Tuesday, June 28, 2011

CHRIS HEDGES: Gone With the Papers

http://www.informationclearinghouse.info/article28416.htm

"A democracy survives when its citizens have access to trustworthy and impartial sources of information, when it can discern lies from truth, when civic discourse is grounded in verifiable fact. And with the decimation of reporting these sources of information are disappearing. The increasing fusion of news and entertainment, the rise of a class of celebrity journalists on television who define reporting by their access to the famous and the powerful, the retreat by many readers into the ideological ghettos of the Internet and the ruthless drive by corporations to destroy the traditional news business are leaving us deaf, dumb and blind. The relentless assault on the “liberal press” by right-wing propaganda outlets such as Fox News or by the Christian right is in fact an assault on a system of information grounded in verifiable fact. And once this bedrock of civil discourse is eradicated, people will be free, as many already are, to believe whatever they want to believe, to pick and choose what facts or opinions suit their world and what do not. In this new world lies will become true. "

HOW YOU CAN PULL A WHITEY BULGER...DISAPPEARING IN PLAIN VIEW

http://www.marketwatch.com/story/how-you-can-pull-a-whitey-bulger-2011-06-28

BEST COMMENT SO FAR:

BY FILTHYBEAST

Always use cash no matter whose it was. Steal two-three cars a day to travel from employee parking lots to avoid immediate theft discovery and immediate APB. Stay off of turnpikes and toll areas. Camp instead of use motels. Never straight line travel. All over the map is best. Rest in wilderness areas long term and avoid people.

Or , look homeless.. most folks avoid the homeless.

ANDY BOROWITZ STRIKES AGAIN...AND HITS THE BULLSEYE

June 28, 2011

In Major Gaffe, Bachmann Confuses Ass, Hole in Ground


Misspeaks about Grand Canyon



ARIZONA (The Borowitz Report) – In a fledgling campaign that has already produced more than its share of gaffes, Rep. Michele Bachmann (R-Minn) today confused her ass with a hole in the ground during a campaign swing through Arizona.

Speaking to a group of supporters in Phoenix, Rep. Bachmann raised eyebrows when she said, “It’s great to be here in Arizona, the home of my ass.”

After her comment was greeted with confused murmurs from the crowd, Rep. Bachmann quickly added, “Oh wait, did I say my ass? I meant the Grand Canyon.”

Being unable to tell her ass from a hole in the ground, especially a prominent one such as the Grand Canyon, is only one of many challenges facing Rep. Bachmann in her quest for the Presidency, according to political science professor Davis Logsdon of the University of Minnesota.

Michele Bachmann is a staunch believer in the theory of Intelligent Design,” he said. “However, Intelligent Design cannot explain Michele Bachmann.”

But Dr. Logsdon added that Rep. Bachmann remains an attractive candidate, especially for those Republican voters who find former Alaska Governor Sarah Palin “too cerebral.”

“When Sarah Palin looks at Michele Bachmann, she must feel the way the Jonas Brothers feel about Justin Bieber,” he said.

In other political news, GOP presidential candidate Newt Gingrich said today that "marriage must be defined as the union between a man, a woman, and the man's staff member at the time."

Sunday, June 26, 2011

Ron Paul - Monetary Policy Subcommittee - 06/23/11



PLEASE NOTICE THE EVASIVE MANNER IN WHICH THOSE BEING QUESTIONED
ANSWER  (or actually DO NOT answer the questions). THEY INTENTIONALLLY ACT LIKE THEY DON'T UNDERSTAND THE QUESTIONS AND ATTEMPT TO ACT DUMB AND/OR BRING IN IRRELEVANT INFORMATION IN ORDER TO CONFUSE EVERYONE AND FURTHER AVOID ANSWERING THE QUESTION DIRECTLY AND TO THE POINT.

THE QUESTIONERS (including Ron Paul) ARE HORRIBLE QUESTIONERS. THEY DON'T STICK TO ONE QUESTION BUT GIVE THE PERSON BEING QUESTIONED ALTERNATIVES AND A WAY OUT TO AVOID A DIRECT ANSWER.

THE POINT IS: WHERE IS THE GOLD?

Closing the 'Collapse Gap': the USSR was better prepared for collapse than the US

http://www.energybulletin.net/node/23259

FANTASTIC ARTICLE...A MUST READ

IF YOU NEVER READ ANOTHER ARTICLE...

PLEASE READ THIS ONE...COMPLETELY

THEN, GO TO Dmitry Orlov'S BLOG AT:

http://cluborlov.blogspot.com/

AND READ MORE OF HIS WRITINGS

Thursday, June 23, 2011

MARTIN ARMSTRONG: THE SEARCH FOR INTELLIGENT LIFE

http://armstrongeconomics.files.wordpress.com/2011/06/armstrongeconomics-search-for-intelligent-life-061811.pdf

INFORMATION CLEARING HOUSE NEEDS FUNDS TO OPERATE - FOUNDER TOM FEELY GOING IN HOSPITAL FOR ANGIOPLASTY

GT sez

I GET A LARGE AMOUNT OF THE INFORMATION I POST HERE FROM TOM'S WEBSITE. IT IS ONE OF THE MOST PROLIFIC NON-PROFIT WEBSITES AND PROVIDES INFORMATION ABOUT THE U.S.'s INVOLVEMENT IN IRAQ, AFGHANISTAN, YEMEN, ETC AND PUTS THE MAINSTREAM MEDIA TO SHAME FOR ITS PUBLICATION OF 'REAL" NEWS.

TOM OPERATES IT ON A SHOESTRING OF FUNDS AND HAS BEEN BEGGING FOR CONTRIBUTIONS BUT WITH A PITTANCE OF RESPONSES COMPARED TO THE MILLIONS THAT VISIT HIS WEBSITE.  TOM'S WEBSITE MAY HAVE MILLIONS OF HITS EVERY DAY, BUT YOU CAN COUNT IN THE LOW  HUNDREDS OR EVEN LESS, THOSE WHO EVERY SEND HIM SOME VERY SMALL AMOUNTS AND IT USUALLY TAKES DAYS TO EVEN GET THOSE CONTRIBUTORS TO HELP OUT. THIS IS A COMPLETE DISGRACE. ESPECIALLY FOR THOSE WHO LIKE TO YELP AND RAVE ABOUT THEIR LOSS OF FREEDOM AND LIBERTY.

THIS ALSO PROVES THAT THE GREAT MAJORITY OF PEOPLE WANT THE TRUTH FOR FREE.

THE TRUTH ISN'T ALWAYS FREE AND OFTEN IS PAID FOR WITH YOUR BLOOD OR YOUR LIFE.

THE ONLY WAY YOU WILL EXPERIENCE, AND PROPERLY VALUE, WHAT TOM'S WEBSITE PROVIDES YOU EACH DAY IS WHEN IT IS NOT UP AND RUNNING.

THE WEBSITE WILL BE DOWN FOR THE NEXT FOUR DAYS WHILE TOM HAS AN ANGIOPLASTY AS HE HAD A HEART ATTACK YEARS AGO AND HAD STENTS PUT IN THAT APPARENTLY AREN'T WORKING WELL.

PLEASE GO TO INFORMATIONCLEARINGHOUSE.INFO AND CONTRIBUTE WHATEVER YOU CAN...AND ONLY "IF" YOU CAN.

TOM ALWAYS STATES THAT THOSE WHO CAN'T AFFORD TO CONTRIBUTE SHOULD SIMPLY INFORM OTHERS OF HIS NEED FOR WORKING CAPITAL.

TO THINK ABOUT

"Demoralize the enemy from within by surprise, terror, sabotage, assassination. This is the war of the future." - Adolf Hitler

"The death of democracy is not likely to be an assassination from ambush. It will be a slow extinction from apathy, indifference, and undernourishment." - Robert M. Hutchins
 

"The American Dream has run out of gas. The car has stopped. It no longer supplies the world with its images, its dreams, its fantasies. No more. It's over. It supplies the world with its nightmares now" - J. G. Ballard

HISTORY YOU SHOULD KNOW

Many writers have spoken of intentional plans by certain Elite to thin-out the world’s population

http://www.bibliotecapleyades.net/sociopolitica/esp_sociopol_depopu01a.htm#Part I: Historical Perspective

Wednesday, June 22, 2011

Chris Hedges: This Hero Didn’t Stand a Chance

http://www.informationclearinghouse.info/article28373.htm

"...the judge refused to let DeChristopher’s defense team inform the jury that the auction was later overturned and declared illegal. The judge also refused to let the defense team inform the jury that DeChristopher had raised the money for the initial payment and offered it to the Bureau of Land Management (BLM), which then refused to accept it. "

"...the role of the jury has been minimized in our criminal justice system. Juries are no longer given the opportunity to weigh all the factors of a case and are specifically told they are not allowed to use their conscience. It is not their job to decide if things are right or wrong. This is a drastic departure from the system that was originally created in this country.”



THIS IS THE KIND OF STORY THAT JUST INFURIATES YOU AND MAKES YOU WANT TO DESTROY OUR CURRENT SO-CALLED 'JUSTICE' SYSTEM

Paul Craig Roberts: Conspiracy Theory

http://www.informationclearinghouse.info/article28377.htm

A country whose population has been trained to accept the government’s word and to shun those who question it is a country without liberty in its future.

RALPH NADER: Waging Another Unconstitutional War

http://www.informationclearinghouse.info/article28371.htm

"...in the invidious tradition of George W. Bush and his indentured confessor, Justice Department lawyer, John Yoo, now comfortably ensconced on the law faculty of the University of California Berkeley, Mr. Obama is blithely claiming as authority for taking our country into another war "the inherent powers of the President under Article II of the Constitution." This wouldn't pass the laugh test by Jefferson, Madison, Franklin Mason or even Hamilton. James Madison believed placing the war-declaring power in the exclusive hands of Congress was the most significant achievement during the convention in Philadelphia that summer of 1787."

DAN NORCINI IS ALMOST CORRECT, WE ARE NOT ONLY DOOMED, BUT MANY OF US WILL BE DEAD SOON

In The News Today


clip_image002

Jim Sinclair’s Commentary
If you do not like what an Index is saying then the economic cure is to change the Index?
Trader Dan’s Commentary
Our nation is frickin’ doomed. These dishonest and unethical bastards will do anything to keep the illusion alive.
This is nothing but government sanctioned theft of senior citizen Social Security benefits.
Change To Inflation Measurement On Table As Part Of Budget Talks –Aides By Corey Boles and Janet Hook
WASHINGTON -(Dow Jones)- Lawmakers are considering changing how the Consumer Price Index is calculated, a move that could save perhaps $220 billion and represent significant progress in the ongoing federal debt ceiling and deficit reduction talks.
According to congressional aides familiar with the discussions, the proposal would shift how the Consumer Price Index is calculated to reflect how people tend to change spending patterns when prices increase. For example, consumers tend to drive less when gas prices increase dramatically.
Such a move is widely seen by economists as resulting in a slower rise in inflation. That would impact an array of federal programs that are linked to CPI including the Social Security program and income tax brackets set by the federal government.
The proposal could lower federal spending by around $220 billion over the next decade, based on calculations by last year’s White House deficit commission, which recommended the change as part of its final report.
According to two congressional aides familiar with the budget negotiations, the shift is being "seriously discussed" as part of the ongoing talks to strike a budget deal, that would be used to ease the passage of a required increase in the country’s debt limit.
More… http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201106211841dowjonesdjonline000414&title=change-to-inflation-measurement-on-table-as-part-of-budget-talksaides

Jim Sinclair’s Commentary
The most endangered species are those that are approaching retirement or presently receiving pensions.
U.S. Postal Service to Stop Paying Into Pension Fund By Angela Greiling Keane and John Hughes – Jun 22, 2011 10:35 AM ET
June 22 (Bloomberg) — The U.S. Postal Service, facing insolvency unless it gets approval to delay a $5.5 billion payment for worker health benefits, will suspend contributions to an employee retirement account to save $800 million this year. Jon Erlichman reports on Bloomberg Television’s "In the Loop." (Source: Bloomberg)
The U.S. Postal Service, facing insolvency without approval to delay a $5.5 billion payment for worker health benefits, will suspend contributions to an employee retirement account to save $800 million this year.
The Postal Service will stop paying employer contributions to the defined-benefit Federal Employees Retirement System, which covers about 85 percent of career postal workers, it said today in an e-mailed statement. The $115 million payment, made every other week, will stop on June 24, the statement said.
Suspending payments to the retirement account will help “conserve cash and preserve liquidity,” the statement said. The agency estimates it has overpaid by $6.9 billion and has asked Congress to pass legislation to return that money.
Congress must “make bold, quick and substantive reforms,” said Art Sackler, executive director of the Washington-based Coalition for a 21st Century Postal Service, which represents corporate mail customers. “The USPS is hanging by a thread.”
Morehttp://www.bloomberg.com/news/2011-06-22/u-s-postal-service-will-suspend-contributions-into-employee-pension-fund.html

You Will Still Be Able To Buy And Sell Physical Precious Metals After July 15!

http://news.coinupdate.com/you-will-still-be-able-to-buy-and-sell-physical-precious-metals-after-july-15/

GOLD WILL NO LONGER BE TRADED ON THE FOREX AS OF JULY 15, 2011

http://www.marketwatch.com/story/dodd-frank-claims-niche-form-of-gold-trading-2011-06-22?dist=beforebell

AND

http://www.zerohedge.com/article/trading-over-counter-gold-and-silver-be-illegal-beginning-july-15


THIS MEANS GT WILL HAVE TO TRADE CURRENCIES FOR AWHILE.

EVENTUALLY, THE PRECIOUS METALS EXCHANGES WILL RAISE MARGINS SO HIGH THAT WE 'LITTLE GUYS' WILL NOT BE ABLE TO TRADE ANYMORE.

SO, CASH GOLD WILL BE THE ONLY ALTERNATIVE TO TAKE ADVANTAGE IN THE RISE IN THE PRICE OF GOLD AND THE PRESERVATION OF YOUR MONETARY ASSETS.

Sunday, June 19, 2011

PROBLEM WITH BLOGGER GLITCH PERSISTS

ANY SUGGESTIONS AS TO HOW TO ELIMINATE THIS GLITCH WILL BE APPRECIATED.
BLOGGER DOESN'T HAVE AN EASY WAY TO FIX PROBLEMS AND THEY DON'T RESPOND TO ANY EMAILS EITHER QUICKLY OR WITH ANY SOLUTIONS.

YOU HAVE TO RELY ON THE BLOGGER GROUPS FOR HELP AND THEY AREN'T VERY
HELPFUL EITHER.

IT MAY JUST BE A TEMPORARY GLITCH, BUT IT HAS CONTINUED NOW FOR TWO OF MY POSTS.

YOU CAN STILL READ THE TOP PART OF THE POST BY REFRESHING THE PAGE WHICH WILL GIVE YOU ENOUGH TIME TO READ IT BEFORE IT DISAPPEARS.

WEBSITE: AMERICAN EXPOSE

http://www.amerikanexpose.com/UNSystem/Global_Depopulation.htm

PERUSE THIS WEBSITE TO INFORM YOURSELVES AS TO THE 'BIG PLAN'
OUR 'LEADERS' HAVE FOR US 'USELESS EATERS'

Saturday, June 18, 2011

CLYMER'S NEW GOATS IN MASSACHUSETTS, USA

CLYMER SAYS THE GOATS GOT INTO THE CHICKEN COOP BUT CAN'T FIGURE OUT HOW THEY FIT IN IT. THEY ARE VERY CREATIVE ANIMALS AND WILL CONTINUALLY SURPRISE YOU AS TO THE MISCHIEF THEY CAN GET INTO.

HE WILL HAVE GOAT'S MILK AND CAN MAKE GOAT CHEESE WITH HIS FEMALES AND CAN BREED THEM EACH YEAR FOR MEAT. GOOD INFO AT OFF THE GRID NEWS.COM

http://www.offthegridnews.com/2011/05/30/filling-your-freezer-with-goat-meat/ AND

http://www.offthegridnews.com/2011/06/08/goat-cheese-small-scale-production/

ABOUT HOW TO KEEP GOATS AND USE THEM FOR FOOD.

(NOTE: BLOGGER SHOWS THIS POST BRIEFLY BEFORE DISAPPEARING THE TOP
PART OF THE POST. JUST 'REFRESH' THE PAGE AND IT WILL REAPPEAR LONG ENOUGH
TO READ IT.
AT LEAST THE PICTURES STAY UP!. IT'S TAKEN ME OVER AN HOUR AND A HALF SCREWING WITH BLOGGER TO PUT UP THIS POST...VERY FRUSTRATING, BUT I WANTED TO GET CLYMER'S PICS UP FOR YOU ALL TO SEE HIS NEW 'PETS')





THE BIG PROBLEM IS, YOU CAN FALL IN LOVE WITH THEM SO YOU SHOULD SEND THEM OFF TO BE BUTCHERED UNLESS YOU 'GET REAL' WHEN THE FOOD SUPPLY DISAPPEARS.

BEST TO HAVE THEM INSEMINATED BY A VET AS KEEPING A BUCK CAN BE A DANGER PROBLEM IF THEY ARE AGGRESSIVE AS WELL AS THE FEEDING COST.

TIME AND CONDITIONS WILL TELL US ALL HOW WE FEEL ABOUT USING OUR ANIMAL STOCK FOR FOOD WHEN WE START STARVING.

HILARIOUS SOUTHPARK EPISODE: THE ROYAL PUDDING

http://www.southparkstudios.com/full-episodes/s15e03-royal-pudding

Thursday, June 16, 2011

TSA “Security Exercise” Covers 3 States, 5000 Miles

http://www.infowars.com/tsa-security-exercise-covers-3-states-5000-miles/

If you’re still living under the delusion that the TSA is just restricted to airports then think again. A joint VIPR “security exercise” involving military personnel has Transportation Security Administration workers covering 5,000 miles and three states, illustrating once again how the TSA is turning into a literal occupying army for domestic repression in America.

MARTIN ARMSTRONG: TWO MORE ARTICLES

CREDIT TO WERNERUL FOR THE LINKS

http://armstrongeconomics.files.wordpress.com/2011/06/armstrongeconomics-australia-raising-interest-rates-to-fight-inflation-061511.pdf

http://armstrongeconomics.files.wordpress.com/2011/06/armstrongeconomics-time-for-greece-to-default-061611.pdf

MARTIN ARMSTRONG: The June 13th/14th Turning Point 2011.45

http://armstrongeconomics.files.wordpress.com/2011/06/armstrongeconomics-june-13-14-turning-point-061411.pdf

Sinclair - You’re Out of Your Mind If You Sell Gold Assets Now

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/6/16_Sinclair_-_Youre_Out_of_Your_Mind_If_You_Sell_Gold_Assets_Now.html

Tuesday, June 14, 2011

SWAT Team Mania: The War Against the American Citizen

http://lewrockwell.com/whitehead/whitehead32.1.html

U.N. Agreement Should Have All Gun Owners Up In Arms

 

U.N. Agreement Should Have All Gun Owners Up In Arms

TUCSON, AZ - JANUARY 15:  A woman shoots a gun...
Image by Getty Images via @daylife
It may not come as surprising news to many of you that the United Nations doesn’t approve of our Second Amendment. Not one bit. And they very much hope to do something about it with help from some powerful American friends. Under the guise of a proposed global “Small Arms Treaty” premised to fight “terrorism”, “insurgency” and “international crime syndicates” you can be quite certain that an even more insidious threat is being targeted – our Constitutional right for law-abiding citizens to own and bear arms.

http://blogs.forbes.com/larrybell/2011/06/07/u-n-agreement-should-have-all-gun-owners-up-in-arms/

2004 Pentagon Report warned:

http://www.whatdoesitmean.com/index1492.htm

“Climate change over the next 20 years could result in a global catastrophe costing millions of lives in wars and natural disasters.

A secret report, suppressed by US defence chiefs and obtained by The Observer, warns that major European cities will be sunk beneath rising seas as Britain is plunged into a 'Siberian' climate by 2020. Nuclear conflict, mega-droughts, famine and widespread rioting will erupt across the world.

The document predicts that abrupt climate change could bring the planet to the edge of anarchy as countries develop a nuclear threat to defend and secure dwindling food, water and energy supplies. The threat to global stability vastly eclipses that of terrorism, say the few experts privy to its contents.

'Disruption and conflict will be endemic features of life,' concludes the Pentagon analysis. 'Once again, warfare would define human life.'

U.N. Food Agency Issues Warning on China Drought

http://www.nytimes.com/2011/02/09/business/global/09food.html?_r=1

The United Nations Food and Agriculture Organization said Tuesday that 12.75 million acres of China’s 35 million acres of wheat fields had been affected by the drought. It said that 2.57 million people and 2.79 million head of livestock faced shortages of drinking water.       

Monday, June 13, 2011

Paul B. Farrell: AN ARTICLE FOR THOSE WHO WANT TO THINK

Ayn Rand’s ‘Death of the Soul of Capitalism’ Commentary: Self-destructive narcissists are sabotaging Adam Smith’s ideal

http://www.marketwatch.com/story/ayn-rands-death-of-the-soul-of-capitalism-2011-06-14?link=MW_home_latest_news

"We have lost the collective spirit that led 57 capitalists to risk their lives and fortunes signing of the Declaration of Independence. That’s dead. Today it’s “every man for himself” in a capitalist anarchy. "

Friday, June 10, 2011

FROM JSMINESET.COM

Jim’s Mailbox
Jim,
Dr. Philip Verleger’s knowledge of the oil industry is, in our opinion, second to none. We had seen the announcement and e-mailed Philip on Sunday and we both agreed that the Saudis “were up to something.”
This decision, we thought, coming only a few days before the OPEC meeting… which by then we knew would be rancorous and would end in an “ugly” fashion, meant that the Saudis were moving in rather unusual ways and were about to do something that would be detrimental to the world’s oil consumers without doing damage to their own global stature. Thus, when the meeting ended amidst confusion, Dr. Verleger sent us the following note, reprinted here in full with his permission. He said:
"Saudi Arabia has just pulled off one of the most remarkable public relations operations in many years. Last Sunday Saudi Aramco announced it was reducing the discount offered for its medium and heavy grades of crudes. The reductions in the discounts will make Saudi crude oil less profitable to refine and should, other things being equal, lead to a reduction in purchases of Saudi crude. The cuts will, however, likely boost Saudi revenue – the goal of every profit maximizing entrepreneur.
However, the country’s leaders cannot be seen to be trying to raise prices, even if it is the optimal decision for an oil producer. Thus, the country’s oil minister went to Vienna and called for an increase in quotas. When the proposal was rebuffed by six other members of the organization, the oil minister held a press conference and said Saudi Arabia would offer more oil. It was a brilliant coup. Saudi Arabia comes out looking like a friend to the west, promising to produce more oil. In response, energy policy officials in consuming countries will back off from their threats to release strategic stocks.
In the mean time, the firms that buy and refine crude oil are left holding the bag. Their losses will mount if they buy more crude. On the other hand they will be attacked by politicians across the globe if they do not buy oil and build inventories for the later part of 2011.
The really stunning development was the failure of any of the reporters to understand the game. I can understand the failure of market analysts in New York to understand the Saudi strategy. These individuals have been taught and now teach that the Middle East and OPEC quotas are everything. Truly amazing!"
Philip is right; the Saudis have out-smarted everyone. This ploy was sheer brilliance on their part and we stand back and applaud them for what they’ve been able to pull off. Oil prices sky-rocketed and will head higher still and the Saudis look not only blameless, they look like the good guys in the story. You have to stand back in awe and admire the sheer brilliance of the chess move. Check and check mate! Oh, and prices are heading materially higher even from here.
CIGA Lenny

Wednesday, June 8, 2011

MARTIN ARMSTRONG: IS THE END NEAR?

CREDIT TO WERNERUL FOR THE LINK

http://www.martinarmstrong.org/files/Is%20the%20End%20Near%2006-05-2011.pdf

"There is a danger that some brain-dead economists are actually saying that we may need a war to drag the economy out of the depths from where it lies currently.

Let me make this PERFECTLY CLEAR!
War destroys the economy it does NOT reverse an economic downtrend. "


It appears we will see rising interest rates overall globally as capital shifts to private sector assets (non-real estate) as an alternative to bond investment.

Business is still not likely to borrow to expand for the same reason it did not at the bottom of the Great Depression.
WITHOUT CONFIDENCE IN THE FUTURE, NOBODY WILL BORROW TO INVEST. Until they start to figure this out, we are in a downward spiral.

Tuesday, June 7, 2011

Jim Sinclair - Gold to Exceed $12,500 to Balance US Debt

Case: The Mathematics of Gold

http://www.jsmineset.com/2011/06/07/jims-mailbox-714/
Dear Jim,
The following is an analysis of your Mathematics of Gold. The analysis was conducted by our summer intern and we thought it may be of interest to your readers.
Kind Regards
Isaac Matzner
Research Coordinator
Auerbach Grayson & Company
25 West 45th Street
New York, NY 10036 USA
Tel. 1-212-453-3549
Fax. 1-212-557-9066
www.agco.com

Case: The Mathematics of Gold
International US dollar debt: $4.4792 trillion (approximately 32% of total US debt of $14.32 trillion)
Portion of international US dollar debt held by China: $1.1449 trillion
90% of total US international debt less portion held by China = 0.90 * ($4.4792 trillion – $1.1449 trillion) = $3.00087 trillion (A)
50% of international US dollar debt held by China = 0.50 * $1.1449 trillion = $0.57245 trillion (B)
Total foreign currency reserves held by People’s Bank of China (Central Bank): $3.045 trillion
Therefore, A + B = $3.57332 trillion (C)
Total US holdings of gold = 8,133.5 tonnes = 8,133.5 * 35,273.9619 = 286.900770 million ounces (D)
Therefore, C/D = $12,454.8986 per ounce ~ $12,455 per ounce
Balance of Payments is an account of financial flows between a country and the rest of the world. It consists of the Current account and the Capital account. Current account consists of the trading account (exports minus imports of good and services), income account (factor payments from abroad minus factor payments to abroad) and the transfer payments account (foreign aid received minus foreign aid disbursed). Capital account, which is in surplus on account of increasing foreign investments in US treasury securities and in deficit for increased US investments in foreign securities and reserves. A surplus in the current account should always be balanced by a deficit in the capital account and vice-versa. That is, the balance of payments must always balance.
Suppose the balance of payments account does not balance. Then there are two options to balance BOP, first, the Central Bank of the country (in this case US Federal Reserve) should increase/reduce its reserves, that is the Central Bank’s holdings of foreign currencies and gold to bring BOP to balance. Second, if the Central Bank cannot increase/decrease its reserves or has decided against changing its existing reserve holdings, then the exchange rate of the country’s currency will be decided by the market and the government will not have any control over its currency.
Now, US has a current account deficit and the BOP is balanced by capital account surplus. If the BOP was not in balance and if US wanted to keep the existing exchange rates fixed, assuming it had a BOP deficit (international debt we calculated above), then it would either have to sell foreign exchange reserves or appropriate amount of gold to the tune of $12,455 per ounce. Thus, to balance the US government balance sheet, its holdings of gold should be valued at $12,455 per ounce.
Present market value of gold = $1,528.80 per troy ounce = $1,528.80 / 1.09714286 per ounce = $1,393.44 per ounce. This means that gold is heavily undervalued at it existing market price. Thus the price of gold has to be raised 8.94 times ($12,455/$1,393.44) ~ 9 times to the present price of gold for US balance sheet to balance.
References:
1. Link: http://en.wikipedia.org/wiki/United_States_public_debt
2. Link: http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt
3. Link: http://en.wikipedia.org/wiki/Foreign_exchange_reserves
4. Link: http://en.wikipedia.org/wiki/Gold_reserve
5. Link: http://finance.yahoo.com/
Ayan Kole,
Michael F. Price College of Business,
University of Oklahoma

The $2.5 Trillion Tragedy: What America Has Given Up For 10 Years Of Bush Tax Cuts... and Counting

http://www.commondreams.org/headline/2011/06/07-8
Today marks the 10th anniversary of former President George W. Bush signing into law his 2001 tax cuts (he passed a second round in 2003). While doing so, Bush promised prosperity and growth, but the nation got neither.
President Bush smiles after he signed his $1.35 trillion tax cut bill Thursday, June 7, 2001 at the White House in Washington. (AP Photo/Ron Edmonds) The cost of these budget-busting 2001 and 2003 tax cuts was, as estimated by Citizens for Tax Justice, roughly $2.5 trillion through 2010. But America didn’t have to go down this route of cutting taxes and hoping for growth to miraculously appear. There were other policy options available to policymakers.
ThinkProgress, using data on various social spending projects from the National Priorities Project — which does these calculations for the cost of the Iraq and Afghan wars — has estimated ten other possible policies we could’ve paid for at the same $2.5 trillion price of the Bush tax cuts. While not all of these policies are currently performed by the federal government, they do represent an accurate calculation of the monetary tradeoffs, and each one individually would cost the same as the Bush tax cuts. Here are ten alternatives we could’ve pursued instead:
- Give 122.7 Million Children Low-Income Health Care Every Year For Ten Years
- Give 49.2 Million People Access To Low-Income Healthcare Every Year For Ten Years
- Provide 43.1 Million Students With Pell Grants Worth $5,500 Every Year For Ten Years
- Provide 31.5 Million Head Start Slots For Children Every Year For Ten Years
- Provide VA Care For 30.7 Million Military Veterans Every Year For Ten Years
- Provide 30.4 Million Scholarships For University Students Every Year For Ten Years
- Hire 4.19 Million Firefighters Every Year For Ten Years
- Hire 3.67 Million Elementary School Teachers Every Year For Ten Years
- Hire 3.6 Million Police Officers Every Year For Ten Years
- Retrofit 144.6 Million Households For Wind Power Every Year For Ten Years
- Retrofit 54.2 Million Households For Solar Photovoltaic Energy Every Year For Ten Years
The tradeoffs paint a stark picture. For the same price as the Bush tax cuts, which did little to help the economy, we could’ve sent tens of millions of students to college, retrofitted every household in America with the capacity to generate alternative energy, hired millions of firefighters and police officers, effectively ended our national shame of having kids who lack health care coverage, or put millions of more teachers into classrooms. But instead, Congress passed budget-breaking tax cuts, and then went on to pass even more in 2003. In 2010, Congress then went on to renew the Bush tax cuts for an additional two years, and the political will for the sort of public investments listed above appears to have dried up.

Inside Job Video - Full Movie

The film traces the rise of a rogue industry which has corrupted politics, regulation, and academia. http://www.informationclearinghouse.info/article28189.htm
 
EIGHT 15 MINUTE SEGMENTS
 
YOU WILL WONDER WHY ALL THESE PEOPLE AREN'T IN JAIL FOR TREASON

Monday, June 6, 2011

The Rise of the Second-String Psychopaths

The great writer Kurt Vonnegut titled his final book A Man without a Country.
The United States corporate and government spheres have become, Vonnegut suggested, a perfect habitat for psychopaths. What has allowed so many psychopaths to rise so high in corporations, and then government, he wrote, “is that they are so decisive. They are going to do something every fuckin’ day and they are not afraid. Unlike normal people, they are never filled with doubts, for the simple reason that they don’t give a fuck what happens next. Simply can’t. Do this! Do that! Mobilize the reserves! Privatize the public schools! Attack Iraq! Cut health care! Tap everybody’s telephone! Cut taxes on the rich!
http://www.informationclearinghouse.info/article28256.htm

http://www.commondreams.org/view/2011/06/05-1

Wednesday, June 1, 2011

Greg Hunter’s USAWatchdeog.com

Dreaded Double-Dip Is Here
http://usawatchdog.com/double-dip-in-housing-is-here/

John Williams of Shadowstats.com. He has been warning about a sinking economy for months and has been saying any good news is nothing more than “bottom bouncing.” In his most recent report, Williams said, “Most major economic reports in April disappointed consensus expectations and either were flat or negative for the month—including real retail sales, industrial production, housing starts and durable goods orders. Where first-quarter GDP growth slowed versus the fourth-quarter, the stage is set for the GDP to turn negative, again, sometime in the next two quarters, reflecting what would become an official double-dip recession.” Housing has been an unqualified disaster with housing starts and new home sales off 75% from the 2005 peak. Existing home sales are off nearly 30%, and of the homes that are sold, nearly 40% are foreclosures. Four in 10 homes sold as distressed properties do not signal a healthy economy—just the opposite.

Offshoring has destroyed the economy By Paul Craig Roberts

Among the serious consequences of offshoring are the dismantling of the ladders of upward mobility that made the US an “opportunity society,” an extraordinary worsening of the income distribution, and large trade and federal budget deficits that cannot be closed by normal means. These deficits now threaten the US dollar’s role as world reserve currency.
http://www.informationclearinghouse.info/article28212.htm