Forex Price Action

U.S. Economic and Inflation Update

2011-06-06T12:52:00.002-04:00

NIA Releases U.S. Economic and Inflation Update

The official U.S. unemployment rate rose during the month of May to 9.1%, up from 9% in April, with only 54,000 non-farm jobs being created for the month. The real unemployment rate including short and long-term discouraged workers is now 22.3%. The Bureau of Labor Statistics (BLS) used the birth/death model to produce a positive monthly bias during the month of May of 206,000 jobs, up from 175,000 in April, 117,000 in March, and 112,000 in February. Without the birth/death model, 152,000 jobs were lost during the month of May.

By utilizing the birth/death model, the BLS is assuming that during the month of May, the number of new jobs created by start-up businesses were 206,000 greater than the number of jobs lost from companies going out of business. NIA finds this assumption to be absurd and believes it is likely that jobs lost from companies going out of business were actually much higher than jobs created by new start-up firms. It is obvious to us that the BLS is using the birth/death model to manipulate unemployment figures to make the U.S. employment situation seem far less worse than it truly is. There is absolutely no legitimate reason for the birth/death model upward bias to have increased 84% over the past three months.

McDonald's recently had their own "National Hiring Day" in which they encouraged Americans to apply for new jobs at the company. All together, 1 million Americans applied for 62,000 jobs at McDonald's and over 900,000 Americans had to be turned down. To us, this is a sign that despite government economic statistics that are bottom bouncing from their lows due to the Federal Reserve printing trillions of dollars out of thin air, the U.S. economy is still in a severe downturn without the possibility of a real recovery. It is NIA's belief that the Fed needs to allow the U.S. economy to enter into a severe depression where all bad debts can be liquidated and the free market can rebalance the economy from the ground-floor with a solid foundation.

The fact that the BLS needs to resort to deceptive birth/death model manipulative practices to give the appearance of any job creation, proves that the Federal Reserve's destructive monetary policies of zero percent interest rates and endless money printing are not creating a sustainable reduction in the unemployment rate. Bernanke can claim all he wants that America's inflation is transitory, but the only thing transitory about our economy is the artificial decline in the official U-3 unemployment rate from its peak in October of 2009 of 10.1%. The real unemployment rate has increased since October of 2009 and NIA believes that the official unemployment rate will likely rise back into double-digit territory in 2012.

From October of 2009 until now, the number of employed Americans has increased by 1.09% while the U.S. population has increased by 1.12%. The only reason the official unemployment rate has declined from 10.1% down to 9.1% is a decline in the labor force participation rate from 65.1% down to 64.2%. Based on what the labor force would be today if the participation rate had stayed the same over the past 20 months and factoring in the increasing population, 2.1 million Americans have completely given up looking for work.

The 1.09% increase in employed Americans over the past 20 months comes at the expense of a $1.30 increase in the price of gas from $2.48 to $3.78 per gallon for a gain of 52% during this time period. Many agricultural commodities have increased over the past 20 months by an even greater percentage than gas. Although prices of all commodities are volatile and have many short-term ups and downs, NIA believes that gas prices are heading to $5 per gallon over the next 12 months and food inflation is going to rapidly accelerate in the months and years ahead.

Prices are now beginning to rapidly rise for U.S. goods outside of the food and energy sectors. 90% of sporting goods manufacturers have seen their input costs rise substantially this year and 41% of them have already announced major price increases for athletic apparel, footwear, and sports equipment. As the 8,000 toy manufacturers in China are forced to raise the wages they pay their employees, Toys R' Us is now beginning to see major wholesale price increases for their products, which they will have to pass on to U.S. consumers. Hasbo recently raised prices on all of their products by 6% to 7%. Mattel recently imposed an across the board high single digit price increase after reporting a 33% decline in quarterly profits (despite sales surging by 8%) due to skyrocketing raw material costs.

The U.S. is about to be cut off from its two largest foreign lenders China and Japan, which means the Federal Reserve will need to fund all of the U.S. government's deficit spending through outright money printing. Federal Reserve holdings of U.S. treasuries just reached a new record of $1.532 trillion. Meanwhile, China's U.S. treasury holdings have fallen five months in a row down to $1.145 trillion. Chinese central bankers are now calling for the country to reduce their foreign exchange reserves, which have increased by $200 billion this year up to over $3 trillion. Japan is currently the third largest holder of U.S. treasuries with treasury holdings of $907.9 billion. Unfortunately, Japan is in desperate need to raise $300 billion to fund their rebuilding efforts and this will likely come from them dumping some of their U.S. treasuries, during a time when the U.S. desperately needs Japan to buy more U.S. treasuries than ever before.

If we look back at previous occurrences of hyperinflation in countries like Bolivia and Brazil, hyperinflation broke out as soon as their central banks were forced to begin monetizing the bulk of their government's deficit spending, as foreigners stopped lending. China's inflation crisis is a direct result of the Fed's quantitative easing and the monetary inflation that we have exported to them in return for their sporting goods, toys, and other products they produce. If China stops buying U.S. treasuries and decides to instead use their foreign currency reserves to accumulate gold that can be used to back their own currency, the Fed will have no other choice but to become the U.S. treasury buyer of last resort. Not only will we see quantitative easing to infinity, but we will see the $1.5 trillion in excess reserves currently parked at the Fed enter into the money supply and increase the money supply by as much as $15 trillion.

Besides gold, one place where the Chinese are investing their money in order to diversify out of U.S. dollars is Real Estate. Housing prices in Beijing and Shanghai rose 28% and 26% last year respectively. With concerns that Chinese Real Estate is becoming a bubble, the Chinese are now buying Real Estate in North America. However, they are avoiding the U.S. Real Estate market because of the civil unrest that will take place in major U.S. cities during hyperinflation due to empty store shelves. The most popular destination for the Chinese in North America is Vancouver, where Real Estate prices are now more expensive than New York City. While New York City Real Estate prices still haven't finished deflating, Vancouver Real Estate prices are soaring to new record highs due to Chinese buyers, with the average Vancouver home price rising 14% last year. In the Westside section of Vancouver, housing prices are up 77% since 2005.

Canada's GDP grew by 3.9% in the first quarter of 2011 on an annualized basis, up from 3.1% in the fourth quarter of 2010, 2.5% in the third quarter of 2010, and 2.3% in the second quarter of 2010. Canada's GDP growth has increased for four straight quarters. U.S. GDP growth in the first quarter of 2011 declined to 1.8% on an annualized basis, down from 3.1% in the fourth quarter of 2010. Canada's Prime Minister Stephen Harper just announced plans on Friday to attract more foreign capital and diversify trade in an attempt to protect Canada from a collapsing U.S. economy.

The U.S. still has a AAA credit rating even with its 2011 budget deficit projected to reach 43% of government expenditures, exactly the same as Brazil's budget deficit as a percentage of expenditures right before they experienced hyperinflation. There is a major charade taking place in Washington today where Republicans are calling for spending cuts to take place in order for them to approve an increase in the debt ceiling. NIA predicts that the debt ceiling will be raised no matter what, most likely at the very last minute. We have zero confidence that Washington will implement any kind of meaningful spending cuts. The U.S. government clearly chose inflation over austerity in its attempt to stimulate the economy. It doesn't make sense for them to reverse course now, because then they will look incompetent for not having chosen austerity to begin with.

The U.S. currently has a budget deficit from Social Security, Medicare, Medicaid, and other mandatory programs alone, without even paying the interest on our national debt. Major entitlement spending cuts are necessary if we are going to have even the slightest hope of balancing the budget and preventing hyperinflation. Unfortunately, most Americans have become dependent on entitlement programs and government transfer payments just to survive. These Americans fail to realize that the reason they are dependent on food stamps and other transfer payments to survive is because of the government's deficit spending and the Federal Reserve's massive monetary inflation. Only when the dollar completely collapses and Americans' unemployment and Social Security checks aren't worth enough to pay for the gas needed to drive to the bank to cash them, will they understand the need to elect a President like Ron Paul who will mandate a balanced budget and return the country to sound money, but by that time it will be too late. The only way America will survive as an industrialized nation is if we educate as many Americans as possible to the facts and truth about the U.S. economy that the mainstream media ignores, so that as many Americans as possible can prepare for hyperinflation and we have enough resources to rebuild afterwards.

It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us

GBPJPY Monthly

2011-04-07T18:48:00.000-04:00

POMO

2011-03-11T08:01:00.000-05:00

Courtesy of Larry Levin

More POMO

The largest banana republic on the planet, the USA, is run by none other than Zimbabwe-Ben - or Ben Bermonkey, if you like. The debt monetizing madman has just released the next round of POMO and he has upped the ante a bit. The most recent POMO schedule monetized $97 billion and this next round will monetize $102,000,000,000.00 of the Treasury’s IOUs.

There will be no POMO Friday at the same time that the European banking crisis and Mid East turmoil grows. Violence is growing in Greece and Spain’s sovereign debt was cut Thursday. In Saudi Arabia, a small protest before Friday’s major protest was met with trigger-happy police: some protestors were reported to be gunned down.

EURUSD

2011-03-03T08:52:00.000-05:00

The gray box is the weekly target zone.

Double Taxation

2011-03-02T08:07:00.001-05:00

Read the following and you will see the job killing that this new taxation would impose. For all of those fools in the Gov, you can't collect more taxes if you run those out of business from whom you propose to collect more taxes.

via Larry Levin:

Double Taxation

If you hadn’t noticed, the market was body slammed today. Last week’s “mark-‘em-up-into-the-month-end-close” rally is over. Now that the month’s good close is behind us, the market can get back to fretting over oil and daily gasoline price hikes at the pump. The S&P closed down -1.55%.

This tax news came out yesterday and may have flown under the radar for most: Tax-Cheatin-Timmy wants to raise your taxes if you are self-employed.

“Congress,” says Geithner, “has to revisit this basic question about whether it makes sense for us as a country to allow certain businesses to choose whether they’re treated as corporations for tax purposes.”

Small businesses can currently choose to be taxed as a corporation or a variety of other ways such as; partnerships, S-corps, and others. But the guy at the IRS who CHEATED ON HIS OWN TAXES, believes the government shouldn’t give you a choice to be an S-corp and should be DOUBLE taxed.

According to some reports, Tax-Cheatin-Timmy believes his idea would allow the government to tax an additional $3 trillion.

Let’s assume you own a small business and then make the “crazy” assumption that you pay yourself, you would be double taxed as follows.

$100,000 gross
-$15,000 FICA/Medicare
-$29,750 Corporate Income Tax (35%)
$55,250 is the balance which will be taxed again
-$19,338 for Personal Taxes (35%)

You now have $35,912 net income (36% of the gross) to be taxed by the state, county and city.

Boy-howdy this sounds like a great jobs builder! Luckily small businesses don’t generate (cough) many (cough, COUGH) jobs.

Dollar Weakness

2011-02-23T07:47:00.002-05:00

From Larry Levin

Tuesday's Sell Off

The Holiday-shortened week started off with Tuesday’s drop. The sell-off followed on the heels of Monday’s Globex-only session. The Dow Jones closed down 1.44%, S&P 500 closed down 2.05%, and the Nasdaq was slammed 2.74%.

On the flip side oil was up nearly 10% since its last regular session. Gold and silver were also up substantially.

What was rather surprising, however, was the old “flight to quality” standby: the US dollar. It never caught a bid! With so much global uncertainty and a strong sell-off in equities, there is usually a strong “flight to quality” bid in the US dollar. I checked the currencies several times Tuesday and was surprised each time that it was so slow.

The CIO of Pimco was also surprised and said on Bloomberg today, “It is a warning shot to America that we cannot simply assume flight to quality, flight to safety. That people are starting to worry about the fiscal situation in the U.S., worrying about the level of debt and what they're hearing about states and municipalities. I would take this as a warning shot that we cannot assume that we will maintain the standing of the reserve currency as we have in the past.”

The violence in Libya continues to escalate with the dictator, Qaddafi, saying it could become a civil war, while threatening to hunt down all protestors and kill them in their homes if they do not stop. Moreover, he declared Force Majeure on the 1.5-million barrels of light sweet crude oil Libya exports daily and threatened to blow up its oil infrastructure…a-la Saddam Hussein.

Although the protests have spread to Bahrain and have really escalated, which is bad, the oil situation would only become truly frightening if the problems led to a Saudi regime change. Until then, it’s possible that this oil spike and the equity swoon are nearly over.

Oil $200/barrel

2011-02-23T07:46:00.000-05:00

What these videos and see if you agree. If this happens as outlined in the videos, will it mean the end of the dollar by the end of 2012?
Part 1
Part 2
Part 3
Part 4
Part 5

2011-02-19T09:36:00.000-05:00

This short write up is from the Sovereign Investor. There is a bill already in the House to confiscate individual IRAs and 401Ks and being considered. This is not a joke and needs to be seriously considered for your personal investment. Think about it, if this happens and you have 100K, 500K or whatever amount, if the Gov does this outright theft, you will no longer been physically entitled to this money. Yes that's right, it will be legally stolen from you!! What will you get in return? The Gov's promise to pay you a minimal % return yearly. But wait, isn't that what Soc Sec is? Yes, but Soc Sec is bankrupt like the country and what the Gov needs by taking these retirement accounts is a further way to continue spending as the dollars value declines. This is and will be the continued and utter destruction financially of the US.

Good luck and invest well!!

Uncle Sam Wants Your Retirement Money

The Sovereign Society (February 17, 2011)

The guys in Washington are getting desperate.

For years, our government has relied on the major Asian players like China and Japan to finance our debt. I’m sure you’ve heard this story. We bought their stuff, and they bought our Treasuries and other U.S. paper.
This system worked out great for us.
Today, that’s no longer the case. We’re the biggest financial losers on Earth…
Our national debt is a staggering $14 trillion! Worse, foreign investors don’t trust us to pay it down – so they’ve cut off our cash flow.
In short, the government needs Treasury buyers. So the guys in Washington are turning to you… and your cash-rich retirement plan to buy up those unwanted Treasuries.

Another Social Security?

The Department of Labor and U.S. Treasury Department are looking into ways to promote the conversion of retirement plans into an “annuity payment.”
But here’s what you need to know: An “annuity payment” is really government speak for forcingyou (think: mandatory Social Security contributions) to buy U.S. Treasuries with your retirement money.
And most likely, the government wants to lock you into those low-yielding 30-year Treasuries that foreign investors no longer want. That way, they can finance a mountain of deficits for decades to come.
Imagine that 100% of your retirement is tied to the dollar, a declining asset and backed by a practically worthless government IOU. It’s the last asset you’d want to own for your retirement.
What’s more, the timing coincides with the beginning of the retirement of the Baby Boomers. Think about it, beginning next year the first wave of the 76 million Baby Boomers will begin turning 65 and there will be a ton of money flowing into treasuries each year for the foreseeable future.
Make no mistake about it, Uncle Sam wants your retirement plan – and there’s really only one thing you can do to protect yourself – get your retirement money offshore while you still can. They are coming for it and you are running out of time.

Uncle Sam Will Tell You When You Can Take Your Own Money

(And they won’t let you take it all at once)
A major step towards the forced purchase of treasuries will come through a fundamental change in the way you take the money out of your retirement plan.
Federal lawmakers want to remove all of the flexible withdrawal options you have. They want to force you to withdraw money in equal payments over your remaining life span, known in the industry as a lifetime annuity.
An annuity is a steady stream of income that will be paid to the retiree over the remainder of his life expectancy. A 67-year-old male would receive his payments over a 15-year period. Contrast this with the rules in place today that give you the ability to withdraw all the funds as a lump sum or as needed after reach age 59 ½. (The current rules require mandatory distributions begin by age 70 ½.)

NIA Projects Multi-Trillion Dollar U.S. Budget Deficits

2011-02-18T17:13:00.002-05:00

NIA Projects Multi-Trillion Dollar U.S. Budget Deficits

Earlier this week, President Obama released the White House's budget proposal for fiscal year 2012 along with their budget projections for the following 10 years. The White House projects a record budget deficit in 2011 of $1.645 trillion, but for the deficit to be reduced to $1.101 trillion in 2012, $768 billion in 2013, $645 billion in 2014, and a low of $607 billion in 2015, before rising back up to $774 billion in 2021. We give Obama credit for being honest and admitting that he has no intention of making any attempt to balance the budget. However, NIA believes the White House is making ridiculous assumptions and deceiving the public about future budget deficits.

In our opinion, the White House will be right about the U.S. having a record budget deficit in 2011. Unfortunately, we believe this is the only thing they will be right about. Any proposed spending cuts coming out of Washington today are so small that they are a waste of time even discussing. The truth is, the total cost of Social Security, Medicare, Medicaid, and other mandatory programs alone will be $2.2 trillion in 2011. Then when you add in the projected $205 billion in interest payments on our national debt in 2011, we will have a budget deficit of $235 billion right there without including any of the government's $891 billion in security and $496 billion in non-security discretionary spending.

Obama's proposed freeze on non-security discretionary spending will only save $406 billion over the next 10 years, which is absolutely nothing. If Obama didn't just freeze discretionary spending, but he cut all discretionary spending down to zero, we would still have a budget deficit. Nobody in the mainstream media is educating the American public about just how dire our country's fiscal situation is. We get called fear-mongers for preparing Americans for hyperinflation, but we speak the truth while the mainstream media ignores our country's financial problems. We wouldn't have to spend close to a million dollars per year producing documentaries and writing articles about the hyperinflationary crisis ahead if the mainstream media did their job.

NIA believes that after our record budget deficit this year, there is a 99% chance that we will continue to see more record budget deficits in the years ahead. Even if 2012 or 2013 saw a minor dip in our budget deficit, we could see budget deficits that are double or triple their current level within the next few years. In fact, NIA doesn't think our nation will survive until 2021 based on the path we are currently on. The U.S. won't be able to continue printing money to monetize the debt and deficits, without seeing an outbreak of massive inflation and perhaps hyperinflation at some point this decade.

To reach the White House's projected reductions in the budget deficit after a record budget deficit in 2011, the White House is projecting that annual price inflation in the U.S. will rise from just 1.3% in 2011, to just 1.8% in 2012, 1.9% in 2013, 2% in 2014, and 2.1% per year from 2016 through 2021. NIA believes these numbers are unrealistic and that real price inflation in the U.S. is already north of 5%. NIA believes real price inflation is likely to rise above 10% in either the second half of 2011 or early 2012. The Federal Reserve has held interest rates at artificially low levels of 0% to 0.25% for over two years. Artificially low interest rates are very inflationary. In order to contain price inflation and keep it under control, the Federal Reserve must raise interest rates to above the real rate of price inflation. The Fed won't do this because it would destroy our phony economic recovery.

If the Federal Reserve never lowered interest rates and kept them at 5.25% where they were in 2006, instead of having 5% price inflation today, we would likely have at least 5% price deflation. This means inflation is now conservatively 10% higher than where it would have been without the Federal Reserve's destructive actions. To put this into perspective, with three years of 5% price inflation, a product becomes 35% more expensive than it would have been with three years of 5% price deflation.

The U.S. Bureau of Labor Statistics (BLS) reported yesterday that year-over-year price inflation in the month of January was 1.63%, compared to 1.5% in December. Even based on the phony BLS numbers, it is obvious to all that price inflation in the U.S. is accelerating. NIA estimates that real price inflation is now closing in on 6%.

Not only is the White House budget using deceptive inflation numbers, but it is also misleading Americans about GDP growth. The White House budget is projecting 5% annual nominal GDP growth over the next 10 years. Over the past decade, the U.S. has seen an average annual nominal GDP growth rate of 3.95% and if you go back to the years 2001-2005 during the Real Estate bubble, we saw annual nominal GDP growth during those five years of 4.86%.

It is absolutely insane for the White House to be projecting nominal 5% GDP growth per year, with inflation of only 2% per year. There is absolutely no chance of the U.S. economy seeing real GDP growth of 3% per year, which would be higher than our average real GDP growth during the biggest artificial boom in U.S. history. In our opinion, any GDP growth the U.S. sees this decade will be created entirely by inflation. Considering that the White House expects there to be a lot of GDP growth in the years ahead, they are clearly putting a lot of pressure on Federal Reserve Chairman Ben Bernanke to create as much monetary inflation as possible.

As part of the White House's budget projections, they also project unemployment in the U.S. to decline from an average of 9.6% in 2011 to a low of 5.3% in years 2016 through 2021. Real unemployment in the U.S. today, after accounting for both short and long-term discouraged workers, is now approximately 22%. Between federal, state, and local government workers, government employees now make up 16% of all U.S. payrolls. Over the past 60 years, government employment growth has just about doubled the rate of U.S. population growth. During the upcoming hyperinflationary crisis, we could very easily see the number of government employees cut in half, which would send the official U.S. unemployment rate up to 16% and the real unemployment rate up to 29%.

The biggest problem NIA has with the White House budget is their projections for interest payments on our national debt. Historically, going back the past 50 years, yields on the 10-year bond have averaged about 7.2%. The 10-year bond yield has been skyrocketing in recent months and is currently 3.57%, up from being 2.381% on October 8th of last year. With the 10-year bond yield surging 50% over the past four months, there is no reason the yield can't surge another 50% over the next six to twelve months up to 5.36%. Yet, the White House is projecting the bond yield to average 3% in 2011 and to rise to only 3.6% in 2012, 4.2% in 2013, and up to a high of 5.3% for years 2017 to 2021. Trust us, if interest rates on the 10-year bond don't rise to 5.3% within the next six to twelve months, we guarantee they will still do so a lot closer to six months than six years.

With treasury yields having been held at artificially low levels for so long, we expect them to rise above historically average levels and remain there for many years. There is no doubt that we will see bond yields back above 7.2% in the years ahead. As inflation begins to spiral out of control, we expect to see bond yields rise to above 10% and beyond. The White House doesn't expect interest payments on our national debt to rise above $500 billion until the year 2015. They're projecting net interest payments in 2015 of $505 billion with our public debt averaging the year around $13.9 trillion. In order words, they expect us to pay only 3.6% interest on our debt that year.

To summarize, Obama expects our budget deficit to decline from $1.645 trillion this year down to a low of $607 billion in 2015 by having 5% per year GDP growth, only 2% per year inflation, unemployment in 2015 of only 5.9%, and an overall interest rate that is only 1/2 of historical 10-year treasury yields. NIA projects that the U.S. will see zero GDP growth adjusted for inflation and if we are right, and we also see the U-3 unemployment rate rise back above 10% along with our overall interest rate on our debt rising back to historical levels of 7.2%, our actual deficit in 2015 could very easily surpass $3 trillion.

In early 2008, the Bush Administration was projecting the U.S. budget deficit to decline to $160 billion in 2010, $96 billion in 2011, and for the U.S. to have a $48 billion surplus in 2012. Look how easily a $96 billion projected deficit turned into a $1.645 trillion deficit, 17 times higher than projected. It is nearly impossible to reduce budget deficits once they begin spiraling out of control, unless the government acted to dramatically slash spending by 50% or more in all areas of the budget including the so-called untouchable areas like Social Security, Medicare, and Medicaid. Obama pledged while running for President to cut the budget deficit in half during his first term, but it has so far increased by 262%. If we have just a few more years of trillion dollar plus budget deficits, interest payments on our national debt will begin to approach half of U.S. government tax receipts and at that point, hyperinflation will be all but guaranteed.

2011-02-18T11:35:00.000-05:00

Pause at point A is 88.6% PWMM projected from weekly low. Watch for point B at the upper channel line and the 100% PWMM projected from the weekly low.

2011-02-18T08:35:00.001-05:00

EURUSD hit daily low at 100% DMM (gray box) projected from current days high prior to the continued trend long. This level is also confluence with the previous week's close.

2011-02-15T05:05:00.000-05:00

EURUSD move down to 50% DMM projected from high and retraces to 61.8% DMM from new low.

UNEMPLOYMENT

2011-02-04T12:50:00.001-05:00

By Tyler Durden:

Persons Not In Labor Force Who Want Job Now Jumps To All Time Record; Real Unemployment Rate At 12.8%

Probably the last chart to bury any doubt about just how truly horrible today's employment data was, comes from a little observed data metric: that showing the number of people who are not in the labor force, but who want a job now. The number just hit 6,643,000, a jump of 431K from December, and the highest number in history. These are people that would send the unemployment rate to about 12.8% if they were in the labor force (and, as indicated, looking for a job). Nothing else needs to be said.

Currently the U-6 unemployment number is at 16.1% or so is being reported. Here are some more realistic numbers, U-6 at 17.3%.
http://www.zerohedge.com/article/nfp-36000-huge-miss-146000-expectations-9-unemployment

Inflation

2011-02-04T07:17:00.001-05:00

Comments and statistics from Larry Levin

I Didn't Do It

Does anyone take Ben Bernanke seriously? Chairman Bernanke gave a speech today to the National Press Club in which he crowed how great and successful his QE program has been. He was happy to take credit for the massive increase of speculation of the markets, which he called a virtuous circle, but simultaneously denied having ANY culpability of ramping the commodity markets. Convenient, isn’t it?

The US stock indices began the latest rocket shot in November when QE2 was indicated by the Fed. Chairman Bernanke is very pleased by this but I have a question: when was the Fed granted a 3rdmandate, which is apparently to rig the stock market? The S&P500 is up 30% in just 7-months, which is roughly SIX YEARS of gains packed into a scant seven months.

In that exact same period, sugar has exploded nearly 200%.

Coffee futures have doubled since QE2. Lumber has nearly doubled since QE2. Gold and silver have skyrocketed since QE1, but got added fuel from QE2. Soybeans exploded, while corn prices have doubled!

Wheat has also skyrocketed and oats…OATS…have blasted 123% higher; just a “slight” increase, right?

The purpose of QE2 was supposed to lower interest rates. Bond prices initially rallied when the first hints of QE2 were floated, but dropped like a rock when the program became official. By the way, falling bond prices, like now, result in HIGHER interest rates. Isn’t that the exact opposite of what was supposed to happen?

Are you wondering what happened to the value of your currency with all of the mad money printing? Naturally, it plummeted.

When confronted with all of this, The Ben Bernank did his best Bart Simpson impersonation and said “I didn’t do it.” He said that his free money out of thin air policies have done NOTHING to food prices even though we all have access to commodity charts.

In general, Bernanke said that higher food costs are due to developing nation’s rampant demand for resources. Sadly there was no follow up question, which should have been “Are you suggesting that developing countries demand for raw materials and commodities began with QE2?” Of course the answer is no. China, India, Brazil, etc have all been growing for many years. To suggest the massive food inflation has nothing to do with US monetary policy is a joke. It is a lie.

Specifically, the political upheaval of Egypt was brought up and how the match that lit the tinder was skyrocketing food prices. Once again, The Ben Bernank did his best Bart Simpson impersonation and said “I didn’t do it.” The Ben Bernank claims that it’s Egypt’s fault, not his. He says the falling US dollar does not affect food prices, even though all major commodities are priced in US dollars and the commodity prices are much, much higher.

Here’s what Helicopter-Ben left out of his statement: Egypt’s currency, like China’s, is pegged to the US dollar. Therefore, when Egypt imports these foodstuffs it is paying the extremely high costs, with LOWER Egyptian currency because of the peg. It is getting screwed twice.

Sure, Egypt doesn’t have to peg its currency to the US dollar but it does for now. The point is, FOMC policy (money printing) is to purposefully drive down the US dollar to purposefully drive up inflation. It is working exactly as he planned. However, when this leads to bad things, Zimbabwe-Ben says “I didn’t do it.”

After you take away all of the BS, one could reasonably say that the higher price of food in Egypt is DIRECTLY tied to US monetary policy and Ben Bernanke. And when one makes that connection, it isn’t too far of a stretch to say his policies are also linked to the riots, revolution, and now death in the streets of Cairo.

But hey, who gives a damn as long as the banking Kleptocracy gets the money? Savers? Who cares!

Coming Riots?

2011-02-03T16:13:00.000-05:00

Egypt: Preview of America in 2015

The rioting and looting currently taking place in Egypt is primarily a result of massive food inflation and shows what all major cities in the United States will likely look like come year 2015 due to the Federal Reserve's zero percent interest rates and quantitative easing to infinity. On December 16th, 2009, NIA named Time Magazine's 2009 'Person of the Year' Ben Bernanke our 'Villain of the Year', saying he created "unprecedented amounts of inflation in unprecedented ways" and "When it costs $20 for a gallon of milk in a few years, Americans will have nobody to thank more than Bernanke."

What started out a few weeks ago as protests in Algeria with citizens chanting "Bring Us Sugar!" and five citizens being killed, quickly spread to civil unrest in Tunisia which saw 14 more civilian deaths, and has now spread to riots in Egypt where 300 Egyptian citizens have been killed. Food inflation in Egypt has reached 20% and citizens in the nation already spend about 40% of their monthly expenditures on food. Americans for decades have been blessed with cheap food, spending only 13% of their expenditures on food, but this is about to change.

NIA was the first to predict the recent explosion in agricultural commodity prices in our October 30th, 2009, article entitled, "U.S. Inflation to Appear Next in Food and Agriculture", which said we have a "perfect storm for an explosion in agriculture prices". A couple of months later in 'NIA's Top 10 Predictions for 2010' we predicted "Major Food Shortages" and said, "Inventories of agricultural products are the lowest they have been in decades yet the prices of many agricultural commodities are down 70% to 80% from their all time highs adjusted for real inflation". Over the past year, agricultural commodities as a whole have outperformed almost every other type of asset, with silver being one of only a few other assets keeping pace with agriculture. (On December 11th, 2009, NIA declared silver the best investment for the next decade at $17.40 per ounce and it has so far risen 64% to its current price of $28.39 per ounce).

The world is at the beginning stages of an all out inflationary panic. Wheat, which NIA previously called on 'NIAnswers' its favorite investment besides gold and silver, is now up to a new 30-month high of $8.63 per bushel and has doubled in price since June of last year. Algeria bought 800,000 tonnes of wheat this past week, bringing their total purchases for the month of January up to 1.8 million tonnes, which was quadruple expectations. Saudi Arabia is also beginning to stockpile their inventories of wheat. Rice futures have gained 8% during the past few days with Bangladesh and Indonesia placing extraordinary large orders. Indonesia's latest rice order was quadruple its normal allotment and Bangladesh plans to double rice purchases this year. Meanwhile, the U.S., which is the world's third largest exporter of rice, is expected to cut production by 25% in 2011.

NIA considers rice to be one of the world's most undervalued agricultural commodities at its current price of $15.96 per 100 pounds and forecasts a move back to its 2008 high of $24 per 100 pounds as soon as the end of 2011. NIA believes cotton, at its current price of $1.80 per pound, may have gotten a bit ahead of itself in the short-term. In NIA's first ever article about agriculture on February 17th, 2009, we said that cotton's "upside potential is astronomical" at its then price of $0.44 per pound. NIA pointed to increasing sales to textile companies in China and the fact that cotton was down 70% from its all time high as reasons to be very bullish on cotton at $0.44 per pound. Early NIA members could have made 309% on cotton, but today we see much bigger potential in rice. The recent spike in cotton reminds us of the 2008 spike in oil. Although we believe cotton will ultimately rise above $3 per pound later this decade, we could possibly see a dip to below $1.40 per pound first.

Many people in the mainstream media have been criticizing NIA's recent food inflation report, claiming that agricultural commodity prices have very little to do with prices of food in the supermarket. CNBC's Steve Liesman, in particular, claims that "rising commodity prices won't cause inflation". Liesman has it backwards. NIA has never claimed that rising commodity prices cause inflation. Soaring budget deficits that the U.S. government can't possibly pay for through taxation causes inflation when the Fed is forced to monetize the debt by printing money.

Rising commodity prices are only a symptom of inflation. The reason NIA was so bullish on agricultural commodities going back two years ago when we produced our first documentary 'Hyperinflation Nation', is because while gold is the best gauge of inflation and is often the best tool for predicting future money printing, agriculture is where the majority of the monetary inflation ends up going after the Fed's newly printed money trickles down to the middle-class and poor. With gold prices already surging two years ago when we produced 'Hyperinflation Nation', NIA said in the documentary "food prices have the potential to surge most during hyperinflation".

One thing NIA is almost 100% sure of is that come year 2015, middle-class Americans will be spending at least 30% to 40% of their income on food, similar to Egyptians today. As NIA warned in its latest documentary 'End of Liberty', if you don't have enough money to accumulate physical gold and silver, it is important to begin establishing your own food storage, and store enough food to feed you and your family for at least six months during hyperinflation. Many store shelves in Egypt are now empty after recent panic buying, with shortages of nearly all major staple items throughout the country.

The U.S. Treasury is getting ready to sell $72 billion in new long-term bonds next week, as the U.S. rapidly approaches its $14.29 trillion debt limit. The debt limit is now expected to be reached by April 5th and Treasury Secretary Geithner warned the U.S. will see "catastrophic damage" if it isn't raised. With the Federal Reserve now surpassing China and Japan as the largest holder of U.S. treasuries, the real "catastrophic damage" ahead will be hyperinflation as a result of the U.S. government doing absolutely nothing to dramatically reduce spending. It is an absolute joke that Obama during his State of the Union address announced $400 billion in spending cuts over the next 10 years, but then the very next day, the Congressional Budget Office increased its 2011 budget deficit projection by $400 billion to $1.48 trillion.

Not raising the debt limit would be a good thing, as it would force Washington to live within its means. Sure, the stock market would collapse and the U.S. economy would enter into its next Great Depression, but at least it would save the U.S. dollar from losing all of its purchasing power. In fact, the standard of living for middle class Americans might actually improve if the government allowed the free market to put our economy into a depression, because goods and services would get cheaper.

The U.S. economy has become a drug addict that is dependent on cheap and easy money from the Federal Reserve. While Wall Street bankers took home a record $135 billion in total compensation in 2010, up 5.7% from $128 billion in 2009, this money was stolen from middle-class and poor Americans through inflation. The more monetary inflation (heroin) the Federal Reserve creates in order to satisfy the (in the words of Gerald Celente) "money junkies" on Wall Street, the more middle-class and poor Americans become dependent on unemployment checks and food stamps just to survive. Millions of American students are graduating college with hundreds of thousands of dollars in debt but no jobs. Luckily for them (but not holders of U.S. dollars), NIA is hearing reports from both unemployed and underemployed college graduates with student loans that the government is reducing their required monthly payments by sometimes 90% or more based on their current incomes.

China and Japan recently saw their credit ratings downgraded, while the U.S. credit rating remains at "AAA". NIA believes it would make far more sense for the world's largest debtor nation to be downgraded instead of the world's two largest creditor nations. The Federal Reserve's second round of quantitative easing has yet to even reach the halfway point and the Fed already holds about $1.11 trillion in U.S. treasuries. By the time QE2 is over at the end of June, the Fed will own $1.6 trillion in U.S. treasuries, about what China and Japan own combined. Shockingly, Kansas City Fed President Thomas Hoenig is already dropping hints about QE3. According to Hoenig, the Fed may consider extending treasury purchases beyond June 30th, 2010, (the scheduled completion date for QE2) if U.S. economic data looks disappointing.

With the Fed taking over as the largest holder of U.S. treasuries, China is beginning to rapidly move away from the U.S. dollar and into gold. In just the first 10 months of 2010, China imported 209 metric tons of gold compared to 45 metric tons in all of 2009, a stunning five-fold increase. While the western world is downplaying the threat of inflation as much as possible, Asian countries understand that hyperinflation is the most devastating thing that can possibly happen to any economy. The demand for gold in Asia right now is the most intense it has ever been, as they look to tackle rising inflation before it becomes hyperinflation.

The Chinese are so smart that families are now giving each other gold bullion as gifts instead of traditional red envelopes filled with cash. China is now on track to soon surpass India as the world's largest consumer of gold. The China Securities Regulatory Commission recently gave Beijing-based Lion Fund Management Co. approval to create a fund that will invest into foreign gold ETFs.

U.S. stock mutual funds saw $6.7 billion in net inflows during the past two weeks, the most in any two week period since May of 2009. The rioting, looting, and civil unrest in Egypt is now making the U.S. look like the safe haven of the world, even though it should be considered the riskiest place to invest. From the Dow's low in August until now, about $38 billion was actually removed from U.S. stock mutual funds, despite the stock market rising 20%. The Dow Jones has been rising from September until now solely due to the Federal Reserve printing around $350 billion out of thin air. When central banks print money, stock markets often act as a relief valve due to there being too much inflation going into the hands of financial institutions.

The U.S. M2 money supply surged by $46.6 billion during the week ending January 17th to a record $8.8623 trillion, following a rise during the previous week of $7.6 billion. The rise in the M2 money supply over the past two weeks of $54.2 billion equals an annualized increase of 16%. The M2 multiplier now stands at 4.218 compared to a long-term average of 10. When QE2 is complete, the Fed's monetary base will likely stand at $2.59 trillion. A return to the long-term average M2 multiplier of 10 means we are due to see a 192% increase in the M2 money supply and that is not even including a possible QE3 and QE4.

The U.S. economic ponzi scheme could unravel very quickly in the years ahead, with the velocity of money increasing much faster than anybody expects. As more Americans learn about NIA and become educated to the truth about the U.S. economy and inflation, a complete loss of confidence in the U.S. dollar could occur very suddenly. It is important for all Americans to prepare as if hyperinflation will be here tomorrow. At least in Egypt, their currency still has purchasing power and their citizens are trying to implement a regime change before it is too late. By 2015 in America, it will already be too late and the civil unrest here has the potential to be many times worse.

Silver Update

2011-01-21T18:28:00.000-05:00

This Video shows the fear in the market and need to hold hard assets as protection against monetary collapse.

Dollar/Yuan

2011-01-20T18:37:00.002-05:00

Obama Misinforming Public About U.S. Dollar and Yuan

President Obama's comments on Wednesday in a joint press conference with Chinese President Hu Jintao, misinformed the public about potential changes in foreign exchange rates and their effects on U.S. citizens. Obama on Wednesday said that he would like to see the Chinese yuan appreciate faster in value. While Hu indicated that China is committed to allowing the free market to better dictate the value of the yuan, Obama said China is implementing their steps to allow the yuan to appreciate "not as fast as we'd like."

For years, the U.S. has been criticizing China by calling them "currency manipulators". The fact is, the Federal Reserve is the real currency manipulator because their actions will soon lead to a U.S. Hyperinflationary Great Depression that destroys the lives of all Americans who aren't prepared for life with a worthless U.S. dollar. All China is doing is pegging the yuan to the U.S. dollar so that their product manufacturers and exporters can maintain some level of stability. However, the U.S. is using this as an excuse to explain its rapidly deteriorating export market.

Obama was correct when he explained to the world how China would benefit by having a stronger yuan. Obama understands perfectly how a stronger yuan would bring down prices for Chinese citizens and allow them to enjoy a much higher standard of living. In fact, NIA believes China could solve their current inflation crisis simply by allowing the yuan to appreciate alone.

China has seen the prices of many food items soar by 25% or more in recent months, which is horrific for a country where many of its citizens spend half of their income on food. While most mainstream economists on CNBC, Bloomberg, and FOX Business are quick to blame China's food inflation crisis on the weather, NIA believes the weather has very little to do with it. It seems like the weather is always the excuse every time food prices rise. Mainstream economists would have you believe that the world has been experiencing never-ending droughts and floods that continue to worsen each year.

NIA members know better than that. After all, we have the most educated membership base in the world. The truth is, China's food inflation crisis is coming as a direct result of the Federal Reserve's destructive quantitative easing and money printing policies, and China's willingness to keep the U.S. dollar artificially propped up out of fear that Americans will no longer be able to afford their exports. China is importing all of its food inflation from the U.S. and if President Obama gets his way, China will throw its food inflation right back into the faces of all U.S. citizens.

Imagine a food fight in school between American and Chinese kids with the American kids throwing their free National School Lunch Program (NSLP) meals (paid for by Chinese purchases of U.S. treasuries) at the Chinese kids while the Chinese kids sit there ignoring it trying to enjoy their own meals that they spent half of their income to buy. All the while, the American kids are antagonizing the Chinese kids, calling them currency manipulators and blaming their need for free NSLP lunches on China's currency peg (when the peg is actually preventing the American kids from starving). Sooner or later, not only will the Chinese kids throw the NSLP lunch remains back at the Americans, but they might become so disgusted (because they paid for the food being thrown at them) that they actually regurgitate their meals that they worked half of the day to be able to consume, into the American kids' faces.

If the Federal Reserve continues down the path it is currently on, not only will China allow the yuan to rise to a free market determined level, which will send China's food inflation crisis back to the U.S., but China is likely to dump their U.S. treasury holdings that they are currently hoarding. China's foreign exchange reserves rose by $199 billion last quarter (its largest quarterly gain in 15 years and 78% higher than analyst estimates of $112 billion) to a record $2.85 trillion for total growth in 2010 of 18.7%. Most likely, about 2/3 of these reserves are in U.S. dollars. Americans have been deceived by the U.S. government and the mainstream media into believing the U.S. economy is recovering, because the U.S. has been enjoying the benefits of inflation without the consequences of rising prices. When the U.S. bond bubble begins to burst and these trillions of dollars being hoarded come home to roost, inflation will become the primary concern of all Americans.

NIA finds it completely outrageous how Obama can be so honest with Chinese citizens about their benefits of having a stronger yuan, but then seconds later outright lies to the American public by saying that Americans would gain by having a stronger yuan as well. A stronger yuan by definition would mean a weaker U.S. dollar. It is insane for Obama to proclaim that having a stronger currency is good for China but bad for America. The rules of economics are the same in both countries.

As the Chinese see their purchasing power increase by having a stronger yuan, Americans will see their purchasing power decrease by having a weaker dollar. These simple economic principles are easy for any human being to understand, but nobody in the mainstream media is calling Obama out on it. The media completely accepts Obama's statements as the truth, without providing any warning to American citizens that Obama's desired change in foreign exchange rates will shift China's inflation crisis completely to the U.S.

On November 12th, NIA's President Gerard Adams warned Americans on FOX Business to beware of massive food inflation in early 2011. We are less than three weeks into the new year and massive food inflation is already here. SuperValu, the third-largest U.S. food retailer with 2,349 stores that operate under such names as Acme, Albertsons, Save-A-Lot, just reported that all of their major vendors have announced their intentions to pass along rising costs throughout the calendar year and the company will be raising prices on all food items by 3% to 14%. NIA's experience tells us that SuperValu is planning to increase prices on most goods by approximately 14%. Trust us, if SuperValu was expecting to increase prices by an average of only around 5%, they would have given an average instead of such a wide range. (By the way, SuperValu's stock crashed 16% on the news and one of NIA's top 10 predictions for 2011 was that U.S. retail stocks will decline after reporting lower profit margins.)

The SuperValu situation confirms that double-digit U.S. food price inflation is just about guaranteed to occur in 2011. We also expect to see double-digit price inflation this year in clothing, oil, gasoline, natural gas, and all of the most important things Americans need to live and survive. If the U.S. Bureau of Labor Statistics (BLS) somehow manages to report a CPI increase in 2011 of anything less than 5%, and the mainstream media continues to report the BLS's CPI numbers as the truth, any Americans who continue to listen to the mainstream media deserve to lose all of their purchasing power during hyperinflation.

POMO

2011-01-13T10:04:00.000-05:00

The most recent POMO schedule and the amount of money the Fed Res is buying. QE2 as it is called.

Source and commentary, Larry Levin.

Free $$$ Schedule

Although today was another up day on Fraud Street, it was yet again accompanied by ridiculously low volume. The lack of volatility is also miraculous but we know why: the Federal Reserve and the ECB have declared that nothing is allowed to fail and no bondholders will ever have to take a loss on a terrible investment. There is no fear. Let’s be blunt – because of the Fed and its QE/POMO there is no free market.

Since I have been asked relentlessly when the next POMO operation will take place I decided to post the schedule. However, the pertinent question is really: when ISN’T the Fed conducting a $$multi-billion give away to the very banksters that nearly brought the entire global financial system to a permanent end? (Seen even ONE in handcuffs yet? Neither have I.)

There are only two non-POMO days over the next month - Monday, January 17 and Wednesday, January 26. All other days have a POMO operation scheduled. EVERY other day over the next month the greedy banksters will be pilfering more of your money – and ramping equities higher in the fashion of your favorite Euro-trash central planner.

The estimated giveaway for Treasuries over the next month is $112 BILLION. Annualized, this comes to roughly the amount that the White House and Congress are deficit spending. Watch Bernanke lie to us again tomorrow afternoon when he claims that he is not monetizing the debt. Uh – huh.

College Bubble Set to Burst in 2011

2011-01-12T09:23:00.000-05:00

College Bubble Set to Burst in 2011

The National Inflation Association believes that the United States has a college education bubble that is set to burst beginning in mid-2011. This bursting bubble will have effects that are even more far-reaching than the bursting of the Real Estate bubble in 2006. College education could possibly be the largest scam in U.S. history.

NIA's advice to the youth of America today is to think for yourselves. Don't get suckered into overpaying for a college degree that is worthless because everyone else has one. College is only worth attending if you plan on actually learning something there. If you are only going to college because you think a piece of paper is going to help you find a job, you would be much better off skipping college and entering the workforce right now at any entry level job. Your experience will benefit you more than any piece of paper.

The median U.S. home price is currently $170,600, down 26% from its peak of $230,200 in July of 2006. The Dow Jones is currently 11,672, down 18% from its peak of 14,198 in October of 2007. Oil is currently $91 per barrel, down 38% from its peak of $147 per barrel in July of 2008. After the financial panic of 2008, the U.S. saw a collapse in the prices of just about all assets, goods, services, and commodities. Between lost stock market and home equity wealth, Americans lost $10.2 trillion in paper wealth in 2008, and have only recouped a fraction of it since then.

College is the only thing in America that never declined in price during the panic of 2008. It actually rose in price substantially. The annual tuition for a private four-year college was $21,235 in the 2005-2006 school year. Despite Real Estate beginning to collapse in late-2006, college tuition rose by 4.6% in the 2006-2007 school year to $22,218. Despite the stock market beginning to collapse in late-2007, college tuition rose by 6.7% in the 2007-2008 school year to $23,712. Despite oil and other commodities collapsing in late-2008, college tuition rose by 6.2% in the 2008-2009 school year to $25,177. Even after the Dow Jones crashed to a low in early-2009 of 6,469, college tuition still rose by 4.4% in the 2009-2010 school year to $26,273.

Annual tuition for a private four-year college in America is now $27,293, up 29% from five years ago. Meanwhile, the employment situation in the U.S. has deteriorated. There are currently 130.7 million non-farm jobs in America, down 3% from 134.5 million U.S. non-farm jobs in December 2005. 3.8 million jobs have been lost, while the U.S. population has grown by approximately 14 million people during the same time period. We would need to have seen the creation of 6.7 million non-farm jobs just to stay even, but now we are 10.5 million jobs short.

All across America, thousands of students are graduating law school each year with $250,000 in debt, but with no jobs at law firms available to them. 15,000 attorney and legal staff jobs have disappeared since 2008, yet 43,000 law degrees are being handed out each year. Law degrees are losing their value faster than the U.S. dollar is losing its purchasing power. Lawyers are non-producing workers that do nothing to create any real wealth for society. The artificially high incomes of lawyers are made possible entirely by inflation, which steals the wealth from hard working goods producing middle-class Americans and transfers it to those who add no real value to society.

The service sector currently makes up 76.9% of the U.S. GDP. Agriculture, which in 1933 made up 28% of GDP, currently makes up only 1.2% of GDP. The wealth of any country is primarily created at first from the production of food, oil, and precious metals. Secondly, wealth is created from the manufacturing of real consumer goods. After a country generates wealth by producing real things and builds a large domestic pool of savings, it can begin growing a service based economy, just so long as it has enough savings to support it.

During the past decade, an unprecedented number of Americans went to school to become lawyers, because they thought if they became a lawyer they would immediately become rich. 60% of the U.S. Senate and 37% of the House of Representatives are lawyers. The reason we have so many lawyers in Washington is so that they can pass as many new harmful laws and regulations as possible, in order to provide enough work for all of their lawyer friends. All of the needless legislation that is passed each year in order to provide work for lawyers, has the devastating unintended consequence of destroying what little is left of the free market. Small businesses are the backbone of the U.S. economy, but it is now nearly impossible for a small businessman with limited financial resources to build a large successful corporation in any sector, because their legal costs would eat up all of their profits.

Many law students got suckered into going to law school due to deceptive marketing practices. Some law schools are advertising that 90% of graduates are employed within one year of graduating. Sure, maybe 90% of law school graduates were employed a year later, with half of them working at McDonald's, but no law school degree is required for that. Schools are using dozens of unethical tactics to manipulate their numbers while encouraging alumni to falsify the surveys they fill out about their employment situation. Just like we are now seeing countless class action lawsuits against mortgage companies that misled customers about the loans they signed up for, we will soon see a massive number of lawsuits filed against colleges that lied about their job placement rates and average starting salaries of graduates. (At least there will be some work for law school graduates.)

Most Americans today are sheep who believe that the key to success and happiness in life is following the same career paths as everybody else. While everybody went to school to become a lawyer, nobody went to school to become a farmer because Americans didn't see any money in farming. With prices of nearly all agricultural commodities soaring through the roof in 2010 and with NIA expecting this trend to continue throughout 2011, the few new farmers out there are going to become rich while lawyers are standing at street corners with cups begging for money.

The college tuition bubble has been fueled by the U.S. government's willingness to give out easy student loans to anybody who applies for them. If it wasn't for government student loans, the free market would force colleges to provide the best quality education at the lowest possible price. By the government trying to make colleges more affordable, they have actually driven prices through the roof. Colleges have been encouraged to spend recklessly on wasteful construction projects, building new libraries, gyms, sports arenas, housing units, etc. Colleges spent $10.7 billion on construction projects in 2009. Although this is down from an average of $14.7 billion per year colleges spent on construction projects from 2005 to 2007, colleges are still struggling to pay off their old construction related debt. When interest rates start to rise, it will add further upside pressure to college tuition prices.

College students borrowed $106 billion in total student loans for the 2009-2010 school year, up from $96 billion in 2008-2009, $94 billion in 2007-2008, $87 billion in 2006-2007, and $83 billion in 2005-2006. Total student loan debt in the U.S. currently stands at $830 billion and now exceeds credit card debt. President Obama's new student loan bill that was passed last year now makes the government the primary lender to students. By taking the free market out of the student loan business and allowing students to receive loans from the government at artificially low interest rates, colleges will be encouraged to spend more recklessly than ever. None of this wasteful spending is doing anything to improve the quality of education in America.

Over a year ago when NIA was filming 'The Dollar Bubble' in Los Angeles, violent riots broke out at UCLA over a 32% increase in college tuitions (from $7,788 to $10,302). We went to the protest in order to video tape the shocking footage to show you. While we were there we remember thinking to ourselves, why on earth are these students protesting at all? If tuitions are rising by 32% and they are unhappy about it, why don't they quietly and peacefully enroll someplace else for college next semester. If not enough students enroll into UCLA, the university will be forced to either dramatically cut their costs or shut down. UCLA decided to completely ignore the riots and went ahead with the 32% rise in tuitions. Did the students decide to enroll someplace else? Nope, most of them simply took out larger student loans and went back to UCLA. In fact, UCLA reported that they received a record amount of freshman applicants for the next semester.

With all of the technological advancements taking place around the world today, the cost for a college education should be getting cheaper. Americans today can purchase just about any type of product they want over the Internet for substantially less than they can find it in a retail store. When the U.S. dollar collapses and the college bubble bursts, NIA predicts we will see a boom in online education where Americans take all of their courses over the Internet from the comfort of their own home at a fraction of the cost of traditional college.

Later this year, NIA is going to be producing a documentary about America's college education crisis and the college tuition bubble that is about to burst. In the weeks ahead, NIA is going to begin searching for people who deserve to be featured in our documentary. If you are a college student, a recent college graduate, or a current or ex-college professor with an extremely shocking, interesting, and important story that the whole world needs to know about in what will be the most viewed college documentary in world history, please send an email tocollegebubble@inflation.us. We would also love to hear from any NIA member who has any ideas of topics that we should cover in this new documentary. Please send all ideas and suggestions to collegebubble@inflation.us.

This will truly be one of the most important documentaries NIA has ever produced. We need to change the mindset in America that only those with college degrees have any chance of becoming successful. Americans have become so brainwashed that even after graduating college with over $50,000 in debt and not being able to find a job, many of them are wasting even more years of their life and getting even deeper into debt to attend a graduate school, for a master's degree that is just as worthless as a bachelor's degree. It is like comparing a $10 bill (master's degree) to a $1 bill (bachelor's degree), they are both worthless pieces of paper with no intrinsic value.

NIA believes that any recent high school graduate with $30,000 saved for college who invests that money into silver and becomes a minimum wage apprentice for the next 4 years, will likely have enough money in 4 years to buy a median priced U.S. home. Not only that, but they will have work place experience that is far more valuable than the worthless college degrees of any of their friends. We must work hard to educate America to the truth if our country is going to have the wherewithal to survive the upcoming bursting college bubble and Hyperinflationary Great Depression.

Massive Silver Withdrawals From The Comex

2011-01-12T08:20:00.000-05:00

The following is from another blog.

Here is the reprint:

Massive Silver Withdrawals From The Comex

It will be interesting to see how the CFTC, the Obama Administration, and the Comex deal with this situation with silver, including the disposition of the massive paper short positions that appear to be undeliverable.

It could prove to be a watershed event, or at least an interesting scandal to observe as it unfolds.

Harvery Organ's commentary:

"And now for the big silver report.

We witnessed a massive withdrawal of silver unprecedented in the history of the comex. First there was a smallish 6507 oz of silver deposited to two customers, one being 497 oz and the other 6010 oz). But just look at the huge withdrawals:

Four customers (not dealers) withdrew a total of 1,019,310 oz from the comex vaults. This is real silver leaving from 4 registered vaults. The individual withdrawals are: 579,081, 30,380, 399,994 and 9855 oz.

The dealer (our bankers) also were involved in the withdrawal of silver to the tune of 769,941 oz (there were 2 dealers involved removing 102,866 and 667,875 ozs). When you see this massive drain of silver, the fire is raging. The total silver withdrawal by both dealer and customer totalled an astronomical 1,789,251. The Brink's trucks must have been very busy yesterday.

The comex folk notified us that an amazing 85 notices were sent down for servicing for a total of 425,000 oz of silver. The total number of silver notices sent down so far total 323 or 1,615,000 oz. To obtain what is left to be served, I take the open interest for January at 153 and subtract 85 deliveries leaving a total of 68 notices or 340,000 oz left to be serviced.

Thus the total number of silver ounces standing in this non delivery month of January is as follows:

1,615,000 oz + 340,000 = 1,955,000 oz (Thursday total = 1,625,000). As promised to you, this number is rising and will continue to rise until the end of the month as our banker cartel scrambles to get any morsel of silver to satisfy the massive demand for this metal. Our bankers are stunned to see such a huge amount of silver options in a traditionally slow month.

I hope everyone caught the Eric Sprott story on Kingworld news that he is having trouble locating silver."

Bond Losses

2011-01-06T09:39:00.000-05:00

A recent letter from Larry Levin.

Bond Losses

More encouraging economic data this morning in the way of the ADP jobs report and the non-Manufacturing ISM Index sent bonds down and equities higher. Investors seem to be exiting bond positions and entering stocks.

For those investors who chased the bond bubble and bought late, the current decline in bonds is killing them. When bond prices drop, yields increase. Therefore, a Treasury with a lower interest rate (that was purchased over the last few months) is worth less today than when purchased. After all, who wants to buy an older lower yielding investment when a fresh government IOU today yields more?

Surely there has been a lot of investor demand for Treasuries, but nobody has had as voracious an appetite as the Federal Reserve. Remember that via POMO and QE2, your Federal Reserve Bank is taking the potential losing Treasury investment off of the books of the TBTF banksters…and giving a guaranteed loss to you, the taxpayer. How very nice of the Fed. It is hard to imagine ANY situation in which the Fed actually lost money in the end (because it can probably just declare “do over” and say the losing securities no longer exist. Who’s going to audit it – Congress?) but if it did lose money, the taxpayer will be on the hook.

Since Benny & The Inkjets have been monetizing near 100% of every Treasury auction for months, it owns a great deal of these securities. So what happened to the value of its holding? Oh yeah, it’s bad. It is estimated that the Fed lost $10-BILLION today alone!

Zero Hedge has this to say…

The ongoing collapse in bond prices is making John Meriwether blush with envy at the wholesale wanton destruction of capital undertaken by Ben Bernanke. Keep in mind LTCM - the organization which proved definitively that Nobel prizes in economics are given only to the most consummate destroyers of value, logic, reason and humility - lost "just" $4.6 billion from its peak before it became the biggest systemic risk in the world back in 1998 and had to be rescued by a consortium of banks. The bottom line: with about $10 billion in SOMA losses today alone, Ben Bernanke has generated more than double the losses that nearly destroyed western finance 13 short years ago. And nobody cares.
John Lohman explains:
Chairman Top Tick continues to crash and burn, losing $7.2 billion in Treasury and Agency paper in today’s bloodbath alone. Adding a rough estimate for the MBS holdings would put the session’s losses well over $10 billion. Indeed, a baker’s dozen of John Meriwethers couldn’t destroy this much capital in such a short period of time.

And with all of the usual caveats that accompany a simple modified duration analysis (ignoring convexity, assuming instantaneous parallel shifts, etc.), the table below estimates the Fed’s losses for various upward interest rate shocks. Again, keep in mind this does not include the massive MBS portfolio, which is extending in duration with every uptick in rates.

Soooooo…what will the Fed do? If it sells its securities back to the banksters, the Fed loses a fortune (and this slide has just begun). If the Fed holds the Notes & Bonds to maturity (I highly doubt it), it will receive its capital in full from the Treasury department BUT, the banksters will still have all that cash. The Fed will not have “sopped up” the liquidity. That money will eventually reach the economy and the inflation will be breathtaking. The money the Fed will receive from the Treasury will be in devalued dollars so it loses money either way. What’s more, the higher interest will absolutely annihilate the government’s ability to run the country. At the current trajectory, the US debt will be near $20-Trillion in just five years and the interest payments will become unbearable.

Then again, since the Fed creates money out of thin air; can it really lose money it hasn’t earned? It never existed before the Treasuries were purchased so why would the Fed care if it sold the securities for a loss if that would sop up the massive liquidity? The Ben Bernank will just take the golf pencil out of the bag – the one with the fat eraser – and erase all of the necessary places on the balance sheet that it doesn’t like. Poof, it’s gone!

One thing’s for damn sure: no matter the process, it will make bankers a great deal of money and you a LOT POORER.

NIA's Top 10 Predictions for 2011

2011-01-04T11:20:00.000-05:00

The National Inflation Association is pleased to announce its top 10 predictions for 2011.

1) The Dow/Gold and Gold/Silver ratios will continue to decline.

In NIA's top 10 predictions for 2010, we predicted major declines in the Dow/Gold and Gold/Silver ratios. The Dow/Gold ratio was 9.3 at the time and finished 2010 down 15% to 8.1. The Gold/Silver ratio was 64 at the time and finished 2010 down 28% to 46. We expect to see the Dow/Gold ratio decline to 6.5 and the Gold/Silver ratio decline to 38 in 2011. Later this decade, we expect to see the Dow/Gold ratio bottom at 1 and the Gold/Silver ratio decline to below 16 and possibly as low as 10.

2) Colleges will begin to go bankrupt and close their doors.

We have a college education bubble in America that was made possible by the U.S. government's willingness to give out cheap and easy student loans. With all of the technological advances that have been taking place worldwide, the cost for a college education in America should be getting cheaper. Instead, private four-year colleges have averaged 5.6% tuition inflation over the past six years.

College tuitions are the one thing in America that never declined in price during the panic of 2008. Despite collapsing stock market and Real Estate prices, college tuition costs surged to new highs as Americans instinctively sought to become better educated in order to better ride out and survive the economic crisis. Unfortunately, American students who overpaid for college educations are graduating and finding out that their degrees are worthless and no jobs are available for them. They would have been better off going straight into the work force and investing their money into gold and silver. That way, they would have real wealth today instead of debt and would already have valuable work place experience, which is much more important than any piece of paper.
Colleges and universities took on ambitious construction projects and built new libraries, gyms, and sporting venues, that added no value to the education of students. These projects were intended for the sole purpose of impressing students and their families. The administrators of these colleges knew that no matter how high tuitions rose, students would be able to simply borrow more from the government in order to pay them.

Americans today can purchase just about any type of good on Amazon.com, cheaper than they can find it in retail stores. This is because Amazon.com is a lot more efficient and doesn't have the overhead costs of brick and mortar retailers. NIA expects to see a new trend of Americans seeking to become educated cheaply over the Internet. There will be a huge drop off in demand for traditional college degrees. NIA expects to see many colleges default on their debts in 2011. These colleges will be forced to either downsize and educate students more cost effectively or close their doors for good.

3) U.S. retailers will report declines in profit margins and their stocks will decline.

Although most analysts on Wall Street believe retailers will report a major increase in holiday season sales over a year ago, NIA believes any top line growth retailers report will come at the expense of dismal bottom line profits. NIA expects many retailers to report large declines in their profit margins for the 4Q of 2010 and first half of 2011. Retailers have been selling goods at bargain basement prices in order to generate demand. Americans, being flush with newly printed dollars from the Federal Reserve, have been eager to buy up supplies of goods at artificially low prices. However, shareholders will likely sell off their retail stocks on this news. As share prices of retail stocks decline, retailers will begin to rapidly increase their prices by mid-2011.

4) The mainstream public will begin to buy gold.

Although the mainstream media continues to proclaim we have a gold bubble, it is impossible to have a gold bubble when mainstream America isn't buying gold. The average American is more likely to be a seller of gold through companies like Cash4Gold, in order to raise enough dollars to put food on their table. Most Americans today don't even know the price of gold. During the next 12 months, we expect to see a huge ramping up in the public's knowledge about gold. More Americans than ever will know the current price of gold and understand that it is real money. By the end of 2011, we expect the general public to begin looking at gold as an investment, just like they began looking at Real Estate as an investment in 2003. Sometime during the next six months, we believe you will overhear a stranger at a restaurant talking about investing into gold. We believe the price of gold could surge to as high as $2,000 per ounce in 2011.

5) We will see a huge surge in municipal debt defaults.

In the closing months of 2010, we saw yields on municipal bonds rise to their highest levels since early 2009. After 29 consecutive weeks of inflows into municipal bond funds, investors are now pulling money out of municipal bond funds by record amounts, with $9 billion exiting municipal bond funds in the five weeks leading up to Christmas. NIA believes there could be a small dip in municipal bond yields over the next couple of months as investors realize that municipal debt defaults might not be imminent, but we expect municipal bond yields to begin rising again by mid-2011 with a huge surge in municipal debt defaults coming in the second half of 2011. Although the Federal Government has a printing press that it uses in order to pay its debts, cities and municipalities do not.

6) We will see a large decline in the crude oil/natural gas ratio.

When we released our top 10 predictions for 2010, crude oil was $73 per barrel and we predicted that oil prices would rise to $100 per barrel in 2010. Crude oil ended up rising by 26% in 2010 to $92 per barrel, coming short of our outlook. However, it is possible our $100 per barrel oil forecast might be off by just a month or two. We wouldn't be surprised to see $100 per barrel oil within the first two months of 2011 and if so, we expect to see a huge movement in America this year towards natural gas.

The crude oil/natural gas ratio currently stands at 20. Historically, the crude oil/natural gas ratio has averaged 10 and based on an energy equivalent basis, crude oil and natural gas prices should have a 6 to 1 ratio. Brand new fracking technology has caused natural gas supplies in the U.S. to rise to record levels. Although our country might be flooded with natural gas, the natural gas fracking boom that is taking place across the U.S. today is causing ground water in the U.S. to become contaminated. Americans living near natural gas wells that use fracking, are finding that they can now light the water coming out of their faucets on fire. New government regulations are likely to crack down on natural gas fracking and this will come at the same time as American individuals and businesses begin to convert their automobiles and machinery to run off of natural gas. A large decline in the crude oil/natural gas ratio in 2011 is likely, possibly down to as low as 15.

7) The median U.S. home will decline sharply priced in silver.

For the past couple of years, being able to make ones mortgage payment has been the primary concern for the average American. In an attempt to support housing prices and keep mortgage interest rates at artificially low levels, the Federal Reserve has been implementing massive quantitative easing and buying mortgage backed securities. NIA believes the Federal Reserve will be successful at putting a nominal floor under Real Estate prices. NIA also believes that the Federal Reserve's actions will cause a massive decline in the value of the U.S. dollar, which will allow Americans to more easily pay back their mortgages with depreciated U.S. dollars.

However, the Federal Reserve will not be successful at reinflating the Real Estate bubble. In fact, in terms of real money (gold and silver), NIA believes Real Estate prices will decline to record lows. The median U.S. home is currently priced at $170,600 or 5,500 ounces of silver. Priced in silver, the median U.S. home price is down 16% from one month ago and 45% from one year ago. After the inflationary crisis of the 1970s, silver rose to a high in 1980 of $49.45 per ounce. The median U.S. home price in 1980 was $47,200, which means the median U.S. home/silver ratio declined to a low of 954.

With the Federal Reserve printing money at an unprecedented rate and record amounts of new homes built during the recent Real Estate bubble, NIA believes it is inevitable that the median U.S. home will decline to a price of 1,000 ounces of silver this decade and possibly as low as 500 ounces of silver. In 2011, we believe a decline in the median U.S. home price to 4,000 ounces of silver is possible.

8) Food inflation will become America's top crisis.

Starting a few decades ago and accelerating in recent years, America has seen a boom in non-productive service jobs, mainly in the financial sector. Most of these jobs were made possible by inflation. Without inflation, which steals from the purchasing power of the incomes and savings of goods producing workers, the majority of the jobs on Wall Street would not exist today and our country would be in much better financial shape because of it.

With most Americans in recent decades seeking non-productive jobs in the financial services sector because that is where they could access the Fed's cheap and easy money, very few Americans sought jobs in the farming and agriculture sector. In the 1930s, approximately 28% of the population was employed in the agriculture sector, but today this number is less than 2%. Agriculture currently makes up only 1.2% of U.S. GDP, compared to the services sector, which makes up 76.9% of U.S. GDP.
There is currently a major shortage of farmers in the U.S. and a lot of land that was previously used for farming has now been developed with Real Estate. To make matters worse, agricultural products now trade on the international market and Americans must now compete against citizens of emerging nations like China and India for the purchasing of food.
Prices of goods and services do not rise equally when governments create monetary inflation. Inflation gravitates most towards the items that Americans need the most and there is nothing that Americans need more to survive than food and agriculture. As the U.S. government prints money, the first thing Americans will spend it on is food. Americans can cut back on energy use by moving into a smaller home and carpooling to work. They can cut back on entertainment, travel, and other discretionary spending. However, Americans can never stop spending money on food.

The days of cheap food in America are coming to an end. The recent unprecedented rise that we have seen in agricultural commodity prices is showing no signs of letting up. In the past few days, sugar futures reached a new 30-year high, coffee futures reached a new 13-year high, orange juice futures reached a new 3-year high, corn futures reached a new 29-month high, soybean futures reached a new 27-month high, and palm oil futures reached a new 33-month high.

We estimate that it takes as long as six months for rising agricultural commodity prices to be felt by U.S. consumers in their local supermarket. Even if food producers and retailers accept substantially lower profit margins in 2011, we are still guaranteed to see double-digit across the board U.S. food inflation in the first half of the year. That is correct, let us repeat, NIA guarantees that Americans will see double-digit food inflation in the first half of 2011.

Shockingly, except for Glenn Beck (who was kind enough to feature our food inflation report), absolutely nobody in the mainstream media is doing anything to warn Americans about the food inflation crisis that is ahead. In fact, left-wing groups like Media Matters (funded by George Soros) have been working tirelessly to try and discredit NIA's research while reassuring Americans that they need not worry about food inflation. The truth is, when Americans realize that they can no longer take food for granted, we will likely see the outbreak of an all out food price panic with everybody rushing to the supermarket to stock up on goods before prices rise even further. The end result will likely be government price controls and empty store shelves, but NIA doesn't project this to occur until later this decade.

9) QE2 will disappoint and the Federal Reserve will prepare QE3.

The Dow Jones is now back up to 11,670, which is where it was in mid-2008 before the crash. NIA believes that most of QE2 has already been priced into the market, before the Federal Reserve even prints the $600 billion. At some point, we expect it to become apparent to all that the U.S. economic recovery is phony and stock prices are rising solely due to inflation. In our opinion, we will see some sort of catalyst that causes the stock market to sell off at some point and the consensus on Wall Street will be that QE2 will not be enough to save the U.S. economy. By the end of 2011, we expect the Federal Reserve to begin planning QE3. QE3 might be the final dose of inflation that causes the U.S. economy to overdose into hyperinflation.

10) Sarah Palin will announce she is running for President as a Republican.

NIA believes that Sarah Palin has been setup perfectly to run for President in 2012 and that she will announce her candidacy for the Republican nomination with great fanfare from tea party supporters in 2011. We give Sarah Palin credit for recently speaking out against the Federal Reserve's QE2 and warning Americans about the food inflation crisis that is ahead. Unfortunately, we believe Sarah Palin is not a true independent and is being controlled by the Republican establishment, which is just as responsible as the Democrats are for the financial crisis we have today. As President, Palin would be unlikely to implement the measures that are necessary to prevent hyperinflation. In our opinion, we need to elect a true libertarian candidate as President who will cut government spending, balance the budget, and restore sound money. NIA intends to support Ron Paul, if he decides to run for President.

JP Morgan Covering Silver Short Position

2010-12-14T19:02:00.000-05:00

JP Morgan Covering Silver Short Position

There were reports out today that JP Morgan has now admitted to having their massive naked short position in silver and is taking steps to reduce it. According to the Financial Times in London, "JPMorgan has quietly reduced a large position in the US silver futures market which had been at the centre of a controversy about its impact on global prices for the precious metal." According to a person familiar with the matter, "The decision by JPMorgan was an attempt to deflect public criticism of the bank’s dealings in silver." JP Morgan said in a statement, "It is absolutely incorrect to say or imply that the Nymex, CFTC or any other exchange or regulator has instructed or asked us to reduce our position."

NIA, along with the Gold Anti-Trust Action Committee (GATA), has been at the forefront of helping expose JP Morgan's silver price suppression scheme. Over a year ago on December 11th, 2009, NIA declared silver the best investment for the next decade at $17.40 per ounce. NIA said in its December 11th article, "It's not a coincidence that the day silver reached its multi-decade high of over $21 per ounce in March of 2008, was the same day Bear Stearns failed. Bear Stearns was a holder of a massive short position in silver."

NIA went on to say, "The reason why we believe the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, is because Bear Stearns was on the verge of being forced to cover their silver short position." NIA then said, "JP Morgan still holds the silver short position they inherited from Bear Stearns" and "JP Morgan will have to cover this short position or it could jeopardize their existence."

On February 5th, 2010, JP Morgan was successful at manipulating the price of silver down to below $15 per ounce. On February 7th, NIA wrote an article entitled, "NIA Bets Big on Silver Price Recovery" in which it said, "NIA is betting big that this past week's short-term decline in the paper price of silver was just a temporary wash out, before a huge surge in silver prices later in 2010. One of NIA's co-founders purchased on Friday, 1,300 January 2011 $20 SLV call options at a price of $0.89." These call options that NIA suggested went on to rise as much as 1,024% to a high this month of $10.

On March 25th, 2010, the CFTC held a hearing on position limits in precious metals. Bill Murphy of GATA (see NIA's video page for an interview we conducted with Mr. Murphy on Thursday) was allowed to speak (within a five-minute time constraint). Right at the beginning of Murphy's speech, there was a technical failure of the live television broadcast, which was mysteriously fixed as soon as he was done speaking. This did not stop Murphy, who was brave enough to present the evidence of Andrew Maguire, a former Goldman Sachs precious metals trader who on February 3rd became a whistleblower when he wrote to Eliud Ramirez, a senior investigator for the CFTC's Enforcement Division, giving him the "heads up" for a "manipulative event" signaled for February 5th. Maguire described to the CFTC in February 3rd emails, exactly what would happen on February 5th (which did occur exactly like predicted), yet the CFTC refused to take any action against JP Morgan or the other conspirators.

Murphy was scheduled for several mainstream media television interviews after the CFTC hearings, but they were all abruptly cancelled at once. In the weeks that followed, Murphy's car was stolen, his web site was hacked, and he was punched with brass knuckles and knocked out cold less than two blocks from his house. As for Maguire, a couple of days after the CFTC hearings, he and his wife were involved in a bizarre hit-and-run car accident in London where a second car coming out of a side street struck their vehicle. The hit-and-run suspect then hit two more vehicles when he desperately attempted to flee, which resulted in a police chase with helicopters. The suspect was nabbed, yet surprisingly, his name was never released and it was never made known if charges were filed.

On April 3rd, 2010, with silver at $17.89 per ounce, NIA wrote an article entitled, "Silver Short Squeeze Could Be Imminent". In this article, NIA said, "With the spotlight now on JP Morgan, NIA believes they will be less likely to naked short silver at these levels and manipulate the price down like in February. With the mainstream media blackout, it is important for NIA members to work harder than ever to spread the word and help expose what could be the largest fraud in the history of the world."

On May 13th, 2010, NIA released its critically acclaimed documentary 'Meltup', which featured our in-depth research on JP Morgan's silver price suppression scheme. Thanks to the help of tens of thousands of NIA members who worked tirelessly to spread the word about 'Meltup', nearly 1 million people saw the documentary and became educated to the truth about JP Morgan's silver manipulation. Without the hard work of NIA members, JP Morgan would have went on naked shorting silver for years and the topic would have never become mainstream.

In 'Meltup', NIA's President Gerard Adams stated, "The current gold/silver ratio of 64 wouldn't be possible unless silver prices were being held artificially low through manipulation. I don't believe it is possible for the silver that JP Morgan is short to be backed by physical silver. Most likely, JP Morgan has been naked shorting silver, by selling paper silver that doesn't physically exist." Since the release of 'Meltup', the gold/silver ratio has fallen by a shocking 27% down to 47. Within the next few years, NIA expects the gold/silver ratio to at least fall to 16, which will mean another three times increase in the purchasing power of those who own silver. In fact, because silver prices have been held artificially low for so long by JP Morgan's manipulation, there is a chance the gold/silver ratio will over swing to the downside and decline to 10 or lower this decade.

Throughout world history, there have been 46 billion ounces of silver produced compared to 5 billion ounces of gold. Although gold gets all of the headlines in the mainstream media, silver shares all of the same monetary qualities as gold. Based on historical production ratios, a gold/silver ratio of 10 down the road could certainly be realistic. In fact, considering that most of the silver ever produced has been consumed by manufacturing, a gold/silver ratio of much less than 10 is possible. Worldwide inventories of silver have declined 90% since 1940 from 10 billion ounces down to approximately 1 billion ounces today. NIA believes that a major shortage of physical silver is in the process of developing.

On September 9th, 2010, NIA released an article entitled, "Is JP Morgan's Silver Manipulation Over?". In this article, we discussed how JP Morgan was winding down their proprietary trading desks, which we felt were responsible for the silver manipulation. We stated that we were "hopeful but skeptical that the manipulation is coming to an end" and "cautiously optimistic at this time". Since September 9th, the price of silver has gained over 50% and is holding strong near $30 per ounce. There have been no noticeable manipulative takedown attempts by JP Morgan.

NIA estimates that over the past 30 days, JP Morgan has covered approximately 4,000 silver contracts, which has corresponded with about a $4 per ounce upward move in the price of silver. We estimate JP Morgan to still be short approximately 26,000 silver contracts or 130 million ounces of silver, which equals about 18% of worldwide annual silver production from mining of 709.6 million ounces. If JP Morgan covers their entire silver short position and the price of silver was to continue rising by $1 for every 1,000 silver contracts that JP Morgan covers, silver would rise to $56 per ounce.

JP Morgan appears to be covering its shorts in a very managed and orderly way. We are not yet seeing anything that resembles a short squeeze, although one could occur at any time. If we see a major silver shortage and a real short squeeze, silver could literally rise to hundreds of dollars per ounce overnight. Silver's all time high of $49.45 per ounce adjusted to the CPI equals $139 per ounce in today's dollars. As all NIA members know, the CPI understates inflation through geometric weighting and hedonics. The real inflation adjusted all time high for silver is over $400 per ounce.

With almost everybody who has ever purchased silver being up on silver in terms of dollars, it is possible we could see silver prices take a breather in the short-term. NIA is hoping for a short-term pullback, but with so many investors waiting to buy on dips, there is a chance that a large short-term pullback will never occur. NIA is very pleased that for the first time in many years, silver prices appear to be trading based on free market forces and not the manipulation of JP Morgan.

Federal Reserve

2010-12-09T07:18:00.000-05:00

The following is a very good read as to what has been going on at the Federal Reserve.
http://ampedstatus.com/the-wall-street-pentagon-papers-biggest-scam-in-world-history-exposed-are-the-federal-reserves-crimes-too-big-to-comprehend

Wikileaks Data Scam

2010-12-06T10:46:00.001-05:00

Wikileaks Reveals Even China Says Not To Believe Its Economic Data

Economic Data

WikiLeaks

2010-12-02T13:15:00.000-05:00

The following is another person's viewpoint on the recent WikiLeak happening. This is taken from Larry Levin.

Wikileaks

In a recent post I mentioned the now viral speech that Nigel Farage gave to the Eurocrats in Brussels. “But look at your response to them (Ireland): what they are being told as their government is collapsing is that it would be inappropriate for them to have a general election. In fact commissioner Rehn here said they (Ireland) had to agree to a budget first before they are allowed to have a general election. Just who the hell do you think you people are? You are very, very dangerous people indeed: your obsession with creating this European state means that you are happy to destroy democracy, you appear to be happy with millions and millions of people to be unemployed and to be poor.”

Although Mr. Farage wasn’t speaking to a cabal of banksters, he could have been. Instead, he was speaking to the muscle of the banksters: politicians that allow them to do whatever they choose. Moreover, when he said “dangerous;” I wonder if any of you thought in the very literal term of the word?

For Mr. Julian Assange, owner of Wikileaks, life has gotten very serious…but not until he said his website would release information on a mega-BANK in the USA!

There was no problem with multiple war leaks over Afghanistan.
There was no problem with multiple war leaks over Iraq.
There was no problem with Israel/flotilla leaks & video.
However, as soon as a bank may be exposed – all hell breaks loose!
Within 2-days..

Interpol issues a global manhunt for founder Assange.
Professor Tom Flanagan, a senior advisor and strategist to the Canadian Prime Minister Stephen Harper, called for the assassination of Wikileaks founder Assange - a fatwa if you like. http://www.youtube.com/watch?v=bqtIafdoH_g&feature=player_embedded
Senator Lieberman trashes freedom of speech – gets website shut down.

The timing of when Wikileaks said it would announce a “data dump” of a mega-bank in the US (believed to be BAC) and the sudden escalation of angst and anger – including murder - on the part of those who protect the banksters simply can NOT be ignored and it is simply sickening.

These banksters apparently CAN get away with murder; it’s no longer a simple statement. “You are dangerous people, indeed!”

I think a few more appropriate nuggets from Nigel Farage are in order…
"This whole project, this whole dream, this whole modern Marxism, has been imposed upon the people of Europe (and creeping into the USA), without their view being sought, and in the case of France and the Netherlands, when they did give their opinion, they simply ignored them and continued."
…"Complete madness has overcome the European Union (and US bankers): on the broader point there are those here who do see the European project a staging post to one world government."

My thoughts for summing up this disgraceful turn of events couldn’t have been done better, so I bring you Mish’s last word…

Fools like Lieberman think we can stop leaks by legislation. We can't. We can only stop leaks by fostering an attitude from the top that will prosecute fraud and corruption instead of looking for scapegoats, and instead of pursuing policeman policies that "the end justifies the means"

President Obama is a blatant liar. He promised to release details of US torture of prisoners. He failed to do so. I praise WikiLeaks or anyone else who is willing to disclose the hypocrisy of this president and this administration.

I am not a Republican. I am an independent. I praise WikiLeaks or anyone else who is willing to disclose the hypocrisy of Republicans as well.

I fear for our country and the path it is taking.

We need to elect someone willing to stand up TO the banks, stand up TO our bloated military, stand up TO public unions, and stand FOR less government spending, stand FOR prosecuting fraud wherever it takes, stand FOR smaller government.

President Obama is not that person, nor was President Bush. We need a Ron Paul, or someone like him, willing to do what is needed before we destroy ourselves.

Trade well and follow the trend, not the so-called “experts.”

Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banksters.

EU at Weekly Control MM

2010-11-24T08:42:00.000-05:00

EU is at the weekly MM that hasn't been filled. Levels shown in pic.

EU Weekly Target

2010-11-16T13:15:00.000-05:00

EU weekly target to look for within current trend.

EU hits 100 DMM

2010-11-16T13:02:00.000-05:00

EU hits daily 100% MM projected from the current day's high. This is also confluence with the 61.8 daily fib pivot projected from the open. Larger targets are also shown at the 100 fib pivot. Eu has now hit the weekly 50% and daily 100% MMs. The current day has also fallen within the weekly 38.2 MM projected from today's high. Very high probability that EU has extended to its maximum for todays range.

EU hits 50% WMM

2010-11-16T12:10:00.000-05:00

EU hits the weekly 50% MM

EU Setup Short

2010-11-11T16:58:00.000-05:00

Zone for trend continuation.

EU hits Monthly Control 61.8 MM

2010-11-11T12:21:00.000-05:00

EU today extended its bearish run to hit the Monthly Control 61.8% measured move for Nov.

EU hits Weekly 100% MM

2010-11-10T10:47:00.000-05:00

Euro hits 100% of the previous weeks measured move. Shown in the gray box.

EU Monthly Measured Move Realized

2010-11-10T09:02:00.000-05:00

The Oct 100% MM from Nov high to today's low.

Food Inflation

2010-11-05T09:26:00.000-04:00

NIA Projects Future U.S. Food Price Increases

The National Inflation Association today announced the release of its report about NIA's projections of future U.S. food price increases due to the massive monetary inflation being created by the Federal Reserve's $600 billion quantitative easing. This report was written by NIA's President Gerard Adams, who believes food inflation will take over in 2011 as America's greatest crisis. According to Mr. Adams, making mortgage payments will soon be the last thing on the minds of all Americans. We currently have a currency crisis that could soon turn into hyperinflation and a complete societal collapse.

"For every economic problem the U.S. government tries to solve, it always creates two or three much larger catastrophes in the process," said Adams. "Just like we predicted this past December, the U.S. dollar index bounced in early 2010 and has been in free-fall ever since. Bernanke's QE2 will likely accelerate this free-fall into a complete U.S. dollar rout," warned Adams.

NIA projects that at the average U.S. grocery store it will soon cost $11.43 for one ear of corn, $23.05 for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino Granulated Sugar, $24.31 for a 32 fl oz container of soy milk, $77.71 for a 11.30 oz container of Folgers Classic Roast Coffee, $45.71 for a 64 fl oz container of Minute Maid Orange Juice, and $15.50 for a Hershey's Milk Chocolate 1.55 oz candy bar. NIA also projects that by the end of this decade, a plain white men's cotton t-shirt at Wal-Mart will cost $55.57.

NIA's special U.S. food price projection report is now available to download for free at: http://inflation.us/foodpriceprojections.pdf

The report highlights how despite cotton rising by 54%, corn rising by 29%, soybeans rising by 22%, orange juice rising by 17%, and sugar rising by 51% during the months of September and October alone, these huge commodity price increases have yet to make their way into America's grocery stores because corporations have been reluctant to pass these price increases along to the consumer. In today's dismal economy, no retailer wants to be the first to dramatically raise food prices. However, NIA expects all retailers to soon substantially raise food prices at the same time, which will ensure that this Holiday shopping season will be the worst in recorded American history.

Silver Short Position Could Cost JP Morgan Billions in Losses

2010-10-30T09:45:00.000-04:00

The following is an article from The National Inflation Association. To register for reports and other similar information that may affect you, go here. http://inflation.us/

Silver Short Position Could Cost JP Morgan Billions in Losses

It was just announced late Wednesday that two lawsuits have been filed in Manhattan federal court against JP Morgan and HSBC Holdings Inc. accusing them of manipulating the price of silver by "amassing enormous short positions". The suits were filed by Brian Beatty and Peter Laskaris, who each claim they lost money trading COMEX silver futures and options contracts as a result of JP Morgan's alleged manipulation.

In NIA's latest documentary 'Meltup' that was released on May 13th, 2010, and has now been viewed by over 855,000 people, NIA's President Gerard Adams exposed the manipulation of silver that has been taking place by JP Morgan. Mr. Adams discussed in detail in 'Meltup' how on March 14th, 2008, the very day Bear Stearns failed was the same day silver reached a multidecade high of about $21 per ounce. According to Mr. Adams, Bear Stearns was on the verge of being forced to cover their naked short position in silver, which could have quickly sent silver as high as $50 per ounce. This would have caused a loss of confidence in the U.S. dollar and a possible currency crisis. Instead of allowing this to happen, the Federal Reserve orchestrated a bailout of Bear Stearns and JP Morgan acquired their assets with the backing of the Fed. Shortly after taking over Bear Stearn's silver short position, JP Morgan was able to manipulate the price of silver down to below $9 per ounce.

NIA exposed in 'Meltup' that JP Morgan was short 30,000 silver contracts representing 150 million ounces of silver. This is one of the largest concentrated short positions in the history of all commodities, representing 31% of all open COMEX silver contracts. NIA found it shocking for this type of a concentrated naked short position to exist in the very metal that the U.S. constitution defined as real money. What NIA found especially frightening is how almost everybody in the mainstream media has ignored and continues to ignore this issue. Not one article in any major financial publication has even questioned why JP Morgan is allowed to hold such a large short position in our nation's single most important commodity.

On February 5th of 2010, when the price of silver was manipulated by JP Morgan down to below $15 per ounce, NIA said, "this is a once in a lifetime entry point for those wishing to go long silver at a bargain basement price". On that day, NIA's President Mr. Adams purchased 1,300 January 2011 $20 call options in the silver ETF at $0.89 per contract and on February 8th, NIA announced his purchase and said to NIA members, "NIA is betting big that this past week's short-term decline in the paper price of silver was just a temporary wash out, before a huge surge in silver prices later in 2010."

On July 28th with the price of silver at $17.63 per ounce, NIA released an article entitled "Gold and Silver Capitulation is Near" in which it said, "The sentiment on gold and silver has abruptly changed to the negative like nothing we have ever seen before and to us this means the big move to the upside is right around the corner." Since NIA's July 28th article predicting silver's big move to the upside was right around the corner, silver has rallied as much as 41% to a high on October 14th of $24.92 per ounce. On October 14th, the very day silver reached its high, Mr. Adams sold his silver ETF call options at $4.25 per contract making a gross profit of $436,800.

Silver, at its current price of $23.69 per ounce, is trading for only 1.78% the price of gold. We have a gold/silver ratio of 56, despite the fact that only ten times more silver has been produced in world history than gold. On December 11th, 2009, NIA declared silver the best investment for the next decade. On December 21st, 2009, in NIA's top 10 predictions for 2010, NIA predicted a sharp decline in the gold/silver ratio, which was 64 at the time. NIA was right, the gold/silver ratio has declined by 12.5% so far this year.

Silver possesses all of the same monetary qualities as gold, but silver is also used for countless industrial applications. 95% of all silver produced in world history has been consumed. World silver inventories have declined from 10 billion ounces in 1940 down to only 1 billion ounces today. Meanwhile, almost all of the gold mined in world history remains in the form of bullion bars stored in vaults. The world has approximately 2 billion ounces of gold inventories today. The total value of the world's gold inventories is currently $2.656 trillion compared to the total value of the world's silver inventories of $23.68 billion. This means the value of the world's gold inventories today is worth an unbelievable 112 times more than its silver inventories.

China has been rapidly diversifying their foreign exchange reserves into gold in an attempt to position the yuan to be the world's next reserve currency. Despite China increasing its gold reserves by 76% in recent years to 1,054 metric tons, the value of China's gold reserves still only account for about 1.5% of its total foreign exchange reserves compared to the average nation of 10%. China needs to rapidly increase its gold reserves this decade, which NIA believes will send gold not just to new nominal highs, but also to new all time highs adjusted to the CPI and the real rate of inflation.

No central banks in the world currently own silver. Imagine if just one central bank of any major country announces a large silver purchase. The world is only producing 709.6 million ounces of silver per year worth a measly $16.8 billion. Total annual silver demand for industrial applications alone is 352.2 million ounces. Once you include photography, jewelry, silverware, and coins & medals, total annual silver demand is already 729.8 million ounces, which is greater than silver production. If a central bank decides to purchase silver, the market is so tight that silver prices could literally rise to $50 per ounce overnight. NIA estimates that $50 per ounce silver would mean approximately $4 billion in losses to JP Morgan.

NIA applauds CFTC Commissioner Bart Chilton for taking the time to publicly comment on Tuesday about the precious metals markets and in particular the silver markets and acknowledging that the public deserves some answers to their concerns that silver markets are being, and have been, manipulated. Mr. Chilton said in a statement, "I believe that there have been repeated attempts to influence prices in the silver markets. There have been fraudulent efforts to persuade and deviously control that price. Based on what I have been told by members of the public, and reviewed in publicly available documents, I believe violations to the Commodity Exchange Act (CEA) have taken place in silver markets and that any such violation of the law in this regard should be prosecuted."

On September 9th, after JP Morgan announced that they would be winding down their proprietary trading operations and laying off their 20 proprietary commodities traders, who NIA believes could be responsible for the current manipulation in silver, NIA released an article entitled, "Is JP Morgan's Silver Manipulation Over?". NIA said in this article that it was "hopeful but skeptical that the manipulation is coming to an end" and "We remain cautiously optimistic at this time." Since this article, it appears as though silver has been trading based on free market forces for the first time in many years. There have been no noticeable attempts to drive down the price of silver through manipulation.

NIA's most recent silver stock suggestion from September 20th gained 111% in just 17 trading days and its previous silver stock suggestion from July 28th gained 111% in 47 trading days. We are very happy that investors who have for years been suffering due to JP Morgan's manipulation, are now finally seeing the value of their silver investments rise to where the free market wants them to be. The efforts of all NIA members to expose JP Morgan's illegal activities are now paying off big for all Americans.

NIA members should be proud of themselves, but the fight is not over yet. Although most NIA members have been prospering and are now positioned to not only survive but thrive during U.S. hyperinflation, we still need to work together to prevent a complete societal collapse so that our country is still worth living in after the U.S. dollar becomes worthless. We hope to release our new documentary 'End of Liberty' this Sunday on Halloween. After you watch 'End of Liberty', it is important for you to not only spread the word to your family members and friends, but we strongly urge you to contact all relevant web sites, blogs, newspapers, magazines, and television and radio shows, telling them about the movie. 'End of Liberty' is quite simply the most important firm ever produced in world history.

A Planned Market

2010-09-27T08:41:00.000-04:00

The following is from a trader , Larry Levin. It speaks great truths as to what is happening in our economy. What is happening is not a good thing and will be what further causes the economy to decline. That is my opinion and not that of those in political power.

A Planned Market

Most people have head of the phrase "A planned Economy," which according to Wikipedia is "Planned economy (or command economy) is an economic system in which the state directs the economy.[1] It is an economic system in which the central government controls industry such that it makes all decisions regarding the production and distribution of goods and services.[2]Its most extensive form is referred to as a command economy,[3] centrally planned economy, or command and control economy.[4]"

The USA doesn't have a planned economy yet, but it sure has a "planned market." In addition to "planned market" I would accept names of; Corporatism, economic-Socialism, or perhaps the best: Kleptocracy. After all, the middle class is being looted by the White House, Congress, and the Federal Reserve, for the benefit of Fraud Street banksters and its bondholders.

One thing is now as clear as glass to all of those who are not in a cave somewhere - the "free market" is dead in the United States of Amerika.

As you know the U.S. Politburo is now in control of, or wanting control of the following...

A very large section of manufacturing: Automakers. Although GM will soon have an IPO don't let that fool you - the government will still own the majority of the car maker. The government would not be made whole unless the new stock price reached $113.78. Since that will not happen, Amerika will be in a "planned economy/market" for a long time, at least a decade.
Housing: Freddie Mac, Fannie Mae, and FHA. These three government agencies underwrote 90% of all mortgages in Q1 of 2009. That jumped to 96.5% of all mortgages in Q1 of 2010. Yes sir, that's a "planned market"...Amerikan housing market...alright.
The government wants to take over healthcare too. Oh sure, the Politburo hasn't done it yet but a single payer system is coming to a "planned health care market."
Inside the healthcare legislation Big Brother wants you to report ALL business transactions over $600. A "planned economy" indeed!
Social Security
Medicare
The Federal Reserve has always "planned" the economy by price fixing interest rates, with the approval of the Politburo in DC, but it is now out of control.
- When the market fell hard in 2008, the Federal Reserve came in to save its buddies: bankers. The Federal Reserve cut its interest rates to nearly zero. YOU may not borrow at 0.25%, but the biggest banks can.
- With this free money from the Fed, banks bought Treasuries. Buying these Treasuries was a GUARANTEED profitable investment because the Fed cut its lending rates to near zero for the banksters.
- But there was a small "truth" problem in the status of the bankster's mortgage portfolio since they had to tell the truth about the falling home prices, thus the falling value of their mortgage portfolios. To fix this the Politburo forced the FASB to change its accounting standards for the banksters, which allowed them to legally lie about the value of the mortgages on the books. Instead of marking down the value of the homes in the portfolios, the banks just made up (and continue to make up) pretend numbers for what the home may be worth in 20-years. Magically, these guesstimates are the full value of the loans. When this happened, the low of the stock market was put it place. "Controlled market" anyone? If you went into one of these very same banks to get a personal or business loan and used your home as collateral...then told the loan officer it should be valued at the PEAK of 2007's price, WHICH IS EXACTLY WHERE THEY HAVE IT VALUED ON THEIR OWN BOOKS; what do you think would happen? Yes, you would get thrown out on your fanny. It is good for them, but nobody else!
- The FASB rule helped the banks a lot and certainly rigged the stock market, but the Fed and the banksters still knew the real score: the RMBS, CDS, etc loans on the books were rotting like dead fish. The Federal Reserve then announced "Quantitative Easing" (QE), which should have been called TARP-all-over-again as it was aimed at shoveling more money into the pockets of the banksters. The Fed bought over $1 TRILLION of these fetid, decaying mortgage "assets" at par or nearly par, when many weren't even worth 20-cents on the dollar!
- What did the banksters do with this newly printed money? The only thing that made sense: buy more Treasury Bills, Bonds, and now stocks and commodities. It wasn't just free money, but a loss-made-good, type of free money. The banksters knew now that no matter how bad or how often they %$#*ed up, Backstop-Ben Bernanke would be there with more free money. Again, GUARANTEED profits for the banksters with YOUR money.
- Now the Fed is regularly engaging in its POMO purchases, which are its Permanent Open Market Operations. The Fed is once AGAIN flooding the very banksters who brought down the economy with free money --- so they can make even more money (ah hem, at your expense of course).
- You see, now that the Fraud Street banksters have already bought hundreds of billions worth of Treasuries with the aforementioned free money at guaranteed profit, they're a little tight right now. But the Politburo has more borrowing & spending to do therefore the Treasury needs to sell more IOUs. How can the "managed market" Kleptocracy keep this shell game going? By the POMO purchases of course. The FRBNY (Federal Reserve Bank of N.Y.) buys billions of the Treasuries back from the banksters, thus flooding them with more capital, which can then be used to buy AMZN, AAPL, SPY, ES futures, commodities, and of course -- more Treasuries.
- By the way, since the banksters bought the bonds that the FRBNY is buying right now...many months ago...the Fed is once again GUARANTEEING these scumbag banksters yet another risk-free profit. Treasuries have been on a huge rally so the banksters bought low (with your money), are getting out at the high with insanely large profits (no more duration risk either!), at your expense. Once purchased, the Fed disposes the debt. A "planned market" indeed!
- This is what POMO purchases are all about - getting more money to banksters and monetizing the debt. A financial circle jerk of epic proportions.
- Oohhhhh but it is not over. QE2 is coming. Everyone on Fraud Street believes it, and sadly, when those banksters say "JUMP" - the Fed responds with "How high?" Therefore, QE2 will be like QE1 + POMO + steriods + your money = BONUSES on Fraud Street, as well as huge campaign "donations" for the Politburo in Washington DC.

The most recent POMO purchases were made by the FRBNY last Friday. Since the banksters do not know in advance which CUSIP number (bond identification) will be purchased, they cannot all buy stocks and commodities beforehand. Some of the Treasuries on the banksters books may not be purchased by the FRBNY. Because of this, the banksters have to wait until the very moment their lottery number is called before they can run the stock & commodity markets up again & again on pathetic volume.

By the way, as soon as POMO ended last Friday, the rally in equities ended.

A "planned market" indeed!

The next time someone would like to discuss Amerika's "free market," I do not know if I will scornfully laugh at him, or weep for him.

Chrysler's Railroad

2010-07-28T12:41:00.000-04:00

The following was sent to me by another trader that I greatly respect. Have a read, it may open your eyes to what is and has been going on.

Chrysler dealerships
which were forced to close...

Chrysler's Railroad

This could be a scandal of epic proportions and one that makes Nixon's Watergate or Clinton's Monica
Lewinsky affair pale by comparison. Why was there neither rhyme nor reason as to
which dealerships of the Chrysler Corporation were to be closed?

Roll the clock back to the weeks just before Chrysler declared bankruptcy. Chrysler, like GM, was in
dire financial straits and federal government "graciously" offered to
"buy the company" and keep them out of bankruptcy and "save jobs."
Chrysler was, in the words of Obama and his administration, "Too big to fail," same
story with GM.

The feds organized their "Automotive Task Force" to fix Chrysler and GM. Obama, in an act that
is 100% unconstitutional, appointed a guy named Steve Rattner to be the White House's
official Car Czar - literally, that's what his title is. Rattner is the liaison
among Obama, Chrysler, and GM. Initially, the national
media reported that Chrysler 'had made this list of dealerships.' Not true! The
Washington Examiner, Newsmax, Fox New and a host of other news agencies discovered
that the list of dealerships was put together by the "Automotive Task Force"
headed by no one other than Mr. Steve Rattner.

Now the plot thickens. Remember earlier we said that there was neither rhyme nor reason why

certain dealerships were closed? Actually there's a very >interesting pattern as to who was

closed down. Again, on May 27, 2009, The Washington >Examiner and Newsmax exposed

the connection. Amazingly, of the 789 dealerships
closed by the federal government, 788 had donated money, exclusively to Republican
political causes, while contributing nothing to Democratic political causes. The
only "Democratic" dealership on the list was found to have donated $7,700 to
Hillary's campaign, and a bit over $2,000 to John Edwards. This same dealership,
reportedly, also gave $200.00 to Obama's campaign. Does that seem a little odd
to you? Steve Rattner is the guy who put the list together.

Well, he happens to be married to a Maureen White. Maureen happens to be
the former national finance chairman of the Democratic National Committee. As such,
she has access to campaign donation records from everyone in the nation- Republican
or Democrat. But of course, this is just a wacky "coincidence," we're certain.

Then comes another really wacky "coincidence." On that list of dealerships being closed down,

a weird thing happened in Arkansas , North Louisiana and Southern Missouri.
It seems that Bill Clinton's former White House Chief of Staff, Mack McClarty,
owns a chain of dealerships in that region, partnered with a fellow by the name
of Robert Johnson. Johnson happens to be founder of Black Entertainment Television
and was a huge Obama supporter and financier. These guys own a half
dozen Chrysler stores under the company title of RLJ-McClarty-Landers. Interestingly,
none of their dealerships were ordered closed - not one!

While all of their competing Chrysler/Dodge and Jeep dealership were! Eight dealerships

located near the dealerships owned by McClarty and Johnson were ordered shut down.

Thus by pure luck, these two major Obama supporters now have virtual monopoly on

Chrysler sales in their zone. Isn't that amazing?

Go look in The Washington Examiner, the story's there, and it's in a dozen or so other

web-based news organizations; this isn't being made up. Now if you thought Chrysler
was owned by Fiat, you are mistaken. Under the federal court ruling, 65% of Chrysler
is now owned by the federal government and the United Auto Workers union! Fiat
owns 20%. The other 15% is still privately owned and presumably will be traded
on the stock market. Obama smiles and says he doesn't want to run the auto industry.

As horrifying as this is to comprehend, and being as how this used to be the United States of

America, it would appear that the president has the power to destroy private businesses
and eliminate upwards of 100,000 jobs just because they don't agree with his political
agenda.

This is Nazi Germany stuff, and it's happening right here, right now, in our back yard.

There are voices in Washington demanding an explanation, but the "Automotive Task Force"
has released no information to the public or to any of the senators demanding answers
for what has been done. Keep your ear to the ground for more on this story. If you've

ever wanted to make a difference about anything in your life, get on the phone to your

national senator or representative in the House and demand an investigation into this.

Benjamin Franklin had it right when he said, "All that's necessary for evil to triumph is for good
men to do nothing." Car Czar No More An amazing thing happened
as this story was going to press. Obama's Car Czar, Steve Rattner, resigned on
July 13 and was promptly replaced by former steel workers union boss Ron Bloom.

According to CBS News, Rattner left "to return to private life and spend time with his family."

Treasury Secretary Tim Geithner said, "I hope that he takes another opportunity to bring his unique
skills to government service in the future." By the way, Rattner is under investigation for a

multi-million dollar pay-to-play investment bank scandal in New York .... Uh-oh! But, we're certain

that had nothing to do with his resignation. And, according to several news sources out there, there

are rumors he's being investigated for what could be pay-to-play scandal involving the closing of

Chrysler and GM dealerships. Really? Again, that couldn't have anything to with his resignation
-- that's ridiculous! Like CBS said, this guy just wants to "spend more quality
time with his family."

Obama has 32 personally appointed "czars" who answer to no one but him, all of whom are acting
without any Constitutional authority. But hey, we're sure they all have "unique
skills,"......as Tim Geithner likes to say! SOOOOO. HOW'S THE HOPE/CHANGE
WORKING FOR YOU?..

Check it out at the
following websites.....Copy and Paste:

http://gatewaypundit.blogspot..com/2009/05/hope-change-car-czar-behind-chrysler.html

http://www.washingtonexaminer.com/politics/Obamas-auto-policy-All-in-the-Democratic-family-44414452.html -

This goes beyond corruption
in high places - to gross criminal actions on the part of our government! I hope
you will spread this far and wide, and hopefully the taxpaying public will demand
some of that transparency we were promised ... followed by criminal prosecution
of the perpetrators!

What a crooked government we have!!!!! Vote 'em all out ...November 2010

A TALE OF TWO HOUSES

2010-07-19T20:56:00.000-04:00

This was sent to me and does a lot to show how one that talks about the environment and how he acts versus a person who really believes in the environment and what he does to protect it.

A Tale of Two Houses
House #1
A 20 room mansion (not including 8 bathrooms) heated by natural gas. Add on a pool (and a pool house) and a separate guest house, all heated by gas. In one month this residence consumes more energy than the average American household does in a year. The average bill for electricity and natural gas runs over $2400 per month. In natural gas alone, this property consumes more than 20 times the national average for an American home. This house is not situated in a Northern or Midwestern 'snow belt' area. It's in the South.

House #2

Designed by an architecture professor at a leading national university. This house incorporates every 'green' feature current home construction can provide. The house is 4,000 square feet (4 bedrooms) and is nestled on a high prairie in the American southwest. A central closet in the house holds geothermal heat-pumps drawing ground water through pipes sunk 300 feet into the ground.

The water (usually 67 degrees F) heats the house in the winter and cools it in the summer. The system uses no fossil fuels such as oil or natural gas and it consumes one-quarter electricity required for a conventional heating/cooling system. Rainwater from the roof is collected and funneled into a 25,000 gallon underground cistern. Wastewater from showers, sinks and toilets goes into underground purifying tanks and then into the cistern. The collected water then irrigates the land surrounding the house. Surrounding flowers and shrubs native to the area enable the property to blend into the surrounding rural landscape.

* * * * *

HOUSE #1 is outside of Nashville, Tennessee; it is the home of the 'Environmentalist' Al Gore.

HOUSE #2 is on a ranch near Crawford, Texas; it is the residence of the ex-President of the United States, George W. Bush.

THIS is the definition of an "inconvenient truth"!!

I sure hope this gets passed to everyone!
And, yes ... I DID check Snopes prior to forwarding it.

You can verify this it at: http://www.snopes.com/politics/bush/house.asp

Saving Our Financial System

2010-07-12T12:37:00.000-04:00

The following is from a trader that often has many excellent reviews. His name is Larry Levin and is a floor trader at the CBOE and an often contributor on several money shows.

"I read an interesting piece on the financial crisis and what it could lead to on ZeroHedge. The whole article can be found here

Sometimes, when chasing the bouncing ball of fraud and corruption on a daily basis, it is easy to lose sight of the forest for the millions of trees (all of which have a 150% LTV fourth-lien on them, underwritten by Goldman Sachs, which is short the shrubbery tranche). Luckily, Charles Hugh Smith, of oftwominds.com has taken the time to put it all into such simple and compelling terms, even corrupt North Carolina congressmen will not have the chance to plead stupidity after reading this.

Of course, to those familiar with the work of Austrian economists, none of this will come as a surprise.

1. Enable trillions of dollars in mortgages guaranteed to default by packaging unlimited quantities of them into mortgage-backed securities (MBS), creating umlimited demand for fraudulently originated loans.

2. Sell these MBS as "safe" to credulous investors, institutions, town councils in Norway, etc., i.e. "the bezzle" on a global scale.

3. Make huge "side bets" against these doomed mortgages so when they default then the short-side bets generate billions in profits.

4. Leverage each $1 of actual capital into $100 of high-risk bets.

5. Hide the utterly fraudulent bets offshore and/or off-balance sheet (not that the regulators you had muzzled would have noticed anyway).

6. When the longside bets go bad, transfer hundreds of billions of dollars in Federal guarantees, bailouts and backstops into the private hands which made the risky bets, either via direct payments or via proxies like AIG. Enable these private Power Elites to borrow hundreds of billions more from the Treasury/Fed at zero interest.

7. Deposit these funds at the Federal Reserve, where they earn 3-4%. Reap billions in guaranteed income by borrowing Federal money for free and getting paid interest by the Fed.

8. As profits pile up, start buying boatloads of short-term U.S. Treasuries. Now the taxpayers who absorbed the trillions in private losses and who transferred trillions in subsidies, backstops, guarantees, bailouts and loans to private banks and corporations, are now paying interest on the Treasuries their own money purchased for the banks/corporations.

9. Slowly acquire trillions of dollars in Treasuries--not difficult to do as the Federal government is borrowing $1.5 trillion a year.

10. Stop buying Treasuries and dump a boatload onto the market, forcing interest rates to rise as supply of new T-Bills exceeds demand (at least temporarily). Repeat as necessary to double and then triple interest rates paid on Treasuries.

11. Buy hundreds of billions in long-term Treasuries at high rates of interest. As interest rates rise, interest payments dwarf all other Federal spending, forcing extreme cuts in all other government spending.

12. Enjoy the hundreds of billions of dollars in interest payments being paid by taxpayers on Treasuries that were purchased with their money but which are safely in private hands.

Charles' conclusion does not need further commentary as it is absolutely spot on:

Since the Federal government could potentially inflate away these trillions in Treasuries, buy enough elected officials to force austerity so inflation remains tame. In essence, these private banks and corporations now own the revenue stream of the Federal government and its taxpayers. Neat con, and the marks will never understand how "saving our financial system" led to their servitude to the very interests they bailed out.

The circle is now complete: in "saving our financial system," the public borrowed trillions and transferred the money to private Power Elites, who then buy the public debt with the money swindled out of the taxpayer. Then the taxpayers transfer more wealth every year to the Power Elites/Plutocracy in the form of interest on the Treasury debt. The Power Elites will own the debt that was taken on to bail them out of bad private bets: this is the culmination of privatized gains, socialized risk.

In effect, it's a Third World/colonial scam on a gigantic scale: plunder the public treasury, then buy the debt which was borrowed and transferred to your pockets. You are buying the country with money you borrowed from its taxpayers. No despot could do better."

2010-05-04T08:31:00.000-04:00

The following is the view from another trader that all of the central banks are trying to prop up economies that are bankrupt in order to avoid the inevitable. The inevitable for many countries will be failure and financial collapse as they can no longer sustain the debt that they have amassed. The same or very similar debt is being created here in the US and if this isn't addressed and changed, many of us will begin to see life as a 2nd or 3rd world country.

France in this article shows how much it stands to lose if the PIIGS fail. If they fail so does France.

Yet Another Bailout Rally

Yes sir, today was the 6th, or 7th, or 10th...or 20th mega-rally based on a Greek bailout. If we're lucky, the powers that be (central bankers) will keep the Greek economy on life support - just barely keeping it from being a corpse. This way, whenever Benron Bernanke or Tax-Cheatin-Timmy want to send a little sugar to their Fraud Street cronies they can pull another miracle: a never ending just-in-time bailout.

Once again, failure was not an option for a central banker - moral hazard be damned. Will this bailout hold? It probably will, but I won't completely believe it until the Germans approve the cash layout, and Greece receives it from the ECB. Hopefully Greece will get those Euros quickly; after all, there are 50-year old bakers and hair stylists that want to retire now or they will riot in the streets.

It's no surprise that France really wants to get this behind them because the French are on the hook for a lot of money if the PIIGS fail. According to the following numbers are accurate.

If Portugal defaults, France loses $45,000,000,000.00
If Ireland defaults, France loses $60,000,000,000.00
If Greece defaults, France loses $75,000,000,000.00
If Spain defaults, France loses $220,000,000,000.00
If Italy defaults, France loses $511,000,000,000.00 (nearly 20% of the French GDP!)

The PIIGS owe France nearly $1 trillion dollars.

I suppose things will really get interesting if (when) Spain and/or Italy get into worse shape.

Trade well and follow the trend, not the so-called “experts.”

Siler manipulation

2010-04-04T11:40:00.002-04:00

Silver Short Squeeze Could Be Imminent

On December 11th, 2009 NIA declared silver the best investment for the next decade. In our December 11th article, we said that it wasn't a coincidence that the very day Bear Stearns failed was the same day silver reached its multi-decade high of over $21 per ounce. We went on to say, "The reason why we believe the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, is because Bear Stearns was on the verge of being forced to cover their silver short position."

JP Morgan took over the concentrated short position in silver from Bear Stearns and gained complete control over the paper price of silver. Within weeks, JP Morgan was able to manipulate the price of silver down to below $9 per ounce. NIA believes they were able to drive the price of silver down through "naked short selling", selling paper silver that is unbacked by physical silver.

On February 5th, we witnessed another sharp decline in silver prices, which NIA described on February 7th as being "just a temporary wash out, before a huge surge in silver prices later in 2010". Since then, silver prices have rebounded by 18%. The temporary wash out that occurred on February 5th was predicted by independent metals trader Andrew Maguire, who came out this week exposing the fraud that is taking place in the paper silver market.

On February 3rd, Andrew Maguire wrote Eliud Ramirez, a senior investigator for the CFTC's Enforcement Division, giving him the "heads up" for a "manipulative event" signaled for February 5th. He warned the CFTC that JP Morgan was about to manipulate down the price of silver after the release of non-farm payroll data on February 5th. Andrew said that the takedown would happen regardless of if employment was better or worse than expected and the price of silver would be flushed to below $15 per ounce. During the next couple of days, silver was crushed from $16.17 per ounce down to a low of $14.62 per ounce.

Despite all of the evidence given by Andrew Maguire to the CFTC of gold and silver manipulation, Andrew wasn't allowed to speak at last week's CFTC hearing on limiting gold and silver positions held by banks like JP Morgan. Bill Murphy of the Gold Anti-Trust Action Committee (GATA) was allowed to speak (within a five-minute time constraint) and present some of Andrew Maguire's evidence, but right when his presentation began there was a technical failure of the live television broadcast, which was mysteriously fixed as soon as he was done speaking. Bill Murphy was scheduled for several mainstream media television interviews after the CFTC hearings, but they were all abruptly cancelled at once.

A couple of days after the CFTC meeting, Andrew Maguire and his wife were involved in a bizarre hit-and-run car accident in London where a second car coming out of a side street struck their vehicle, which resulted in a police chase using helicopters and patrol cars before the suspect was nabbed. Andrew and his wife were released from the hospital with minor injuries. (NIA does not believe in conspiracy theories but when you consider that this is a potential multi-trillion dollar fraud that could bring down the world's financial system, it really makes you think.)

The silver market provides a window into what is happening in the gold market. Because the silver market is very small and its short position is so concentrated, its price is easier to manipulate than gold, but the same manipulation is taking place in gold on a much larger but less noticeable scale. In our opinion, the CFTC is under pressure not to do anything about the manipulation because the lower gold and silver prices are, the stronger the U.S. dollar appears to be. If we saw an explosion to the upside in gold and silver prices, it would result in a complete loss of confidence in the U.S. dollar.

NIA believes the precious metals markets are currently being artificially suppressed by paper gold and silver that doesn't physically exist. At last week's CFTC hearings, Jeffrey Christian of the CPM Group admitted that banks have leveraged their physical bullion by 100 to 1. This means for every 100 ounces of paper gold/silver that trade, there could be as little as 1 ounce of physical gold/silver in the vaults backing it. However, Mr. Christian sees no problem with this because he says "it has been persistently that way for decades" and there are "any number of mechanisms allowing for cash settlements".

What Mr. Christian fails to realize is, most investors around the world holding paper gold/silver believe they own physical gold/silver. There will come a time when these investors don't want cash settlements in U.S. dollars, but they will want the physical precious metals themselves. When investors around the globe eventually call for physical delivery of their precious metals, NIA believes it will result in the biggest short squeeze in the history of all commodities.

The physical silver market is now more tight than ever before. In the first quarter of 2010, the U.S. mint sold 9,023,500 American Silver Eagles, the most since the coin debuted in 1986 and up from 8,299,000 sold in the fourth quarter of 2009. All U.S. silver mines combined are currently producing only 40 million ounces of silver annually. This means the U.S. needs to use almost all of its silver production just to keep up with the demand for American Silver Eagle coins.

Silver closed this week at a 10-week high of $17.89 per ounce and a major short squeeze to the upside could be imminent. With the spotlight now on JP Morgan, NIA believes they will be less likely to naked short silver at these levels and manipulate the price down like in February. With the mainstream media blackout, it is important for NIA members to work harder than ever to spread the word and help expose what could be the largest fraud in the history of the world.

Health Care Bill

2010-03-25T10:28:00.000-04:00

For those of you wanting to see a little of what's in the health care bill and what's to come, have a read of this and you decide what the "Real and Ultimate Goal" of the reform is.

Have you READ Article 1 section 7 of OUR Constitution, "All bills for raising revenue originate in the house of representatives"...and this is a revenue bill. It began in the Senate and it hires 16,000 new IRS agents to harass our citizens.

Page 22 of the HC Bill: Mandates that the Govt will audit books of all employers that self-insure!!
Page 30 Sec 123 of HC bill: THERE WILL BE A GOVT COMMITTEE that decides what treatments/benefits you get.
Page 29 lines 4-16 in the HC bill: YOUR HEALTH CARE IS RATIONED!!!
Page 42 of HC Bill: The Health Choices Commissioner will choose your HC benefits for you. You have no choice!
Page 50 Section 152 in HC bill: HC will be provided to ALL non-US citizens, illegal or otherwise.
Page 58 HC Bill: Govt will have real-time access to individuals' finances & a 'National ID Health card' will be issued! (Papers please!)

Page 59 HC Bill lines 21-24: Govt will have direct access to your bank accounts for elective funds transfer. (Time for more cash and carry)

Page 65 Sec 164: Is a payoff subsidized plan for retirees and their families in unions & community organizations: (ACORN).
Page 84 Sec 203 HC bill: Govt mandates ALL benefit packages for private HC plans in the 'Exchange.'

Page 85 Line 7 HC Bill: Specifications of Benefit Levels for Plans -- The Govt will ration your health care!

Page 91 Lines 4-7 HC Bill: Govt mandates linguistic appropriate services. (Translation: illegal aliens.)

Page 95 HC Bill Lines 8-18: The Govt will use groups (i.e. ACORN & Americorps to sign up individuals for Govt HC plan.
Page 85 Line 7 HC Bill: Specifications of Benefit Levels for Plans. (AARP members - your health care WILL be rationed!)
Page 102 Lines 12-18 HC Bill: Medicaid eligible individuals will be automatically enrolled in Medicaid. (No choice.)
Page 12 4 lines 24-25 HC: No company can sue GOVT on price fixing. No "judicial review" against Govt monopoly.
Page 127 Lines 1-16 HC Bill: Doctors/ American Medical Association - The Govt will tell YOU what salary you can make.
Page 145 Line 15-17: An Employer MUST auto-enroll employees into public option plan. (NO choice!)
Page 126 Lines 22-25: Employers MUST pay for HC for part-time employees ANDtheir families. (Employees shouldn't get excited about this as employers will be forced to reduce its work force, benefits, and wages/salaries to cover such a huge expense.)
Page 149 Lines 16-24: ANY Employer with payroll 401k & above who does not provide public option will pay 8% tax on all payroll! (See the last comment in parenthesis.)
Page 150 Lines 9-13: A business with payroll between $251K & $401K who doesn't provide public option will pay 2-6% tax on all payroll.

Page 167 Lines 18-23: ANY individual who doesn't have acceptable HC according to Govt will be taxed 2.5% of income.
Page 170 Lines 1-3 HC Bill: Any NONRESIDENT Alien is exempt from individual taxes. (Americans will pay.) (Like always)
Page 195 HC Bill: Officers & employees of the GOVT HC Admin.. will have access to ALL Americans' finances and personal records. (I guess so they can 'deduct' their fees)

Page 203 Line 14-15 HC: "The tax imposed under this section shall not be treated as tax." (Yes, it really says that!) ( a 'fee' instead)
Page 239 Line 14-24 HC Bill: Govt will reduce physician services for Medicaid Seniors. (Low-income and the poor are affected.)
Page 241 Line 6-8 HC Bill: Doctors: It doesn't matter what specialty you have trained yourself in -- you will all be paid the same! (Just TRY to tell me that's not Socialism!)
Page 253 Line 10-18: The Govt sets the value of a doctor's time, profession, judgment, etc. (Literally-- the value of humans.)
Page 265 Sec 1131: The Govt mandates and controls productivity for "private" HC industries.

Page 268 Sec 1141: The federal Govt regulates the rental and purchase of power driven wheelchairs.

Page 272 SEC. 1145: TREATMENT OF CERTAIN CANCER HOSPITALS - Cancer patients - welcome to rationing!

Page 280 Sec 1151: The Govt will penalize hospitals for whatever the Govt deems preventable (i.e...re-admissions).
Page 298 Lines 9-11: Doctors: If you treat a patient during initial admission that results in a re-admission -- the Govt will penalize you.

Page 317 L 13-20: PROHIBITION on ownership/investment. (The Govt tells doctors what and how much they can own!)

Page 317-318 lines 21-25, 1-3: PROHIBITION on expansion. (The Govt is mandating that hospitals cannot expand.)
Page 321 2-13: Hospitals have the opportunity to apply for exception BUT community input is required. (Can you say ACORN?)

Page 335 L 16-25 Pg 336-339: The Govt mandates establishment of=2 outcome-based measures. (HC the way they want -- rationing.)
Page 341 Lines 3-9: The Govt has authority to disqualify Medicare Advance Plans, HMOs, etc. (Forcing people into the Govt plan)

Page 354 Sec 1177: The Govt will RESTRICT enrollment of 'special needs people!' Unbelievable!

Page 379 Sec 1191: The Govt creates more bureaucracy via a "Tele-Health Advisory Committee." (Can you say HC by phone?)

Page 425 Lines 4-12: The Govt mandates "Advance-Care Planning Consult." (Think senior citizens end-of-life patients.)

Page 425 Lines 17-19: The Govt will instruct and consult regarding living wills, durable powers of attorney, etc. (And it's mandatory!)
Page 425 Lines 22-25, 426 Lines 1-3: The Govt provides an "approved" list of end-of-life resources; guiding you in death. (Also called 'assisted suicide.')(Sounds like Soylent Green to me.)

Page 427 Lines 15-24: The Govt mandates a program for orders on "end-of-life." (The Govt has a say in how your life ends!)

Page 429 Lines 1-9: An "advanced-care planning consultant" will be used frequently as a patient's health deteriorates.

Page 429 Lines 10-12: An "advanced care consultation" may include an ORDER for end-of-life plans.. (AN ORDER TO DIE FROM THE GOVERNMENT?!?)
Page 429 Lines 13-25: The GOVT will specify which doctors can write an end-of-life order.. (I wouldn't want to stand before God after getting paid for THAT job!)
Page 430 Lines 11-15: The Govt will decide what level of treatment you will have at end-of-life! (Again -- no choice!)

Page 469: Community-Based Home Medical Services = Non-Profit Organizations. (Hello? ACORN Medical Services here!?!)

Page 489 Sec 1308: The Govt will cover marriage and family therapy. (Which means Govt will insert itself into your marriage even.)
Page 494-498: Govt will cover Mental Health Services including defining, creating, and rationing those services.

2010-02-04T07:48:00.001-05:00

The following is not so much an analysis of the coming jobs report as it is about the manipulation of the jobs data and statistics. Every new set of economic data that comes out is subject to this review as an ever growing amount of the data seems false and or manipulated in some form. This has become a sad fact but an ever growing part of what we as traders have come to expect.

QUOTE: From Larry Levin
Will it Matter?

Friday's monthly job-loss report is only a few days away and may be a real shocker. Will it matter? At the beginning of October I warned you all that a huge revision of the ridiculously flawed jobs data were coming in February 2010 - this Friday to be exact.

Back then I wrote... "Oh, but it's really worse than that; the BLS has been lying for years via its (business) Birth/Death job revisions. These estimates are so positive they are laughable. Since January the BLS has estimated that businesses have birthed hundreds of thousands of NEW jobs above and beyond those that have died/closed.

Uh-huh, sure.

This BS is just another way the government statisticians keep you in the dark about how things really are - at least for a while. To be fair, the government eventually makes an annual adjustment to these figures, and according the Bloomberg it's gonna' be a whopper."

"The Labor Department today also published its preliminary estimate for the annual benchmark revisions to payrolls that will be issued in February. They showed the economy may have lost an additional 824,000 jobs in the 12 months ended March 2009. The data currently show a 4.8 million drop in employment during that time.

The projected decrease was three times larger than the historical average, the Labor Department said. Most of the drop occurred in the first quarter of this year, probably due to an increase in business closings, the government said."

When the revision detonates like a nuclear bomb Friday morning, again I wonder: will it matter? My inclination is no.

To be clear, Friday's job-loss data will not include this massive revision; this revision covers the time of April 2008 to March 2009. In other words, the government is coming clean that is has been straight-up lying to you like a common criminal giving up his larcenous ways. Well, not really. It gets worse.

The government has sugar-coated the data every single month for an entire year to make it look better than it really is. Have you figured out yet that the "birth/death" statistical model of new jobs created over those lost is nothing more than a political game? And since it is, you can bet your bottom dollar that it will never be changed.

But it gets better! According to Bloomberg, another revision will come next year and will be an additional 990,000 job losses beyond whatever the government discloses. Said another way, the "G" is willfully underreporting job losses by nearly 2 MILLION JOBS.

Will that even matter? Naaaah.

A billion

2010-01-10T13:51:00.000-05:00

How many zeros in a billion?

This is too true to be funny.

The next time you hear a politician use the

word 'billion' in a casual manner, think about

whether you want the 'politicians' spending

YOUR tax money.

A billion is a difficult number to comprehend,

but one advertising agency did a good job of

putting that figure into some perspective in

one of it's releases.

A.

A billion seconds ago it was 1959.

B.

A billion minutes ago Jesus was alive.

C.

A billion hours ago our ancestors were

living in the Stone Age..

D.

A billion days ago no-one walked on the earth on two feet.

E.

A billion dollars ago was only

8 hours and 20 minutes,

at the rate our government

is spending it.

While this thought is still fresh in our brain...

let's take a look at New Orleans
..

It's amazing what you can learn with some simple division.

Louisiana Senator,

Mary Landrieu (D)

is presently asking Congress for

250 BILLION DOLLARS

to rebuild New Orleans
. Interesting number...

what does it mean?

A.

Well... if you are one of the 484,674 residents of New Orleans

(every man, woman, and child)

you each get $516,528.

B.

Or... if you have one of the 188,251 homes in

New Orleans ,
your home gets $1,329,787.

C.

Or... if you are a family of four...

your family gets $2,066,012.

Washington ,
D. C

HELLO!

Are all your calculators broken??

Building Permit Tax

CDL License Tax

Cigarette Tax

Corporate Income Tax

Dog License Tax

Federal Income Tax (Fed)

Federal Unemployment Tax (FU TA)

Fishing License Tax

Food License Tax

Fuel Permit Tax

Gasoline Tax

Hunting License Tax

Inheritance Tax

Inventory Tax

IRS Interest Charges (tax on top of tax)

IRS Penalties (tax on top of tax)

Liquor Tax

Luxury Tax

Marriage License Tax

Medicare Tax

Property Tax

Real Estate Tax

Service charge taxes

Social Security Tax

Road Usage Tax (Truckers)

Sales Taxes

Recreational Vehicle Tax

School Tax

State Income Tax

State Unemployment Tax (SUTA)

Telephone Federal Excise Tax

Telephone Federal Universal Service Fee Tax

Telephone Federal, State and Local Surcharge Tax

Telephone Minimum Usage Surcharge Tax

Telephone Recurring and Non-recurring Charges Tax

Telephone State and Local Tax

Telephone Usage Charge Tax

Utility Tax

Vehicle License Registration T ax

Vehicle Sales Tax

Watercraft Registration Tax

Well Permit Tax

Workers Compensation Tax

(And to think, we left British Rule to avoid so many taxes)

STILL THINK THIS IS FUNNY?

Not one of these taxes existed 100 years ago...

and our nation was the most prosperous in the world.

We had absolutely no national debt...

We had the largest middle class in the world...

and Mom stayed home to raise the kids.

What happened?

Can you spell 'politicians!'

And I still have to

press '1'

for English.

I hope this goes around the

U S A

at least 100 times!

2009-12-11T18:32:00.002-05:00

TEA PARTIES NEED TEETH

By Dr. Edwin Vieira, Jr., Ph.D., J.D.
November 17, 2009

NewsWithViews.com

[The following is the full text of an address presented to the National Heritage Center for Constitutional Studies at its 2009 Constitution Day conference.]
The Tenth-Amendment Resolutions from State Legislatures, the Tea Parties, the Town Hall Meetings, and other manifestations of WE THE PEOPLE’S feedupidness with monkey-business as usual in the Disgrace of Columbia—even the massive congregation on the Mall last September—are some of the most enlightening, encouraging, and energizing developments that American patriots have witnessed in a long time. For these events are all premised on the idea: “We don’t want you!”—that WE THE PEOPLE do not want any more, indeed they demand a great deal less, interference in their lives from rogue public officials in the General Government.
These events notwithstanding, the problem remains that too many among WE THE PEOPLE will start but then stop right there, with “We don’t want you!” That is not enough.
The complaint “We don’t want you!” needs to go further, to the resolve, “We won’t have you!” — that WE THE PEOPLE intend to rid themselves of the General Government’s interference.
And to make this resolve effective, WE THE PEOPLE need to design and put into effect remedial action, so that they can say with finality: “We don’t need you!”
The sequence must be—
(i) We don’t NEED you!” which makes it realistic to say:
(ii) We don’t WANT you!” which combined with the ability to make WE THE PEOPLE’S wants effective will lead to the necessary and sufficient action:
(iii) We won’t HAVE you!” and finally will yield the desired result:
(iv) We are RID of you!”
If WE THE PEOPLE have the ability they can give “teeth” to the desire, take the necessary action, and thereby accomplish their goal.
But what will all of this require?
• WE THE PEOPLE need to create actual workable institutions that take advantage of the political and legal position THE PEOPLE hold—i.e., as the ultimate sovereigns.
• WE THE PEOPLE need to create actual workable institutions that take advantage of the economic resources THE PEOPLE command—that THE PEOPLE are the true source of all real wealth in this country, and are in actual physical possession of most of it.
True enough, the Establishment holds bundles of paper claims to wealth, many (if not most) of them generated through the unconstitutional Federal Reserve System. But the insuperable problem for the Establishment will be how to collect on those claims if WE THE PEOPLE simply refuse to honor them. Anyone in the paper-currency racket who doubts that these claims can be declared unenforceable should read the Supreme Court’s decision in Craig v. Missouri, 29

U.S.

(4 Peters) 410 (1830).
• WE THE PEOPLE need to create actual workable institutions that are politically, economically, and legally independent of the General Government:

Institutions that can compete with the faulty and fraudulent mechanisms that rogue officials in the General Government have foisted on this country in the key areas of economic and political control, particularly in the areas of (i) money and banking and (ii) what is called “homeland security”.

Institutions that can replace these fraudulent control-mechanisms with proper means to “establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity”. And
Institutions that will enable WE THE PEOPLE to defend themselves against retaliation from rogue officials in the General Government and from the private centers of multinational economic power.
In sum, WE THE PEOPLE must combine their economic resources and abilities with political and legal authority in large-scale organizations that will reflect the power inherent in numbers.
This cannot be done by or through the General Government at the present time, because the General Government is the main locus of this country’s problem, not the source of any solution for them.
It cannot be done through political parties, because parties (along with other factions and special-interest groups) are the control-mechanisms in the “divide and conquer” strategy the Establishment employs to prevent WE THE PEOPLE from asserting their political sovereignty in their own interest.
It cannot be done by individuals or private groups alone, primarily because: (i) private individuals and groups enjoy no independent legal authority; and (ii) there is probably no way to create a sufficiently large and effective private operation in any State, let alone throughout the entire country, in time.
It cannot be done by the State governments alone, because it is not simply a political question of governmental finance and administration, but will require a revamping of the entire private economies in each State, too.
Therefore, it will require both (i) participation by the State governments, because they have the legal authority and the ability to mobilize people in sufficient numbers, and (ii) mass action by WE THE PEOPLE as a whole.
The only establishment or institution that combines all of these elements is “the Militia of the several States”, the “well regulated Militia” that the Second Amendment tells us are “necessary to the security of a free State”.
But a true constitutional “well regulated Militia” exists in not one State in this Union today.
So, WE THE PEOPLE need to revitalize “the Militia of the several States” in order to regain and retain popular control over State governments, and through them to regain and retain control over the two fundamental powers of sovereignty: (i) the Power of the Purse—i.e., currency and credit, and (ii) the Power of the Sword—i.e., community self-defense.
Revitalization of the Militia will enable WE THE PEOPLE to exercise community self-reliance and ultimately true self-government in “a free State” with a sound free-market economy.
Americans need to combine all of the following elements in a single plan for mass action:
1. Revitalization of “the Militia of the several States”.
·The Second Amendment instructs every American that “[a] well regulated Militia” is “necessary to the security of a free State”—not just “useful”, and certainly not “optional”, but “necessary”. And not “necessary” in only some general sense, but specifically with respect to “the security of a free State”—which means that, according to “the supreme Law of the Land” itself, the very survival of constitutional freedom in this country depends upon the Militia.
The Constitution identifies no other establishment, institution, or entity as “necessary” for this vital purpose, or for any other purpose.
So why is not revitalization of the Militia, immediately if not sooner, “job one” on the agenda of every constitutionalist? How can patriots continue to deny in their actions what the Constitution tells them is “necessary” for the maintenance of constitutional government? Americans may say that they have faith in the Constitution—but faith without works is dead; and the Constitution is not self-executing.
·The purpose of revitalizing the Militia is to combine all the elements of each State’s “homeland security”—including police, emergency response, and so on—under the Militia, in order to obviate “top down” control by the police-state apparatus being set up through the Department of Homeland Security in Washington, D.C., and its various satellites, transmission-belts, and fellow travelers around the country. Revitalization of the Militia will return control to whom it belongs, in the hands of WE THE PEOPLE directly, with:

2009-11-25T12:43:00.001-05:00

The following is a letter from a 95 year old veteran to Pres Obama. Many veterans I know feel much the same way as Harold does.

   WW II Battleship sailor tells Obama to shape up or ship out !

This venerable and much honored WW II vet is well known in Hawaii for his seventy-plus years of service to patriotic organizations and causes all over the country. A humble man without a political bone in his body,he has never spoken out before about a government official, until now.He dictated this letter to a friend, signed it and mailed it to the president.

Dear President Obama,

My name is Harold Estes, approaching 95 on December 13 of this year. People meeting me for the first time don't believe my age because I remain wrinkle free and pretty much mentally alert.

I enlisted in the U.S. Navy in 1934 and served proudly before, during and after WW II retiring as a Master Chief Bos'n Mate. Now I live in a "rest home" located on the western end of Pearl Harbor, allowing me to keep alive the memories of 23 years of service to my country.

One of the benefits of my age, perhaps the only one, is to speak my mind, blunt and direct even to the head man. So here goes.

I am amazed, angry and determined not to see my country die before I do, but you seem hell bent not to grant me that wish. I can't figure out what country you are the president of.You fly around the world telling our friends and enemies despicable lies like:
" We're no longer a Christian nation"
" America is arrogant" - (Your wife even announced to the world,"America is mean-spirited. " Please tell her to try preaching that nonsense to 23 generations of our war dead buried all over the globe who died for no other reason than to free a whole lot of strangers from tyranny and hopelessness.)

I'd say shame on the both of you, but I don't think you like America, nor do I see an ounce of gratefulness in anything you do, for the obvious gifts this country has given you. To be without shame or gratefulness is a dangerous thing for a man sitting in the White House.

After 9/11 you said," America hasn't lived up to her ideals."

Which ones did you mean? Was it the notion of personal liberty that 11,000 farmers and shopkeepers died for to win independence from the British? Or maybe the ideal that no man should be a slave to another man, that 500,000 men died for in the Civil War? I hope you didn't mean the ideal 470,000 fathers, brothers, husbands, and a lot of fellas I knew personally died for in WWII, because we felt real strongly about not letting any nation push us around, because we stand for freedom.

I don't think you mean the ideal that says equality is better than discrimination. You know the one that a whole lot of white people understood when they helped to get you elected.

Take a little advice from a very old geezer, young man. Shape up and start acting like an American. If you don't, I'll do what I can to see you get shipped out of that fancy rental on Pennsylvania Avenue. You were elected to lead not to bow, apologize and kiss the hands of murderers and corrupt leaders who still treat their people like slaves.

And just who do you think you are telling the American people not to jump to conclusions and condemn that Muslim major who killed 13 of his fellow soldiers and wounded dozens more. You mean you don't want us to do what you did when that white cop used force to subdue that black college professor in Massachusetts, who was putting up a fight? You don't mind offending the police calling them stupid but you don't want us to offend Muslim fanatics by calling them what they are, terrorists.

One more thing. I realize you never served in the military and never had to defend your country with your life, but you're the Commander-in-Chief now, son. Do your job. When your battle-hardened field General asks you for 40,000 more troops to complete the mission, give them to him. But if you're not in this fight to win, then get out. The life of one American soldier is not worth the best political strategy you're thinking of.

You could be our greatest president because you face the greatest challenge ever presented to any president. You're not going to restore American greatness by bringing back our bloated economy. That's not our greatest threat. Losing the heart and soul of who we are as Americans is our big fight now.And I sure as hell don't want to think my president is the enemy in this final battle.

Sincerely,
Harold B. Estes

When a 95 year old hero of the "the Greatest Generation"stands up and speaks out like this, I think we owe it to him to send his words to as many Americans aswe can. Please pass it on.

2009-11-20T10:27:00.000-05:00

The following IMO gives a very good over view of where we are at and things to come.

The Great Recovery Hoax of 2009-2010

By Marin D. Weiss, Ph.D.

There can be no debate that, in each of these episodes, things did go up: The Nasdaq soared before it crashed. The median price of U.S. homes skyrocketed before it collapsed. And now, the U.S. economy has reversed course - from four consecutive quarters of contraction to at least one quarter of expansion.

There also can be no doubt that these trends do not end overnight. They can continue for months - often plowing over skeptics and even exceeding the expectations of believers.

Most important, however, there can be no question that all three of these episodes have had one key element in common that ultimately self-destructs: Massive intervention, support, and free money from Washington.

To get a solid sense of how that's unfolding this time around, pay close attention to these three independent economists:

Jim Grant, Founder and Editor,
Grant's Interest Rate Observer

Jim Grant, originator of the "Current Yield" column in Barron's and founder of Grant's Interest Rate Observer, demonstrates not only that today's recovery is bought and paid for by Washington ... but also that the relative size of Washington's intervention is even larger than you might think.

In the ten prior U.S. postwar recessions, the government responded, on average, with fiscal stimulus of 2.6 percent of GDP plus monetary stimulus of another 0.3 percent of GDP.
Combined stimulus: only 2.9 percent of GDP.

In contrast, during the current recession, the government has counter-attacked with fiscal stimulus amounting to an estimated 18 percent of GDP ... plus monetary stimulus of an estimated 11.9 percent of GDP.
Combined stimulus: a whopping 29.9 percent of GDP.
That's an unprecedented - and unimaginable - ten times more than the average stimulus of prior recessions.

Grant's comparison of today's government stimulus with that of the Great Depression is even more striking:

He points out that, in the early 1930s, GDP fell 27 percent, while the government responded with monetary and fiscal stimulus adding up to 8.3 percent of GDP.
Thus, using Grant's numbers, I calculate that, for each percentage point our economy contracted, the U.S. government came forward with 0.31 percentage points of stimulus.

In contrast, in the current recession, U.S. GDP contracted 1.8 percent (at the time of Grant's study) ... while, as we just noted, the government's stimulus has amounted to 29.9 percent of GDP.
Thus, for each percentage point that our economy contracted, the U.S. government has jumped in with 16.61 percentage points of stimulus.

Conclusion:

Relative to the disease, the government's "cure" for the Great Recession today packs 54 times more firepower than the government's response to the Great Depression of the early 1930s. And this does not even include trillions more in U.S. government guarantees to shore up the financial system.

Proponents of the government's intervention may try to convince you "this is what it takes to avoid another depression: We've got to attack the contagion with big guns!"

However, Grant worries, rightfully so, that the cure may be far worse than the disease:

"If it's taking this much to revive today's economy," he asks, "what kind of jolt might be necessary to succor tomorrow's? An even bigger shock, we surmise, if tomorrow's economy is no less encumbered than today's. But it's almost certain to be more encumbered, since the active ingredient of the Bush-Obama palliative is credit formation, the very hair of the dog that bit us. Skipping down to the bottom line, we renew our doubts as to the staying power of the paper currencies and to the creditworthiness of the governments that print them."1

John Williams, Founder and Editor,
Shadow Government Statistics

John Williams is the economist who has single-handedly and repeatedly poked big holes in the government's data that tracks price inflation, unemployment, money supply and the economy as a whole.

In his Shadow Government Statistics alert of October 29, he pokes an equally large hole in Washington's pitch that the third-quarter rise in GDP announced last week is "sustainable." His main points:

All U.S. recessions in the last four decades have had at least one positive quarter-to-quarter GDP reading, followed by a renewed downturn. This one could turn out to be no different.
The estimate of 3.5 percent annualized real growth for third-quarter GDP included a 1.7 percent gain from auto sales, a 0.6 percent gain from new residential construction, and a 0.9 percent gain from a largely-involuntary inventory buildup (caused by sales declines which are deeper than corporate planners expect).
In sum, these one-time stimulus or inventory items represented 92 percent of the reported quarterly growth.2
Chris Edwards, Director of Tax Policy Studies
Cato Institute

Chris Edwards - formerly a senior economist on the congressional Joint Economic Committee examining tax issues and currently a Director at the Cato Institute - exposes another gaping hole in the 3.5 percent growth reported by the government last week:

While the government's share of the economy has grown steadily ... the contribution from private investment has fallen through the floor.

He writes:

"The third quarter GDP numbers show that the economy is only starting to 'recover' because of growing government and expanding consumption, which has been artificially inflated by large government transfers.

"Business investment continues to be in a deep recession. Companies are simply not building factories or buying new machines and equipment.

"Why not? I suspect that many firms are scared to death of higher taxes, inflation, health care mandates, increased labor regulation, and other profit-killers coming down the road from Washington."3

Edwards goes on to say that it's too soon to speculate on underlying causes. But I would add that an equally bloody killer of private investment is the diversion of scarce credit from small and medium-sized businesses to wild-and-wooly Wall Street speculation, as Mike Larson has pointed out here week after week.

It's all part and parcel of the Great Recovery Hoax of 2009-2010.

Like the great bubbles of recent memory, it could continue. But it will ultimately end in disaster.

2009-11-20T08:27:00.000-05:00

Multiple pivot type confluence seen once again. 27.2 PDMM is hit religiously every Asian session to only bounce it and reverse about 80-90% of the time.

Can you think of a way to trade this?

2009-11-20T08:22:00.002-05:00

A combination of daily fib pivots and weekly floor pivots. Gotta love when confluence happens.

2009-11-20T08:12:00.001-05:00

Another day the fib pivots have worked out in picture perfect form.
In this we see all during Asian session that the previous days pivot held as Res as FibPivot level 27.2 PDMM acted as Support. During London with a break of 27.2, price goes straight to 50 PDMM. It finds the 50 as Support and the 38.2 as Res. A break of 50 and we quickly ran to the 100 PDMM.

2009-11-19T12:39:00.002-05:00

2009-11-19T12:35:00.000-05:00

Another day the fib pivots are well respected.

2009-10-16T09:58:00.001-04:00

In this pic you can see the 100 PDMM projected from the PDC is hit. Watch this VIDEO for a little narrative of this price action as today played out.

2009-10-14T03:40:00.001-04:00

At 61.8 PMMM projected from CLOM.

2009-10-10T08:53:00.000-04:00

This is an article from the London Telegraph. I just copied it over. Amazing how others view our Pres. Are they wrong? I don't think so.

Subject: London Telegraph

You may want to ask yourself why we have to read these things in the
European press. No secret in England, Germany, France, or Italy what a
disaster we have become. A Socialist Europe finds the Marxist President
a global disaster yet our Magazines and Television ignore his recklessness.
===========================
London Telegraph
Barack Obama and the CIA: Why does President Pantywaist hate America so badly?
By Gerald Warner

If al-Qaeda, the Taliban and the rest of the Looney Tunes brigade want
to kick America to death, they had better move in quickly and grab a
piece of the action before Barack Obama finishes the job himself. Never
in the history of the United States has a president worked so actively
against the interests of his own people – not even Jimmy Carter.

Obama’s problem is that he does not know who the enemy is. To him, the
enemy does not squat in caves in Waziristan, clutching automatic weapons
and reciting the more militant verses from the Koran: instead, it sits
around at tea parties in Kentucky quoting from the US Constitution.
Obama is not at war with terrorists, but with his Republican fellow
citizens. He has never abandoned the campaign trail.

That is why he opened Pandora’s Box by publishing the Justice
Department’s legal opinions on waterboardi ng and other hardline
interrogation techniques. He cynically subordinated the national
interest to his partisan desire to embarrass the Republicans. Then he
had to rush to Langley, Virginia to try to reassure a demoralized CIA
that had just discovered the President of the United States was an even
more formidable foe than al-Qaeda.

“Don’t be discouraged by what’s happened the last few weeks,” he told
intelligence officers. Is he kidding? Thanks to him, al-Qaeda knows the
private interrogation techniques available to the US intelligence
agencies and can train its operatives to withstand them – or would do
so, if they had not already been outlawed.

So, next time a senior al-Qaeda hood is captured, all the CIA can do is
ask him nicely if he would care to reveal when a major population centre
is due to be hit by a terror spectacular, or which American city is
about to be irradiated by a dirty bomb.. Your view of this situation will
be dictated by one simple criterion: whether or not you watched the
people jumping from the twin towers.

Obama promised his CIA audience that nobody would be prosecuted for past
actions. That has already been contradicted by leftist groups with a
revanchist ambition to put Republicans, headed if possible by
Condoleezza Rice, in the dock. Talk about playing party politics with ;
national security. Martin Scheinin, the United Nations special
investigator for human rights, claims that senior figures, including
former vice president Dick Cheney, could face prosecution overseas.
Ponder that – once you have got over the difficulty of locating the
United Nations and human rights within the same dimension.

President Pantywaist Obama should have thought twice before sitting down
to play poker with Dick Cheney. The former vice president believes
documents have been selectively published and that releasing more will
prove how effective the interrogation techniques were. Under Dubya’s
administration, there was no further atrocity on American soil after 9/11.

President Pantywaist’s recent world tour, cosying up to all the bad
guys, excited the ambitions of America’s enemies. Here, they realized,
is a sucker they can really take to the cleaners. His only enemies are
fellow Americans. Which prompts the question: why does President
Pantywaist hate America so badly?

Best regards, and be safe.

Bob Stewart

Joshua 6:10

"People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf." - George Orwell

"To appeasers, rough men are coarse government tools. To rough men, appeasers are dumb delusional fools." - Russ Vaughn

"The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government." - Thomas Jefferson

2009-10-09T15:29:00.001-04:00

We see in this pic the result of price hitting and finding Res yesterday at a larger swings 50% level. We find that by looking at the 4Hr chart with the monthly pivots. In the VIDEO MONTLY PIV you get an overview of what may come this month. In the VIDEO WEEKLY PIV you see the corrective range for the week. In the final VIDEO DAILY PIV you see how price rejected the 50% Res level and quickly hit the 100 PDMM and eventually the 150 PDMM.

This is a very good example as to how and why I follow the multi time frame pivot levels and overall market structure. This view gives me a better idea of what I can expect each and every trading day.

2009-10-09T08:06:00.000-04:00

100 PDMM projected from the CLOD. The daily close was above the daily pivot and above the weekly pivot, a high probability that the trend will be long.

2009-10-08T23:08:00.000-04:00

Follow to the post showing the high hitting the 100 PWMM to the pip. Now a rejection of that level and new daily fib pivots applied and we have just hit 61.8 PDMM projected from the PDC.

2009-10-08T13:11:00.000-04:00

We have just hit the 100 PWMM projected from CLOW. This is on the 6th trading day of the month. Will these be a short reversal level?

2009-10-08T10:14:00.000-04:00

A perfect example of the fib pivots in action. Watch the VIDEO and see how it played out.

2009-10-06T18:29:00.000-04:00

Well folks here it is.
BORN IN THE USA?
Obama eligibility case survives 1st court test Judge hears arguments, refuses immediate dismissal demand

This goes to trial in Jan 2010

Article: http://www.wnd.com/index.php?fa=PAGE.view&pageId=112015

2009-10-06T08:31:00.000-04:00

This pic shows an inner trading day for Mon and Tues, Tues high reached the 100 PDMM from the previous day. This is often common when inner trading days happen. This VIDEO walks you through it.

2009-10-06T08:21:00.000-04:00

This pic shows both an inner days fib pivot levels being hit and a larger controlling days fib pivots being hit. This VIDEO walks you through it.

2009-10-06T08:06:00.000-04:00

Here is the update on the fib pivots. This VIDEO walks you though its action.

2009-10-05T22:44:00.000-04:00

Hit 61.8 PDMM projected from CHOD in confluence with 61.8 retracement and daily S1.

Showing trigger window for long entry off of Support.

2009-10-05T21:27:00.001-04:00

Watching 50 PDMM projected from CHOD in confluence with yesterdays pivot as support.

Breaks this still targeting yesterdays 100 PDMM @ 141.67. Next target at 141.33.

My entry off of the OSMA hook on 6 range chart.

2009-10-05T21:08:00.000-04:00

This level is critical. If it holds, longer term reversal and long bias in play. If 61.8 PDMM from yesterday breaks, look to target 100 PDMM from yesterday in confluence with todays 50 PDMM.

2009-10-05T18:58:00.000-04:00

This is the initial daily fib pivot setup for 10/06. This VIDEO walks you through the setup and price action for 10/05 and shows the fib pivots being applied to the charts just after New York close.

I will update and walk through it as the current day progresses. This should give a great example of the fib pivots in live forward trading.

2009-10-05T18:33:00.000-04:00

This pic shows the weekly fib pivot setup and the initial range. This VIDEO walks you through the setup.

2009-10-05T18:17:00.000-04:00

In this pic we are looking at setting up the PMMM to use for the current month. This VIDEO talks you though the setup.

2009-10-05T17:40:00.000-04:00

This pic shows the Sept Fib Pivots and targets being hit. This VIDEO describes some of the action.

2009-10-05T16:56:00.001-04:00

This pic is an example of the fib pivot strategy applied using the monthly levels on the GBPJPY 4Hr chart. This VIDEO walks you through the month.

2009-10-05T15:28:00.001-04:00

This is a short video showing and explaining the use of fib pivots for EURUSD 10/5/09 today.

2009-10-05T10:46:00.000-04:00

This video on daily Market Structure shows the use of fib pivots using the PDMM (Previous Day Measured Move). There are many examples of this happening day after day.

2009-10-03T12:08:00.001-04:00

The following is something I read about the first results regarding the H1N1 flu vaccinations. I cannot confirm or deny this but take it for what it says and its links.

Courtesy of Bob Chapman of The International Forecaster

Subject: Vital data about US Navy results of swine flu vaccine on ship

Data gleaned indirectly from anonymous testimony of Navy wives of the affected crew via the internet radio show A Marine Disquisitionhttp://www.clipser.com/watch_video/1362067 :

1. Unnamed US Navy vessel put to sea in April with 347 man crew.

2. Entire crew was vaccinated with H1N1 Swine Flu vaccine shortly after they put to sea.

3. Crew sickened so severely that other ships had to respond to render aid. 16 Medical Dr.s put aboard from an unnamed aircraft carrier and other responding vessels. Total of 50 Navy personnel sent aboard to respond to crisis.

4. Two of the crew of 347 died â€“ including the Captain of the ship (a Lieutenant Commander) and a Chief Petty Officer..

5. 50 personnel sent aboard to help are quarantined in Navy hospital in Balboa, Spain after 10 of them caught the flu from the shipâ€™s crew. Two of the 50 quarantined are in serious condition at last report.

6. Of the 347 man crew that were vaccinated, 333 contracted the H1N1 flu FROM THE VACCINE. Two died, as mentioned above, and 331 survived. Only 14 of the 347 vaccinated sailors did not show any ill effects from the vaccine.

7. Navy has threatened all the spouses of the shipâ€™s crew to remain silent â€“ claiming all this information is classified. Some are whistle-blowing and that is where this information is coming from.

8. On the unnamed aircraft carrier that provided assistance, 415 sailors contracted the swine flu and are currently quarantined onboard.

PLEASE pass this email along. The truth is that the swine flu epidemic will be created BY THE VACCINE. If we donâ€™t take it, there will be no epidemic.

From this one test itâ€™s apparent that the vaccine as tested on that shipâ€™s crew in April is 96% effective at infecting the recipient with swine flu. Such an infection rate is impossible to achieve by any natural means. Though it only killed 1% immediately, there is no telling what the long term effects on those injected with the vaccine will be. See the research on the long term effects of the 1976 swine flu vaccine, and the Gulf War anthrax vaccine programs for more information.

Also note that mere contact with those that have been vaccinated creates a 20% chance of you contracting the swine flu even if you have not been vaccinated.
Please pass this data along to anyone you care about!

http://www.cbsnews.com/stories/2009/07/21/health/main5177494.shtml

http://www.resistnet.com/profiles/blogs/navy-soldiers-are-dying-from

2009-10-02T13:14:00.002-04:00

Dr. Sam Vaknin is an Israeli psychologist. He has written extensively about narcissism and has an interesting view on our new president.

Dr. Vaknin States "I must confess I was impressed by Sen. Barack Obama from the first time I saw him. At first I was excited to see a black candidate. He looked youthful, spoke well, appeared to be confident - a wholesome presidential package. I was put off soon, not just because of his shallowness but also because there was an air of haughtiness in his demeanor that was unsettling. His posture and his body language were louder than his empty words. Obama's speeches are unlike any political speech we have heard in American history. Never a politician in this land had such quasi "religious" impact on so many people. The fact that Obama is a total incognito with zero accomplishment makes this inexplicable infatuation alarming. Obama is not an ordinary man. He is not a genius. In fact he is quite ignorant on most important subjects.."
Barack Obama is a narcissist.
Dr.. Sam Vaknin, the author of the Malignant Self Love believes that, â€ Barack Obama appears to be a narcissist." Vaknin is a world authority on narcissism. He understands narcissism and describes the inner mind of a narcissist like no other person. When he talks about narcissism everyone listens. Vaknin says that Obama's language, po sture and demeanor, and the testimonies of his closest, dearest and nearest suggest that the Senator is either a narcissist or he may have narcissistic personality disorder (NPD). Narcissists project a grandiose but false image of themselves. Jim Jones, the charismatic leader of People's Temple, the man who led over 900 of his followers to cheerfully commit mass suicide and even murder their own children was also a narcissist. David Koresh, Charles Manson, Joseph Koni, Shoko Asahara, Stalin, Saddam, Mao, Kim Jong Ill and Adolph Hitler are a few examples of narcissists of our time. All these men had a tremendous influence over their fanciers. They created a personality cult around themselves and with their blazing speeches elevated their admirers, filled their hearts with enthusiasm and instilled in their minds a new zest for life. They gave them hope! They promised them the moon, but alas, invariably they brought them to their doom. When you are a victim of a cult of personality, you don't know it until it is too late.. One determining factor in the development of NPD is childhood abuse.
"Obama's early life was decidedly chaotic and replete with traumatic and mentally bruising dislocations," says Vaknin. "Mixed-race marriages were even less common then. His parents went through a divorce when he was an infant (two years old). Obama saw his father only once again, before h e died in a car accident. Then his mother re-married and Obama had to relocate to Indonesia , a foreign land with a radically foreign culture, to be raised by a step-father. At the age of ten, he was whisked off to live with his maternal (white) grandparents. He saw his mother only intermittently in the following few years and then she vanished from his life in 1979. She died of cancer in 1995".
One must never underestimate the manipulative genius of pathological narcissists. They project such an imposing personality that it overwhelms those around them. Charmed by the charisma of the narcissist, people become like clay in his hands.. They cheerfully do his bidding and delight to be at his service. The narcissist shapes the world around himself and reduces others in his own inverted image. He creates a cult of personality. His admirers become his co-dependents. Narcissists have no interest in things that do not help them to reach their personal objective. They are focused on one thing alone and that is power. All other issues are meaningless to them and they do not want to waste their precious time on trivialities. Anything that does not help them is beneath them and do not deserve their attention.
If an issue raised in the Senate does not help Obama in one way or another, he has no interest in it. The "present" vote is a safe vote. No one can criticize him if things go wrong. Those issues are unworthy by their very nature because they are not about him. Obama's election as the first black president of the Harvard Law Review led to a contract and advance to write a book about race relations.
The University of Chicago Law School provided him a lot longer than expected and at the end it evolved into, guess what? His own autobiography! Instead of writing a scholarly paper focusing on race relations, for which he had been paid, Obama could not resist writing about his most sublime self. He entitled the book Dreams from My Father.
Not surprisingly, Adolph Hitler also wrote his own autobiography when he was still nobody. So did Stalin. For a narcissist no subject is as important as his own self. Why would he waste his precious time and genius writing about insignificant things when he can write about such an august being as himself? Narcissists are often callous and even ruthless. As the norm, they lack conscience. This is evident from Obama's lack of interest in his own brother who lives on only one dollar per month.. & nbsp;
A man who lives in luxury, who takes a private jet to vacation in Hawaii, and who has raised nearly half a billion dollars for his campaign (something unprecedented in history) has no interest in the plight of his own brother. Why? Because, his brother cannot be used for his ascent to power.
A narcissist cares for no one but himself. This election is like no other in the history of America. The issues are insignificant compared to what is at stake. What can be more dangerous than having a man bereft of conscience, a serial liar, and one who cannot distinguish his fantasies from reality as the leader of the free world? I hate to sound alarmist, but one is a fool if one is not alarmed. Many politicians are narcissists. They pose no threat to others...They are simply self serving and selfish.
Obama evidences symptoms of pathological narcissism, which is different from the run-of-the-mill narcissism of a Richard Nixon or a Bill Clinton for example. To him reality and fantasy are intertwined. This is a mental health issue, not just a character flaw. Pathological narcissists are dangerous because they look normal and even intelligent. It is this disguise that makes them treacherous.
Today the Democrats have placed all their hopes in Obama. But this man could put an end to their party. The great majority of blacks have also decided to vote for Obama.. Only a fool does not know that their support for him is racially driven. This is racism, pure and simple. The downside of this is that if Obama turns out to be the disaster I predict, he will cause widespread resentment among the whites.
The blacks are unlikely to give up their support of their man. Cultic mentality is pernicious and unrelenting. They will dig their heads deeper in the sand and blame Obama's detractors of racism. This will cause a backlash among the whites.
The white supremacists will take advantage of the discontent and they will receive widespread support. I predict that in less than four years, racial tensions will increase to levels never seen since the turbulent 1960's.
Obama will set the clock back decades... America is the bastion of freedom. The peace of the world depends on the strength of America, and its weakness translates into the triumph of terrorism and victory of rogue nations.
It is no wonder that Ahmadinejad, Hugo Chavez, the Castrists, the Hezbollah, the Hamas, the lawyers of the Guantanamo terrorists and virtually all sworn enemies of America are so thrilled by the prospect of their man in the White House. America is on the verge of destruction. There is no insanity greater than electing a pathological narcissist as president.

2009-10-02T10:05:00.000-04:00

This pic of the 1Hr chart with weekly and monthly pivots describes what I see in the current market and a little of what I am expecting.

2009-10-02T09:05:00.002-04:00

This is an example of a way I like to trade the news.

2009-10-02T07:54:00.000-04:00

This has the 61.8 PDMM projected from the CLOD being hit. This is also a prime example of why we look to move our PDMM to current price action. Even though daily floor pivots and the fib pivots use the same measured move in its calculation, floor pivots don't adjust to current price. Notice also against Previous Week Close.

2009-09-28T11:54:00.000-04:00

Another typical example of the power of the daily fib pivots. Asia took and hit the 61.8 PDMM projected from the PDC.

After Asian we look to apply the PDMM to the current high or low of the day and use that for the targets in the opposite direction. We have now hit 100 PDMM projected from CHOD. At this point we are possibly taking partial or full profit but watch for breakouts beyond the 100 PDMM. Breaks beyond the 100 PDMM are only about 1 in every 3 or 4 days for a pair. When it does break, look for target levels established in the preceeding days.

Forex Price Action

U.S. Economic and Inflation Update

GBPJPY Monthly

POMO

Courtesy of Larry Levin

More POMO

EURUSD

Double Taxation

Double Taxation

Dollar Weakness

Tuesday's Sell Off

Oil $200/barrel

Uncle Sam Wants Your Retirement Money

Another Social Security?

Uncle Sam Will Tell You When You Can Take Your Own Money

NIA Projects Multi-Trillion Dollar U.S. Budget Deficits

UNEMPLOYMENT

By Tyler Durden:

Persons Not In Labor Force Who Want Job Now Jumps To All Time Record; Real Unemployment Rate At 12.8%

Inflation

Comments and statistics from Larry Levin

I Didn't Do It

Coming Riots?

Silver Update

Dollar/Yuan

POMO

Free $$$ Schedule

College Bubble Set to Burst in 2011

Massive Silver Withdrawals From The Comex

Massive Silver Withdrawals From The Comex

Bond Losses

Bond Losses

NIA's Top 10 Predictions for 2011

JP Morgan Covering Silver Short Position

Federal Reserve

Wikileaks Data Scam

Wikileaks Reveals Even China Says Not To Believe Its Economic Data

WikiLeaks

Wikileaks

EU at Weekly Control MM

EU Weekly Target

EU hits 100 DMM

EU hits 50% WMM

EU Setup Short

EU hits Monthly Control 61.8 MM

EU hits Weekly 100% MM

EU Monthly Measured Move Realized

Food Inflation

Silver Short Position Could Cost JP Morgan Billions in Losses

A Planned Market

A Planned Market

Chrysler's Railroad

A TALE OF TWO HOUSES

Saving Our Financial System

Yet Another Bailout Rally

Siler manipulation

Health Care Bill

A billion

Well folks here it is. BORN IN THE USA?Obama eligibility case survives 1st court test Judge hears arguments, refuses immediate dismissal demandThis goes to trial in Jan 2010

Article: http://www.wnd.com/index.php?fa=PAGE.view&pageId=112015

Well folks here it is.
BORN IN THE USA?
Obama eligibility case survives 1st court test Judge hears arguments, refuses immediate dismissal demand

This goes to trial in Jan 2010