Showing posts with label Collapse. Show all posts
Showing posts with label Collapse. Show all posts

Tuesday, April 19, 2016

As Olympics Looms, Governor Warns Rio Is "Close To Social Collapse"

Tyler Durden's picture

http://www.zerohedge.com/news/2016-04-19/olympics-looms-officials-warn-rio-close-social-collapse
With feces-infested waterways, Zika-carrying mosquitoes, a collapsing economy, and political corruption that runs from top to bottom, Brazil is in trouble. All that excludes now impeached president Dilma Rousseff who refuses to step down, which has cast the country in political limbo.
But just a few short weeks ahead of The Olympics, the people are revolting as Sao Paulo state governor Geraldo Alckmin warns "Rio de Janeiro is close to social collapse" after state payments to retirees have not been made. Of course, none of this matters as long as Ibovespa is soaring and Real is strengthening:
  • *RIO DE JANEIRO STATE CHIEF OF STAFF LEONARDO ESPINDOLA SPEAKS
  • *ESPINDOLA:RIO DE JANEIRO HASN'T MADE MARCH PAYMENTS TO RETIREES
To which Governor Alckmin adds:
  • *BRAZIL'S RIO DE JANEIRO 'CLOSE TO SOCIAL COLLAPSE': OFFICIAL
  • *BRAZIL'S RIO DE JANEIRO STATE OWES BRL52B: OFFICIAL
  • *BRAZI'S SAO PAULO STATE OWES BRL224B: GOVERNOR ALCKMIN
Which does not look like being solved any time soon:
  • *BARBOSA: BRAZIL FED. GOVT HAS TROUBLE MEETING FISCAL GOAL
  • *BARBOSA: FED. GOVT. IS AWARE, CONCERNED ABOUT STATE SITUATION
Which seems like exactly what you want to hear to buy the effing dip in Ibovespa:

Wednesday, January 13, 2016

Canadians Panic As Food Prices Soar On Collapsing Currency

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http://www.zerohedge.com/news/2016-01-13/canadians-panic-food-prices-soar-collapsing-currency 
It was just yesterday when we documented the continuing slide in the loonie, which is suffering mightily in the face of oil’s inexorable decline.
As regular readers are no doubt acutely aware, Canada is struggling through a dramatic economic adjustment, especially in Alberta, the heart of the country’s oil patch. Amid the ongoing crude carnage the province has seen soaring property crime, rising food bank usage and, sadly, elevated suicide rates, as Albertans struggle to comprehend how things up north could have gone south (so to speak) so quickly.
The plunging loonie “can only serve to worsen the death of the 'Canadian Dream'" we said on Tuesday.
As it turns out, we were exactly right.
The currency's decline is having a pronounced effect on Canadians' grocery bills. As Bloomberg reminds us, Canada imports around 80% of its fresh fruits and vegetables. When the loonie slides, prices for those good soar. "With lower-income households tending to spend a larger portion of income on food, this side effect of a soft currency brings them the most acute stress," Bloomberg continues.
Of course with the layoffs piling up, you can expect more households to fall into the "lower-income" category where they will have to struggle to afford things like $3 cucumbers, $8 cauliflower, and $15 Frosted Flakes. Have a look at the following tweets which underscore just how bad it is in Canada's grocery aisles.
If the CAD $ gets any weaker we might be able to buy groceries with shiny rocks
Three bucks. For a cucumber.
@sladurantaye Heh. Had a similar reaction when I saw the price of cauliflower. Welcome to the future… pic.twitter.com/fxloxyePY3
View image on Twitter
So, the @liberal_party just clawed back $34 M in equalization payments to Nunavut. This is what people pay 4 pepper.
The cost of Tide detergent in Nunavut:


No "Jack Nasty" it's not The Great Depression, but as we highlighted three weeks ago, it is Canada's depression and it's likely to get worse before it gets better. "Last year, fruits and veggies jumped in price between 9.1 and 10.1 per cent, according to an annual report by the Food Institute at the University of Guelph," CBC said on Tuesday. "The study predicts these foods will continue to increase above inflation this year, by up to 4.5 per cent for some items."
If you thought we were being hyperbolic when we suggested that if oil prices don't rise soon, Canadians may well eat themselves to death, consider the following from Diana Bronson, the executive director of Food Secure Canada: 
"Lower- and middle-class people — many who can't find a job that will pay them enough to ensure that they can afford a healthy diet for their families" — also feel the pinch of rising food prices"

"The wrong kind of food is cheap, and the right kind of food is still expensive."
In other words, some now fear that the hardest hit parts of the country may experience a spike in obesity rates as Canadians resort to cheap, unhealthy foods. As we put it, "in Alberta it's 'feast or famine' in the most literal sense of the phrase as those who can still afford to buy food will drown their sorrows in cheap lunch meat and off-brand ice cream while the most hard hit members of society are forced to tap increasingly overwhelmed food banks." 
And the rub is that there's really nothing anyone can do about it.
Were the Bank of Canada to adopt pro-cyclical measures to shore up the loonie, they would risk choking off economic growth just as the crude downturn takes a giant bite out of the economy - no food pun intended.

Saturday, January 9, 2016

What The Charts Say: "US Stocks Are In Riskiest Position In Seven Years"

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http://www.zerohedge.com/news/2016-01-09/what-charts-say-us-stocks-are-riskiest-position-seven-years
Via John Murphy,
MAJOR STOCK INDEXES ENTER CORRECTION TERRITORY... After suffering the worst start to a new year in history, the U.S. stock market has entered correction territory which is defined by a drop of 10% from its old high. The charts pretty much speak for themselves. All three major stock indexes fell to three month lows in heavy trading. The next downside target is the two lows formed in August and late September.
What the indexes do from there will determine whether the current downturn is just a correction or something more serious. Unfortunately, some portions of the market have already broken those support levels.
SMALL AND MIDCAPS BREAK SUPPORT... Relative weakness in small and midsize stocks gave early warnings in December that the yearend rally was mainly a large cap affair and too narrow to continue. That situation has gotten a lot worse since then. Charts 4 and 5 show the Russell 2000 Small Cap and the S&P 400 Mid Cap indexes falling below their 2015 lows. That puts them at the lowest level since October 2014.
That's another important test for them and the rest of the market.  
TRANSPORTS ENTER BEAR MARKET TERRITORY... Chart 6 shows the Dow Jones Transportation Average falling to the lowest level in two years. It has lost -25% from its late 2014 high which puts it into bear market territory. What's surprising is that the transports haven't gotten any help from plunging energy prices. That may carry bad news for Dow Theorists who link the direction of the transports with the Dow Industrials.
It may carry good news for the Dow Utilities, however, which are showing more resilience. Chart 7 shows the Dow Utilities holding up a lot better than everything else.
It was the only market sector to register a gain during the week. Its relative strength line (top of chart) is rising as well. Since utilities are considered bond proxies, their relative strength large reflects the recent rotation out of stocks and into bonds.
BOND/STOCK RATIO FAVORS BONDS... As usually happens when stocks fall, bond prices are rising. That's especially true of longer-dated Treasury bonds. The green line in Chart 8 is a ratio of the 7-10 Year Treasury Bond ishares divided by the S&P 500 SPDRs. The ratio spiked last August when stocks tumbled.
The ratio has spiked again to the highest level in three months. Bond prices are also benefitting from the deflationary impact from falling commodity prices. Two other assets attracting safe haven buying are gold and the Japanese yen. Some measures of foreign stocks (both developed and emerging) have already fallen to 52-week lows. That doesn't bode well for U.S. stocks which are now in the riskiest position since the bull market started seven years ago.

Sunday, October 25, 2015

America is a bomb waiting to explode (part II)

Sam Gerrans

Sam Gerrans is an English writer, translator, support counselor and activist. He also has professional backgrounds in media, strategic communications and technology. He is driven by commitment to ultimate meaning, and focused on authentic approaches to revelation and realpolitik. He is the founder of Quranite.com – where the Qur’an is explored on the basis of reason rather than tradition – and offers both individual language training and personal support and counseling online at SkypeTalking.com.
© Carlo Allegri

Last week I compared the US – and by extension all economies based on the same model – to Semtex. My exploration of this analogy both ruffled feathers and raised questions. This week, I want to address five of the most common criticisms the article generated.
Semtex seems stable. You can throw it, burn it, jump on it. But when you put the right detonator in it, everything blows up.
I think this is a fair analogy for the US at this time. Not everyone agreed.
In this follow-up to last week’s article, I want to address just five of the criticisms this assertion received.

1. I am anti-American

I’m not quite sure what that means, but if we are to take the founding documents of the country of America as indicative of what the US stands for – the Constitution and the Bill of Rights – then I am all for them.
The problem is that the Republic that America was created to be has been usurped by something else called Democracy.
In a Republic there are laws set in stone. There exist immovable principles, no matter how many fools can be drummed up to vote against their own interests.
In Democracy there are no principles other than how many fools you can drum up.
Yes, it’s true. I don’t believe in Democracy. To me, Democracy is a form of corporatized, Satanic hypocrisy the object of which – at least currently – is to mask a Cultural Marxist agenda designed to destroy you not only in this life, but also in the life to come.
But a Republic? Sure, I can get behind that. My problem with America is that it has ceased to be one.
Just because there is a plebiscite every few years where the people put an ‘x’ on a ballot sheet, this does not mean anything under a system where the ruling elite’s current placeman can rule by dictate known as Executive Orders.
So I’m not against America. I’m for America. I’m just saying that what we now have isn’t America.
America has gone and no one would like to see its return more than I.

2. Everything in America is stable, so what are you talking about?

This was in part, my point.
Things in the US – and all the other countries built on the same model – do seem stable. But you can only keep throwing straw on the donkey’s back so long.
Sooner or later it breaks.
My argument is that when it does break, unlike in previous collapses, the economic, the moral, and the social resilience to withstand such a rupture is no longer sufficient to the needs of the body politic.
I have personally lived through an economic collapse. It wasn’t pretty. The shops were cleared out in a couple of days. I had literally to race across the city to the airline’s central office with our last remaining money to buy tickets out of the country, all the time knowing that the currency could lunge down yet again before I could get to the office and make them take my money.
When things go, they go quickly.

3. America is different

If you think this can never happen in the US, think again.
American exceptionalism is a popular belief. But no amount of belief in it will protect the US against the hard laws of reality, as the ruins of Ancient Egypt, Greece and Rome will attest.
The Soviet Union was a great empire. Where is that now?
But – preppers aside – the US is in a worse condition to the Soviet Union prior to its collapse.
The population of the USSR had no illusions about the intentions of its government – given the millions killed by that government in the course of the 20th century – and most were used to improvising and collaborating to survive.
Added to that, most families had access to a dacha with some land where they could grow the basics.
Americans by comparison are weak, unprepared and isolated and have no conception of how to live frugally or improvise.

4. America is the greatest nation on earth

I agree that it was, at least prior to the institution of the Federal Reserve in 1913 – which is the point also at which point America began talking about ‘Democracy’.
I also agree that America was founded on principles of real capitalism, industry and initiative. The successful were allowed to flourish and the unsuccessful were allowed to fail. If these are measures of greatness, then America certainly was great.
But that was then.
As of Q4 2012, Forbes rated the United States as the country with the highest debt of any country in absolute terms, an estimated $14.6 trillion in general government net debt, double the debt of second-placed Japan.
And US debt has grown $10 trillion in the last decade.
The so-called Fed has created trillions of dollars in fiat currency, and no one really knows what the final numbers are because this privately run bank, which controls the US is not audited.
This fact was lamented by Alex J. Pollock, president and CEO of the Federal Home Loan Bank of Chicago (1991-2004) in the Wall Street Journal – hardly a hotbed of wild-eyed conspiracy theories.
Add to this the fact that the so-called Fed is gearing up for QE4 (i.e. a fourth round of creating interest-bearing fiat currency as debt since it began bailing out the criminals and psychopaths who were behind the mortgage collapse).
Iceland on the other hand simply let its banks fail and prosecuted the criminals and psychopaths.
As Bloomberg reports, this happy isle is finding crisis-management decisions made half a decade ago, have put it on a trajectory that have turned 2 percent unemployment into a realistic goal.
So from where I’m standing, if American values are the arbiter of greatness, Iceland is the greatest nation on earth right now.
The national Debt Clock is seen in New York. © Andrew Kelly

5. I am a ‘pro-Russia’ propagandist

I don’t accept this. And I know whereof I speak. I lived in Russia for over 15 years. I learnt Russian in my twenties and speak it fluently.
I have seen Russia from the inside – the good, the bad and the ugly. I know Russia in ways few foreigners are likely to. Believe me: there is plenty wrong with Russia.
But there is plenty right with it – and it does not make me a propagandist to say so.
And it is Russia and not America, which has the moral high ground on the world stage right now – a fact which many in America acknowledge.
For example, Putin has operated within international law regarding Syria, and has moved decisively to put paid to Islamic State – a move which almost everyone but the US and Israel applauded.
And it is Russia and not America which has stood up to defend at least some normative aspects of decency to protect minors from the onslaught of indoctrination into what – at least by any scriptural measure – is rank immorality, no matter how packaged and presented as tolerance and virtue.
But it was America – not Russia – which in recent years has been the cause of crisis across the world, destroying country after country as per the PNAC plan, a plan which anticipated – in fact bemoaned the lack of – an event such as a new Pearl Harbour.
One year later they got just such an event: 9/11.
How lucky can you be?
So something is very rotten in the US. It has over-extended itself militarily. It is belligerent, arrogant, and hypocritical beyond words. It is corrupt, bankrupt and sick.
What I am saying is that since its underlying health is so eviscerated, when what comes to all, comes to the US – and the right detonator is triggered – its end will be explosive.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.

'America is a bomb waiting to explode'

Sam Gerrans
Sam Gerrans is an English writer, translator, support counselor and activist. He also has professional backgrounds in media, strategic communications and technology. He is driven by commitment to ultimate meaning, and focused on authentic approaches to revelation and realpolitik. He is the founder of Quranite.com – where the Qur’an is explored on the basis of reason rather than tradition – and offers both individual language training and personal support and counseling online at SkypeTalking.com.
© Carlo Allegri
The United States is in decline. While not all major shocks to the system will be devastating, when the right one comes along, the outcome may be dramatic.
Not all explosives are the same. We all know you have to be careful with dynamite. Best to handle it gently and not smoke while you’re around it.
Semtex is different. You can drop it. You can throw it. You can put it in the fire. Nothing will happen. Nothing until you put the right detonator in it, that is.
To me, the US – and most of the supposedly free West – increasingly looks like a truck being systematically filled with Semtex.

But it’s easy to counter cries of alarm with the fact that the truck is stable – because it’s true: you can hurl more boxes into the back without any real danger. Absent the right detonator, it is no more dangerous than a truckload of mayonnaise.
But add the right detonator and you’re just one click away from complete devastation.
We can see how fragile the U.S. is now by considering just four tendencies.

1. Destruction of farms and reliable food source

The average American is a long way from food when the shops are closed.
The Washington Post reports that the number of farms in the country has fallen by some 4 million from more than 6 million in 1935 to roughly 2 million in 2012.
And according to the College of Agriculture & Life Sciences, only about 2 percent of the US population live on farms.
That means that around 4.6 million people currently have the means to feed themselves.
Food supply logistics are extended, sometimes stretching thousands of miles. The shops have nothing more than a few days’ stock. A simple break in that supply line would clear the shops out in days.
© Stephen Lam

2. Weak economic system

The American economic system is little more than froth.
The US currency came off the gold standard in 1933 and severed any link with gold in 1971. Since then, the currency has been essentially linked to oil, the value of which has been protected and held together by wars.
The whole world has had enough of the US and its hubris – not least the people of the US themselves, which the massive support currently for Putin’s decision to deal with ISIS demonstrates.
Since pro-active war is what keeps the US going, if it loses the monopoly on that front, its decline is inevitable.
Fiat economies always collapse. They last on average for 37 years. By that metric the US should have already run out of gas.
Once people wake up and smell the Yuan, the Exodus out of the dollar will be unstoppable.
© Brendan McDermid

3. Americans increasingly on mind-altering drugs

According to the Scientific American, use of antidepressants among the US population was up 400 percent in the late 2000s over the 1990s. Many of these drugs are selective serotonin reuptake inhibitors.
These are the type of FDA-approved narcotics lone gunmen are frequently associated with, and their psychoses often attributed to a forced or sudden withdrawal from such drugs.
Pharmaceuticals are produced at centralized points by companies which themselves rely on extended logistics systems both to produce and to deliver their output. If the logistics system fails, there’s no more supply.

4. Morals in decline

During the objective hardship of the 1930s, there was surprisingly little crime. People were brought up with a conception of morals and right and wrong. Frugality and prudence were prized virtues. Communities were generally fairly cohesive.
Relative to then, society today is undisciplined, unrealistic and selfish.
Around 250 million shoppers participated in the Black Friday sales in 2013 in which around USD 61 billion was spent on consumer items – up roughly 100 percent on 2006 figures.
Stampedes and even murders are not uncommon each year with people openly fighting each other over reduced-price items.
The goods bought in such sales tend to be non-essential and many of them are bought on credit cards which then have to be paid off at interest.
Part of the problem in what I have outlined above is that there is little explicit tension. Sure, it is depressing, vulgar and immoral. But it doesn’t look catastrophic. It looks normal.
My point is that just because US – and many other countries organised after the same template – do not look explosive, doesn’t mean they won’t blow up.
Whereas 80 years ago we could absorb major shocks, today we cannot.
© Mario Anzuoni

Nowhere to run

In the past, people were in rural communities. They could grow food. They had real communities. They also had self-control and a conception of morality.
Today, if the supply lines go down, you are stuck in a house you can’t heat surrounded by millions of FDA-approved drug addicts who are going psycho because they have run out of juice and people who would murder their own grandmother to get a cut-price iPhone.
I would argue that the right shock event – or combination of shock events – will detonate the explosive.
Potential detonators happen all the time. Either they are contained or they are simply incompatible with the explosive or they don’t go off. But that doesn’t mean it’s never going to happen or that we are not sitting on a mountain of explosives.
There was one such potential detonator – which presently has not gone off – in the UK just last week.
The UK’s Independent reported Friday that experts were ‘staggered’ after Pauline Cafferkey – who had been brought to London of all places – rapidly declined after being declared cured from Ebola.
This woman had been allowed out into the community – still sick with Ebola – and managed to visited Mossneuk Primary School in East Kilbride, South Lanarkshire, on Monday to thank children for their fund-raising efforts.
We will assume these events have their origins in incompetence; the fact is: we have a woman dying from Ebola in the UK’s largest population center.
What if there is more incompetence?
Boris Johnson, the current Mayor of London, primed the British public for the possibility of Ebola in London just last week.
Perhaps he knows something we don’t.
What do you think will happen if people start dying from Ebola in London or New York? The natural response will be to get out of the urban centre as quickly as possible.
© Eddie Keogh
During the Great Plague of London of 1665, for example, Defoe wrote "Nothing was to be seen but wagons and carts, with goods, women, servants, children, coaches filled with people of the better sort, and horsemen attending them, and all hurrying away".
Once the better off city people reach the countryside there will be instant resistance from the host population, not least because they will not want potentially infected people entering their communities.
Meanwhile, the poor people who are left in the cities will run out of food in short order as suppliers refuse to enter the city.
Those who fled London in 1665 had somewhere to go: they were returning to the fields that fed them.
Today, the fields which feed us are largely in other countries, and the ones which are in our own are mainly owned by large corporations.
I am not predicting exactly this scenario for the US or for any other country. I am saying that all the ingredients are there for complete breakdown and large-scale deaths given the right initiating incident.
I am saying that volatility is baked into the cake – even into the cake of what today looks and feels normal.
I am saying that while it may be possible to keep loading box upon box of societal Semtex into the truck, given the right detonator the collapse will be swift, unstoppable and devastating.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.

Wednesday, October 21, 2015

Things Are Getting Scary: Global Police, Precrime, & The War On Domestic "Extremists"

Tyler Durden's picture

http://www.zerohedge.com/news/2015-10-20/things-are-getting-scary-global-police-precrime-war-domestic-extremists
Submitted by John Whitehead via The Rutherford Institute,
If you answered yes to any of the above questions, you may be an anti-government extremist (a.k.a. domestic terrorist) in the eyes of the police.
As such, you are now viewed as a greater threat to America than ISIS or al Qaeda.
Let that sink in a moment.
If you believe in and exercise your rights under the Constitution (namely, your right to speak freely, worship freely, associate with like-minded individuals who share your political views, criticize the government, own a weapon, demand a warrant before being questioned or searched, or any other activity viewed as potentially anti-government, racist, bigoted, anarchic or sovereign), you have just been promoted to the top of the government’s terrorism watch list.
I assure you I’m not making this stuff up.
Police agencies now believe the “main terrorist threat in the United States is not from violent Muslim extremists, but from right-wing extremists.”
A New York Times editorial backs up these findings:
Law enforcement agencies around the country are training their officers to recognize signs of anti-government extremism and to exercise caution during routine traffic stops, criminal investigations and other interactions with potential extremists. “The threat is real,” says the handout from one training program sponsored by the Department of Justice. Since 2000, the handout notes, 25 law enforcement officers have been killed by right-wing extremists, who share a “fear that government will confiscate firearms” and a “belief in the approaching collapse of government and the economy.”
So what is the government doing about these so-called terrorists?
The government is going to war.
Again.
Only this time, it has declared war against so-called American “extremists.”
After decades spent waging costly, deadly and ineffective military campaigns overseas in pursuit of elusive ISIS and al Qaeda operatives and terror cells (including the recent “accidental” bombing of a Doctors Without Borders hospital in Afghanistan that left 22 patients and medical staff dead), the Obama administration has announced a campaign to focus its terror-fighting forces inwards.
Under the guise of fighting violent extremism “in all of its forms and manifestations” in cities and communities across the world, the Obama administration has agreed to partner with the United Nations to take part in its Strong Cities Network program. Funded by the State Department through 2016, after which “charities are expected to take over funding,” the cities included in the global network include New York City, Atlanta, Denver, Minneapolis, Paris, London, Montreal, Beirut and Oslo.
Working with the UN, the federal government will train local police agencies across America in how to identify, fight and prevent extremism, as well as address intolerance within their communities, using all of the resources at their disposal.
What this program is really all about, however, is community policing on a global scale.
Community policing, which relies on a “broken windows” theory of policing, calls for police to engage with the community in order to prevent local crime by interrupting or preventing minor offenses before they could snowball into bigger, more serious and perhaps violent crime. The problem with the broken windows approach is that it has led to zero tolerance policing and stop-and-frisk practices among other harsh police tactics.
When applied to the Strong Cities Network program, the objective is ostensibly to prevent violent extremism by targeting its source: racism, bigotry, hatred, intolerance, etc.
In other words, police—acting ostensibly as extensions of the United Nations—will identify, monitor and deter individuals who exhibit, express or engage in anything that could be construed as extremist.
Consider how Attorney General Loretta Lynch describes the initiative:
As residents and experts in their communities, local leaders are often best positioned to pinpoint sources of unrest and discord; best equipped to identify signs of potential danger; and best able to recognize and accommodate community cultures, traditions, sensitivities, and customs.  By creating a series of partnerships that draws on the knowledge and expertise of our local officials, we can create a more effective response to this virulent threat.
Translation: U.S. police agencies are embarking on an effort to identify and manage potential extremist “threats,” violent or otherwise, before they can become actual threats. (If you want a foretaste of how “extreme” things could get in the U.S.: new anti-terrorism measures in the U.K. require that extremists be treated like pedophiles and banned from working with youngsters and vulnerable people.)
The government’s war on extremists, of which the Strong Cities program is a part, is being sold to Americans in much the same way that the USA Patriot Act was sold to Americans: as a means of combatting terrorists who seek to destroy America.
For instance, making the case for the government’s war on domestic extremism, the Obama administration has suggested that it may require greater legal powers to combat violent attacks by lone wolves (such as “people motivated by racial and religious hatred and anti-government views” who “communicate their hatred over the Internet and through social media”).
Enter the government’s newest employee: a domestic terrorism czar.
However, as we now know, the USA Patriot Act was used as a front to advance the surveillance state, allowing the government to establish a far-reaching domestic spying program that has turned every American citizen into a criminal suspect.
Similarly, the concern with the government’s anti-extremism program is that it will, in many cases, be utilized to render otherwise lawful, nonviolent activities as potentially extremist.
Keep in mind that the government agencies involved in ferreting out American “extremists” will carry out their objectives—to identify and deter potential extremists—in concert with fusion centers (of which there are 78 nationwide, with partners in the private sector and globally), data collection agencies, behavioral scientists, corporations, social media, and community organizers and by relying on cutting-edge technology for surveillance, facial recognition, predictive policing, biometrics, and behavioral epigenetics (in which life experiences alter one’s genetic makeup).
This is pre-crime on an ideological scale and it’s been a long time coming.
For example, in 2009, the Department of Homeland Security (DHS) released two reports, one on “Rightwing Extremism,” which broadly defines rightwing extremists as individuals and groups “that are mainly antigovernment, rejecting federal authority in favor of state or local authority, or rejecting government authority entirely,” and one on “Leftwing Extremism,” which labeled environmental and animal rights activist groups as extremists.
Incredibly, both reports use the words terrorist and extremist interchangeably.
That same year, the DHS launched Operation Vigilant Eagle, which calls for surveillance of military veterans returning from Iraq and Afghanistan, characterizing them as extremists and potential domestic terrorist threats because they may be “disgruntled, disillusioned or suffering from the psychological effects of war.”
These reports indicate that for the government, anyone seen as opposing the government—whether they’re Left, Right or somewhere in between—can be labeled an extremist.
Fast forward a few years, and you have the National Defense Authorization Act (NDAA), which President Obama has continually re-upped, that allows the military to take you out of your home, lock you up with no access to friends, family or the courts if you’re seen as an extremist.
Now connect the dots, from the 2009 Extremism reports to the NDAA and the UN’s Strong Cities Network with its globalized police forces, the National Security Agency’s far-reaching surveillance networks, and fusion centers that collect and share surveillance data between local, state and federal police agencies.
Add in tens of thousands of armed, surveillance drones that will soon blanket American skies, facial recognition technology that will identify and track you wherever you go and whatever you do. And then to complete the circle, toss in the real-time crime centers being deployed in cities across the country, which will be attempting to “predict” crimes and identify criminals before they happen based on widespread surveillance, complex mathematical algorithms and prognostication programs.
Hopefully you’re getting the picture, which is how easy it is for the government to identify, label and target individuals as “extremist.”
We’re living in a scary world.
Unless we can put the brakes on this dramatic expansion and globalization of the government’s powers, we’re not going to recognize this country 20 years from now.
Frankly, as I make clear in my book Battlefield America: The War on the American People, the landscape has already shifted dramatically from what it was like 10 or 20 years ago. It’s taken less than a generation for our freedoms to be eroded and the police state structure to be erected, expanded and entrenched.
Rest assured that the government will not save us from the chains of the police state. The UN’s Strong Cities Network program will not save us. The next occupant of the White House will not save us. For that matter, anarchy and violent revolution will not save us.
If there is to be any hope of freeing ourselves, it rests—as it always has—at the local level, with you and your fellow citizens taking part in grassroots activism, which takes a trickle-up approach to governmental reform by implementing change at the local level.
Attend local city council meetings, speak up at town hall meetings, organize protests and letter-writing campaigns, employ “militant nonviolent resistance” and civil disobedience, which Martin Luther King Jr. used to great effect through the use of sit-ins, boycotts and marches.
And then, while you’re at it, urge your local governments to nullify everything the federal government does that is illegitimate, egregious or blatantly unconstitutional.
If this sounds anti-government or extremist, perhaps it is, in much the same way that King himself was considered anti-government and extremist. Recognizing that “freedom is never voluntarily given by the oppressor; it must be demanded by the oppressed,” King’s tactics—while nonviolent—were extreme by the standards of his day. 
As King noted in his 1963 “Letter from Birmingham City Jail”:
[A]s I continued to think about the matter I gradually gained a bit of satisfaction from being considered an extremist. Was not Jesus an extremist in love—“Love your enemies, bless them that curse you, pray for them that despitefully use you.” Was not Abraham Lincoln an extremist—“This nation cannot survive half slave and half free.” Was not Thomas Jefferson an extremist—“We hold these truths to be self-evident, that all men are created equal.” So the question is not whether we will be extremist but what kind of extremist will we be. Will we be extremists for hate or will we be extremists for love?
So how do you not only push back against the police state’s bureaucracy, corruption and cruelty but also launch a counterrevolution aimed at reclaiming control over the government using nonviolent means?
Take a cue from King.

Monday, August 31, 2015

The Financial Times Joins the "Ban Physical Cash" Chorus

Phoenix Capital Research's picture

http://www.zerohedge.com/news/2015-08-31/financial-times-joins-ban-physical-cash-chorus
Over the weekend, The Financial Times published an article calling for a ban on physical cash.

This is just the latest in a series of articles being promoted by the financial media proposing this concept. The arguments presented in these articles are always the same:

1)   The Central Banks are wonderful institutions that are trying to save the world.

2)   The reason Central Banks have failed to create another economic boom (despite spending $11 trillion) is NOT because they are incompetent, corrupt, and following financial models that have no connection to reality.

3)   The reason Central Banks cannot create growth is because of consumers’ unwillingness to spend money.

4)   The solution to this is to punish the stubborn consumers and FORCE them start spending more.

5)   If we outlaw cash, consumers cannot remove their money from the financial system and so will be forced to spend it eventually (most calls for a ban on physical cash also suggest a “carry tax” or making it so that physical cash loses value the longer it remains outside of the financial system).

6)   If we do this, the economy will suddenly explode with growth!

In short, it’s yet another “we need to do this for the greater good argument.” It’s interesting that other options that would actually be for the greater good are never considered (options such as auditing the Fed or demanding that the Fed follow the law), but I digress.

So why are we seeing calls for the banning of cash.

It’s because actual physical cash is a MAJOR problem for the Central Banks. The reason for this concerns the structure of the financial system. As I’ve outlined previously, that structure is as follows:

1)   The total currency (actual cash in the form of bills and coins) in the US financial system is a little over $1.36 trillion.

2)   When you include digital money sitting in short-term accounts and long-term accounts then you’re talking about roughly $10 trillion in “money” in the financial system.

3)   In contrast, the money in the US stock market (equity shares in publicly traded companies) is over $20 trillion in size.

4)   The US bond market  (money that has been lent to corporations, municipal Governments, State Governments, and the Federal Government) is almost twice this at $38 trillion.

5)   Total Credit Market Instruments (mortgages, collateralized debt obligations, junk bonds, commercial paper and other digitally-based “money” that is based on debt) is even larger $58.7 trillion.

6)   Unregulated over the counter derivatives traded between the big banks and corporations is north of $220 trillion.

When looking over these data points, the first thing that jumps out at the viewer is that the vast bulk of “money” in the system is in the form of digital loans or credit (non-physical debt).

Put another way, actual physical money or cash (as in bills or coins you can hold in your hand) comprises less than 1% of the “money” in the financial system.

As far as the Central Banks are concerned, this is a good thing because if investors/depositors were ever to try and convert even a small portion of their “wealth” into actual physical bills, the system would implode (there is simply not enough actual cash).

Indeed, this is precisely what happened in 2008 when depositors attempted to pull $500 billion out of money market funds in the span of a month.

A money market fund takes investors’ cash and plunks it into short-term highly liquid debt and credit securities. These funds are meant to offer investors a return on their cash, while being extremely liquid (meaning investors can pull their money at any time).

This works great in theory… but when $500 billion in money was being pulled (roughly 24% of the entire market) in the span of four weeks, the truth of the financial system was quickly laid bare: that digital money is not in fact safe.

To use a metaphor, when the money market fund and commercial paper markets collapsed, the oil that kept the financial system working dried up. Almost immediately, the gears of the system began to grind to a halt.

When all of this happened, the global Central Banks realized that their worst nightmare could in fact become a reality: that if a significant percentage of investors/ depositors ever tried to convert their “wealth” into cash (particularly physical cash) the whole system would implode.

As a result of this, virtually every monetary action taken by the Fed since 2008 has been devoted to forcing investors away from physical cash and into risk assets. The most obvious move was to cut interest rates to 0.25%, rendering the return on cash to almost nothing.

However, in their own ways, the various QE programs and Operation Twist have all had similar aims: to force investors away from cash, particularly physical cash.

After all, if cash returns next to nothing, anyone who doesn’t want to lose their purchasing power is forced to seek higher yields in bonds or stocks.

The Fed’s economic models predicted that by doing this, the US economy would come roaring back. The only problem is that it hasn’t. In fact, by most metrics, the US economy has flat-lined for several years now, despite the Fed having held ZIRP for 5-6 years and engaged in three rounds of QE.

As a result of this mainstream economists at CitiGroup, the German Council of Economic Experts, and bond managers at M&G have suggested doing away with cash entirely. Over the weekend, an article in the Financial Times called for it too.

The old adage says “you can lead a horse to water, but you cannot make him drink.” The Fed and other Central Banks lead the horse to the water. The horse wouldn’t drink. So now they’re talking about holding the horse’s head underwater until he does.

This is just the beginning. Indeed… we've uncovered a secret document outlining how the US Federal Reserve plans to incinerate savings.