25 Jan 2012 13:13:26 +0000</pubDate>
		<dc:creator>emsnews</dc:creator>
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		<description><![CDATA[As Japan dies and the US rips itself apart at the seams, all eyes are on Europe.  Will Europe save the West from the Year of the Chinese Dragon?  Of course, the answer to that is obvious: Europe is committing &#8230; <a href="http://emsnews.wordpress.com/2012/01/25/gop-says-romney-should-boast-about-being-sickeningly-rich/">Continue reading <span class="meta-nav">&#8594;</span></a><img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=emsnews.wordpress.com&amp;blog=5401603&amp;post=13862&amp;subd=emsnews&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>As Japan dies and the US rips itself apart at the seams, all eyes are on Europe.  Will Europe save the West from the Year of the Chinese Dragon?  Of course, the answer to that is obvious: Europe is committing suicide.  The move of the rulers there, the Bilderberg gang, to cut all oil from Iran is killing the EU and they don&#8217;t care for obvious reasons.  Iran will get nukes because Iran must get nukes to survive.  And no country that voluntarily disarms survives if they have oil and are pro-Palestinian.<span id="more-13862"></span></p>
<p>&nbsp;</p>
<p>The EU is running out of capital on the southern and eastern edges while Germany retains the crown of being the #2 sovereign wealth country on earth now that Japan has collapsed.  <a href="http://www.reuters.com/article/2012/01/25/markets-forex-idUSL5E8CP1LN20120125">FOREX-Yen at 1-mo lows as Japan posts rare trade deficit </a>which the Japanese hope will weaken the currency so they can flood the US with more exports.  <a href="http://www.japantoday.com/category/politics/view/noda-struggles-to-conquer-japans-debt-mountain">Noda struggles to conquer Japan&#8217;s debt mountain</a>: Japan suddenly noticed that for 25 years, the government has run up the second-biggest debt on earth (the US is definitely by far, #1 in this regard) and now that the Japanese people are so poor, they can&#8217;t buy enough of it to float the government, this debt has been sold to dire rival, China.</p>
<p>&nbsp;</p>
<p>Today, stocks are up in Tokyo due to hopes that the export machine will run again.  But more and more factories are relocating to the rest of Asia quite rapidly so exports no longer serve as simple job functions in Japan, they are increasingly alien in nature.  We saw riots in China at Apple stores recently.  The Chinese manufacture things but increasingly, the Chinese BUY what they make!  In Japan, that has been slowly strangled via low wages, more and more &#8216;part time&#8217; workers and the gap between Tokyo wealth and everyone else.</p>
<p>&nbsp;</p>
<p><a href="http://www.japantoday.com/category/politics/view/okada-apologizes-for-govt-not-keeping-records-of-nuclear-crisis-meetings">Okada apologizes for gov&#8217;t not keeping records of nuclear crisis meetings</a>: the government is officially nonfunctional.  Not one scribble was kept of these meetings.  Japan, the world&#8217;s biggest maker of things that record meetings, doesn&#8217;t record meetings of the top government officials and this is because everything they do is secret.  And since Nixon and his famous tapes, no one in our government records meetings via videos or anything real (just censored &#8216;notes&#8217;) because it, too, must be secretive as the Kremlin under Stalin.</p>
<p>&nbsp;</p>
<p>In the heart of the US financial system, NYC, we see articles all the time in places like the NYT talking about banking and capital and these seem to be written with little historical understanding of &#8216;what is capital&#8217; because no one in the US, it seems has ever read Marx&#8217;s &#8216;Das Kapital&#8217;:  <a href="http://dealbook.nytimes.com/2012/01/24/in-europe-a-conflict-over-bank-capital/?hpw">In Europe, a Conflict Over Bank Capital &#8211; NYTimes.com</a>:</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<blockquote><p>Authorities want European banks to tap existing shareholders and reduce employee bonuses to find a combined $147 billion to increase their core Tier 1 ratios, a measure of a firm’s ability to weather financial shocks, to 9 percent by June. Citigroup estimates that Europe’s financial institutions, minus the Greek banks, had raised at least 40 billion euros, or $51 billion, as of the fourth quarter of 2011&#8230;</p>
<p>&#8230;&#8221;Regulators are asking for the impossible,” said Etay Katz, a banking regulatory partner at the law firm Allen &amp; Overy in London. “They want banks to keep lending to the real economy, and there’s an expectation banks will have to swallow the bitter pill of offering new equity at times when investors’ appetite is negative.”</p></blockquote>
<p>&nbsp;</p>
<p>For the last 10 years, most &#8216;new equity&#8217; used by banks was NOT capital but borrowing.  They still operate on this premise: the so-called investment banks are actually CONSUMERS who borrow money at ZIRP rates from the Bank of England and the Federal Reserve.  They then turn around and add interest costs to this borrowed money and then lend it to others, mainly hedge funds who then use this borrowed money they borrow to buy up capitalist things like businesses, factories and land or buy commodities which they then load up with more borrowed money before dismembering it and selling the assets off or removing labor costs via moving these to China.</p>
<p>&nbsp;</p>
<p>This system worked perfectly until China grew rich and powerful.  And the sovereign nations doing this fell off the economic cliff due to destroying their own industrial/labor bases while running up immense debts.  Investors&#8217; a[[etote is now negative because they can&#8217;t take on infinite debt even if it is only at 3% or less because no system can do this.  Nothing can ever, ever go to infinity.  Nothing.  Infinity=zero and this dire information has been carefully hidden from view because humans don&#8217;t want to understand this even though scientists are aware of it, big time.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<blockquote><p>Other banks are hoping the sale of so-called noncore assets in overseas markets will help to increase their capital reserves. <strong>The fire sale could be enormous. The European financial sector is expected to sell or write down more than $1.8 trillion in loan assets during the next decade</strong>, according to the consulting firm PricewaterhouseCoopers. That compares with just $97 billion from 2003 to 2010.</p>
<p>Last week, the Royal Bank of Scotland, which already has met the European Banking Authority’s capital requirements, sold its aircraft leasing business to a consortium of Japanese companies for $7.3 billion.</p></blockquote>
<p>&nbsp;</p>
<p>Even as Japan flounders and dies and runs up immense debts, the Japanese elites are buying up assets worldwide.  The other matter is, why on earth was RBS owning an aircraft leasing business in the first place?  Traditional banking died long ago and all these mega-internationalist-banks have turned into something totally different and thus, prey to various social and economic forces.  Banks must be heavily regulated or they run to infinity and buy up everything and become oppressive machines of exploitation.</p>
<p>&nbsp;</p>
<p>Preventing this is obviously life and death.  Bank deregulation has been a total disaster.  True, it gave the illusion of wealth for a while but it did this by running up debts to &#8216;infinity&#8217; which meant, it ballooned until it popped and collapsed.  Some regulations are now being belatedly imposed but the banking system is dead.</p>
<p>&nbsp;</p>
<p>Ironically, attempts at making banks operate in the old way is causing the collapse of assets to accelerate.  This, in turn, reduces the value of the portfolios held by the bankers and investment borrowers who used cheap loans to buy assets, to fall further.  This causes their capital to fall.  The only thing that can fix this is for labor to increase in value which then causes money to CIRCULATE MORE via workers spending rather than constrict further and fall into fewer and fewer hands.</p>
<p>&nbsp;</p>
<blockquote><p>Banks also are restructuring their balance sheets to squeeze out extra capital.<strong> In a move known as liability management, banks can improve capital levels without raising additional funds. The strategy involves buying back or exchanging hybrid securities — investments that pay dividends like bonds, but can be converted into equity — at a discount from investors.</strong></p>
<p>Under accounting rules, financial institutions can then book the difference between the original face value of the securities and the current discounted price as a profit toward core Tier 1 equity.</p>
<p><strong>The strategy has been popular.</strong></p></blockquote>
<p>&nbsp;</p>
<p>This is typical: they rig up a sleigh of hand card trick, a three card monty monetary game, which gives the ILLUSION of &#8216;capital&#8217; while being NOTHING.  It is thin air, an accounting trick designed to hide the fact that there is no capital! How stupid is this????  And they are doing this with &#8216;hybrid securities&#8217; which is &#8216;bizarre debt schemes&#8217; not capital profits from an industrial/trade/labor system that produces material gains.</p>
<p>&nbsp;</p>
<p>Of course, this stupid game is very popular.  It requires no changes in anything, it keeps the money in the hands of the very rich while it capitalizes systems that are being drained of capital via an accounting trick that hides the truth.  So they can keep cranking out loans based on nothingness.  The entire reason why banks must have a capitalist base of savings in order to lend is so they can pay off bad loans!  If they can&#8217;t, they go bankrupt.</p>
<p>&nbsp;</p>
<p>By artfully hiding this bankruptcy with accounting tricks, yes, banks can continue to lend but this is dishonest lending.  It is fake.  When the loans go bad, everything crashes because there is no capitalist cushion.  But capital is created by a troika that pulls things along: commodities made valuable by labor which gets its tools and systems and markets via lending of profits from sales to the banks who pay interest rates which makes this profit (savings) grow faster than inflation.</p>
<p>&nbsp;</p>
<p>But banks are offering us ZIRP for our savings these days!  Nothing!  While screaming about the need for credit while the price of everything we need to survive shoots upwards.  So savings vanish and banks are decapitalized.  They will have tons of capital if they offered savers realistic interest rates.  For they are borrowing from us!  When I put money in my bank, they give me a &#8216;share&#8217; which is their way of telling me, I am part of their capital base and thus, should be rewarded.</p>
<p>&nbsp;</p>
<p>But since the Federal Reserve and Bank of England hand out free loans to bankers, they offer me nothing for my money so savings have flowed into gold and silver accounts instead.  Which are not protected from losses like we had with our savings in banks in the old days when banks were regulated and insured.  So if the value of metals drops suddenly and this happens, people will lose value with no recourse and of course, being barely or not regulated at all, it is a shark&#8217;s dinner in these commodity markets with the big sharks defrauding or manipulating prices.</p>
<p>&nbsp;</p>
<p>The fight over wealth is rising in the US thanks to the good people who bravely brought us Occupy Wall Street and loud talk about the richest 1%:  <a href="http://www.businessweek.com/news/2012-01-25/obama-calls-for-wealthy-to-pay-more-taxes-to-restore-fairness.html">Obama Calls for Wealthy to Pay More Taxes to Restore Fairness </a>while <a href="http://www.businessweek.com/news/2012-01-24/obama-vows-fight-to-restore-broad-based-u-s-prosperity.html">Obama Vows Fight to Restore Broad-Based U.S. Prosperity</a> even though he has no hope of doing this and makes no suggestions about how to do this.</p>
<p>&nbsp;</p>
<p><a href="http://www.businessweek.com/news/2012-01-25/romney-as-multimillionaire-gets-break-for-taxes-less-wage-earner.html">Romney as Multimillionaire Gets Break for Taxes Less Wage-Earner</a> is news headlines Wall Street&#8217;s 1% don&#8217;t want to see.  They have kept a lid on this matter for quite a while.  Now, it is raw and out in the open.  They cut their own taxes with happy abandon while telling lies.  They told everyone, if they paid less in taxes, why, more money would come to the government.  They didn&#8217;t tell us that this would lead to bankruptcy and war spending would eat up all revenues and then double that.</p>
<p>&nbsp;</p>
<p><a href="http://www.huffingtonpost.com/2012/01/24/republican-response-mitch-daniels_n_1225954.html">Republican Response: Mitch Daniels Delivers Speech After State Of The Union (VIDEO)</a>: the GOP says Obama is &#8216;pro-poverty&#8217; which is about as bizarre as things can get.  Asking the very rich to pay fair taxes is &#8216;dividing America&#8217;.  HAHAHA.  Daniels said we are all in the same boat, too!  Well, we are not.  The US working class has been cast adrift on a leaky raft while the GOP and DNC donors are sailing past on gold-plated yachts.  Only to crash into the rocks while drunkenly waving to their girlfriends on the rocky shore.</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<blockquote><p>Obama actually used very similar language in his State of the Union address, also saying that Americans sank or swam as one.</p>
<p>&#8220;Those of us who&#8217;ve been sent here to serve can learn from the service of our troops,&#8221; he said. &#8220;When you put on that uniform, it doesn&#8217;t matter if you&#8217;re black or white; Asian or Latino; conservative or liberal; rich or poor; gay or straight. When you&#8217;re marching into battle, you look out for the person next to you, or the mission fails. When you&#8217;re in the thick of the fight, you rise or fall as one unit, serving one Nation, leaving no one behind.&#8221;</p></blockquote>
<p>&nbsp;</p>
<p>We most certainly do not sink or swim together.  We are being drowned by people who are punching holes in the bottom of our boat or running it deliberately onto the Rocks of War.  While refusing to pay for wars via taxes.  We are not marching in battle together, rich and poor.  Only the poor or working class kids are sent to die in Afghanistan.  And what is our mission, anyways?  As far as I can see, it is to steal oil from Muslims or if they have no oil, to butcher them for being Muslims.</p>
<p>&nbsp;</p>
<p>That is, the worst thing on earth for ANY country to engage in is religious warfare and ethnic cleansing and far from not realizing this, our Founding Fathers were very, very concerned about this and the main reason we have a separation of Church and State was to prevent ethnic/religious wars in the first place.  These tore apart Europe for generations and have torn apart Europe recently with the Nazis, for example.</p>
<p>&nbsp;</p>
<p>A bad, bad, bad thing and what are we doing: exactly that.  The clown who demanded Mossad assassinate the President in a political coup so the US would &#8216;obliterate&#8217; Jewish Zionist &#8216;enemies&#8217; (that is, most Muslims) is still free as a bird.  The Zionists are not on our boat, they are pirates who have hijacked the Ship of State and are running it straight ashore where the rocks are the sharpest.</p>
<p>&nbsp;</p>
<p>Here is how clueless the GOP is (not that the DNC is smarter at this point):</p>
<p>&nbsp;</p>
<blockquote><p>&#8220;The late Steve Jobs &#8212; what a fitting name he had &#8212; created more of them than all those stimulus dollars the president borrowed and blew,&#8221; he said.</p></blockquote>
<p>&nbsp;</p>
<p>Jobs created many jobs&#8230;in China.  And they are now consumers of Apple products.  Big time.  Apple had record earnings this year thanks to the iPad and iPhone sales and a huge hunk of these profits were earned via selling them to the Chinese.  Apple is basically an American corporation being slowly eaten up by China and will, in another generation, be fully run and owned by the Chinese who will have the capital to buy up all Apple stocks and take over.  Duh!</p>
<p>&nbsp;</p>
<p>To top off the insanity:  <a href="http://news.bostonherald.com/news/us_politics/view/20220125rich_advice_for_romney_gop_leaders_call_on_candidate_to_embrace_wealth/srvc=home&amp;position=recent">GOP leaders call on Mitt Romney to embrace wealth</a>.  Hahaha.  So, Obama is the &#8216;poverty President&#8217; but Romney will be the &#8216;rich bastard President&#8217;!  HAHAHA.  This will make unemployed workers row that old boat harder for them, no?  No.  These people are to be tossed overboard!  While the Chinese workers row the wealth boat for the wealthy!  Only the Chinese plan to be the ones sailing in first class.  Not tax evaders like Romney.</p>
<p>&nbsp;</p>
<p>Evidently, the campaign manager of Romney claims that the capitalist profits of the operations held by Romney and his gang are taxed at 35% already.  This is, of course, a total lie.  They usually pay ZERO taxes on profits made and held overseas!  Only if they bring it home&#8230;and they don&#8217;t!&#8230;then it is taxed.  So&#8230;they never bring it home which is why it sits in various offshore banks!  Duh!</p>
<p>&nbsp;</p>
<p>Of course, the newspaper stories about all this don&#8217;t tell readers this information.  Virtually no US corporation every pays ANY taxes now.  Their share of tax money payments have dropped for 30 years since Reagan and is one of many reasons why our country is going bankrupt.  &#8217;I would like to see Romney take the high moral ground and take pride in his wealth,&#8217; has got to be one of the most insane things the GOP has uttered, yet.</p>
<p>&nbsp;</p>
<p>Pride is one of the Seven Sins!  Pride goes before the fall!  Pride is arrogance and contempt for others.  And it most certainly is not moral at all, even the ancient Romans figured this out, this thinking is so twisted, it is funny coming from the party that pretends it is all about Christian morals when it is really a coven of devil worshippers who want to live in the Cave of Wealth and Death forever to infinity!</p>
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