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As we are seeing more and more insanity going about with debt levels incurred by our governments being subjected to its people, bringing people’s taxes to ludicrous levels, stifling people’s hope and desire to live a good life and seeing more and more people losing their jobs, not to mention many well educated people not being able at finding a decent job, or those that are being asked to work more and more for less and less. It seemed fitting for us to do something about it. If being big entails laying off thousands of people, I would rather stay small and sleep well at night. Just look at what Bombardier did not long ago, it received a billion dollar handout on our backs and then fired 7000 people the following day. That’s insanity! Especially given the preferred A stock shareholders, not the mom and pop shareholder’s, get immense profits as a resulting bailout. Ottawa or even Canada has not yet gotten to the 720% inflation level that Brazil is going thru. But we’re to take heed and stay informed. Last month Finance minister Morneau tabled his budget on March 22nd and he made no bones about telling Canadians Bail-ins are the coming norm here in Canada. With Negative Interest Rate Policies also just around the bend, NIRP are going to come out of the Bank of Canada in the not so distant future. Prices are increasing very subtly but they are creeping up, d i s p o s ab l e income is ensnared
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by big corporations. Ontario has gone thru its second set of Hydro One share sales (and in case you are sleeping at the wheel, Ontario sold Hydro One because it is broke). Ontario had no choice but to enter severe austerity measures. Now watch this unfold. Most people are very unaware of these policies and their ramifications and what it does to an economy. Instead choosing to trust their elected officials to come to the rescue. But as more and more people are waking up to the absurdity, perhaps beginning the process of heeding the message is needed. Therefore, “To this design I humbly desire to be some way serviceable, in the strength of that grace by which I am what I am, hoping , I will be graciously accepted by Him that smiled on the widow’s two mites cast into the treasury, as an intention to magnify it and make it honourable; and if I can but gain that point, in any measure, with some, I shall think my endeavours abundantly recompensed, however, by others, I and my performances may be vilified and made contemptible.”
Editor’s Picks There are many infamous con games that have been foisted upon the public for millennia. Probably none more enduring than that of Charles Ponzi which bears his name as its moniker. Yet, there’s also been another who was also just as “daring” when it came to finding ways as to extract monetary gains by illgotten means: Victor Lustig. Lustig is best known as “The man who sold the Eiffel Tower.” However, it was one of his other cons that came to mind as I was thinking about the current state of monetary policy we now find ourselves in. Lustig’s other con was a device he slated would print $100 bills. But it had a problem. Unbeknown to his mark, this problem was also part of the deception. The problem was (as stated by Lustig) – it could only print 1 bill every 6 hours. The genius was; located within the machine it contained two genuine $100 bills. After that – blanks. You could be long gone, and quite far with that kind of head start back then. Yet, it’s once the con, ruse, or scam is finally exposed one thing is certain: You don’t want to still be around or found. As with any con game the perpetrator knows it’s all a con. In other words, “Duh!” Yet, if you listen closely to both past as well as present Fed. members you can’t help but notice by way of their current arguments, as well as, proposals for future monetary policy. The one’s who’ve truly bought into “the con” is: themselves! Nowhere has this been on display more than the current public writings and musings of former Fed. Chair Ben Bernanke.
If you read his latest (which I’ve tried but can’t bear that much comedy in one sitting) he lays out what he thinks (or believes) should now take place involving Congress, the Administration, and the Fed. His great idea? Create and “fill” some arbitrary account which only the Fed. or its appointed designates have control of as to “empty” or “fill” as “Congress and Administration” see fit. But here’s the punchline, ready? “Importantly, the Congress and Administration would have the option to leave the funds unspent. If the funds were not used within a specified time, the Fed would be empowered to withdraw them.” (Insert laugh track here) Remember, this is coming not only from the former Chair, but also, one who is quite possibly the most emblematic of current thought residing throughout central bank policy makers with an additional caveat: He’s no longer bound by the position where his thoughts need to be guarded as a voting member of such policy lunacy. In other words: he can now speak his mind openly. To which I’ll muse – that’s no laughing matter when you consider how prevalent Keynesian economics now dominate. The latest from Bernanke exposes just how far down this “rabbit hole” central bankers have gone. So far I’ll contend – its frightful. e.g., They actually believe this subterfuge. When I’m giving a talk, or engaged in conversation, I often use the term “con game” when describing current monetary policy and its effect on business and more. Often the term “con” at first seems to put people on the defensive as if I’m using hyperbole, or trying to make a point by using over the top
styled rhetoric. The problem is (I’ll explain) it is exactly that. e.g., Many forget “con” stands for confidence in con-game. And now that the $Dollar along with just about every other currency is all fiat based: confidence is the only variable that supports it in a fiat system. Period. And once it’s lost just as with any “con” – it ends with blinding speed and consequences.” This is the current danger now inherent after years of QE, NIRP, ZIRP, and every other acronym that represents some form or another of central bank intervention within the markets. So adulterated have the markets now become with central bank meddling; describing them without using quotes such as “markets” seems reckless. For these are far from the markets once thought to represent free market capitalism. Today they are “markets” in name only. For just like currencies – they’re no longer backed by anything once considered tangible like gold or actual net profits via 1+1=2 accounting. At some point printing ad infinitum, as well as, companies reporting (ad infinitum!) losses of Billions in sales and revenue while declaring “We’re killing it!” via Non-GAAP accounting will make even the most ardent supporter of Keynesian thinking question this new reality. The absurdity can only go on for so long, because, to keep up the ruse (just like suckers) more absurdity is needed. We may be reaching that end point after all these years. To read the complete story, go to https://markstcyr.com/2016/04/17/ absurdity-when-the-con-believes-thecon/
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“Until the control of the issue of currency and credit is restored to government and recognized as its most conspicuous and sacred responsibility, all talk of the sovereignty of Parliament and of democracy is idle and futile.” — Canadian Prime Minister William Lyon Mackenzie King, 1935
VIRTUAL MONEY COMING
by Michael Snyder
The biggest bank in Norway is calling for the complete and total elimination of cash. Many local bank branches in Norway already don’t deal in cash, but that is not good enough for DNB. They want a blanket ban on the use of cash, and they are selling this as a way to crack down on criminals and money launderers. But in the end, the truth is that they want to be able to force everyone in society to use the banks and it would enable them to collect fees on almost every transaction. It is an agenda that is being driven by greed, but it could also open the door for great tyranny. Unfortunately, we are not just seeing aggressive movement toward a cashless society in Norway. It is also happening in Sweden, in Denmark and in many other nations all around the globe. The Beast system is rising, and yet very few people out there even seem alarmed by this. When I first learned about what was happening in Norway, I was absolutely stunned. I have ancestors that came over to America from over there, and I had no idea that this was happening. The following comes from the International Business Times… The largest bank in Norway has called for the country to stop using
cash, the Local reported Friday. This comes as the latest move in a country that has been leading the global charge toward electronic money in recent years, with several banks already not offering cash in their branch offices and some industries seeking to cut back on paper currency. Of course this idea is being sold as something that will be really good for Norwegian society. DNB promises that eliminating cash will help authorities crack down on criminal activity and money laundering. Here is more from the International Business Times… “Today, there is approximately 50 billion kroner in circulation and [the country’s central bank] Norges Bank can only account for 40 percent of its use. That means that 60 percent of money usage is outside of any control. We believe that is due to under-thetable money and laundering,” Trond Bentestuen, a DNB executive, told Norwegian website VG, the Local reported.“There are so many dangers and disadvantages associated with cash, we have concluded that it should be phased out,” he added. But in addition to catching more criminals, there are many other reasons why governments really like the idea of a cashless society. It would also mean
that no financial transaction would escape taxation, and it would also enable them to watch, track and monitor everything that we do much more closely. And banks would be absolutely thrilled with a cashless society. Every member of society would be forced to use the system, bank runs would be eliminated, and every time we swipe our cards they would collect a fee. In addition, there would be absolutely no escaping the bank bail-ins that are coming in Europe. If there was no way to pull your money out of the system, there would be no way to avoid the kind of theft that has now been institutionalized by European authorities. I covered the brand new bail-in rules that went into effect in Europe on January 1st, 2016 in a previous article… If you have a bank account anywhere in Europe, you need to read this article. On January 1st, 2016, a new bail-in system will go into effect for all European banks. This new system is based on the Cyprus bank bail-ins that we witnessed a few years ago. If you will remember, money was grabbed from anyone that had more than 100,000 euros in their bank accounts in order to bail out the banks. Now the exact same principles that were used in Cyprus are going to apply to all of Europe.
DANIELLE Sadly, we are now witnessing a major push toward a cashless society all over the planet. It is happening in China, in India, and all over Europe. In fact, some nations in Europe have already banned cash transactions over a certain level. Here are just a couple of examples… As I have written about previously, cash transactions of more than 2,500 euros have already been banned in Spain, and France and Italy have both banned all cash transactions of more than 1,000 euros. Little by little, cash is being eradicated, and what we have seen so far is just the beginning. 417 billion cashless transactions were conducted in 2014, and the final number for 2015 is projected to be much higher. Of course the epicenter for the transition to a cashless society continues to be northern Europe. Denmark intends to entirely eradicate cash by the year 2030, and the transition to a cashless
society in Sweden is now almost complete… Did you know that 95 percent of all retail sales in Sweden are cashless? And did you know that the government of Denmark has a stated goal of “eradicating cash” by the year 2030? All over the world, we are seeing a relentless march toward a cashless society, and nowhere is this more true than in northern Europe. In Sweden, hundreds of bank branches no longer accept or dispense cash, and thousands of ATM machines have been permanently removed. At this point, bills and coins only account for just 2 percent of the Swedish economy, and many stores no longer take cash at all. The notion of a truly “cashless society” was once considered to be science fiction, but now we are being told that it is “inevitable”, and authorities insist that it will enable them to thwart criminals, terrorists, drug runners, money launderers and tax evaders. But what will we give up in the process?
The potential for tyranny is what has me concerned more than anything. Just imagine a world where you could not buy, sell, get a job or open a bank account without participating in “the system”. If you chose to opt out, how would you and your family survive? And it would be way too easy for the government to set requirements for participation in the system. For example, they could make it illegal to sell to anyone without the proper government-issued form of identification, or they could require some form of loyalty oath as a pre-condition for enrollment. The war on cash is a direct assault on the fundamental liberties and freedoms that we enjoy today. They may promise us that a cashless society will make our lives better right now, but tomorrow I am afraid that it could open the door to tyranny on a level that most of us would have never even imagined.
FALSE FLAGS by Michael Snyder Throughout history, governments have staged attacks on their own people in order to place the blame on their enemies. These kinds of attacks are known as “false flags”, and they are often used to justify military action. As I will explain below, it appears that we may have just seen a “false flag” attack in Turkey. The Turks needed justification for bombarding the Kurds in northern Syria, and right on cue there was a “terror attack” in Ankara. During the weeks to come, will we see more “false flag” attacks that will be used to justify a full-blown ground invasion of Syria? If you are not familiar with this concept, the following is how Wikipedia defines a “false flag”… The contemporary term false flag describes covert operations that are designed to deceive in such a way that the operations appear as though they are being carried out by entities, groups, or nations other than those who actually planned and executed them. The bomb attacks that killed 28 people in Ankara last week may have been an example of just such an attack. It is entirely possible that the PKK or the Syrian Kurds could have been responsible for the bombing. However, to me it seems at least as likely that the Turkish government set up this attack in order to blame the Kurds. Turkey had already been mercilessly shelling the Kurds in northern Syria anyway, and after the bombing in Ankara there is now a lot more support
inside Turkey for further military action against the Kurds. The following comes from Reuters… Turkish Prime Minister Ahmet Davutoglu blamed a Syrian Kurdish militia fighter working with Kurdish militants inside Turkey for a suicide car bombing that killed 28 people in the capital Ankara, and he vowed retaliation in both Syria and Iraq. A car laden with explosives detonated next to military buses as they waited at traffic lights near Turkey’s armed forces’ headquarters, parliament and government buildings in the administrative heart of Ankara late on Wednesday. Davutoglu said the attack was clear evidence that the YPG, a Syrian Kurdish militia that has been supported by the United States in the fight against Islamic State in northern Syria, was a terrorist organization and that Turkey, a NATO member, expected cooperation from its allies in combating the group. Prior to that attack, it would have been difficult for Turkey to justify sending troops into northern Syria to fight the Kurds. After all, the Syrian Kurds had not fired a single shot at Turkish forces even though Turkey relentlessly shelled Kurdish positions all last week. But now the president of Turkey says that his nation has all the justification that it needs to do what-
ever it wants “to the terrorists”… Turkish President Recep Tayyip Erdogan said his country has the right to launch operations in Syria against “terrorist organizations,” in remarks that could be viewed as a shot across the bow at Russian intervention. “To fight the threats which it faces, Turkey has the right to launch any kind of operation, in Syria and wherever else the terrorist organizations are located,” Erdogan said in a speech on Saturday, according to a Dogan news agency report cited by AFP. Isn’t that convenient? Everyone knew that Turkey wanted to do something to stop the advance of the Kurds in northern Syria, and now this bombing in Ankara gives them the perfect excuse to take dramatic military action. But a bombing blamed on the Kurds is not going to give Turkey, Saudi Arabia and their allies justification to launch a full-blown ground invasion of the entire country. In order for that to happen, more false flags will probably be necessary – especially if they want the United States to be involved. Right now, the American people have very little interest in a way in Syria. But if there was some sort of major terror attack in this country that could be blamed on ISIS, that would do much to shift public opinion. Of course since the Russians, the Iranians and Hezbollah are all already inside Syria helping the Assad regime fight the radical Sunni militants that are being backed by Saudi Arabia and Turkey, a full-blown ground invasion could very easily be the
DANIELLE spark that begins World War 3. This would be true even if the United States did not participate in the ground invasion. The following comes from USA Today… A war between Russia and Turkey would put the United States, and Europe, in an uncomfortable position. Since Turkey remains a NATO ally (though a shakier one than in the past), war between Turkey and Russia could easily suck us in. And if Turkey and Russia went to war while NATO stayed on the sidelines, the NATO alliance would be weakened. (Yes, the NATO treaty technically doesn’t obligate us to support Turkey in a war that Turkey starts, but a reliance on such niceties wouldn’t make NATO look stronger). There had been hope that a ceasefire would bring some stability to the
situation in Syria, but a series of suicide bombings by ISIS on Sunday has really put a damper on that… The Islamic State asserted responsibility for bombings on Sunday that killed dozens of people in two Syrian government strongholds, casting a shadow over intensified diplomatic efforts to broker a cease-fire to the civil war. At least three explosions struck a suburb south of the capital, Damascus, leaving 50 people dead near the Sayyida Zeinab shrine that is revered by Shiite Muslims, according to Syrian state television. The area is a high-profile target for extremist Sunni groups such as the Islamic State, which rejects Shiites as apostates. Bombings earlier in the day also targeted the city of Homs, killing at least
34 people, according to the area’s governor, Talal al-Barazi. If the cease-fire had been successful, that would have lessened the urgency that Saudi Arabia and Turkey feel to get directly involved in the conflict. But now that the cease-fire looks like it is not going to hold, Saudi Arabia and Turkey are going to feel more pressure to move in and rescue the radical Sunni militants that they have been backing for the last five years. In order to do that, they are probably going to need some sort of “big event” which will give them justification in the eyes of the world to conduct a massive ground invasion of Syria. So will that “big event” be some sort of a false flag attack? We will just have to wait and see what happens…
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ECONOMIC COLLAPSE by Michael Snyder Mainstream news outlets are already starting to use the phrase “economic collapse” to describe what is going on in some areas of our world right now. For many this may seem a bit strange, but the truth is that the worldwide economic slowdown that began during the second half of last year is starting to get a lot worse. In this article, we are going to examine evidence of this from South America, Europe, Asia and North America. Once we are done, it should be obvious that there is absolutely no reason to be optimistic about the direction of the global economy right now. The warnings of so many prominent experts are now becoming a reality, and what we have witnessed so far are just the early chapters of a crushing economic crisis that will affect every man, woman and child in the entire world. Let’s start with Brazil. It has the 7th largest economy on the entire planet, and it is already enduring its worst recession in 25 years. In fact, at the end of
last year Goldman Sachs said that what was going on down there was actually a “depression“. But now the crisis in Brazil has escalated significantly. I want to share with you an excerpt from a recent article entitled “Brazil: Economic collapse worse than feared“. I know, that title sounds like it comes directly from The Economic Collapse Blog, but I didn’t write it. It actually comes from CNN… Amid political chaos, Brazil’s economic collapse is worse than its government once believed. In the midst of rising calls to impeach President Dilma Rousseff, Brazil’s central bank announced Thursday that it now expects the country’s economy to shrink 3.5% this year. That’s worse than the central bank’s previous estimate for a 1.9% contrac-
tion. The darker forecast matches what the International Monetary Fund projected for Brazil — Latin America’s largest country — and what many independent economists have suspected. It is one thing for Michael Snyder to tell you that Brazil is in the midst of “economic collapse”, but it is another thing entirely for CNN to say it. And of course I have been warning about the crisis down in Brazil for quite some time now. For much more on this, please see my previous article entitled “The Economic Collapse Of South America Is Well Underway“. Meanwhile, things are actually much worse in Venezuela than they are in Brazil. Food and basic supplies are in short supply, the inflation rate has hit 720 percent, and crime is completely out of control. The following is from an article in the Independent entitled “Venezuela is on the brink of complete economic
The only question now is whether Venezuela’s government or economy will completely collapse first. The key word there is “completely.” Both are well into their death throes. Indeed, Venezuela’s ruling party just lost congressional elections that gave the opposition a veto-proof majority, and it’s hard to see that getting any better for them any time soon — or ever. Incumbents, after all, don’t tend to do too well when, according to the International Monetary Fund, their economy shrinks 10 percent one year, an additional 6 percent the next, and inflation explodes to 720 percent. It’s no wonder, then, that markets expect Venezuela to default on its debt in the very near future. The country is basically bankrupt. Once again we see a very respected mainstream publication using the phrase “economic collapse” to describe what is happening in South America. Meanwhile, over in Europe the collapse of the Italian banking system has entered a disturbing new chapter. Italy’s finance minister has called a meeting in Rome for Monday that will be focusing on a “last resort” bailout plan for the troubled banks.. Finance minister Pier Carlo Padoan has called a meeting in Rome on Monday with executives from Italy’s largest financial institutions to agree final details of a “last resort” bailout plan. Yet on the eve of that gathering, concerns remain as to whether the plan will be sufficient to ringfence the weakest of Italy’s large banks, Monte dei Paschi di Siena, from contagion, according to people involved in the talks. Italian bank shares have lost almost half their value so far this year amid
investor worries over a €360bn pile of non-performing loans — equivalent to about a fifth of GDP. Lenders’ profitability has been hit by a crippling threeyear recession.
erung und Abwicklung von Banken) has issued the key features for the further steps for the resolution of HETA ASSET RESOLUTION AG. The most significant measures are:
As Italy descends into financial chaos, the rest of the continent better be paying attention.
• 100% bail-in for all subordinated liabilities,
Do you remember how hard it was for the rest of Europe to rescue Greece? Well, Greece has the 44th largest economy on the planet. Italy has the 8th. It would be hard to overstate the seriousness of what is going on over in Europe, and it is not just Italy we are talking about. All over the continent major banks are in deep trouble, and the chairman of France’s second largest retail bank recently told reporters that “I am much more worried than I was in 2009“. And there is very good reason for concern. On Sunday, we learned that a major “bail-in” had just been announced for one of Austria’s most prominent banks. The following comes from Zero Hedge… And then today, following a decision by the Austrian Banking Regulator, the Finanzmarktaufsicht or Financial Market Authority, Austria officially became the first European country to use a new law under the framework imposed by Bank the European Recovery and Resolution Directive to share losses of a failed bank with senior creditors as it slashed the value of debt owed by Heta Asset Resolution AG. The highlights from the announcement: Today, the Austrian Financial Market Authority (FMA) in its function as the resolution authority pursuant to the Bank Recovery and Resolution Act (BaSAG – Bundesgesetz über die Sani-
• 53.98% bail-in, resulting in a 46.02% quota, for all eligible preferential liabilities, • the cancellation of all interest payments from 01.03.2015, when HETA was placed into resolution pursuant to BaSAG, • as well as a harmonisation of the maturities of all eligible liabilities to 31.12.2023. According to the current resolution plan for HETA, the wind-down process should be concluded by 2020, although the repayment of all claims as well as the legally binding conclusion of all currently outstanding legal disputes will realistically only be concluded by the end of 2023. Only at that point will it be possible to finally distribute the assets and to liquidate the company. The dominoes are starting to fall in Europe, and I would expect even bigger announcements in the weeks and months to come. Over in Asia, economic chaos is beginning to prevail as well. In China, the stock market is already down more than 40 percent from the peak, Chinese exports were down 25.4 percent on a year over year basis in February, and Chinese economic numbers overall have not been this poor since the depths of the last global recession. At the same time, the Japanese economy is really struggling right now. As I wrote about the other day, Japanese GDP has shrunk for two out of the last three quarters, we just saw Japanese industrial production experience the
DANIELLE biggest one month decline that we have witnessed since the tsunami of 2011, and business sentiment has fallen to a three year low. The Nikkei has dropped by about 5,000 points from where it was last summer, and some analysts believe that Japanese markets “are being destroyed” due to massive intervention by the Bank of Japan. Here we haven’t been hit quite as hard as the rest of the world just yet, but there are lots of very disturbing warning signs all around us. At the end of last week, we learned that it is being projected that U.S. GDP will have grown by just 0.1 or 0.2 percent during the first quarter of 2016. And on Monday corporate earnings reporting season begins, and it is expected to be a very, very bad one. The following comes from Business Insider… We are about to get confirmation that earnings growth for America’s biggest companies was negative in the first quarter, compared to the same period a year ago. When aluminum giant Alcoa releases its results on Monday, it will mark the unofficial start of the heaviest reporting season for S&P 500 companies.
The final scoreboard is expected to show a 9.1% earnings drop for the quarter, according to FactSet senior earnings analyst John Butters. If these projections turn out to be accurate, it will be the fourth quarter in a row of earnings declines. This is something that we never see outside of a recession. And for a whole bunch more numbers which indicate that the U.S. economy is in very serious trouble, please see my previous article entitled “19 Facts That Prove Things In America Are Worse Than They Were Six Months Ago“. Of course I am just another voice in the crowd when it comes to predicting that the U.S. economy is headed for rough times. For example, just check out what Societe Generale economist Albert Edwards is saying… A tidal wave is coming to the US economy, according to Albert Edwards, and when it crashes it’s going to throw the economy into recession.…the profit recession facing American corporations is going to lead to a collapse in corporate credit. “Despite risk assets enjoying a few
weeks in the sun our fail-safe recession indicator has stopped flashing amber and turned to red” … He continued: Whole economy profits never normally fall this deeply without a recession unfolding. And with the US corporate sector up to its eyes in debt, the one asset class to be avoided — even more so than the ridiculously overvalued equity market — is US corporate debt. The economy will surely be swept away by a tidal wave of corporate default. As you can see, it isn’t just one nation or one region of the world that we need to be concerned about. Economic chaos is erupting literally all over the planet, and global leaders are starting to panic. Unfortunately, they have had seven years to try to fix things since the last global recession, and they didn’t get the job done. Anyone that believes that by some miracle they will be able to pull us out of the fire this time and that everything will somehow be okay is simply engaged in wishful thinking.
Financial experts Robert Kiyosaki and Harry Dent are both warning that the next major economic crash is in our very near future. Dent is projecting that the Dow will fall to “5,500 to 6,000 by late 2017″, and Kiyosaki actually originally projected that a great crash was coming in 2016 all the way back in 2002. Of course we don’t exactly have to wait for things to get bad. The truth is that things are not really very good at the moment by any stretch of the imagination. Approximately one-third of all Americans don’t make enough money to even cover the basic necessities, 23 percent of adults in their prime working years are not employed, and corporate debt defaults have exploded to the highest level that we have seen since the last financial crisis. But if Kiyosaki and Dent are correct, economic conditions in this country will soon get much, much worse than this. During a recent interview, Harry Dent really went out on a limb by staking his entire reputation on a prediction that we would experience “the
biggest global bubble burst in history” within the next four years… There will be… and I will stake my entire reputation on this… we are going to see the biggest global bubble burst in history in the next four years… There’s only one way out of this bubble and that is for it to burst… all this stuff is going to reset back to where it should be without all this endless debt, endless printed money, stimulus and zero interest rate policy. And of course he is far from alone. Without a doubt, we are currently in the terminal phases of the greatest financial bubble the world has ever known, and it is exceedingly difficult to see any way that it will not end very, very badly. Ultimately, Dent believes that we could see U.S. stocks lose two-thirds of their value by late next year… The Dow, I’m projecting, will hit 5,500 to 6,000 by late 2017… just in
the next year and a half or so. That’ll be most of the damage… then it will rally and there’ll be some aftershocks into 2020… my four cycles point down into early 2020 and then they start one after the other to turn up… I think the worst will be over by 2020, but the worst of that will be by the end of 2017. If that does happen, it will be a far worse crash than what we experienced back in 2008, and the economic consequences will be absolutely terrifying. Another highly respected financial expert that is making similar claims is Robert Kiyosaki. My wife is a big fan of his books, and I have always held him in high regard. But what I didn’t realize is that he had actually predicted that there would be a major financial crash all the way back in 2002… Fourteen years ago, the author of a series of popular personal-finance books predicted that 2016 would bring
DANIELLE about the worst market crash in history, damaging the financial dreams of millions of baby boomers just as they started to depend on that money to fund retirement. Broader U.S. stock markets are recovering from the worst 10-day start to a year on record. But Robert Kiyosaki — who made that 2016 forecast in the 2002 book “Rich Dad’s Prophecy” — says the meltdown is under way, and there’s little investors can do but buy gold or silver and hope the Federal Reserve slows the slide. I agree with Kiyosaki that one way that investors can shield their wealth is by getting gold and silver. In a recent article, I explained exactly why I believe that silver in particular is ridiculously undervalued right now. Kiyosaki also believes that the coming crash could be delayed a bit if the Federal Reserve decided to embark on another round of quantitative easing. But even if that happens, Kiyosaki is absolutely convinced that eventually “it’s all going to come down”… Kiyosaki told MarketWatch that the combination of demographics and global economic weakness makes the next crash inevitable — but the Fed could stave it off with another round of quantitative easing, which might stimulate the economy. The Fed turned more dovish at its March meeting, with the central bank penciling in fewer interest-rate hikes this year than were previously part of its implied framework. The Fed signaled
those hikes would happen more slowly than had been anticipated earlier, owing to a weak global economic environment and a volatile stock market. “The big question [whether] we do ‘QE4,’” said Kiyosaki. “If we do, the stock market will come roaring back, but it’s not rocket science. If we stop printing money, it crashes; if we print money, it goes up. But, eventually, it’s all going to come down.” Another voice that I have come to respect is Jim Rickards. He is not quite as apocalyptic as Kiyosaki or Dent, but without a doubt he is deeply concerned about where the global economy is headed… Global growth is slowing both because of weakness in developed economies like Europe and Japan, and weakness in some of the emerging markets champions such as China, Brazil and Russia. The limits of monetary policy have been reached. The evidence is now clear that negative interest rates don’t stimulate spending; they are only good for devaluation in the ongoing currency wars. World trade is shrinking; a rare phenomenon usually associated with recession or depression. And he is exactly right. The economic downturn that we are witnessing is truly global in scope. Brazil has plunged into an economic depression, the Italian banking system is in the process of completely melting down, and Japan has implemented negative interest rates in a desperate attempt to
keep their Ponzi scheme going but it really isn’t working. In fact, Japanese industrial production just crashed by the most that we have seen since the tsunami of 2011. Here in the United States, investors are generally feeling pretty good right now because stocks have rebounded substantially in recent weeks. However, Rickards is warning that this rebound is very temporary… Stocks are clearly in a bubble. The stock market is ignoring the strong dollar, which in turn hurts exports and devalues overseas earnings. It is also ignoring declining corporate earnings, imminent defaults in the energy sector, and declining global growth in general. Never mind. As long as money is cheap and leverage is plentiful, there’s no reason not to bid up stock prices, and wait for the greater fool to bid them up some more. There is so much that we could learn from all these three men. Sadly, just like we saw in 2008, most are ignoring the warnings. The mainstream media has conditioned the public to trust them, and right now the mainstream media is insisting that everything is going to be just fine. So will everything be just fine as the months roll along? We will just have to wait and see…
BERNANKE’S FORMER ADVISOR: “PEOPLE WOULD BE STUNNED TO KNOW THE EXTENT TO WHICH THE FED IS PRIVATELY OWNED” Tyler Durden, zerohedge.com With every passing day, the Fed is slowly but surely losing the game. Only it is not just former (and in some cases current) Fed presidents admitting central banks are increasingly powerless to boost the global economy, even if they still have sway over capital markets. What is far more insidious to the Fed’s waning credibility is when former economists affiliated with the Fed start repeating mantras that until recently were only a prominent feature in the so-called fringe media. This is precisely what happened today when former central bank staffer and Dartmouth College economics professor Andrew Levin, special advis-
er to then Fed Chairman Ben Bernanke between 2010 to 2012, joined with an activist group to argue for overhauls at the central bank that they say would distance it from Wall Street and make its activities more transparent and accountable to the public. Levin is pressing for the overhaul with Fed Up coalition activists. Many of the proposed changes target the 12 regional Federal Reserve Banks, which are quasi-private and technically owned by commercial banks in their respective districts. All of that is not surprising. What he said to justify his new found cause, however, is. “A lot of people would be stunned to
know” the extent to which the Federal Reserve is privately owned, Mr. Levin said. The Fed “should be a fully public institution just like every other central bank” in the developed world, he said in a conference call announcing the plan. He described his proposals as “sensible, pragmatic and nonpartisan.” Why is that stunning? Because it has long been a bone of contention if only among the fringe media, that at its core the Fed is merely a private institution, beholden only to its de facto owners: not the people of the U.S. but to a small cabal of banks. Worse, the actual org chart of who owns what is not disclosed, even as the vast majority of the U.S. population remains deluded that the Fed is a publicly owned institution.
DANIELLE As the WSJ goes on to note, the former central bank staffer said he sees his ideas as designed to maintain the virtues the central bank already brings to the table. They aren’t targeted at changing how policy is conducted today. “What’s important here is that reform to the Federal Reserve can last for 100 years, not just the near term,” he said. And this is coming from a former Fed employee and Ben Bernanke’s personal advisor! That in itself is a most striking development, because now that the insiders are finally speaking up, it will be a race among both current and prior Fed workers to reveal as much dirty laundry as possible ahead of what is increasingly being perceived by many as the Fed’s demise. To be sure, Levin’s personal campaign for Fed transformation will not be easy, and as the WSJ writes, what is being sought by Mr. Levin and the activists is significant and would require congressional action. Ady Barkan, who leads the Fed Up campaign, said the Fed’s current structure “is an embarrassment to America” and Fed leaders haven’t been “willing or able” to make changes. Specifically, Levin wants the 12 regional Fed banks to be brought fully into the government. He also wants the process of selecting new bank presidents—they are key regulators and contributors in setting interest-rate policy—opened up more fully to public input, as well as term limits for Fed officials. This would represent a revolution to the internal staffing of the Fed, which will no longer be at the mercy of its now-defunct shareholders, America’s commercial banks; it would also mean that Goldman Sachs would lose all its leverage as the world’s biggest central bank incubator, a revolving door relationship which has allowed the Manhattan firm to dominate the world of finance for the decades.
Levin’s proposal was made in conjunction with the Center for Popular Democracy’s Fed Up coalition, a group that has been pressuring the central bank for more accountability for some time. The left-leaning group has been critical of the structure of the regional banks, and has been pressing the Fed to hold off on raising rates in a bid to make sure the recovery is enjoyed not just by the wealthy, in their view. The proposal was revealed on a conference call that also included a representative from Bernie Sanders’s presidential campaign, although all campaigns were invited to participate. The WSJ adds that according to Levin, who knows the Fed’s operating structure intimately, says the members of the regional Fed bank boards of directors, the majority of whom are selected by the private banks with the approval of the Washington-based governors, should be chosen differently. The professor says director slots now reserved for financial professionals regulated by the Fed should be eliminated, and that directors who oversee and advise the regional banks should be selected in a public process involving the Washington governors and local elected officials. These directors also should better represent the diversity of the U.S. Levin also wants formal public input into the selection of new bank presidents, with candidates’ names known publicly and a process that allows for public comment in a way that doesn’t now exist. The professor also wants all Fed officials to
serve for single seven-year terms, which would give them the needed distance from the political process while eliminating situations where some policy makers stay at the bank for decades. Alan Greenspan, for example, was Fed chairman from 1987 to 2006. As the WSJ conveniently adds, the selection of regional bank presidents has become a hot-button issue. Currently, the leaders of the New York, Philadelphia, Dallas and Minneapolis Fed banks are helmed by men who formerly worked for or had close connections to investment bank Goldman Sachs. Levin called for watchdog agency the Government Accountability Office to annually review and report on Fed operations, including the regional Fed banks. He also wants the regional Fed banks to be covered under the Freedom of Information Act. A regular annual review hopefully would insulate the effort from perceptions of political interference, Mr. Levin said. *** While ending the Fed may still seem like a pipe dream, at least until the market’s next major crash at which point the population may finally turn on the culprit behind America’s serial boom-bust culture, the U.S. central bank, Levin’s proposal would get to the heart of the most insidious conflict of interest in the US: the fact that the Federal Reserve works not for the people of America, but for its owners - the banks. Which is also why, sadly, this proposal will be dead on arrival, as its passage would represent the biggest loss for Wall Street in the past 103 years, far more significant than anything Dodd-Frank could hope to accomplish.
TROJAN HORSE: THE NATIONAL ENDOWMENT FOR DEMOCRACY
by William Blum. How many Americans could identify the National Endowment for Democracy? An organization which often does exactly the opposite of what its name implies. The NED was set up in the early 1980s under President Reagan in the wake of all the negative revelations about the CIA in the second half of the 1970s. The latter was a remarkable period. Spurred by Watergate – the Church committee of the Senate, the Pike committee of the House, and the Rockefeller Commission, created by the president, were all busy investigating the CIA. Seemingly every other day there was a new headline about the discovery of some awful thing, even criminal conduct, the CIA had been mixed up in for years. The Agency was getting an exceedingly bad name, and it was causing the powersthat-be much embarrassment. Something had to be done. What was done was not to stop doing these awful things. Of course not. What was done was to shift many of these awful things to a new organization, with a nice sounding name – The National Endowment for Democracy. The idea was that the NED would do somewhat overtly what the CIA had been doing covertly for decades, and thus, hopefully, eliminate the stigma associated with CIA covert activities. It was a masterpiece. Of politics, of public relations, and of cynicism. Thus it was that in 1983, the National Endowment for Democracy was set up
to “support democratic institutions throughout the world through private, nongovernmental efforts”. Notice the “nongovernmental” – part of the image, part of the myth. In actuality, virtually every penny of its funding comes from the federal government, as is clearly indicated in the financial statement in each issue of its annual report. NED likes to refer to itself as an NGO (Nongovernmental organization) because this helps to maintain a certain credibility abroad that an official US government agency might not have. But NGO is the wrong category. NED is a GO.
“We should not have to do this kind of work covertly,” said Carl Gershman in 1986, while he was president of the Endowment. “It would be terrible for democratic groups around the world to be seen as subsidized by the C.I.A. We saw that in the 60’s, and that’s why it has been discontinued. We have not had the capability of doing this, and that’s why the endowment was created.” And Allen Weinstein, who helped draft the legislation establishing NED, declared in 1991: “A lot of what we do today was done covertly 25 years ago by the CIA.”
In effect, the CIA has been laundering money through NED. The Endowment has four principal initial recipients of funds: the International Republican Institute; the National Democratic Institute for International Affairs; an affiliate of the AFL-CIO (such as the American Center for International Labor Solidarity); and an affiliate of the Chamber of Commerce (such as the Center for International Private Enterprise). These institutions then disburse funds to other institutions in the US and all over the world, which then often disburse funds to yet other organizations. In a multitude of ways, NED meddles in the internal affairs of numerous foreign countries by supplying funds, technical know-how, training, educational materials, computers, faxes, copiers, automobiles, and so on, to selected political groups, civic organizations, labor unions, dissident movements, student groups, book publishers, newspapers, other media, etc. NED typically refers to the media it supports as “independent” despite the fact that these media are on the US payroll. NED programs generally impart the basic philosophy that working people and other citizens are best served under a system of free enterprise, class cooperation, collective bargaining, minimal government intervention in the economy, and opposition to socialism in any shape or form. A free-market economy is equated with democracy, reform, and growth; and the merits of foreign investment in their economy
DANIELLE are emphasized. From 1994 to 1996, NED awarded 15 grants, totaling more than $2,500,000, to the American Institute for Free Labor Development, an organization used by the CIA for decades to subvert progressive labor unions. AIFLD’s work within Third World unions typically involved a considerable educational effort very similar to the basic NED philosophy described above. The description of one of the 1996 NED grants to AIFLD includes as one its objectives: “build union-management cooperation”. Like many things that NED says, this sounds innocuous, if not positive, but these in fact are ideological code words meaning “keep the labor agitation down … don’t rock the status-quo boat”. The relationship between NED and AIFLD very well captures the CIA origins of the Endowment. NED has funded centrist and rightist labor organizations to help them oppose those unions which were too militantly pro-worker. This has taken place in France, Portugal and Spain amongst many other places. In France, during the 1983-4 period, NED supported a “trade union-like organization for professors and students” to counter “leftwing organizations of professors”. To
this end it funded a series of seminars and the publication of posters, books and pamphlets such as “Subversion and the Theology of Revolution” and “Neutralism or Liberty”. (“Neutralism” here refers to being unaligned in the cold war.) NED describes one of its 1997-98 programs thusly: “To identify barriers to private sector development at the local and federal levels in the Federal Republic of Yugoslavia and to push for legislative change … [and] to develop strategies for private sector growth.” Critics of Yugoslav President Slobodan Milosevic, a socialist, were supported by NED grants for years. In short, NED’s programs are in sync with the basic needs and objectives of the New World Order’s economic globalization, just as the programs have for years been on the same wavelength as US foreign policy. Interference in elections NED’s Statement of Principles and Objectives, adopted in 1984, asserts that “No Endowment funds may be used to finance the campaigns of candidates for public office.” But the ways to circumvent the spirit of such a prohibition are not difficult to come up with;
as with American elections, there’s “hard money” and there’s “soft money”. As described in the “Elections” and “Interventions” chapters, NED successfully manipulated elections in Nicaragua in 1990 and Mongolia in 1996; helped to overthrow democratically elected governments in Bulgaria in 1990 and Albania in 1991 and 1992; and worked to defeat the candidate for prime minister of Slovakia in 2002 who was out of favor in Washington. And from 1999 to 2004, NED heavily funded members of the opposition to President Hugo Chavez in Venezuela to subvert his rule and to support a referendum to unseat him. Additionally, in the 1990s and afterward, NED supported a coalition of groups in Haiti known as the Democratic Convergence, who were united in their opposition to Jean-Bertrand Aristide and his progressive ideology, while he was in and out of the office of the president. The Endowment has made its weight felt in the electoral-political process in numerous other countries. NED would have the world believe that it’s only teaching the ABCs of democracy and elections to people who don’t know them, but in virtually all the countries named above, in whose electoral process NED intervened, there had already been free and fair elections held. The problem, from NED’s point of view, is that the elections had been won by political parties not on NED’s favorites list. The Endowment maintains that it’s engaged in “opposition building” and “encouraging pluralism”. “We support people who otherwise do not have a voice in their political system,” said Louisa Coan, a NED program officer. But NED hasn’t provided aid to foster progressive or leftist opposition in Mexico, El Salvador, Guatemala, Nicaragua, or Eastern Europe – or, for that matter, in the United States – even
DANIELLE though these groups are hard pressed for funds and to make themselves heard. Cuban dissident groups and media are heavily supported however. NED’s reports carry on endlessly about “democracy”, but at best it’s a modest measure of mechanical political democracy they have in mind, not economic democracy; nothing that aims to threaten the powers-that-be or the way-thingsare, unless of course it’s in a place like Cuba. The Endowment played an important role in the Iran-Contra affair of the 1980s, funding key components of Oliver North’s shadowy “Project Democracy” network, which privatized US foreign policy, waged war, ran arms and drugs, and engaged in other equally charming activities. At one point in 1987, a White House spokesman stated that those at NED “run Project Democracy”. This was an exaggeration; it would have been more correct to say that NED was the public arm of Project Democracy, while North ran the covert end of things. In any event, the statement caused much less of a stir than if – as in an earlier period – it had been revealed that it was the CIA which was behind such an unscrupulous operation. NED also mounted a multi-level campaign to fight the leftist insurgency in the Philippines in the mid-1980s, funding a host of private organizations, including unions and the media. This was a replica of a typical CIA operation of pre-NED days. And between 1990 and 1992, the Endowment donated a quarter-million dollars of taxpayers’ money to the Cuban-American National Foundation, the ultra-fanatic anti-Castro Miami group. The CANF, in turn, financed Luis Posada Carriles, one of the most prolific and pitiless terrorists of modern times, who had been involved in the blowing up of a Cuban airplane in 1976, which killed 73 people. In 1997, he was involved in a series of bomb explosions in Havana hotels, and in 2000 imprisoned in Panama when he was part of a group planning to assassinate Fidel Castro with explosives while the Cuban leader was speaking before a large crowd, although eventually, the group was tried on lesser charges. The NED, like the CIA before it, calls what it does supporting democracy. The governments and movements whom the NED targets call it destabilization.
CELL PHONES by Michael Snyder Is your cell phone keeping you from having kids and slowly killing you at the same time? Most people have no idea that one of the greatest threats to their health may be something that they are willingly carrying around with them all day long. A brand new study has just come out that shows that men that carry around cell phones in their pockets continually are much less fertile than other men. Of course we have known that cell phone use has some very nasty consequences for our health for a very long time. As you will see below, studies have shown that there is a very clear link between cell phone use and cancer. But even after learning all of these things, most people just continue to use their cell phones normally. Most people believe what they want to believe, and most people don’t want to believe that cell phone use is harmful. One of the most respected news sources in the UK has reported on the new study that I just mentioned above. The following is an excerpt from that article… The study – by highly respected specialists – found that sperm levels of men who kept their phones in their pocket during the day were seriously affected in 47 percent of cases compare to just 11 percent in the general population. Professor Martha Dirnfeld, of the Technion University in Haifa, said: “We analysed the amount of active swimming sperm and the quality and found that it had been reduced. “We think this is being caused by a heating of the sperm from the phone and by electromagnetic activity.”
It doesn’t take a genius to figure this out. If you put an electronic device next to your reproductive organs day after day, of course it is going to have an effect. Other studies that were conducted previously have come up with similar results. Here is just one example… Men who carry a cellphone in their pants pocket may harm their sperm and reduce their chances of having children, a new review warns.The research team analyzed the findings of 10 studies that examined how cellphone exposure may affect male fertility. Among men with no exposure to cellphones, 50 percent to 85 percent of their sperm had a normal ability to move towards an egg.That fell by an average of 8 percent among men exposed to cellphones. Similar effects were seen for sperm viability, which refers to the proportion of sperm that were alive, according to the study published June 9 in the journal Environment International. So what should we do? Well, if you want to have kids you might want to quit carrying around your phone in your pocket… Professor Gedis Grudzinskas, a fertility consult ant St George’s Hospital London and in Harley Street said: ” Men need to think about their well being and try to stop being addicted to their phones.“If you wear a suit to work put the mobile in your chest pocket instead of close to your testes. It will reduce the risk of your sperm count dropping or dropping so much.” In addition to cooking our reproductive organs, cell phones have also been linked to cancer by many studies. One study that was headed up by Igor Yakymenko caused quite a stir
when it was released in 2015… Yakymenko’s meta-study — basically a study of hundreds of other studies — reveals many findings of previous researchers into how radiofrequency from your phone can damage DNA. That damage can add up over time and cause a variety of health problems, like cancer, headaches, fatigue and even skin problems. For example, using your phone for just 20 minutes a day for five years increased the risk of one type of brain tumor threefold, and using the phone an hour a day for four years upped the risk of some tumors three to five times, Yakymenko said. And of course other previous studies had found similar things. The following comes from Natural News … In 2011, the International Agency for Research on Cancer officially classified RFR as a “possible carcinogen.” This came a year after the international Interphone study found that people who used a cell phone for ten years were 40 percent more likely to develop brain tumors. The risk was 400 percent higher among those who started using phones before the age of 20. Decadelong cell phone users were also more likely to develop parotid gland tumors and 300 percent more likely to develop acoustic nerve tumors. Cancer rates are absolutely exploding in the western world, and more than $100,000,000,000 is spent on can-
DANIELLE cer drugs each year. Cell phones certainly are not entirely to blame for this explosion of cancer. The truth is that we are systematically being poisoned by our food, our water, our vaccines and our air. Electromagnetic radiation is all around us, and our environment is becoming more toxic by the day. If you are an American,[ or Candian] there is a 1 in 3 chance that you will get cancer during your lifetime. If you are a man, the odds are closer to 1 in 2. But back in the 1940s, only one out of every 16 Americans developed cancer. In the 1970s, it was one out of every ten Americans. So what has changed? Almost all of us know someone that is battling cancer right now, and this epidemic is getting worse with each passing year. It is a silent plague that is slowly crippling our nation, and the medical industry is making a killing off of our pain and misery. For much more on all of this, please see my previous article entitled “The Big Business Of Cancer: 100 BILLION Dollars Was Spent On Cancer Drugs Last Year Alone“. Because our environment has become so incredibly toxic, there are no easy solutions to this crisis. But one thing that we can all do is to stop carrying around cell phones in our pockets all day long. That is a start at least. Sadly, most people will not even make this one small change. Like I said earlier, most people believe what they want to believe, and most people want to believe that their cell phones are not doing any significant harm to them.
37 INCREDIBLE FACTS Michael Snyder
Have you ever laid in bed awake at night with a knot in your stomach because you didn’t know how your family was possibly going to make it through the next month financially? Have you ever felt the desperation of not being able to provide the basic necessities for your family even though you tried as hard as you could? All over America tonight, there are millions of desperate families that are being ripped apart by this economy. There aren’t nearly enough jobs, and millions of Americans that actually do have jobs aren’t making enough to even provide the basics for their families. When you have tried everything that you can think of and nothing works, it can be absolutely soul crushing. Today, one of my regular readers explained that he was not going to be online for a while because his power had been turned off. He has been out of work for quite a while, and eventually the money runs out. Have you ever been there? If you have ever experienced that moment, you know that it stays with you for the rest of your life. If you are single that is bad enough, but when you have to look into the eyes of your children and explain to them why there won’t be any dinner tonight or why they have to move into a homeless shelter it can feel like someone has driven a stake into your heart. In this article you will find a lot of very shocking economic statistics. But please remember that behind each statistic are the tragic stories of millions of desperately hurting American families. Over the past decade, things have steadily gotten worse for American families no matter what our politicians have tried. Poverty and government dependence continue to rise. The cost of living continues to go up and incomes continue to go down. It is truly frightening to think about what this country is going to look like if current trends continue. The following are 37 facts that show
how cruel this economy has been to millions of desperate American families…
1. One recent survey discovered that 40 percent of all Americans have $500 or less in savings. 2. A different recent survey found that 28 percent of all Americans do not have a single penny saved for emergencies. 3. In the United States today, there are close to 10 million households that do not have a single bank account. That number has increased by about a million since 2009. 4. Family homelessness in the Washington D.C. region (one of the wealthiest regions in the entire country) has risen 23 percent since the last recession began. 5. The number of Americans living in poverty has increased by about 6 million over the past four years. 6. Median household income has fallen for four years in a row. Overall, it has declined by more than $4000 over the past four years. 7. 62 percent of middle class Americans say that they have had to reduce household spending over the past year. 8. According to a survey conducted by the Pew Research Center, 85 percent of middle class Americans say that it is more difficult to maintain a middle class standard of living today than it was 10 years ago. 9. In the United States today, 77 percent of all Americans are living to paycheck to paycheck at least some of the time.
by 827,000, but “those not in the labor force” has increased by 8,208,000. This is how they have gotten the unemployment numbers to “come down”. 12. Sadly, 60 percent of the jobs lost during the last recession were mid-wage jobs, but 58 percent of the jobs created since then have been low wage jobs.
13. Today, about one out of every four workers in the United States brings home wages that are at or below the federal poverty level. 14. Right now, the United States actually has a higher percentage of workers doing low wage work than any other major industrialized nation does. 15. At this point, less than 25 percent of all jobs in the United States are “good jobs”, and that number continues to shrink. 16. There are now 20.2 million Americans that spend more than half of their incomes on housing. That represents a 46 percent increase from 2001. 17. According to USA Today, many Americans have actually seen their water bills triple over the past 12 years. 18. Electricity bills in the United States have risen faster than the overall rate of inflation for five years in a row. 19. In 1999, 64.1 percent of all Americans were covered by employment-based health insurance. Today, only 55.1 percent are covered by employment-based health insurance.
10. In the United States today, more than 41 percent of all working age Americans are not working.
20. Health insurance premiums rose faster than the overall rate of inflation in 2011 and that is happening once again in 2012. In fact, it has been happening for a very long time.
11. Since January 2009, the “labor force” in the United States has increased
21. According to one recent survey, approximately 10 percent of all employers
DANIELLE in the United States plan to drop health coverage when key provisions of the new health care law kick in less than two years from now. 22. Back in 1983, the bottom 95 percent of all income earners had 62 cents of debt for every dollar that they earned. By 2007, that figure had soared to $1.48. 23. Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago. 24. Total consumer debt in the United States has risen by 1700 percent since 1971. 25. Recently it was announced that total student loan debt in the United States has passed the one trillion dollar mark. 26. According to one recent survey, approximately one-third of all Americans are not paying their bills on time at this point. 27. Right now, approximately 25 million American adults are living at home with their parents. 28. The percentage of Americans that find that they are able to retire when they reach retirement age continues to decline. According to one new survey, 70 percent of middle class Americans plan to work during retirement and 30 percent plan to work until they are at least 80 years old. 29. The U.S. economy lost more than 220,000 small businesses during the recent recession. 30. In 2010, the number of jobs created at new businesses in the United States was less than half of what it was back in the year 2000. 31. Back in 2007, 19.2 percent of all American families had a net worth of zero or less than zero. By 2010, that figure had soared to 32.5 percent. 32. Approximately 57 percent of all children in the United States are living in homes that are either considered to be ei-
ther “low income” or impoverished. 33. In the United States today, somewhere around 100 million Americans are considered to be either “poor” or “near poor”. 34. In October 2008, 30.8 million Americans were on food stamps. Today, 46.7 million Americans are on food stamps. 35. Approximately one-fourth of all children in the United States are enrolled in the food stamp program. 36. Right now, more than 100 million Americans are enrolled in at least one welfare program run by the federal government. And that does not even count Social Security or Medicare. 37. According to the U.S. Census Bureau, an all-time record 49 percent of all Americans live in a home where at least one person receives financial assistance from the federal government. Back in 1983, that number was less than 30 percent. What makes all of this even more frightening is that many homeless shelters and food banks around the nation are so overloaded at this point that they are already over capacity. Just consider this example… When Janice Coe, a homeless advocate in Loudoun County, learned through her prayer group that a young woman was sleeping in the New Carrollton Metro station with a toddler and a 2-month-old, she sprang into action.Coe contacted the young woman and arranged for her to take the train to Virginia, where she put the little family up in a Comfort Suites hotel. Then Coe began calling shelters to see who could take them. Despite several phone calls, she came up empty. Coe was shocked to learn that many of the local shelters that cater to families were full, including Good Shepherd Alliance, where Coe was once direc-
tor of social services.“I don’t know why nobody will take this girl in,” Coe said. “The baby still had a hospital bracelet on her wrist.” Keep in mind that Loudoun Country is smack dab in the middle of one of the wealthiest areas of Virginia. So if things are that bad in the wealthy areas, exactly how bad are things getting in many of the poorer areas? Unfortunately, things continue to get worse for this economy. DuPont has just announced plans to eliminate 1,500 jobs. There are more major layoff announcements almost every single day. So how bad will things get when our crumbling economic system finally collapses? When kind of chaos will be unleashed all over the nation when millions upon millions of Americans finally lose all hope? In the introduction to this article, I mentioned that one of my regular readers has had his lights turned off. The following is how he described his situation… No gas, no water, no electricity at my house. Couldn’t pay the bills. I’m broke. Desperately searching for any means of income, or at least enough cash to get the juice (electricity) restored. Typing this missive in a dark house using the battery on my laptop. Feels like I’m camping out at home. Hope to get this situation fixed tomorrow… somehow. Needless to say, I *…. hate this. I was ready for this, but it is still a major league inconvenience. For those of you who DO have power, etc. – and are not ready… oh brother. You need to get ready. Seriously, you do. Because what I’m going through is just an inconvenience. It may someday be a normal occurence. Ugh. (expletives deleted) Hopefully a way can be found to get his situation turned around, but the truth is that there are tens of millions of other similar stories out there in America today.
FIRST AMON DANIELLE
“From glamour to janitor we do it all, anything from booking a private jet to house cleaning!” This is the motto of Balance. Balance InStyle is an Ottawa based company that was founded by Amanda O’Reilly in 2007. The company consists of three divisions Balance InStyle, Weddings InStyle and Events InStyle. As a former high tech employee Amanda O’Reilly led a comfortable life with a desirable salary, it was only until devastation hit home that she came up with an ingenious business plan. The three friends is what they called themselves, Amanda and her two closest friends that is. Without warning, after giving birth to her second child Amanda’s dearly departed Amigo was diagnosed with stage four breast cancer. She then had a double mastectomy and started medical treatments. Trying to get laundry done in a family of four where the matriarch is ill is a daunting task much less, keeping the house clean, getting groceries, caring for children and keeping everyone fed. Amanda’s Amigo was finding it hard to find one provider that would help her perform all of the items on her task list. The timing was delicate and In turn the family was left to suffer. After realizing that there was a multitude of service providers that would help her friend Amanda came up with the concept of an all-inclusive Concierge Service called Balance InStyle. The Concierge Service is provided by a secure and bonded individual that is ready willing and able to perform any task that is legal, moral and ethical. Cancer has fatally touched the lives of millions of people across Canada. The mere exhaustion of travelling to
appointments and experiencing the detrimental effects of the illness leaves the lives of the patients, as well as their families in ruin. Through her 100-Man Run initiative that she co-ran, Amanda was formally recognized by the City of Ottawa as an Agent of Change for the Canadian Breast Cancer Foundation. The initiative raised over $125,000 for cancer research. On her path to success Amanda joined various boards with women of like-mindedness (First Among Equals) to aid in the success of her business. Amanda is inspired by the motivational speaking of business strategist Tony Robbins. She is a firm believer in University on Wheels. Challenging herself to always be a better version of herself is of high importance to Amanda, as she strives to surpass her benchmarks. At its on-start Amanda truly believed InStyle and Co. would make a difference in the lives of individuals across the nation. Amanda was motivated even though others didn’t share in her beliefs. The business began as a home based endeavor. Although she started as a small business she knew in her heart that her business would eventually be a franchise. Trust, reliability, credibility, safety, security and peace of mind are the main principals behind InStyle and Co.’s services. Amanda truly believes that by helping individuals one task at
a time she is able to free time in their schedules to build memories and share precious moments as well as live stress free lives. “We sell time” is the mission statement of InStyle and Co. The Concierges ease the stress of life by performing daunting tasks, enable their clients to use their time to love the life they live. InStyle and Co has been flourishing over the past nine years and continues to do so in the U.S. where Amanda’s surviving Amigo resides. These two have been friends for over twenty-eight years. Amanda even officiated at her friend’s wedding. Although Amanda leads a busy life she in fact doesn’t use her own concierge services. Amanda stated “Everyone has their own ideas of what stress is. I use cooking and cleaning as my down time. If you walked into my house and smelled bleach and food you would know that I am in my happy
NG EQUALS DANIELLE
place. I promote what I sell but I’m not overwhelmed.” 75% of InStyle and Co.’s customer base is of the male gender. Men are usually willing to admit that they need help balancing their lives. Many women in this day and age feel as though they can handle anything that comes their way or they feel as though others won’t perform tasks to their standards. Although they are sometimes reluctant to the services InStyle and Co. provides, women do appreciate a helping hand once in a while. Over the past nine years on her path to success, through trial and error Amanda has grown and learned. If she didn’t stumble or make mistakes she wouldn’t have found her wings. Amanda said “ I found my wings on my way down, adjusting pricing and evolving contracts are all a part of the journey to understand the value of my own time and worth.”
For her innovation and entrepreneur ship Amanda is the recipient of various awards including: The Ottawa Chamber of Commerce New Business of the Year (2008) Top Forty Under 40 Award (2011) Bride’s Choice Awards (2011, 2012, 2013, 2014) In 2007 Amanda co-founded the Canadian Concierge Directory. The directory offers support, advice and mentorship programs for innovators in the concierge industry. In 2015, Amanda was knighted as a Dame into the Order of St. George. Amanda has successfully spawned a business because she truly believes in her products and services. She reminds future entrepreneurs to always remember why you are doing things and what makes you unique. The question of why regarding the existence of InStyle and Co. is to make a difference in the lives of people by withdrawing the stress out of their lives. The reminder of your initial motivating factor may be the light in a dark tunnel. Most individuals believe that there is a work life and a home life when in reality you only have one life. Amanda believes that “You don’t know what’s going to happen next everything is happening for you, not to you.” With that in mind the InStyle team would like you to “show up for the things that move your soul.” They can take care of the rest.
PANAMA PAPERS SWISS BANK WHISTLEBLOWER CLAIMS PANAMA PAPERS WAS A CIA OPERATION by Mike Krieger Bradley Birkenfeld is the most significant financial whistleblower of all time, so you might think he’d be cheering on the disclosures in the new Panama Papers leaks. But today, Birkenfeld is raising questions about the source of the information that is shaking political regimes around the world. “The CIA I’m sure is behind this, in my opinion,” Birkenfeld said. – From the CNBC article: Swiss Banker Whistleblower: CIA Behind Panama Papers Last Friday, I published a post titled, Was the Panama Papers “Leak” a Russian Intelligence Operation? Here’s some of what I wrote: Initially, this seemed to be a theory worth exploring, but in the following days I’ve come to a far different conclusion. The primary divergence between what I currently believe and what Mr. Murray proposed is that I do not think the leaker was a genuine whistleblower motived by the public interest. I think the leaker was working on behalf of a sophisticated intelligence agency. The fact that we seem to know nothing about “John Doe” concerns me. Say what you will about Edward Snowden, but he came out publicly shortly after his whistleblowing and offered himself up for the world to judge. His life, career and personality have been put on full display, and each and every one of us has had the opportunity to decide for ourselves whether his motivations were noble and pure or not. With the Panama Papers’ “John Doe” we are given no such opportunity, and in fact, the whole thing reads very
much like a script concocted by some big budget intelligence agency. Once I started coming around to this conclusion, the obvious choice was U.S. intelligence; given the lack of implications to powerful Americans, the clownishly desperate attempts to smear Putin, and the appearance of Soros, USAID, Ford Foundation, etc, linked organizations to the reporting. So for someone who already thinks the whole Panama Papers story stinks to high heaven, a CIA link to the release seems obvious; but is it too obvious? Perhaps. At this point, I want to make something perfectly clear. I do not profess to know the “real story” behind the Panama Papers. The truth is, nobody knows, except for John Doe and the people he was working for (or with). The only thing I feel fairly confident about is that the story we are being fed is not the real story. The more I read and reflect upon the very minor consequences of the leak thus far, the more I become conv inced this was a geopolitical play by a powerful intel ligence agency. At first, I assumed it was U.S. intelligence, but Mr. Gaddy puts forth a compelling theory. If this was the work of the CIA, it was an extremely sloppy and obvious hit job. On the other hand, if this was the work of Putin for the purposes of
blackmail, it’s one of the most ingenious chess moves I’ve ever seen played on the global stage. The main point I was trying to hammer home with that post was the fact that I did not believe the Panama Papers was an altruistic act of heroic whistleblowing, but that it was an intelligence operation. I went on to say that I thought the notion it was a Russian job was plausible merely because if it was indeed a CIA operation (as I initially suspected), we would have to accept that the agency is mind-bogglingly sloppy and clownish. Nevertheless, according to notorious swiss bank whistleblower, Bradley Birkenfeld, this is the work of the CIA.
DANIELLE CNBC reports: Bradley Birkenfeld is the most significant financial whistleblower of all time, so you might think he’d be cheering on the disclosures in the new Panama Papers leaks. But today, Birkenfeld is raising questions about the source of the information that is shaking political regimes around the world. Birkenfeld, an American citizen, was a banker working at UBS in Switzerland when he approached the U.S. government with information on massive amounts of tax evasion b y Ameri-
cans with secret accounts in Switzerland. By the end of his whistleblowing career, Birkenfeld had served more than two years in a U.S. federal prison, been awarded $104 million by the IRS for his information and shattered the foundations of more than a century of Swiss banking secrecy. In an exclusive interview Tuesday from Munich, Birkenfeld said he doesn’t think the source of the 11 million documents stolen from a Panamanian law firm should automatically be considered a whistleblower like himself. Instead, he said, the hacking of the Panama City-based firm, called Mossack Fonseca, could have been done by a U.S. intelligence agency. “The CIA
I’m sure is behind this, in my opinion,” Birkenfeld said. Birkenfeld pointed to the fact that the political uproar created by the disclosures have mainly impacted countries with tense relationships with the United States. “The very fact that we see all these names surface that are the direct quote-unquote enemies of the United States, Russia, China, Pakistan, Argentina and we don’t see one U.S. name. Why is that?” Birkenfeld said. “Quite frankly, my feeling is that this is certainly an intelligence agency operation.” Asked why the U.S. would leak information that has also been damaging to U.K. Prime Minister David Cameron, a major American ally, Birkenfeld said the British leader was likely collateral damage in a larger intelligence operation. “If you’ve got NSA and CIA spying on foreign governments they can certainly get into a law firm like this,” Birkenfeld said. “But they selectively bring the information to the public domain that doesn’t hurt the U.S. in any shape or form. That’s wrong. And there’s something seriously sinister here behind this.” This just further confirms my belief that this whole “leak” isn’t what we are being told. This is the work of an intelligence agency working on behalf of a particular government, not on behalf of the public. Don’t be duped.
Richard K. Moore
In 1984 George Orwell paints a picture of a dark, gray world. People are afraid to say anything contrary to the official party line, and surveillance is universal. Even thinking contrary to the party is a crime, and thoughtcrimes may be treated by radical psychological intervention. Information is closely controlled by the party media, and the historical record is routinely edited, so as to conform to the latest party statements. By contrast, in Brave New World, Aldous Huxley paints a colorful, superficially pleasant world. Personal freedom of all kinds is encouraged, even to the point of being a cultural imperative. In the book a young boy is referred to a therapist, because he doesn’t want to play sex games with a girl classmate. An adult character is considered aberrant, because he is drawn toward a monogamous relationship. Drugs and distractions are readily available for mood enhancement. Central to Huxley’s world is the abolition of the family. Sex never results in pregnancy, and embryos are grown in a production process, based on selected seed material. As part of the production process, an embryo can be fed or starved, at various stages of its development, so as to create classes of people (alphas, betas, etc.) with differing levels of intelligence and skills. Quotas are set, regarding how many people of each class are going to be needed, and should therefore be produced. Various kinds of conditioning are then used on infants in order to get them to accept their class, along with its prerogatives and restrictions, as be-
ing best for them. Children are raised on a communal basis, with no concept of parents, siblings or family. From embryo to adulthood, the state has finetuned control over the development of the person, and of their thinking. In the resulting society, people behave as they were programmed to behave, and can’t imagine things being any different.
In Orwell’s world, wrong-thought (thoughtcrime) is detected and suppressed. In Huxley’s world, wrongthought is unlikely to arise. Orwell’s world suppresses the individual; Huxley’s world manufactures the individual. In both cases, mind control — control over what people are able to think — is the strategy of the regime, as its means of social control generally. Orwell explores a brute-force approach to mind control, while Huxley explores a scientific approach. The novels are useful because they each take one of these basic approaches to mind control, and follow its consequences to the end. If you really want to suppress what people think, you’d need to do A, B, and C. If you really want to program people, you’ve got to start when they’re born and do X, Y, and Z. We are able to see the architecture — the structural patterns — of each kind of mind-control regime. This can help us recognize precursors — signs that such a future is coming our way. Echoes of Orwell Consider the world of mainstream journalists, in particular TV news anchors. There we have a world with echoes of 1984, where what is said must conform to the party line. Any thoughtcrime — such as an anchor commenting onscreen that he doesn’t buy the of-
ficial story of 9/11, or he thinks Russia isn’t an aggressor — would be quickly punished by the equivalent of death — expulsion from the world of journalism. Thus is maintained the Matrix, the story we are told about US benevolence, the existence of democracy, the sacredness of market forces, and all the rest. With control of major media in just a few hands, the party line can always be maintained, and current (or past) events can be interpreted within that framework. To do otherwise, for a news anchor, would be literally unthinkable. Huxley’s Ministry of Truth is at work in our world, but it is invisible, hiding away in the boardrooms of media conglomerates, and behind the doors of the White House press office. The same kind thoughtcrime regime is operating in other arenas as well, where socially-sensitive topics are concerned. The peer-review process, and the editorial boards of the relevant journals, ensure that thoughtcrimes are suppressed, when it comes to concerns regarding genetic manipulation, pesticides, fracking, pharmaceuticals, radiation levels, etc. Again, the Ministry of Truth is invisible, residing high up in the chain of corporate boardrooms. Even though our society doesn’t resemble Orwell’s dystopia, his mind control methods are operating in very critical places, where the population’s ‘information’ is generated. And of course we do have universal surveillance, courtesy of the NSA, omnipresent CCTV cameras, and cellphone tracking. Big Brother is with us, but he stays behind the scenes, he sees all, and he decides what stories we will be told about the world by the mainstream
DANIELLE media. Echoes of Huxley Huxley wrote a review of 1984 where he talked about the two different future visions. He suggested that we might go through some kind of dark period, reminiscent of 1984, but he thought such a regime would be unstable and transitional. He went on to say that the scientific approach to mind control, based on programming people’s belief systems, would be the more sensible choice for a modern totalitarian society. US Government research into scientific mind control began at least in the 1960’s, and has been ongoing. The first approach — the CIA’s ‘Operation Mind Control’ — was heavy-handed, reminiscent of 1984. This research involved giving people psychotropic drugs, along with post-hypnotic suggestions. Quite a bit could be (and has been) accomplished with these kinds of methods, along the lines of The Manchurian Candidate, but it didn’t provide a general solution: two much work was required to program people on an individual basis. Research then shifted to cult creation. If people can be herded into cults of various kinds, cult dynamics themselves would serve the programming function. This provides a more wholesale approach to mind control, than the individual methods tried earlier. The CIA has never publicly claimed credit for this later research, but the experiments were very successful, including Reverend Jim Jones and the People’s Temple, and David Koresh and Waco. In this kind of research, the first step is to identify a natural cult leader, who has already shown some success in gathering followers. Then the cult is given support of various kinds. Covert agents are sent in to join the cult, not only to observe and report, but also to provide organizational skills. Funds are channeled to the cult, and local police
are warned off, so that the cult can grow unhampered.
members away from a cult, once they have been thoroughly indoctrinated.
In this way, researchers have been able to study how a skilled cult leader operates, how people are drawn into a cult, how loyalty is maintained, and how people can be pushed into extreme beliefs and actions. When everything had been learned that could be learned from a cult, the cult’s leader and members were then killed, so as to hide the evidence of what had really been going on in the experiment.
The society described in Brave New World is in fact a cult-based society. Each of the classes (alpha, beta, etc.) is a cult, and the programming begins at birth. No charismatic leader is needed, when so much control over programming is available. Each cult has its own core belief system, along with packaged arguments to maintain those beliefs. The required actions and sacrifices are simply the lifestyle which has been designed for each class. Such a society would tend to be stable, particularly since deprogramming efforts would be absent from the scene.
Cults and their Uses One of the first large-scale deployments of cult technology, informed by this research, was the creation of the Jihad movement by the CIA. The immediate purpose was to destabilize the Soviet regime during the 1980s by tying it down in a quagmire in Afghanistan. This operation was quite successful. Since then, the Jihad cult movement — aka Taliban, Al Qaeda, Kosovo Liberation Army, ISIS, etc. — has proven to be an extremely useful tool for the purpose of destabilizing regimes, in pursuit of US geopolitical objectives. These destabilization operations in turn provide an excuse for direct US intervention, as we’ve seen recently in Libya and Iraq, and as we may soon see in Syria. Cults generally have certain characteristics. There is usually a charismatic leader, who is able to inspire belief and loyalty in cult members. There is always a defining core belief system, that sets cult members off from outsiders, and which provides a strong sense of identity and purpose for members. There is typically an alleged ‘outside threat’ to the cult, which draws members together. There are actions and sacrifices required of members, which serve to bind them more tightly to the cult. There are packaged arguments, that cult members are taught to employ, to repel attempts undermine the core belief system. These programming methods are very powerful, and typically intense deprogramming is needed to ply
It is notable that Huxley’s world is not about a single cult, a uniform society, but rather about multiple cults. This makes for greater stability. Cult members have not only a model of what-to-be, they also have models of what-not-to-be. Each cult is more clearly defined, and drawn more into itself, by the existence of other cults. Being glad you’re not a beta is one of the reasons to be glad you are an alpha. We see this same multi-cult dynamic operating in the US, in the divisiveness between liberals and conservatives. Liberals are kept in the fold by stories of conservative folly, and conservatives are kept in the fold by stories of liberal folly. In a propaganda-only system of control, there would be one party line for everyone. In this multi-cult system, there are two party lines, which we might characterize as CNN vs FOX. While the two party lines have many differences, in order to keep the two cults separated, they in fact share basic essentials in common. They both sustain the myth that state policy is a response to public sentiment, and they blame the other cult for providing support for the ‘bad’ policies. In fact US policy is made outside of government, by financial elites, and the state aims to control public sentiment, not respond to it. In this way we can see CNN and
DANIELLE FOX as collaborators, sharing the common goal of hiding this fundamental truth from the people. The Democratic and Republican parties collaborate toward this same goal, using Congress as a stage, where they carry on a theater of divisiveness, providing the appearance of a democratic decision-making process. The Barack Obama phenomenon provides an excellent example of cult tactics in action. Obama himself is obviously a natural cult leader, articulate and charismatic. He came onto the scene offering an inspiring core belief in deep reform: “The ground of politics has changed; Yes we Can!” The dramatic effect was intense, as if we were witnessing the Second Coming. Campaign volunteers became the core of the budding Obama cult, and they were given lots of work to do, binding their identity to Obama and his professed mission. The McCain campaign was orchestrated to look like a dangerous threat by a rival cult, binding Obama supporters even more tightly. The success of this mind-control operation was truly amazing. Obama in fact proceeded, after his election, to carry on and expand everything G.W.Bush had been doing; the ground of politics hadn’t changed at all. But the cult binding was so strong that his support continued, by the very people who had hated Bush because of the same policies. Packaged arguments were put forward, to keep people in the cult, blaming Obama’s performance on Republican opposition — the standard divisiveness tactic. Even today there remain legions of Obama loyalists. Once bound to a cult, leaving becomes psychologically difficult. Another example of mind control by means of cults is provided by globalwarming hysteria. Al Gore played the role, at least temporarily, of cult leader, when he presented the core belief in CO2-caused climate crisis in his scientifically fraudulent, but very popular film, An Inconvenient Truth. The
growth of the cult was ensured by the fact that it then became a thoughtcrime in mainstream media and climate journals to question these core beliefs. Cult members are given things to do and sacrifices to make, like riding a bicycle and buying a Prius. They are given a packaged argument, that contrary views are nothing but the propaganda of an outside threat: the evil petroleum industry. This kind of mind control operation is much more effective than propaganda on its own. It’s not just that cult members believe in CO2-caused climate crisis, they believe they are fighting a battle against an enemy. They have been fully immunized against counter arguments to their core beliefs, and their only concern is to ‘save the planet’ by supporting anything that looks like it will reduce carbon emissions. Thus they are being led willingly down the garden path to a micro-managed society, as outlined in Agenda 21. The “Conspiracy Theory” Meme State control of public schools and mainstream media goes a long way towards programming people’s minds. But it is not enough, particularly in the era of the Internet. There are many sources available that thoroughly debunk mainstream propaganda, and by using those sources a large number of people have escaped, at least in part, from the mind-control regime. In Orwell’s world, the Internet would be banned. In our world, which is developing more along Huxley’s lines, other ways have been found to limit the ability of the Internet to undermine the mainstream narratives. The ‘conspiracy theory’ meme was launched by the CIA in the wake of the JFK assassination. The official story was so full of holes that more and more people were beginning to doubt it. While the Warren Commission was busy writing its cover-up document, the public began to learn about the existence of ‘conspiracy theorists’. These
are people, the story goes, who suffer from paranoid delusions, and sane people should pay no attention to anything they say. If someone even looks at any of those ideas, their own mental stability comes into question. This mind-control tactic was very effective in marginalizing research into the truth behind the JFK assassination. Anyone who presented evidence contrary to the official story was automatically seen as a ‘conspiracy theorist’. By scoffing at such evidence, without looking at it, you could demonstrate that you were mentally balanced. Thus logic and reasoning are banished from the scenario. Either you believe the official story, or your mental health is called into question. Since then, the conspiracy-theory meme has been carefully nurtured and expanded by the mainstream party lines. This mind-control campaign has been very successful in immunizing the majority of the population against the revelations available on the Internet, especially regarding 9/11. Any story not appearing in the mainstream media must by definition be a conspiracy theory, and anything that sounds like a conspiracy theory should be scoffed at and ignored. Thus for the majority of the population we have a tightly controlled, twotier, mind-control regime. The thoughtcrime dynamic governs what the media says, and the conspiracy-theory dynamic immunizes people against other views. For the majority, the party line (either CNN or FOX) is ‘truth’, as in Orwell’s world, but without the need for Big Brother’s extreme methods. By these mind-control methods, a bubble has been created, in which the majority does their thinking. Inside the bubble are the two party-line narratives, and outside the bubble the real world proceeds, invisible to those inside the bubble. It’s a very effective system. The more outrageous the real actions of the state, the more quickly
the majority rejects revelations of those actions, as being outrageous conspiracy theories. In some cases the FOX party line includes accurate revelations which would be thoughtcrimes in the CNN world. In such cases, the CNN world responds by classifying those revelations as ‘right wing’ conspiracy theories. Unlike a propaganda-only system, where state crimes are always hidden, this multi-cult system enables the state to document its own crimes on conservative media, and know that the information will be disbelieved by the liberal cult. This system allows the truth to be hidden from some, through the act of revealing it to others. Very clever. Mind Control Outside the Bubble While the majority may be inside the bubble, there is a large and growing number of people who don’t have faith in any mainstream party line, and who
are open to considering the various ideas they find from Internet sources. The phrase ‘waking up’ is frequently used to describe the process of escaping from the bubble. More and more people are ‘waking up’ to the reality of false-flag events, routine government lies, the deep corruption of politics and the media, and the sociopathic central bankers who exercise the reins of power from behind the scenes. However, the Internet is not being ignored by the state, and mind-control operations are underway there as well — designed for those who have ‘woken up’. Such operations are not aimed at moving people back into the bubble, rather they embrace the ‘awake’ ideas, aikido style, and then seek to direct the energy of the ‘awoken’ in ways that serve the state and its objectives. An example of one of these outsidethe-bubble mind-control operations, of the cult variety, is provided by the
Zeitgeist Movement — which claims to be the “largest grassroots movement in the world with chapters in over 60 countries”. Peter Joseph is the charismatic leader of this cult, and he offers his set of core beliefs, backed up by persuasive evidence and arguments, in Zeitgeist: The Movie. For those who are ‘awake’, the film is very powerful. It presents the essential truths about the world, without pulling punches, in a dramatic and compelling way. The film has gone through several versions over time, and the very first version went viral on the Internet as soon as it was released. To the ‘awoken’, it was a film of liberation, with the potential to wake everyone up and transform the world. After the film was released, and after it gained a massive and enthusiastic audience, the Zeitgeist Movement was launched. Fans of the film flocked to join the movement, eager to ‘spread the
DANIELLE gospel of truth’, and help ‘wake up the world’. They were joining an urgentlyneeded messianic cause, and this bound them to the movement, in the way cults always bind members. Peter Joseph was seen as a prophet figure, the articulator of the gospel, and the one who could lead the way to liberation — and this is more or less the textbook definition of a cult leader. What these eager cult members fail to realize is that the very thing that attracts them to the movement also guarantees that the movement could never succeed in ‘waking up the world’. The core beliefs that are so liberating to the members are all seen as outrageous conspiracy theories inside the mainstream bubble. While members think they are pursuing a messianic cause, they are in fact a choir singing to itself, with Peter Joseph setting the tune. The real purpose behind the cult is revealed in a press release on the movement’s website, entitled, ‘The Zeitgeist Movement defined: realizing a new train of thought’. Here Joseph expands the gospel, going beyond ‘revealing the truth’, and venturing into envisioning the transformed world that the movement aims to help create. Here are three key points from Prophet Joseph’s vision: The Scientific Worldview: The essay explores how the development of the scientific method has altered human perception and the critical importance of its recognition and larger order application, specifically with respect to the social system. The Case for Human Unity: This essay explores the reasoning for a unified global society along with tracing the source of national divisions and propensities for conflict. A relevant point is made regarding the advancement of technological warfare and how the dangers of keeping biased economic boundaries as we have could lead to rapid destruction as time moves forward.
Market Efficiency vs Technical Efficiency: This essay argues the difference between true scientific (or technical) efficiency and the business practice of “market efficiency,” showing how the latter actually works against true economic optimization. This is a prescription for a micromanaged global technocracy, under the control of a one-world government. Both the social system and the economic system are to be ‘scientifically optimized’ — which in fact means a world organized along whatever lines are set down by some technocratic bureaucracy, under the control of an enthroned global elite. In other words, Prophet Joseph is creating an enthusiastic constituency in support of the central bankers’ long-desired New World Order.
The Zeitgeist cult is an aikido masterstroke. It begins with the revelation that ‘evil bankers’ run the world, blending with the energy of the ‘awoken’, and then shifts that energy in a direction that serves the interests of those same ‘evil bankers’. Again, I must say very clever, very clever indeed. Zeitgeist is only one example of a mind-control operation aimed at those who have achieved one degree or another of ‘awakening’. Numerous movements have been created, characterized by well-designed websites that tell some version of the truth, drawing in audiences with some specific focus of concerns, and which lead those audiences into useless or counter-productive activities.
In Huxley’s world, we see a scientifically designed society, tightly controlled by a full-spectrum mindcontrol regime, based on conditioning and cult dynamics. In today’s world, we see cult dynamics being used in a variety of mind-control operations, with cults customized for various constituencies both inside and outside the mainstream bubble. Huxley’s world has achieved stabilization by such means; in our world those means are being used to facilitate a transition — to a brave new world order that is likely to resemble Huxley’s in many of its essential features. The Demise of the Family? If the state can achieve full control over the raising of children, without parental interference, then quite obviously that would give the state the power to achieve a full-spectrum mind-control regime. Not only could the state design the society’s culture, it could tune that culture over time, by updating the conditioning process. If full-spectrum mind-control is the goal, then eliminating the family becomes a primary intermediate objective. If eliminating the family is indeed an objective of the New World Order project, then it is by no means an easy objective to achieve. One would be hardpressed to imagine an institution that would be more fiercely defended than the family, or to imagine a more painful experience than being separated from ones children or parents. Any campaign to achieve that objective would need to fly under false colors, not advertised as a campaign to eliminate the family, but rather as a campaign aimed at protecting the rights and welfare of the child. It is in this light, I suggest, that we consider the many revelations that have emerged in recent years regarding child sexual abuse, and the existence of pedophile rings. In many of these cases we learn that the abusive activity have been going on for many, many years, as we see in the case of pedophile priests.
DANIELLE Why is it that these longstanding activities have only recently been ‘discovered’? If there is to be a strong campaign for the ‘rights and welfare of children’, there needs to be first a strong impression that their rights and welfare need protecting. Exposés of child sexual abuse serve that purpose very well. When you see a police drama, where abused children are rescued by noble cops from drug-addicted parents, you are are getting images of a benevolent state, and a social milieu that requires intervention. It becomes a template that can be expanded on as time goes on. And of course there are the interminable ads, where a neglected child sits alone at home (black and white film for effect), fearful and hungry, and you can donate $10 to some child-protection agency.
Recently I came across a webpage from a UN agency, promoting the virtues of children raised ‘alternatively’. These are children raised as a group, sans parents, reminiscent of Huxley’s scenario. Supposedly these children were ‘more creative’, and showed other positive signs. How very nice. Another good-intention-stone along the garden path to the demise of the family. In, 2013, in both Ireland and New Zealand, constitutional amendments were adopted, declaring that the rights and welfare of the child are paramount, trumping any rights that might be claimed by a child’s parents. In Ireland, a court challenge was immediately launched, based on the fact that the government had illegally campaigned for the referendum that approved the amendment, when by law the government should have been neutral. The
challenge was, not surprisingly, rejected by the courts. There is no specific formula in these amendments as to what defines the rights and welfare of children, leaving it up to the discretion of the state, as to when intervention in the family might be appropriate. As economic conditions worsen, under the screws of austerity, privatization, and eliminated social services, it will become a struggle for an increasing number of parents to feed, clothe, and house their families. It would be all too easy for the state to mandate a ‘minimum level of acceptable conditions’, and take children wholesale into care, based on ‘economic profiling’. That’s just one possible scenario, but it’s the kind of scenario it seems we are being prepared for.
ALLERGAN IMPLODES by Tyler Durden The stock of Allergan imploded, crashing by 20%, plunging to $225 or the lowest level since late 2014, in the process blowing up countless M&A arb deals which were hoping the recently blowing out spread, which as of Friday hit a post announcement wide of $61, is attractive enough to take the risk of a Treasury crackdown on tax inversion deal.
Alternatively, maybe someone knew something. Something, such as what the Treasury announced in a release titled “Treasury Announces Additional Action to Curb Inversions, Address Earnings Stripping” As the title implies, the Treasury has just made it quite clear that any and all tax inversions, of which the PfizerAllergan deal is most notable, are no longer welcome. This is what it said. Treasury Announces Additional Action to Curb Inversions, Address Earnings Stripping Today, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued temporary and
proposed regulations to further reduce the benefits of and limit the number of corporate tax inversions, including by addressing earnings stripping. By undertaking an inversion transaction, companies move their tax residence overseas to avoid U.S. taxes without making significant changes in their business operations. After an inversion, many of these companies continue to take advantage of the benefits of being based in the United States, while shifting a greater tax burden to other businesses and American families. “Treasury has taken action twice to make it harder for companies to invert. These actions took away some of the economic benefits of inverting and helped slow the pace of these transactions, but we know companies will continue to seek new and creative ways to relocate their tax residence to avoid paying taxes here at home,” said Treasury Secretary Jacob J. Lew. “Today, we are announcing additional actions to further rein in inversions and reduce the ability of companies to avoid taxes through earnings stripping. This will have an important effect, but we cannot stop these transactions without new legislation. I urge Congress to move forward with anti-inversion legislation this year. Ultimately, the best way to address inversions is to reform our business tax system, which is why Treasury is releasing an updated framework on business tax reform, outlining the administration’s proposals to date as a guide for future reform. While that work goes on, Congress should not wait to act as inversions continue to erode our tax base.”
Genuine cross-border mergers make the U.S. economy stronger by enabling U.S. companies to invest overseas and encouraging foreign investment to flow into the United States. But these transactions should be driven by genuine business strategies and economic efficiencies, not a desire to shift the tax residence of a parent entity to a low-tax jurisdiction simply to avoid U.S. taxes. Today, Treasury is taking action to: Limit inversions by disregarding foreign parent stock attributable to recent inversions or acquisitions of U.S. companies. This will prevent a foreign company (including a recent inverter) that acquires multiple American companies in stock-based transactions from using the resulting increase in size to avoid the current inversion thresholds for a subsequent U.S. acquisition. Address earnings stripping by: Targeting transactions that generate large interest deductions by simply increasing related-party debt without financing new investment in the United States. Allowing the IRS on audit to divide debt instruments into part debt and part equity, rather than the current system that generally treats them as wholly one or the other. Facilitating improved due diligence and compliance by requiring certain large corporations to do up-front due diligence and documentation with respect to the characterization of related-
DANIELLE party financial instruments as debt. If these requirements are not met, instruments will be treated as equity for tax purposes. Formalize Treasury’s two previous actions in September 2014 and November 2015. Treasury will continue to explore additional ways to address inversions. Treasury is also releasing an updated framework for business tax reform, which revises the framework released in 2012. This lays out the key elements of the President’s approach to reform and details the specific proposals the administration has put forward, including a comprehensive approach to reforming the international tax system. The Allergan-Pfizer spread now is basically to levels as if the deal never happened:
We can’t wait to find out how many M&A arbs, who had anywhere between 2x and 5x (or more) leverage on the arb spread (of which the most notable recent arb chaser is none other than Franklin resources whose Dec 31. $1.3BN pure arb stake is now worth 20% less in an instant) just blew up after hours with just this one simple press release. The table below shows why Franklin Resources will be short one employee tomorrow:
We also wonder how this will impact the broader, and quite illiquid, market
tal allocation opportunities.” NOTE:
Less than two days after the US Treasury cracked down on inversion deals, and one deal in particular, Pfizer’s pharma record $160 billion acqisition of Allergan, moments ago the two companies announced the deal is officially over. From the press release: Pfizer Announces Termination of Proposed Combination with Allergan Pfizer Inc. today announced that the merger agreement between Pfizer and Allergan plc has been terminated by mutual agreement of the companies. The decision was driven by the actions announced by the U.S. Department of Treasury on April 4, 2016, which the companies concluded qualified as an “Adverse Tax Law Change” under the merger agreement. “Pfizer approached this transaction from a position of strength and viewed the potential combination as an accelerator of existing strategies,” stated Ian Read, Chairman and Chief Executive Officer, Pfizer. “We remain focused on continuing to enhance the value of our innovative and established businesses. Our most recent product launches, including Prevnar 13 in Adults, Ibrance, Eliquis and Xeljanz, have been well-received in the market, and we believe our late stage pipeline has several attractive commercial opportunities with high potential across several therapeutic areas. We also maintain the financial strength and flexibility to pursue attractive business development and other shareholder friendly capi-
“We plan to make a decision about whether to pursue a potential separation of our innovative and established businesses by no later than the end of 2016, consistent with our original timeframe for the decision prior to the announcement of the potential Allergan transaction,” continued Read. “As always, we remain committed to enhancing shareholder value.” In connection with the termination of the merger agreement, Pfizer has agreed to pay Allergan $150 million for reimbursement of expenses associated with the transaction. The biggest losers here, aside from senior AGN management who stood to cash out of their newly vested, debtpropped up shares, are the advising investment banks among which are Goldman, Guggenheim, Centerview, Moelis & Company (advising Pfizer), who were supposed to split $100 million among each other as part of the deal. JPMorgan and Morgan Stanley were advising Allergan and they two will miss out on dozens of millions in ibanking revenue.
CASH BANNED Thorsten Polleit Some politicians want to ban cash, arguing that cash is helping criminals. The first steps in that direction are the withdrawal of big denomination notes and the limits imposed on cash payments. Proponents of a ban on cash claim that this will help fight criminal transactions — involved in money laundering, terrorism, and tax evasion. These promises of salvation are used to get the general public to agree to a society without cash. But there is no convincing proof for the claim that the world without cash will be a better one. Even if undesirable behavior is indeed financed by cash, you still need to answer the question: will the undesirable behavior disappear without cash? Or will those who commit the undesirable acts take to new ways and means to reach their goal? Take the example of the 500 euro note. If we do away with it, won’t those who wish to use cash pay with five 100 euro notes instead? Or ten 50 euro notes? And what about the costs imposed on the large majority of respectable people, if you put a ban on their cash? Using the same logic, should we ban alcohol, because some can’t handle it properly? It’s Really about Central Banks The plan to restrict the use of cash, or to abolish it step by step, has nothing to do with the fight against crime. The real reason is that states (and their central banks) want to introduce negative interest rates. Although central banks have long pursued inflationary policies that de-
value the debt owed by governments, negative interest rates offer a new and powerful tool to do this. But, to make negative interest rates work well, you have to get rid of physical cash. Otherwise, if you apply negative rates on bank deposits, customers in the short or long run will try to avoid the costs that negative rates impose on their bank deposits. So, depositors will, in many cases, hoard cash. To block this last escape route, proponents of the ban on cash want to do away with it. The Natural Rate of Interest Incidentally, some reputable economists are supporting the plan, claiming that the “natural rate” has become a negative rate. Because of that, central banks were forced to push interest rates below zero, being the only way to foster growth and employment. The assertion that the balanced interest rate has become negative doesn’t stand up to a critical examination though.
If the state bans cash, all transactions must be executed electronically. For the state to see who buys what when and who travels when where is then only a small step away. The citizen thus becomes completely transparent and his financial privacy is being lost. Even the prospect that a citizen can be spied upon at any time is an infringement on his right of freedom. Cash helps to protect the citizen from an unfettered intrusiveness by the state. If the state increases taxes too much, citizens at least have the option to avoid the tribulation by paying in cash. The knowledge that citizens can do so, makes states hold back a little. States will give up any restraint once cash has been banned. The justified concern isn’t at all rendered obsolete by the cases of Sweden and Denmark, where the cashless society is said to function to its perfection. The citizens of those countries can still use foreign cash if they want.
[It is inherently impossible that the balanced interest rate is negative. Market rates, which entail the balanced rate, can fall below zero, but not the balanced rate itself. The policy of negative rates is no cure for the economy but causes massive economic problems.
The plan to ban cash — step by step — is a sign of the fundamental ailment of our time: the state is destroying more and more of the freedom of citizens and businesses, once it has turned into a territorial monopolist and highest judge of all conflicts.
Competition and Property Rights
The fight to keep cash may bring something good though: it will shed light on the need to take the power away from the state as we know it, by applying the same principles of law on its actions as on those of each and every citizen. That way, the state’s monopoly on producing cash would come to an end and the citizen wouldn’t need to worry that he may be deprived of his cash against his will.
Banning cash is infringing on the freedom of citizens on a massive scale. In withdrawing cash, the citizen is bereft of choice for his payments. After all, the state has the monopoly on the production of money. There is no competition on cash. Thus, nobody but the state can satisfy the demand for money by citizens.
SOMETHING BROKE IN THE GEARS OF FINANCIAL ENGINEERING! by Wolf Richter www.wolfstreet.com Companies are still borrowing and spending billions on buying back their own shares – one of the big drivers behind the blistering stock market rally of the past few years. It worked wonderfully and without fail. But suddenly, it’s doing the opposite, and now the shares of the biggest buyback queens are getting hammered. Something broke in the gears of this financially engineered market! During the November-January period, 378 of the S&P 500 companies bought back their own shares, according to FactSet. Total buybacks in the quarter rose 5.2% from a year ago, to $136.6 billion. Over the trailing 12 months (TTM), buybacks totaled $568.9 billion. That’s an enormous amount of corporate cash that was dumped on the market! The sector that blew – “blew” because that’s how it turned out – the most money on this type of financial engineering project was Information Technology, with $33.2 billion in buybacks last quarter. Four of the top 10 buyback queens were Information Technology: Apple, Microsoft, Oracle, and Visa. Apple alone blew $6 billion in the quarter, even as its stock was tanking. Relative to its average share price over the period, it paid a 13% premium, the second highest premium paid by S&P 500 companies, after Symantec! Over the trailing 12 months, Apple blew nearly $40 billion on buybacks, and yet its stock dropped 15.5%. This table shows the top 10 buyback queens in order of the amount spent on a TTM basis, and the mostly dismal performance of their shares over the same period. GE didn’t quite make this list (though it bought back $3.1 billion in Q4), but it was very active in different ways, following through on its $50-billion buyback program announced in April last year. FactSet: In addition to the repurchase program, GE completed a stock swap with the former GE Capital retail finance division, Synchrony Financial, which had an effect on shares outstanding that was equivalent to a $20.4 billion buyback. As a result, the shares outstanding for GE were reduced by 6.7% in the last twelve months. Total buybacks are ballooning in proportion to net income, which declined over the TTM period for the first time since 2009. So buybacks as a percent of income rose from 64.9% a year ago to 68.1% at the end of the quarter. In terms of free cash flow after dividends, share buybacks
DANIELLE have now ballooned to 101.7%. This was, as FactSet put it, “a huge jump from the year ago quarter when the ratio was 81.6%.” The culprit? With income down over the TTM period, aggregate free cash flow has dropped 9.5% year-over-year. FactSet’s chart shows the declining net income (green bars), the nearly flat share-buybacks (blue bars), and the rising buyback-to-income ratio (red line, right scale). Note what happened last time income began to decline (2007) and share buybacks followed in 2008: the stock market crashed. And yet, despite the current heroic efforts to prop up their shares, companies have seen their shares get hammered. As FactSet’s chart below shows, over the past 12 months, the S&P 500 total return index, which included dividends, rose 1.3% (green line). But the total return of SPDR S&P 500 Buyback ETF, which tracks the 100 companies in the S&P 500 with the highest buyback ratio, dropped 7.6% (blue line): Clearly, financial engineering is kaput! Buybacks no longer function reliably in inflating stock prices. The opposite seems to be happening. Perhaps investors are finally starting to see through these shenanigans, and perhaps they’re now beginning to fret about all the debt these companies take on in order to fund buybacks! When companies borrow billions to then blow that moolah on buying their own shares that then promptly decline in value, it doesn’t create a loss on the income statement. Instead, those billions quietly go up in smoke. What’s left behind? Fewer shares outstanding, piles of additional debt, mauled cash balances, and much higher financial risk. But once companies see that share buybacks are becoming toxic as their shares decline despite buybacks, they curtail them. And last time this happened – in 2008 – it pulled the rug out from under the already teetering markets. The bull market from early 2009 into May 2015 looks just like every bubble in history, and there’s one sign after the next that we did indeed peak last May. The dominant pattern in the stock market is the “rounded top” pattern.
DANIELLE DA MAY 2016
DECEPTION LIES & TERROR
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by Ellen Brown While the mainstream media focus on ISIS extremists, a threat that has gone virtually unreported is that your life savings could be wiped out in a massive derivatives collapse. Bank bailins have begun in Europe, and the infrastructure is in place in the US. [ and Canada] Poverty also kills. At the end of November, an Italian pensioner hanged himself after his entire €100,000 savings were confiscated in a bank “rescue” scheme. He left a suicide note blaming the bank, where he had been a customer for 50 years and had invested in bank-issued bonds. But he might better have blamed the EU and the G20’s Financial Stability Board, which have imposed an “Orderly Resolution” regime that keeps insolvent banks afloat by confiscating the savings of investors and depositors. Some 130,000 shareholders and junior
bond holders suffered losses in the “rescue.” The pensioner’s bank was one of four small regional banks that had been put under special administration over the past two years. The €3.6 billion ($3.83 billion) rescue plan launched by the Italian government uses a newly-formed National Resolution Fund, which is fed by the country’s healthy banks. But before the fund can be tapped, losses must be imposed on investors; and in January, EU rules will require that they also be imposed on depositors. According to a December 10th article on BBC.com: The rescue was a “bail-in” – meaning bondholders suffered losses – unlike the hugely unpopular bank bailouts during the 2008 financial crisis, which cost ordinary EU taxpayers tens of billions of euros.
Correspondents say [Italian Prime Minister] Renzi acted quickly because in January, the EU is tightening the rules on bank rescues – they will force losses on depositors holding more than €100,000, as well as bank shareholders and bondholders. . . . [L]etting the four banks fail under those new EU rules next year would have meant “sacrificing the money of one million savers and the jobs of nearly 6,000 people”.That is what is predicted for 2016: massive sacrifice of savings and jobs to prop up a “systemically risky” global banking scheme. Bail-in Under Dodd-Frank That is all happening in the EU. Is there reason for concern in the US? On March 21st, 2013, Prime Minister Stephen Harper had his Finance Minister Jim Flaherty present their
DANIELLE 2013 Budget that included a “Bail-In Regime” on page 145. According to former hedge fund manager Shah Gilani, writing for Money Morning, there is. In a November 30th article titled “Why I’m Closing My Bank Accounts While I Still Can,” he writes: [It is] entirely possible in the next banking crisis that depositors in giant too-big-to-fail failing banks could have their money confiscated and turned into equity shares. . . . If your too-big-to-fail (TBTF) bank is failing because they can’t pay off derivative bets they made, and the government refuses to bail them out, under a mandate titled “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution,” approved on Nov. 16, 2014, by the G20’s Financial Stability Board, they can take your deposited money and turn it into shares of equity capital to try and keep your TBTF bank from failing. Once your money is deposited in the bank, it legally becomes the property of the bank. Gilani explains: “Your deposited cash is an unsecured debt obligation of your bank. It owes you that money back. If you bank with one of the country’s biggest banks, who collectively have trillions of dollars of derivatives they hold “off balance sheet” (meaning those debts aren’t recorded on banks’ GAAP balance sheets), those debt bets have a superior legal standing to your deposits and get paid back before you get any of your cash.” Big banks got that language inserted into the 2010 Dodd-Frank law meant to rein in dangerous bank behavior. The banks inserted the language and the legislators signed it, without necessarily understanding it or even reading it. At over 2,300 pages and still growing, the Dodd Frank Act is currently the longest and most complicated bill ever passed by the US legislature.
Propping Up the Derivatives Scheme Dodd-Frank states in its preamble that it will “protect the American taxpayer by ending bailouts.” But it does this under Title II by imposing the losses of insolvent financial companies on their common and preferred stockholders, debtholders, and other unsecured creditors. That includes depositors, the largest class of unsecured creditor of any bank. Title II is aimed at “ensuring that payout to claimants is at least as much as the claimants would have received under bankruptcy liquidation.” But here’s the catch: under both the Dodd Frank Act and the 2005 Bankruptcy Act, derivative claims have super-priority over all other claims, secured and unsecured, insured and uninsured. The over-the-counter (OTC) derivative market (the largest market for derivatives) is made up of banks and other highly sophisticated players such as hedge funds. OTC derivatives are the bets of these financial players against each other. Derivative claims are considered “secured” because collateral is posted by the parties. For some inexplicable reason, the hard-earned money you deposit in the bank is not considered “security” or “collateral.” It is just a loan to the bank, and you must stand in line along with the other creditors in hopes of getting it back. State and local governments must also stand in line, although their deposits are considered “secured,” since they remain junior to the derivative claims with “super-priority.” Turning Bankruptcy on Its Head Under the old liquidation rules, an insolvent bank was actually “liquidated” – its assets were sold off to repay depositors and creditors. Under an “orderly resolution,” the accounts of depositors and creditors are emptied to keep the insolvent bank in business. The point of an “orderly resolution” is
not to make depositors and creditors whole but to prevent another systemwide “disorderly resolution” of the sort that followed the collapse of Lehman Brothers in 2008. The concern is that pulling a few of the dominoes from the fragile edifice that is our derivativesladen global banking system will collapse the entire scheme. The sufferings of depositors and investors are just the sacrifices to be borne to maintain this highly lucrative edifice. In a May 2013 article in Forbes titled “The Cyprus Bank ‘Bail-In’ Is Another Crony Bankster Scam,” Nathan Lewis explained the scheme like this: At first glance, the “bail-in” resembles the normal capitalist process of liabilities restructuring that should occur when a bank becomes insolvent. . . . The difference with the “bail-in” is that the order of creditor seniority is changed. In the end, it amounts to the cronies (other banks and government) and non-cronies. The cronies get 100% or more; the non-cronies, including non-interest-bearing depositors who should be super-senior, get a kick in the guts instead. . . . In principle, depositors are the most senior creditors in a bank. However, that was changed in the 2005 bankruptcy law, which made derivatives liabilities most senior. Considering the extreme levels of derivatives liabilities that many large banks have, and the opportunity to stuff any bank with derivatives liabilities in the last moment, other creditors could easily find there is nothing left for them at all. As of September 2014, US derivatives had a notional value of nearly $280 trillion. A study involving the cost to taxpayers of the Dodd-Frank rollback slipped by Citibank into the “cromnibus” spending bill last December found that the rule reversal allowed banks to keep $10 trillion in swaps trades on their books. This is money that taxpayers could be on the hook for in another bailout; and since Dodd-Frank replaces
DANIELLE bailouts with bail-ins, it is money that creditors and depositors could now be on the hook for. Citibank is particularly vulnerable to swaps on the price of oil. Brent crude dropped from a high of $114 per barrel in June 2014 to a low of $36 in December 2015. What about FDIC insurance? It covers deposits up to $250,000, but the FDIC fund had only $67.6 billion in it as of June 30, 2015, insuring about $6.35 trillion in deposits. The FDIC has a credit line with the Treasury, but even that only goes to $500 billion; and who would pay that massive loan back? The FDIC fund, too, must stand in line behind the bottomless black hole of derivatives liabilities. As Yves Smith observed in a March 2013 post: In the US, depositors have actually been put in a worse position than Cyprus deposit-holders, at least if they are at the big banks that play in the derivatives casino. The regulators have turned a blind eye as banks use their depositors to fund derivatives exposures. . . . The deposits are now subject to being wiped out by a major derivatives loss. Even in the worst of the Great Depression bank bankruptcies, noted Nathan Lewis, creditors eventually recovered nearly all of their money. He concluded:
When super-senior depositors have huge losses of 50% or more, after a “bail-in” restructuring, you know that a crime was committed.
Exiting While We Can
In short, the goal of the bail-in scheme is to place losses on private creditors. Alternatives that allow them to escape could soon be blocked.
How can you avoid this criminal theft and keep your money safe? It may be too late to pull your savings out of the bank and stuff them under a mattress, as Shah Gilani found when he tried to withdraw a few thousand dollars from his bank. Large withdrawals are now criminally suspect.
We need to lean on our legislators to change the rules before it is too late. The Dodd Frank Act and the Bankruptcy Reform Act both need a radical overhaul, and the Glass-Steagall Act (which put a fire wall between risky investments and bank deposits) needs to be reinstated.
You can move your money into one of the credit unions with their own deposit insurance protection; but credit unions and their insurance plans are also under attack. So writes Frances Coppola in a December 18th article titled “Co-operative Banking Under Attack in Europe,” discussing an insolvent Spanish credit union that was the subject of a bail-in in July 2015. When the member-investors were subsequently made whole by the credit union’s private insurance group, there were complaints that the rescue “undermined the principle of creditor bailin” – this although the insurance fund was privately financed. Critics argued that “this still looks like a circuitous way to do what was initially planned, i.e. to avoid placing losses on private
Meanwhile, local legislators would do well to set up some publicly-owned banks on the model of the state-owned Bank of North Dakota – banks that do not gamble in derivatives and are safe places to store our public and private funds. Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books including the best-selling Web of Debt. Her latest book, The Public Bank Solution, explores successful public banking models historically and globally. Her 300+ blog articles are at EllenBrown.com. Listen to “It’s Our Money with Ellen Brown” on PRN.FM.
ENTERTAINMENT Bon Appetit Ottawa Hungry and looking for something to do in Ottawa? On Tuesday May 3, head on down to Lansdowne Park’s Aberdeen Pavilion to The 20th annual Bon Appetit Ottawa’s charitable event. For a mere $85 per ticket you can indulge in the flavourful creations from over 1600 food and beverage partners. Yes, the ticket does include the food samples! Tickets with applicable tax receipts are available online. Toronto Comedy All Star Show Looking for laughs? Head down to the Toronto Comedy All Star Show at the National Arts Center (NAC) on May 6, 2016 to check out the best in Canadian comedic entertainment. This sell out show features stars from Just For Laughs, HBO, Comedy Central & more. Toronto has spawned big names like John Candy, Howie Mandel, Jim Carrey & Russell Peters, to name a few. Don’t miss out on seeing the next big comic live!
An Evening with Dr. Michael Greger Is healthy living a priority for you? On May 10, 2016, for just $11.20 in advance you can listen to Dr. Michael Greger speak on Food as Medicine: Preventing and Treating Disease with Diet in everyday language. Dr. Michael Greger is a motivational speaker, New York Times best-selling author and founder of nutritionfacts.org. Dr. Gregor speaks on the role a nutritional diet can play in preventing and treating disease. His goal is to empower his viewers and inspire them to make healthy lifestyle changes based on medicinal facts. He will also be signing copies of his new book "How Not to Die." Exhibitions and informational booths on health and healthy living will be displayed before and available after the presentation. The first 200 guests will receive a swag bag. 51
LIFEST YLE Artist Alexandre Aimee Born in Sturgeon Falls Ontario, Alexandre Aimee is a self-taught mix medium visual artist currently working out of Ottawa. Inspired by organic forms, recycled material and social interactions, she began experimenting with interactive installations during visual arts class at De La Salle high school. Driven towards activism and cinematography, she pursued her post-secondary education in film and gender studies at Carleton University. During this time, she began building and presenting interactive installations throughout Ottawa. Graduating with a post-graduate certificate in event management she facilitates art events, writes publications for multiple local websites and continues to create and showcase mix medium artwork in the form of canvas and interactive pieces around the city. Alexandre works predominantly with gathered and recycled material. In April of 2016 Alexandre Aimee had her first solo international exhibit in in partnership with Innovation Village in Kigali, Rwanda. Alexandre’s latest series consists of a lost in technology theme. Her visualization of the over-consumption of technology bursts into life in her pieces using the ideology behind modern apps such as tinder, old websites such as Napster and visualizations of retro cable television shows. Each piece explores an aspect of current technological advancement contrasting images of past technologies. Alexandre is showcasing her art until the end of May at Happy Goat Café located near Ottawa’s Little Italy.
NEED A WEBSITE? THINGS TO CONSIDER WHEN LOOKING FOR THE BEST WEB DESIGN COMPANY
nized and complicated workflow will demand your presence, delaying web designing and development projects unnecessarily. Talk about their working methods and go with systematic and simplified one. This will save your time and money, ensuring timely submission of assigned projects.
by Saheli Kundu Websites are the calling cards of every online venture that you should be proud of! It should provide relevant information along with pleasant viewing to all its users, achieved through quality web development and designing services. With advancements in the field of internet marketing and web technologies, now the market is overflooded with avowedly best web design company. Therefore, selection of a good web designing company has become a tricky task. However, there are many determinants based on which a probable decision is reasonable as well as worth the value of your hard earned money. if you want to reach to any worthy decision, consider these following points before finally venturing out on any web design company:• Experience- this factor plays a very important factor while looking for the best web design company. A web design company with years of experience
is undoubtedly competent in understanding customer needs and requirements, rendering relevant solutions. Experience helps in honing expertise that directly impacts productivity. A web design company rendering services like Application development, SEO, brand building, etc for years should be kept on top of the list. • Service portfolio- always make sure to check a web design company’s service portfolio. Go through the range of service packages provided by the company along with their expertise level in every domain of web designing. The richer the service portfolio of the company, the better the chances of receiving multifarious web design solutions under a single roof. • Methods of working- checking on the workflow as well as the work procedures followed by an apparently best web design company will save you from the unnecessary worries and troubles. Those companies following unorga-
• Reputation- gauging out the reputation of a web design company is probably one of the trickiest tasks. Get ready to do a thorough research on the selected companies to know more about their company profile along with their market reputation to reach to a decision. Go through the company website, check their clientele and accomplishments and don’t miss out on their client’s feedback. Or simply search over the internet to find information about the company through online forums, communities and groups. Never trust a web design company without checking its credibility. • Cost effectiveness- this is another important factor that goes into selecting the best web development company. It is vital to measure the cost effectiveness of the company’s web design solutions. Check whether your investment is worthy or not and for that you can even ask for quotes. Compare your needs with the company quote to get cost effective web design solutions at competitive rates. The above mentioned points surely would help you to find the best web design company. But you should also invest your foresightedness to determine the suitability of a web design and development company that will build your dream website.
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