JACOB G. HORNBERGER: WHAT JAMES FOLEY’S MURDER SAYS ABOUT THE U.S.

http://fff.org/2014/08/29/what-james-foleys-murder-says-about-the-u-s/

MARTIN ARMSTRONG'S LATEST BLOG POSTS

Gold at $2000?

Posted on August 31, 2014 by Martin Armstrong

QUESTION: Marty, do you think it is even possible for gold to close at $2,000 by year-end? This just seems to be the same story over and over again.

Thanks

SK

(1864 high with 1992 low)

ANSWER: Sorry, no. Here is a chart of gold back to 1264. There is not even a pattern like that, which has EVER taken place. I am really at a loss why gold analysts keep proclaiming the same thing costing people their life savings. This is not how professionals trade. We have a huge professional client base because they have learned the hard way that OPINION is nonsense and not reliable. Is this not just a process of churning out novices and causing them countless losses to line the pockets of the pros. This is seriously impacting the lives of people and that needs to be respected.

Technically, this is the primary support channel in gold. It has not changed. These forecasts for gold are entirely out of context and ignore the entire world economic trends. You cannot even argue gold rises with war for that is not even true. Gold did not rally during World War II because it was fixed. Commodities did not rise because the government put in wage and price controls. This is not a simple if then do this formula. It takes a bit more - if then do this else do that.

The major resistance in gold stands at $2300. That is the old 1980 high in today’s terms adjusted for inflation. Gold has NOT been the hedge against inflation as touted. If you bought gold in 1980 at $875 and the Dow Jones Industrials at 1,000, you have about $1300 for gold and 17,000 for stocks. That cannot be excused away. Gold isNOT a hedge against inflation, it is NOT money for you cannot pay your mortgage with it unless you sell it for dollars for the definition of “money” is the acceptance by society as a medium of exchange. It is not even legal tender for you cannot pay your taxes with it without converting to dollars. It is an investment – plain and simple.

Gold remains the historical hedge against government. You should never reject all other investments waiting for gold to finally rally. I retired from the gold business after 1980 BECAUSE the model project a 19 year bear market. Sorry if that is impatient. But waiting 19 years is a bit too much for me personally. NOTHING always rises. There is a cycle to everything. You need to create databases to see what is even possible – not make up shit.

When gold has been money it DECLINES with inflation and rises with DEFLATION. It has never been a store of value for that would imply a communistic state where everything is fixed from assets and wages to ensure that money buys the same every day. These are simply stories for child for they cannot be real. The idea that money is a store of value is a pipe-dream for those who do not understand how to even invest so they want to prohibit everyone else from making money since they do not.

Gold will rally when it rises in ALL CURRENCIES – not just dollars. To even claim gold will rise to $2,000 implies the dollar will crash. What about BIG MONEY that really drives the global economy. Where does it go? Rubles, Yuan, Euros? Come on. The worst is yet to come but that is a Sovereign Debt Crisis and I hate to tell these people it is at an advanced stage in Europe and Japan. We have not even gotten a taste of it yet in the USA – only a whiff with events like Detroit. Sorry, the dollar’s rise will still center stage and the will set in motion the economic decline from the outside moving in.

Gold’s role will be completely different. We are addressing this in the upcoming special report. This is covering gold in all major currencies so you can see the change in trend and when it is really due. This report is over 300 pages.

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Draghi Asset-Backed Leverage for Euroland

Posted on August 30, 2014 by Martin Armstrong

Mario Draghi of the ECB (European Central Bank) has cut a deal to fight inflation with BlackRock to advise on a possible bond-buying scheme to flood the market with euro cash. BlackRock will help the ECB to design a program to buy asset-backed securities as part of the regulator’s plans to ease credit conditions in the Euroland. Draghi, ex-Goldman Sachs, believes that a scheme would create demand for securitizations within the Euroland and provide incentives for lending to credit-starved businesses to get the economy going again when the banks have failed.

BlackRock  had been appointed by the Greek central bank this year to probe its four big banks’ balance sheets.  It was BlackRock which also worked with the Central Bank of Ireland during the Eurozone debt crisis. It will now provide the ECB with advice on the design and implementation of a potential ABS purchase program.

Mario Draghi has suggested that the central bank could buy packages of bank loans to households and companies as one way of fighting deflation. Effectively, this is the same idea that was behind the real estate boom going into 2007. Consequently, it is always the same scheme over and over again. Draghi has also warned that too few simple asset-backed securities were being sold in Europe, which needs the leverage from his point of view.

Paul Craig Roberts: Labor’s Demise Is America’s Demise

http://www.paulcraigroberts.org/2014/08/31/labors-demise-americas-demise-paul-craig-roberts/

Thoughts for Labor Day

Brought Up To Believe

https://www.lewrockwell.com/2014/09/bionic-mosquito/brought-up-to-believe/

I was brought up to believe…

…King George was a tyrant.

…Americans fought for independence.

…Americans won their independence.

…the founding fathers were selfless.

…Robert Morris was America’s financier.

…government exists to protect my life and property.

…the time during the Articles of Confederation was chaotic.

…a written constitution is a check on government expansion.

…the Constitution protects my rights.

…Thomas Jefferson favored a smaller central government.

…America was never about Empire.

…Lincoln saved the Union.

…Lincoln cared about the slaves.

…Lincoln was honest.

…the West was wild.

…Japan’s aggression in Asia was a shock to the US government.

…Germany started the Great War.

…Wilson made the world safe for democracy.

…democracy represents the best form of government.

…democracies are reluctant to go to war.

…laissez-faire capitalism caused the great depression.

…Hoover was a do-nothing president.

…Hitler started the war in Europe.

…Stalin was a victim of Hitler’s aggression.

…Japan’s attack on Pearl Harbor was a surprise.

…World War II ended the depression.

…World War II was the good war.

…World War II was fought by the greatest generation.

…the United States defeated Hitler….Germany was the only combatant to commit atrocities in Europe.

…the atomic bombs ended the war.

…the atomic bombs saved one million lives.

…the US government would stand against world government.

…the US military fights for my freedom.

…the US military fights for the freedom of other, less fortunate, people.

…the global presence of the US military is an unwanted burden.

…foreign wars are almost…romantic.

…JFK was shot by a lone nut.

…by saving and working hard, you will retire into the American dream.

…money and banking must be managed by the state.

…the United States is a nation of laws, not men.

…Reagan was a conservative.

…there is a meaningful difference between democrats and republicans.

…a third party would provide the solution.

…CATO is a friend of liberty.

…Milton Friedman was a free-market economist.

…central banking is not central planning.

…central banks are necessary to regulate markets.

…nineteen men could…well, you know.

…they hate us for our freedom.

…a police officer’s job is to protect and to serve.

…Palestinians are a threat to Israel.

Reprinted with permission from Bionic Mosquito.

Paul Craig Roberts: The West, the greatest cause of War in human history, stands stripped of all Legitimacy

http://www.paulcraigroberts.org/2014/08/30/west-greatest-cause-war-human-history-stands-stripped-legitimacy-paul-craig-roberts/

The Donetsk National Republic States The Facts

“Every time you come to Russia with a sword, from a sword you will perish.”

Obama’s “Catastrophic Defeat” in Ukraine

http://www.counterpunch.org/2014/08/29/obamas-catastrophic-defeat-in-ukraine/

MARTIN ARMSTRONG'S LATEST BLOG POSTS

Can the Internet Also Replace Career Politicians?

QUESTION: Marty, why does politics attract such corrupt people? It seems to be a global problem?

Curious

DU

ANSWER: I have actually thought a lot about this issue and I believe it boils down to the old problem of when the cat’s away the mice will play. Career politicians fall into the natural human trap where they effectively have no restraint. They quickly realize that the people do not pay attention to anything. They are more concerned about sports and TV shows than they are about how government is administered. We get what we pay for.

It is the same thing with an employee. Treat them fairly and they take advantage. Excuse being late and they gradually drift in later and later. Children do the same. A child will routinely play one parent against the other to get their way. So if there is nobody there really making them do the right thing, they end up taking advantage. There is little respect for the public no matter what these people profess. That is just the way it is. Sorry.

Those who followed California’s gun debate may remember State Senator Leland Yee’s (D-Calif.) tireless efforts to increase gun control and safety in his state. It seemed genuine on the surface. However, Senator Yee was caught conspiring to illegally deal firearms alongside known gangster Kwok Cheung Chow, a.k.a. Shrimp Boy, a.k.a. the “dragon head” of the Ghee Kung Tong Freemason lode in San Francisco. The  FBI investigation was damming as was the subsequent indictment. You can read the transcripts from the FBI investigation, and they’re rather shocking. But think about it. Make guns illegal and the price rises for illegal guns. Interesting economics that far too often result’s in Shakespeare’s line - ”The lady doth protest too much, methinks” (1602 play Hamlet )

Far too many do exactly opposite of what they pretend to champion. Is Legarde really trying to help society, or bail out the bankers without jail time? I think all her proposals are geared to bailing out contributors – not society.

This is why I have reached the OPINION that Republics do not work – just look at Rome and the real story behind Julius Caesar crossing the Rubicon. The only viable form of government would be a real democracy where people vote on every issue. Margaret Thatcher tried to introduce the Poll Tax and she was hated for it. But what she believed was that if everyone had to pay some tax they would then pay attention to government and be that check and balance. We had long discussions on this topic. Today, I believe with the internet we are closer to that concept of reforming society that was Thatcher’s real idea to make the people more responsible. The internet can replace career politicians if we each had to vote on a proposal. Just think about it. No stuffing unrelated special deals for people who pay. No more lobbying and free trips or pay-offs to start wars. No more militarization of police to protect government from the people.

Local libraries can have a voting booth for those without a computer. One vote per tax id number – i.e. SCC# in the USA. Technology can eliminate all currency and we move to electronic, but we can also take it to the next step and replace career politicians. Just think how different the future will be. Margaret – your dream may one day be reached with a responsible engaged public. If you can poll the people and show Obama’s rating is at best 39%, you can expect those people to also vote from their laptop.

Was your Social Security number stolen? Here’s what to do

http://www.marketwatch.com/story/what-to-do-if-your-social-security-number-was-stolen-2014-08-20

Distracted Driving? It's Ok If You're A COP!

http://market-ticker.org/akcs-www?blog=Market-Ticker

Police Officer Will Not Be Charged For Killing Napster Exec While Texting And Driving — Because It's Apparently OK For Police To Do That

Read more: http://www.businessinsider.com/police-officer-will-not-be-charged-in-killing-of-napster-executive-2014-8#ixzz3Bqo5ckRY

Russian Central Bank prepares bill to create SWIFT analog in Russia

http://en.itar-tass.com/economy/746886

Central Bank First Deputy Chairman Georgy Luntovsky said in July that SWIFT was discussing a possibility with the Russian regulator to establish an operational center in Russia

Paul Craig Roberts: Washington Piles Lie Upon Lie

http://www.paulcraigroberts.org/2014/08/28/washington-piles-lie-upon-lie-paul-craig-roberts/

The Time Is Ripe For A False-Flag Attack On American Soil

http://www.zerohedge.com/news/2014-08-29/time-ripe-false-flag-attack-american-soil

"Government engineered false-flag terrorism is a historically established fact. With all this hype circling ISIS, I have to suggest that maybe, just maybe, we are being given the ultimate scapegoat for the ultimate false flag attack. I believe the time is in fact ripe for a large scale false-flag on American soil."

The goal will be to terrify you and those around you into seeking out a more powerful, more centralized government authority to protect your security, to provide cover for the continued planned collapse of American society into third world status, and out of these ashes, the centralization of the political and financial foundations of our world into the hands of an elite few.

MARTIN ARMSTRONG'S LATEST BLOG POSTS

Largarde under Criminal Investigation for Corruption in France

Christine Lagarde has long been suspected of corruption yet of course the International Monetary Fund’s (IMF) board proclaimed they firmly stand behind her because she has raised the stature of the IMF to a world player once again thanks to Obama and their joint agenda to raise our taxes to 80% and confiscate 10% of everyone’s bank account to pay for the bankers. Christine Lagarde is facing a criminal investigation in France that is tied to a political corruption probe dating from 2008.

The allegations by French magistrates earlier in the week placed Lagarde squarely under formal investigation for “negligence” after questioning her in Paris for a fourth time. Under French law, you do not move to a formal investigation without probable cause so it is the effective step under common law (UK/USA) of a grand jury investigation.

This arises from allegations that tycoon Bernard Tapie won a large arbitration payout due to political connections when Lagarde was French Finance Minister. Anyone would normally step down to prevent any taint from impacting the IMF. The fact that she does not illustrates the power play at stake. Her lawyers intend to appeal that decision to run the close so her term expires at the IMF by July 2016.

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August 29, 2014Leave a reply

Germany Unemployment Jumps

Merkel is under serious pressure from two fronts. The sanctions against Russia are having a major impact upon the European economy as a whole. This has caused Merkel to bluntly state that the US cannot solve all the problems of the world. Indeed, what she is not saying is that these US policies may be causing more problems than she can handle. Europe is caught between two warring powers, US and Russia, who are still stuck in the old empire way of thinking. Putin sees the power of a nation as its size and I cannot say that the US is that much different. OK, the US does not want to own the world, just occupy it militarily for power. Obama just said“The United States is and will remain the one indispensable nation in the world…“. That statement is impossible for no nation can remain on top and that is the same thinking that existed in every empire from Babylon to Britain going into World War I. The US squanders its wealth on military and Putin wrongly thinks he needs territory to gain respect and power. Europe cannot impose economic sanctions on Russia without killing it’s already weak economy and Obama is too dense to understand that.

Then Merkel is telling France it has to reform. The French economic implosion cannot be dealt with by increasing the scope of socialism. Hollande also is in his empire building role where socialism would work if he could only stop people from leaving and transform the country into a dictatorial communistic state. He cannot see that his ideas are fundamentally flawed and have been attempted both in China and Russia with failure. France will be forced to either let go, as did China, or hand it all to an oligarchy, as did Russia.

The rising unemployment in France is becoming a contagion as the number of unemployed in Germany rose slightly more than usual in the holiday month of August. Unemployment exceeded the previous month by 30,000 reaching a total of 2.902 million unemployed according to the Federal Employment Agency (BA) as announced on Thursday in Germany. On average, in recent years, the increase was approximately 22,000. The unemployment rate increased from 6.6 to 6.7 percent and this is in the core economy of Europe. The further you move out of Germany the higher the unemployment. This trend will tear down the German economy as its exports slowly spiral down and it will go into free-fall economic decline after 2015.75.

The entire idea of the Euro was to increase trade and reduce war with one government. Yet trade is also defeated with sanctions against Russia at a time when the European economy is collapsing anyhow all because political leaders cannot grasp that the world is all connected and we now need each other far more than we did before. Brussels is only tearing Europe apart raising the risk of civil war as the economy declines that no single government can prevent. The US squanders its wealth on military and this diminishes its comparative advantage as the NSA has usurped technology that was the key to the American Internet Revolution. China is militarizing for it thinks it needs to flex its new-found muscles and Russia is still trying to relive the old dream of Empire.

The world economy is collapsing and war becomes inevitable for everyone blames someone other than themselves. We need serious rethinking not to mention and world revision of the global monetary system and an overhaul of global debt outlawing governments from every borrowing again at the national levels. The world will be starkly different after 2032. We better realize what we are doing to save the day. Monumental change is on the horizon.

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August 29, 2014Leave a reply

$40 Million Lawsuit Filed in Ferguson

Missouri police have been sued for $40 million over actions in Ferguson protests by several people alleging civil rights violations through arrests and police assaults with rubber bullets and tear gas adopting ”militaristic displays of force and weaponry,” and engaged U.S. citizens “as if they were war combatants.”

It will be interesting to say the least for this is the trend in motion – the militaristic police that have taken this to a whole new level. Even the tiny town of Keene, N.H., it was reported that Mayor Kendall Lane whispered to Councilman Mitch Greenwald during a December city council meeting that they were going to get their own tank,.The town is tiny with a population of just 23,000. They have had only two murders since 1999. The U.S. Department of Homeland Security gave them a $285,933 grant to purchase a Bearcat manufactured by LENCO, an eight-ton armored personnel vehicle.

It is clear. Homeland Security is arming against the people on a grand scale. The definition of “terrorist” is now anyone who disagrees with the government. The plain truth is they have seen the riots in Europe and Thailand watching how people rise up when the economy turns down. They know that is coming in this direction.

What we saw in Ferguson is how the police are now trained and operate no different from a standing army. They are no longer “civil” in nature. Homeland Security has also militarized the nation and proof this is not a black or white issue as it was in the 1960s, is the simple fact that they are militarizing even small all white towns.